Topic 52: Factoring/Pro-ration (And 6000 Real-time SAP Screen shots)

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Monthly Factoring and Storage (Cumul.of Gross Amount)

Multiplication of an amount (fixed quantity) by a factor (variable quantity)
Factoring is used in Payroll to determine a proportional payment for the employee for a period. (partial period calculations).

Example: Reasons which lead to a reduction in the payment for a period include the following:

• Employee being hired/leaving during the payroll period
• Unpaid absences
• Employee transferring from part time to full time work and his/her basic pay being changed accordingly
• Change in basic pay within a period
• Changes to work relationship and resulting changes to basic pay (for example, if a trainee enters a work relationship)

Use : After all the payroll elements from Master Data and Time Management and the bases for monthly factoring (pro rata reduction of monthly Wage/salary by multiplying it by a partial period factor (number between zero and one) from the personal work schedule (including absences) have been set, you can use this subschema to perform the valuation. Any pro rata payroll elements, for example, due to the fact that the employee has not worked the whole month if he/she joined or left the company or had other unpaid absences during the month, are then grouped in gross buckets for further processing. (Cumulation of gross amount) In addition to the typical task of "reduction" of the monthly wage/salary for partial periods, monthly factoring can also be used to distribute monthly lump sums and hourly rates to Cost Accounting (CO).

Structure
The schema comprises the following main steps:

1. Generation of secondary wage types /801 to /8nn for partial period factors
2. Creating partial period factors in line with specific regulations as different payroll elements are subject to different reduction regulations, there also have to be different monthly factors.
3. Calculating monthly lump-sums for Cost Accounting,
4. Evaluating salary elements, for example, multiplication of an amount (in user wage type Mnnn) by a factor (which is in the BPE field of a secondary wage type /8nn).
5. Calculating hourly rates for Cost Accounting
6. Processing standard wage maintenance (Schema XWM0)
7. Gross input and storage of the wage types no longer required during the course of further processing
8. Cumulation of gross amount and cost distribution for Cost Accounting (CO). Cost Accounting needs to know which part of the monthly wage/salary was used up for "non-work" (paid leave, paid sickness, other paid absences, public holidays) so that redistribution to other cost centers can be effected where necessary (social cost center, overheads cost center).

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For simply understanding the following steps config needed.

1. Schema: Monthly Factoring and Storage (Cumul.of Gross Amount) INTERNATIONAL

2. PCR: XPPF Determine Partial Period Factors

3. PCR: XVAL Valuate Payroll Elements using Partial Period Factors

4. Processing Class: Assign the Processing Class 10 to respective Wage type.

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Schema

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Take example of International Schema X000

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To Change or Modify

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Here the Schema

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This is the Factoring Sub-Schema: XAL9

You can copy, create new sub-schema and change as per your requirement

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Once you click and able to see



Function GEN/8 used to generate Tech wage types, WE Given 16 in PAR1 place so system will generate /801, /802..../816

If you have 3 factoring rule so give 3 : /801, /802, /803

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XPPF: Monthly Factoring and Storage (Cumul.of Gross Amount) INTERNATIONAL




Use

Personnel calculation rule XPPF is used with rules XPP0, XPPP and XPP1 to determine the correct values for partial period factors. Until now,
these values were set to '1' using function GEN/8. These rules carry out Calculation rule XPPF checks whether the employee has inactive work relationship throughout the period. If this is not the case, rule DPP0 determines whether the situation would result in a value other than '1' for the partial period factor.If this is not the case, the wage type is stored unchanged in table OT. Otherwise, the appropriate value is
determined in rule XPP1 based on attendance and absence data.


Access

Fct Par1 Par2 Par3 Par4

PIT XPPF NOAB



XVAL: Valuate Payroll Elements using Partial Period Factor




Object

Personnel calculation rule for Payroll

Use

Rule XVAL multiplies the wage type which has the specification nn (1 to 16) in processing class 10 by partial period factor /80n determined in
calculation rule XPPF.


Access

Fct Par1 Par2 Par3 Par4

PIT XVAL P10

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Here Factoring will generate

Example: Non-SAP system.

EE joined on 15.01.2007 and Basic Pay (WT1000): $10,000

So system will calculates

= [10,000*(31-15)]/31
= [10,000*16]/31
= 16,000/31
= 5161.29

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Example: SAP system.

EE joined on 15.01.2007 and Basic Pay (WT1000): $10,000

So system will calculates with help of 2 PCR's : XPPF & XVAL and assign PC10 to wage types which comes under pro-ration like Basic Pay

System will not calculates lke [10,000*(31-15)]/31
System calculates like

1. XPPF: {(31-15)*(1,00,000 Constant)}/31

2. XVAL: (10,000* XPPF Value) /(1,00,000 Constant)

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Now will know where to place both PCR's

Now we will See PCR

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As per GEN/8

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Think we have only one Rule i.e., /801

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PPPAR: Provide Partial Period Parameters

Object : Operation

Use : Operation PPPAR is a decision operation. It writes IDs to the variable key when partial period factors are calculated.

