Topic 20 : Pay Scale Structure

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Define Reason for Change

Use
Additional reason codes have been defined in the SAP Best Practices for HCM USA in order to accurately track reason for changes in employee pay. In the SAP Best Practices for HCM USA the following Basic Pay Reason Codes are delivered:

Procedure
1.Access the activity using one of the following navigation options:

IMG Path	Personnel Management ® Personnel Administration ® Payroll Data ® Basic Pay ® Define reason for change
Transaction Code	SPRO

2.On the Change View “Reason for Change ”: Overview screen, choose the New Entries ****on and enter the following values:

Reason	Description
00	No Reason
U1	Merit
U2	Cost of Living Increase
U3	Reclassification
U4	Market Adjustment
U5	Demotion
U6	Promotion

3.Choose Save.

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Go for New Entries if you want to Define New Reason for Basic pay

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Payscale Conversion for Basic Pay

Path: Personnel Management -> Personnel Administration -> Payroll Data -> Basic Pay -> Payscale Conversion for Basic Pay

Table: T546

ESGPCR	Grpg	R
1	1
1	2	2
2	0
2	1	1
2	2

In this step, you can define whether, and if so how, indirect valuation of wage types in the pay scale table should be changed for display in the Basic Pay infotype (0008).

The aim is to define a so-called reaction indicator for each grouping for the personnel calculation rule and collective agreement provisions. The reaction indicator is then used to convert the table value to a monthly or hourly value, or vice versa, depending on the specification.

Example

Convert an hourly value to a monthly value

The following groupings apply to your employee A:

§Grouping for the collective agreement provisions = 1 (industrial workers/hourly wage)
§Grouping for the personnel calculation rule = 2 (periodic payment - for example, monthly wage earners)

In this case the reaction indicator is '1'.

Convert a monthly value to an hourly value

The following groupings apply to your employee B:

§Grouping for the collective agreement provisions = 2 (industrial workers/monthly wage)

§Grouping for the personnel calculation rule = 1 (hourly wage earners)

In this case the reaction indicator is '2'.

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Pay Scale Type

Path: Personnel Management -> Personnel Administration -> Payroll Data -> Basic Pay -> Check Pay Scale Type.

Table: V_T510A

S.No	Pay scale type code	Pay scale type text
1	HP	PLANT
2	HO	Corporate Office

In this step you set up your enterprise's collective agreement types (pay scale types for short). The Basic Pay in infotype 0008 is derived from the pay scale type. By using the internal key, you can assign a fixed internal mean for evaluations to optional pay scale types.

Example

Two collective agreement types are valid - type "01" for the metal industry and "02" for your inhouse agreement.




Some more examples

Type	Description
01	Salaried exempt
02	Salaried non-exempt
03	Hourly
04	Union