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SAP Payroll Wage Types Explained

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Wage type characteristics Dates

Everyone knows how important dates are in SAP wage types are no exception. You can hold different configuration for a wage type for s pecific 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.

SDS Offe rs

SAP HR Se

Overview Data Analy Quality Assu

Amount
Minimum and maximum values you can specify minimum and maximum values for a wage type. This is us eful to s top input errors at source. Having meaningful values s et 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 cus tomers find is 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.

Tutoria
Your Input

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

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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 yo u 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 wont be repeated here.

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Time Le velling and Time She et 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.

Numbe r / Unit Time Unit / Me asureme nt

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.

Minimum and Maximum Number

This is the threshold value for minimum and maximum amount which can be entered for a wage type in the Bas ic pay infotype (0008). If you create or change a wage type in the Bas ic pay infotype (0008), the sys tem 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.

Indire ct Valuation Indire ct Ev aluation Module

You can use the indirect evaluation module to output various default values for wage types on differ ent infotypes. The most commonly used features are as follows: TARIF: this method valuates according to the "collective agreement group and level" s pecifications 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.

value into the relevant infotype. There are 4 different module variants for TARIF A, B, C and D. See the SAP help for more as sistance. PRZNT: this is used where you have a wage type being a cons tant percentage of another wage type and wish this to be shown on the infotype. The wage type in ques tion and the wage type that the percentage is based upon (base WT), are all held in table T539J. ANSAL: this is used in table T539J for the wage types which you would like to be accumulated and s hown as Annual Salary on screen 2010 on infotype 0008 Bas ic Pay. SUMME: very similar to the 'PRZNT' module except that the value of the wage type to be evaluated indirectly is always the entire basic pay. There are different module variants, which can be viewed in more detail in the SAP help. CONST: Module for constant valuation of wage types according to table T510K (V_T510K view). The module variants are either blank, M or P. Module Variant there are different module variants based on the different methods chosen. Please look at the SAP help using the F1 key. There are too many to lis t on this page. The help is not very detailed in thi s area but fortunately there are other helpful documents within SAP in other areas. The best thing is to just have a go. If you are still stuck, then there are the traditional SAP help sites on the Web. Reduction Method there are a few different options here. The help documentation is fairly clear about how each method can be used. Rounding Type this is either A, B, C or blank (no rounding type used). The help documentation is fairly useful. Rounding Divisor put in here whether you wish to round to the nearest 1 pence or cent or put it 100 if you wis h to round to the nearest pound or dollar etc. Rewritable you tick this checkbox 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. Dont tick if you wish to stop the us er fro m overwriting anything.

Pe rmissibility of wage types

This functionality is really useful if you wish to exclude users from using any wage types for a particular set of employees. For example you may have pensioners in your organisation who could only ever have 2 particular wage types. Configure your sys tem so that they are in a particular employee subgroup grouping or personne l subarea grouping.

Employe e Subgroup groupings

This gives you the flexibility of allowing only certain groups of employee subgroups to be ass igned certain wage types. The functionality used here means that you need to bear this in mind when determining what your empl oyee subgroups are in your organis ation.

Pe rsonnel Subarea groupings

This gives you the flexibility of allowing only certain groups of personnel subareas to be assigned certain wage types. The functionality used here means that you need to bear this in mind when determining what your pers onnel subareas are in your organis ation. For each wage type in the table holding the permissibility of wage types (T511), you will see opti ons to enter values under ESG groupings and PSA groupings. The values start from 0 to 9 which means that you have 10 pos sible ESG and PSA groupings . The options are either blank (wage type not permis sible), 1 (wage type is permiss ible) or 2 (wage type is permiss ible with a warning being generated). You need to have a 1 in both the ESG and PSA grouping for an employees grouping for the employee to be allowed to use that particular wage type.

Direct ve rse s Indire ct Ev aluation Wage type defaults Wage type constants
Wage type cons tants can be held in various different tables. Table T511K is used to hold payroll constants which are us ed during the processing of payroll. These wont be seen on an employees record on the master data, but will get called during the payroll proces sing and used in the calculations. Table T511P is also us ed to hold payroll cons tants used during payroll processing. Traditionally the difference related to T511K being used to hold amounts us ed as multipliers in payroll calculations and T511P was us ed for specific values brought in to the calculations. These days there is is not such a defined difference. Cons tants from T511P are called with the prefix P in payroll PCR's, thos e from T511K are called with the prefix K. Table T539J is used in indirect evaluation in combination with the module chosen in the wage type characteristics held in table T511 for the wage type. Remember to check that you are using the same module in both tables this will happen to you at some point. Table T510J can be us ed for assigning a particular cons tant to a wage type. Using this table, the am ount is not pulled into the employees record. The value gets called when you actually process payroll for the employee.

into the employees record. The value gets called when you actually process payroll for the employee. Table T510K can be used as well for wage types being assigned a constant where the indirect valuation in table T511 for the wage type is set to CONST.

Proce ssing classes

Proces sing class es are used during payroll calculations. There are numerous processing classes and the principal ones s hould be known to you as a payroll cons ultant. Look at the SAP s tandard wage types s tarting wi th a letter to see which processing class es have been ass igned in thos e wage types to get an idea of the most important ones. The table which holds these items is V_512W_D.

Ev aluation classes
Evaluation clas ses are us ed post-process ing of payroll. Take a look at the SAP standard wage types to see the most important evaluation classes. The table which holds these items is V_512W_D.

Cumulation classes
Cumulation class es are us ed in payroll processing. In simple terms they can be likened to buckets wh ich amounts are added to. Each cumulation class corres ponds to a s pecific technical wage type. The technical wage type is always a value of 100 more than the cumulation class. The cumulation class 1 (total gross ) gets processed during payroll as /101. The cumulation class 11 (pens ionable pay) gets processed during payroll as /111.

Creating ne w wage types

Remember that when creating a new wage type it is always better to copy an existing wage type which is very similar in characteristics to your new wage type. Us ing this method, will ensure that all the relevant table entries will get copied as well.

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