Wage Type Structure

Contents:

Wage type catalog

Employee subgroup and personnel subgroup groupings
Permissibility of wage types
Wage type characteristics
Default wage type
Indirect valuation
Wage Type Structure: Unit Objective

..
At the conclusion of this unit, you will
. understand:
The payment structure and dialog wage types in the SAP
System

The control indicators that are used to determine who the

wage type can be assigned to, when it can be assigned
and how often

The feature that is used to default the wage types on the

Basic Pay infotype based on the employees
organizational assignment.

Different types of indirect valuation

Employees Payment and Deductions

Additional Payments

Recurring Payments
and Deductions

Basic Pay

Wage Types

Payroll
Setting Up Wage Types

1 st Step Dialog characteristics

How wage types behave when they are entered into
infotypes..
Modifications required to meet customer specific
requirement.

2 nd Step Wage type valuation

Processing in payroll.
Modifications required to meet customer specific
requirements.

Payroll
Wage types are processed according to set of rules
assigned to the wage type valuation.
The payroll Driver is told how to process the wage
type based on the characteristics assigned to it.
The Payment Structures Dialog Characteristics
in the SAP System

List of wage type : Personal Management

Personal Administration
Payroll Date
Standard pay and bonus pay.
Basic Pay (Example)
Standard pay
Wage Types
Non- pay scale salary.
Creating a Wage Type Catalog
Vacation allowance.
Christmas bonus.
Special payments. Check Wage Type Group Basic Pay

Check Wage type Catalog

Additional wage types for the
Employee Subgroup for Primary
production plant in Hamburg Wage type

Hourly wage and bonus

Personal Sub areas for Primary
Bonus related to work center
Wage type
.Overtime 50%
Clothing allowance
Define Wage Structure for Wage
Dirty work bonus type Model
Overview- Dialog Characteristics

How often?
How/ Once /
Direct/ Indirect more than once?
Valuation ? Where?
Basic pay / EE
remun. info

To Whom?
Industrial workers/
salaried EEs?

Wage Types
SAP - Model Wage Type Catalog
SAP standard system
Copy
Catalog containing to
model wage types to
used as examples by
customers
Start with letters
(MXXX, MYYY ...)
Productive system
Customer wage types
with company - specific
characteristics
Must always start with a
number
(1010. 1020, 1030, ...)
Creating a Wage Type Catalog
Choose a maintenance method:
Copy - sample wage types to customer wage type
Delete - customer wage type
Completeness check - do they exist in wage type valuation?

Wage type group 0080 Basic Pay

Sample Customer
Wage type Wage type text Wage type Wage type text
MXXX Standard pay 1010 Standard pay
MYYY Standard Bonus 1020 Bonus customer

Wage type characteristics

Wage type group Sample
Wage type Wage type text
Sample MXXX Standard pay
Permissibility of wage types
Wage type Wage type text MYYY Standard Bonus Sample
MXXX Standard pay Sample Wage type Wage type text
MYYY Standard Bonus Wage type Wage type text MXXX Standard pay
Sample MXXX Standard pay MYYY Standard Bonus
Wage type Wage type text MYYY Standard Bonus Sample
MXXX Standard pay Wage type Wage type text
MYYY Standard Bonus MXXX Standard pay
MYYY Standard Bonus
Checking the Individual Steps of the Copy Procedure

Use customizing to check

the wage types that have
been copied
Using wage Type Groups (Example)

Wage type Group Wage type Group

Assignment of wage type to wage group Assignment of wage type to wage group

Wage type Wage type text Wage type Wage type text

1010 Standard pay 1010 Standard pay

1020 Standard Bonus 1020 Standard Bonus

Wage Type valuation

Local view for Assignment to valuation Wage type is

Processing classes basis included in

Create logical view for Valuation basis Statement

Valuation basis wage type
remove
Defining Wage Type Permissibility for Infotypes

Basic Pay Membership Fees

(0008) (0057)

Recruitment
Additional Payments
Payments /
(0015)
Deductions (0014)

Leave EE Remuneration
Compensation Info
(0083) (2010)
Wage Type Permissibility for Several infotypes

Recurring Payments /
Deductions (0014)
Union
contribution Additional Payments Performance
(0015) bonus

Membership Fees
(0057)
Input Frequency for Wage Type in infotypes

Wage type can be entered once Wage type can be entered more
per payroll period than per payroll period

Payroll period 01

Additional Payments Voluntary

Car allowance (0015) special payments

Membership Fees Voluntary

(0057) special payments
Checking Wage Type Characteristics

Unit
Validity - Hours
Period ? - Day
-%?

Indirect /
Payment direct
organizational valuation ? ?
deduction ?

