Topic 24: Wage Type Characteristics

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Determines how a wage type is to behave online or when payroll is run.

Wage type characteristics can be subdivided as follows:

• Wage type characteristics that determine the behavior of a wage type online, for example:

• • Permissibility of entry
  • Treatment of a wage type as a payment or deduction wage type
  • Direct or indirect treatment of a wage type

• Wage type characteristics that determine the behaviour of a wage type in payroll or in the evaluation of the payroll results, for example

• • Processing classes
  • Cumulations
  • Evaluation classes

Example
You want to define a maximum wage type amount of $1000 and a minimum of $10.
The maximum wage type number may be 100, the minimum 1.
The wage type amount should not be included in the totals line of basic pay.
You must enter a wage type amount.
You should only be able to enter the number for a wage type.
You want to set certain units of time and measurement for the number.
You want to set certain units of time and measurement for the number.
Wage types should be valuated indirectly.

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Requirements
You have set up the wage type catalog and pay scales in the previous step.
You have defined your wage type catalog and compiled a list of wage type characteristics.

Standard settings
The standard system contains model wage types which you can copy to your wage type area. Copied wage types have the same characteristics as the model ones.

Recommendation
If you intend to use payroll, familiarize yourself with its functionality. You may be setting up wage types which already exist.

Activities

1. Define the validity period for wage type characteristics.
2. Define the operation indicator.
3. Define the maximum and minimum wage type amount.
4. If you want to edit a wage type for entry in the Basic Pay infotype (0008), determine whether the amount should be included in the total basic pay.
5. Define the default units of time/measurement and the minimum and maximum number.
6. Define the number/amount input combinations.
7. Define indirect valuation characteristics.

Indirect valuation is possible in the following infotypes:

Basic Pay (0008)
Recurring Payments/Deductions (0014)
Additional Payments (0015)
Wage Maintenance (0052)

8. If you want to use Time Management, define whether the wage type is a bonus or basic hourly pay.
9. Delete any unnecessary wage types.

Further notes
Only define wage types which can be entered in above infotypes; wage types which are generated in payroll do not need to be defined.

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Select your wage types

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Or you can double click on the wage type

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Here we make Wage Type Characteristics

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This your selected wage type which you going to change the characteristics

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Dates - Everyone knows how important dates are in SAP – wage types are no exception. You can hold different configuration for a wage type for specific date periods.

Click on the > symbol to see whether there are more records for different date periods.

SAP confusingly calls the start date "Start Time" and the end date "Exit". It's pretty obvious when you look at the data itself.

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Amount - Minimum and maximum values – you can specify minimum and maximum values for a wage type.

This is useful to stop input errors at source. Having meaningful values set here can prevent errors at the input stage rather than having to find them in your payroll exception reports or even at a later stage.

The difficulty most customers find that it is very hard to decide on what values to use for each instance. Our recommendation is to configure meaningful values for most of the wage types that are input manually. You might only prevent a few incorrect inputs of data, but it may well save your organisation a lot of money.

Add to total - Tick this indicator if you would like the value for this wage type to be included in the basic pay total for the employee.

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If the wage type Deduction wage type so flag it

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If you want to maintain Minimum amount to this wage type make it here.

Example

If your Wage type is Car Allowance, as the wage type tells car allowance will not be like $10 or $20 their will be some minimum that you can maintain, suppose if you enter some Rs. 5000 and End-user trying to enter less than that system will not take.

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Same for Maximum amount.

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Example

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PA30 Master data, will see how system thous error

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You must minimum 5000 but we enter 4000

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Now we enter 6000 (More than 5000)

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And result

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Input combination - This controls what values are allowed at data entry – i.e. whether you have to enter an amount or you can enter either an amount or a number with units etc.

There are 5 options for both amount and number and these are controlled separately for both. The help is very useful in these fields and won't be repeated here.