Procedure: You can specify an ID for a situation to be checked. If the situation arises, the system writes the appropriate ID to the variable key. If the
situation does not arise, the system writes the value '*'.

There are two different periods with operation PPPAR:

o Payroll periods according to table T549Q

o Partial periods of a (split) payroll result

The various IDs for the situation to be checked refer to, as a rule, either the payroll periods or the partial periods.

Note: These periods only differ if it is possible in your system to subdivide a payroll result, with subperiodic splits (for example
change in legal person), into several partial periods. If such subperiodic splits are not tolerated in your system, the two periods
match.



PPPAR R

R For inactive work relationship during the entire partial period (the employment status is either inactive or left in the entire partial period.

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If In-active it will go to R and R contains nothing.

So Rule will not process anything

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Look at R not do anything

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If not in-active means ACTIVE

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It will move to next PCR XPP0

Using Operation GUY (Use F4 to read Doc)

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Here the PCR: XPP0

Which check conditions like factoring happening because of Mid-month salary change/ Mid-month Hire/ Unpaid Absence / Termination

Which check here

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First checks Un-paid absence?

Using PPPAR U

U For unpaid absence within the period.

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If un-paid absence? it will go for U

If not it will for *

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If Un-paid absence it will for XPP1

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Other-wise it will go for *

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If it is not un-paid absence so it will check for next scenario : Basic pay change (PPPAR S)

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If Basic Pay change it will for S



S For WPBP splits in the current partial period.

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It will for to XPP1

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If this is not Basic Pay so it will got to * to check other scenario

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Now system check ENTRY IN THE MONTH (mid-Month Hire)

PPPAR E

E The operation places an E in the variable key if one of the following cases occurs:

- Entry in the current payroll period (change of employment status inactive to employment status active).
- Change in legal person on the first day of the partial period being considered.
- On the first day of the partial period being considered, an action starts that, acc. to table T530, divides the payroll result.

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Now system checks if Entry in the month so it will go to E

If not *

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If Entry in the month moves to XPP1 rule

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If not PPPAR A


A The operation places an A in the variable key if one of the following cases occurs:

- EE leaves in the current payroll period (change in employment status from active to inactive).
- Change in legal person on the first day of the following partial period.
- On the first day of the following partial period, an action begins that, acc. to table T530, divides the payroll result.

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If Termination so it will go for A

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If not *

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If it is not even Termination so rule moves to XPPP



That means that It is not Unpaid, Basic pay change, Entry in the month or not even Termination

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Now system reads XPPP

PPPAR P

P If the time unit of the payroll area is not the same as the time unit of the pay scale type and the pay scale area (table T510F).

Example: payroll is weekly, but pay scale type is monthly.

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IF yes, rule moves to XPP1

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If not it will move to *

Which contains ADDWT *

Without changing any thing just move the same value.

This is the place where if not a pro-ration it will come to this and nothing will process.



Example :

If EE joined on 01.01.2007 with Basic Pay 10,000

So system checks all scenario and comes to this rule ADDWT *

And 10,000 a it is moves to output.

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Now on each scenario rule is moving to XPP1

Where you write the real rule like (31-15)*1,00,000/31

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Here also XPP1

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Copy and make your customized Rule

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ZPP1 is the Customized PCR

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Now we will write our Rule

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Rule should base on /801...

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If you has other Rule us e /802

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Here we put the rule

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We already explain how to write PCR with using AMT, RTE, NUM

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Rule in detailed:

Planned working time measured in working hours like if every day 8 hours so for JAN = 8*21= 168

Where 21 are working days in JAN month

/801 = {(168-unpaid absence)*1,00,000}/Total working hours

If EE hired in 02.01.2007 so

/801 = {(168-8)*1,00,000}/168

= 95238.09

Where 1,00,00 is Constant maintains in V_T511K table to get accurate value after factoring.

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Read Syntax (As we teach in last topic: How to read Syntax)

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Now we need to deduct Unpaid absence from amount

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TSAU**

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TSAU**

Unpaid absence measured in working hours.

Where ** is counting Rule

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Now Multiply with constant 100000

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Use KGENAU

Where K used to read Payroll Constant from V_T511K table

And GENAU is Payroll Constant contains 1,00,000

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Here we maintain Constant in SM30

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Table V_T511K

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Select the County, so that your changes will not effect other countries

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Now we need to give Divided factor

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Here the Divider factor TSDIVI

Which is total working time measured in working hours



Please make a note TSSOLL & TSDIVI you can change as per your requirement.

Like some calculations you need one factoring and other different rule.

Like Divider Factor you can use Calendar Days for Sodexo...

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And

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Example of SAP HR special topics apart from general topics:

* Payroll & Time Schema's
* Payroll & Time PCR's (Personal Calculation Rules)
* Rates of Pay
* Factoring/Pro-ration
* Wage type Valuation
* Time Quota's & Time Types
* Time Evaluation
* Absence Valuation
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