Minimum / Can amount be

maximum wage overwritten ?
type amount ?
Employee Grouping for Primary Wage Types

Hourly Wage
earners Hourly wage

Temporary Hourly wage bonus

personnel

Salaried
employee Standard pay

Standard pay bonus

Trainees
Personnel Sub area Groupings for Primary Wage Types

Personnel sub area 1

Wage types X

Personnel sub area 2

Personnel sub area 3

Wage types Y

Personnel sub area 4

Wage Type Permissibility for each Personnel
Sub area and Employee Subgroup

Enterprise structure Personnel structure

Personnel sub area grouping for Employee subgroup grouping
primary wage type for primary wage type

Start date End date

Wage type MXXX Standard pay 01.01.1998 31.12.9999

Employee subgroup grouping

0 1 2 3 4 5 6 7 8 9
Position

Personnel sub area

Position
0 1 2 3 4 5 6 7 8 9
Valuation of Wage Types

Direct Indirect

The administrator manually The system automatically enters

enters the wage type amount the wage type amount in
in the infotype the infotypes

Indirect valuation is not Indirect valuation is not

one of the characteristics of one of the characteristics of
these wage types these wage types
Indirect Valuation Using the Rule for Wage
Type Characteristics

Module name
specifies which fixed
valuation table is
used for
indirect valuation
Indirect Valuation

Module name
Module variant
Reduction method
Rounding type
Rounding divisor Module Variant
Controls the read
access to the table
Can be overwritten
Module for Wage Type Characteristics
(Indirect Valuation)

Wage type characteristics

TARIF PRZNT ARBPL

Pay scale SUMME Valuation using

groups and positions
levels Basic wage
type valuation

Additional Payments

Recurring Payments
and Deductions

Basic Pay
Indirect Valuation using Pay Scale Data-Module
TARIF

Pay scale groups / levels

IT008 Basic Pay

Pay scale
specifications Wage type 1

PS group
Wage type 1 ?
Module TARIF
Variant A- D
500
Conversion
possibilities
Indirect Valuation Using the TARIF Module

Pay scale groups and levels

Module Variant ESG grouping Pay scale Pay scale Wage Amount
for coll. Agree group level type
provision

Pay scale A X X (X) - X

Pay scale A X X (X) - X

Pay scale A X X - X X

Pay scale A X X - X X

Pay scale A X X - X X

X = Required entry
- = Entry must not exist
(X) = Entry can exist
Indirect Valuation for Calculating a Percentage

Wage type 2

20 %

Wage type 1 Wage type 3

30 %
100 %

50 %

Wage type 4
Base Wage Type Valuation

Base Wage Type valuation

Module WT Val Sequence Basis Percentage
PRZNT MNNN 01 MXXX 100.00
02 MYYY 100.00

SUMME MZZZ 01 MXXX 6.00

Basic Pay Basic Pay

Number Amount
MXXX MXXX
MYYY MYYY
MXXX 10 MXXX xxx.xx
Indirect Valuation Using the PRZNT Module

Base wage type valuation

IT008 Basic pay
Base Wage Type valuation
Wage type
characteristics Module WT Val Sequence Basis Percentage
IT008 Basic Pay
MXXX MNNN
MYYY Module
MZZZ PRZNT
MZZZ ? Variant
D/ 1

Conversion
possibilities
Indirect Valuation Using the SUMME Module

Base wage type valuation

IT008 Basic pay
Base Wage Type valuation
Wage type
characteristics Module WT Val Sequence Basis Weighting
IT008 Basic Pay
MXXX MZZZ Summe MZZZ 01 MXXX 6,00
MYYY Module
MZZZ SUMME
MZZZ ? Variant
D/ 1

Conversion
possibilities
Indirect Valuation Using the Positions - Module ARBPL

Fork lift truck driver

3 UNI Positions/ work centers

S Fork lift 3UNI
Wage type 1 truck driver

S electrician 1UNI

1 UNI S Roofer 5UNI

electrician

5 UNI

Roofer
Indirect Valuation: Additional Attributes

Indirect Valuation

Module name
Module variant Conversion
Reduction method possibilities
Rounding type
Rounding divisor

Can be overwritten
Default Wage Types for Basic Pay

Hourly Wage Salaried Non- pay scale

earners employee employee

Create Basic Pay Create Basic Pay Create Basic Pay

Create Basic Pay Create Basic Pay Create Basic Pay

infotype infotype infotype
1010 Standard wage 2010 Standard wage 3090 Non PS Salary
1010 Standard bonus 2010 Standard bonus
Define Wage Type Models

10001 Organizational Assignment

Decision tree LGMST

Wage Type Model

Default wage types

10008 Basic Pay

Create Wage type

?
Define Default Wage Types

Feature
LGMST Define default wage types ?

MOLGA Which country grouping ?

PERSG 01 10 12
Which employee group ?
1 2
PERSK Which employee subgroup ?

Hourly Salaried employee

wage earner

Define default wage types for basic pay

Salaried employee 1010
Salaried employee 1010