Input combination amount

Definition

Define whether the amount and/or number/unit must be maintained for this wage type.
The following entry combinations are possible:

Amount Number/unit Meaning

'X' ' X' Either amount or number/unit
'-' '-' Neither amount nor number/unit
'+' '-' Amount essential, no number/unit
'-' '+' No amount, number/unit essential
'*' '*' At least amount or number/unit
'+' '.' Amount essential, number/unit optional
'.' '+' Amount optional, number/unit essential
'+' '+' Amount essential, number/unit essential
'.' '.' Amount optional, no number/unit

Note
Please note that the contents of the Amount field are not evaluated for indirectly valuated wage types because the field is filled automatically by the R/3 System when indirect valuation occurs.

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Time Levelling and Time Sheet

Basic hours - Defines whether the wage type is a wage type for basic hours or a bonus wage type. The indicator is used for time levelling.

Can't say that we have used this very often in SAP.

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*** This step is not important and not useful one

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You can IGNORE this step

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Make BLACK (bonus wage types)

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Number / Unit

Time Unit / Measurement - This allows you to stipulate the hours, months, years, shares etc If you have stipulated that the user is to enter units on the input combination, then you should choose one of the entries from the drop down.

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Example Annual leave wage type you enter days as input.

Other example Overtime you enter hours as input.



You can create as many you can which are not in the drop down in PM -> PA.

You yourself find out.

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Minumum and Maximum Number - This is the threshold value for minimum and maximum amount which can be entered for a wage type in the Basic pay infotype (0008).

If you create or change a wage type in the Basic pay infotype (0008), the system checks the minimum value of a wage type against the created or changed value.

If the value entered in the infotype exceeds the defined minimum value for the wage type, the system issues the relevant information message.

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Same for Max. number like Overtime you can set like max. overtime hours are 10

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Indirect Valuation

Indirect Evaluation Module -You can use the indirect evaluation module to output various default values for wage types on different infotypes.

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Name of a module that valuates wage types according to certain criteria. The following descriptions of the diverse options can be used for wage types in the following infotypes:

Basic Pay (0008)
Standard Wage Maintenance (0052)
Recurring Payments/Deductions (0014)
Additional Payments (0015)

For some modules, the type of valuation depends on the specification of the module variant.
The following indirect valuation modules are available in the standard system:

• TARIF
• TAROD (only for Public Sector Germany)
• VERGL (only for Public Sector Germany)
• DIFFR (only for Public Sector Germany)
• PRZNT
• SUMME
• UNITS
• CONST
• ARBPL
• ORTSZ (only for Public Sector Germany)
• DOZUL (only for Public Sector Germany)
• SAPAC (Spain only)
• ANSAL
• CHSTD
• FCOEF
• ICOMP (Indirect valuation for Italy)
• ANTIG (Spain only)
• INVAL (India only)
• EXPAT (only for Management of Global Employees)
• BIEN (only for Public Sector Austria)
• VWDZU (only for Public Sector Austria)

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***READ F1 DOC. andOnce you done the full payroll config you change the wage type Indirect Valuation and check the results which is one of the best practice.

The most commonly used ones are as follows:

TARIF - this method valuates according to the "collective agreement group and level" specifications you enter in the IMG.

Wage types with TARIF will use the settings on the wage type and the values held in table T510 to populate the relevant value into the relevant infotype.



TARIF
Valuation according to the "collective agreement group and level" specifications you enter in the IMG step:

• Module variant 'A'

Country grouping derived from the employee's personnel area
Pay scale type from infotype 0008/0052
Pay scale area from infotype 0008/0052
Pay scale indicator derived from the employee subgroup
Pay scale group from infotype 0008/0052
Pay scale level from infotype 0008/0052
Wage type = SPACE

• Module variant 'B'

like module variant 'A' except:
Wage type = wage type to be valuated indirectly

• Module variant 'C'

like module variant 'A' except:
Pay scale level = SPACE
Wage type = wage type to be valuated indirectly

• Module variant 'D'

like modul variant 'A' except:
Pay scale group = SPACE
Pay scale level = SPACE
Wage type = wage type to be valuated indirectly

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PRZNT

This is used where you have a wage type being a constant percentage of another wage type and wish this to be shown on the infotype.

