To compensate overtime, you can decide whether the overtime hours are to be remunerated or compensated with time in lieu. There are different options for compensation:
Remuneration
Time off for basic hours, bonuses are remunerated
Time off
You specify the type of compensation for each wage type. You can use the overtime compensation type in the Attendance Quotas (2007) and Attendances (2002) infotypes to control overtime compensation for individual employees and periods.
The POVT function processes the overtime wage types consecutively in the specified personnel calculation rule. Processing type 17 determines how the wage type is processed. Specifications D-F of the processing class allow time evaluation to take account of the overtime compensation type from the infotypes. If no overtime compensation types are specified, processing follows specifications A-C.
In the TC40 personnel calculation rule, specifications A to F of processing class 17 are interpreted as described in the documentation. The factor for compensating overtime is determined from the total of the percentage rates stored for the overtime wage type and the derived wage types in the Wage Type Valuation view (V_512W_B).
For more information, see:
The Implementation Guide for Personnel Time Management and choose Time Evaluation→Time Evaluation With Clock Times→Time Wage Type Selection and Overtime Compensation→Compensate Overtime.
The documentation for processing class 17
Balances and time wage types can also be formed or changed in personnel calculation rules:
Time wage types using the ADDZL/ADDOT operation
Balances using the ADDDB operation