The wage type in question and the wage type that the percentage is based upon (base WT), are all held in table T539J.

Valuation according to the "basic wage type" specifications in the IMG.

Country grouping assigned to the employee master (derived from the personnel area)
MODUL = 'PRZNT'
Valuated wage type = indirectly valuated wage type

• Module variant 'B'

The basic pay is determined from the total of all basic wage type amounts entered in infotype 0008 according to the specifications in the "basic wage type valuation" step irrespective of which infotype is being valuated. Wage types in the Wage Maintenance infotype (0052) are then valuated using the wage types in the Basic Pay infotype (0008).

The value of the wage type to be valuated indirectly is calculated by multiplying the basic pay by the percentage specified for the wage type to be valuated.

• Module variant 'D'

The basic pay is determined from the total of all basic wage type amounts specified in the infotype currently being valuated according to the specifications in the "basic wage type valuation" step. The wage types in the Wage Maintenance infotype (0052) are then valuated using the wage types in the Basic Pay infotype (0008).
The value of the wage type to be valuated indirectly is calculated by multiplying the basic pay by the percentage specified for the wage type to be valuated.

• Module variant 'I'

The basic pay is determined from the total of all basic wage type amounts weighted with GWCHT according to the specifications in the "basic wage type valuation" step. All these basic wage types are valuated indirectly even if these wage types are valuated directly in the infotype.
The value of the wage type to be valuated indirectly is calculated by multiplying the basic pay by the percentage specified for the wage type to be valuated

• Module variant 'J'

Like module variant 'I' except that basic wage types are not reduced.

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'ANSAL'
This is used in table T539J for the wage types which you would like to be accumulated and shown as Annual Salary on screen 2010 on infotype 0008 – Basic Pay.

The accounted salary is converted to an annual salary or vice versa. The valid period values from table T549R Period Parameters are used to determine the payroll period frequency. You should only use this module for wage types defined as annual salary. You cannot use this module for other wage types.

Annual salary functionality is available for screen '2010' in infotype 0008 Basic Pay.

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SUMME
Very similar to the 'PRZNT' module except that the value of the wage type to be valuated indirectly is always the entire basic pay. There are different module variants, which can be viewed in more detail in the SAP help.

• Module variants 'B', 'D', 'I','J'

The 'SUMME' module corresponds to the 'PRZNT' module except that the value of the wage type to be valuated indirectly is always the entire basic pay.

• Module variant 'M'

Corresponds to the module variant 'D'. The basis wage types are valuated as unreduced.

• Module variant 'O'

Corresponds to the module variant 'I'. The basic wage types are not weighted in payroll.

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CONST

Module for constant valuation of wage types according to table T510K (V_T510K view). The module variants are either blank, M or P.

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INVAL - Indirect Evaluation Module Variant for India

There are four module variants for INVAL:

1. A - This calculates the value of the wage type as a fixed amount.
2. B - This calculates the amount as a percentage of a base wage type added to a fixed amount. More than one such amount, with same or different percentage of the base wage type, can be calculated for an INVAL wage type. In this case, the amount that will be Indirectly Evaluated will be the sum of all such calculated amounts, added to a fixed amount. For example, for the wage type M230, the different INVAL B amounts are
a) 10% of MB10
b) 30% of M220
c) Fixed amount of Rs.1000
In this case, the INVAL amount for the wage type M230 will be the sum of a, b and c.

3. C - This calculates the amount as a percentage of a base wage type subject to a maximum limit. More than one such amount, with same or different percentage of the base wage type, can be calculated for an INVAL wage type. In this case, the amount that will be Indirectly Evaluated will be the sum of all such calculated amounts, subject to a maximum limit. For example, for the wage type M230, the different INVAL C amounts are
a) 10% of MB10
b) 30% of M220
c) Limit of Rs.5000
In this case, the INVAL amount for the wage type M230 will be the sum of a and b subject to a maximum of c.

4. D - This calculates the amount as one or any combination of the following INVAL Module variants based on Basic salary slabs:
a) Fixed amount
b) Percentage of a base wage type added to a fixed amount
c) Percentage of a base wage type subject to a maximum limit
In the SAP system, INVAL D can be configured as only INVAL B or C. Once the percentage of the base wage type is calculated, the result is multiplied with a factor. This resultant amount is then added to fixed amount or is compared with a maximum limit. For example, the INVAL module variant for the wage type M210, for an employee who falls in the Basic Salary slab of Rs.10,000 - 12,000, is INVAL C. The INVAL amounts are:
a) 10% of MB10
b) 30% of M220
c) Multiplication factor of 50%
d) Limit of Rs.7000

In this case, the INVAL amount for M210 for the employee is the sum of a and b, multiplied by c and the result is subject to a maximum of d.

If you want to configure the wage type as a fixed amount for a particular slab, the wage type is configured as INVAL B. In this case, the percentage of the base wage type is multiplied with the factor of 0% and then the fixed amount added to the result. For example, the INVAL module variant for the wage type M230, for an employee who falls in the Basic Salary slab of Rs.15,000 - 25,000, is INVAL B. The INVAL amounts are:

a) 100% of MB10
b) Multiplication factor of 0%
c) Fixed amount of Rs.5000

In this case, the INVAL amount for M230 for the employee is the value of a, multiplied by b and the result added to c. In this case, the INVAL amount will be the fixed amount of Rs.5000.

Note

• For defining INVAL D, instead of using only the Basic salary to be compared with the salary slabs, you can use the user exit EXIT_SAPLHRPADINA1_006, available in the Enhancement HRINRAP5, to define additional wage types to be added to the Basic salary. The sum of all these wage types can then be compared with the salary slabs for the computation of INVAL D.
• The base wage type in case of INVAL B, C or D may be the Basic salary, the Dearness Allowance or/and any other wage type the employee is eligible for.

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Module variant for indirect evaluation


The module variant specifies the module for indirect valuation.
The following indirect valuation modules are available in the standard SAP system:

• TARIF

Module variants: A, B, C, D

• TAROD (only for Public Sector, Germany)

Module variants: A, B

• VERGL (only for Public Sector, Germany, Austria)

Module variants: A, B, C, H, I, J

• DIFFR (only for Public Sector, Germany, Austria)

Module variants: A, B, C, H, I, J

• PRZNT

Module variants: B, D, I, J

• SUMME

Module variants: B, D, I, J, M, O

• UNITS

Module variants: B, D, I, J

• CONST

Module variants: ' ', M, P

• ARBPL

• ORTSZ (only for Public Sector, Germany)

Module variants: 1, 3, 4, 5, 6, 7

• DOZUL (only for Public Sector, Germany)

Module variants: A, R, S, Z

• SAPAC (Spain only)

Module variants: D, I, J, O

• ANSAL

• CHSTD

Module variants: B, D, I, J

• FCOEF

Module variants: 1, 2, 3, ' '

• ICOMP

Module variants:

• EXPAT
  Module variants: S, H

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Reduction Method - there are a few different options here. The help documentation is fairly clear about how each method can be used.

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Rounding Type - this is either A, B, C or blank (no rounding type used). The help documentation is fairly useful.

Like if amount 15.89 if you use round up so it will become 16

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Rounding Divisor - put in here whether you wish to round to the nearest 1 pence or cent or put it 100 if you wish to round to the nearest pound or dollar etc.

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Rewritable - you tick this check box if you want to allow the users to be able to overwrite any of the number, units or amounts that have been defaulted by indirect evaluation. Don't tick if you wish to stop the user from overwriting anything.

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SAVE once you finish

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Use F8 to go to next wage type (If you select before) and F7 to go back wagetype

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That's it do for all wage types, if you don't want to maintain any minimum and Max, or Indirect valuation you can leave it.

Only need to input combination (Amount or Number, if number so give time unit)

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Hi

Hope you all with me.

Read Doc. and also check the reaction in master data.

ANY QUESTIONS?


Thanks