14/2020 Wage type concepts | SAP Blogs Community ‘Aska Question Write a Blog Post Jignya Joshi May 12,2014 4 minute read Wage type concepts Foll RSS feed Like 26 Likes 42,450 Views 15 Comments Wage Type Concepts: Wage type being the back bone of entire payroll module thought of sharing some important concepts related to wage type via this document. | hope it will help all those who are taking their first step to to become a payroll consultant ‘Types of Wage types: Wage type can be categorized into different based on the way they store information, purpose for which they are used ete. Dialogue Wage Type/Primary Wage Type vs. Technical Wage Type/Secondary. Wage Type se cookies and similar technologies to give you a better experience, improve performance, analyze traffic, and to personalize Content. By continuing to browse this website you agree to the use of cookies, For more information on how this website uses cookies, please select ‘Privacy Policy.” To opt-out of cookies, please select ‘More Information.” \ccept Cookies More Information Privacy Policy | Powered by: “TrustAre | TRUSTe sue ree hitpsiblogs sap.com/2014/05/12Wwage-type-concepte! 1s.142020 ‘Wage type concepts | SAP Blogs ‘As name suggests time wage types are wage types used to store time related information. Time wage type is link between payroll and time management. These wage types are generated during time evaluation Configuration through TS1OS or Custom PCR are two ways to generate these wage types. Dialogue wage types for which only number is available are generally time wage types. Payroll Wage Types Apart from dialogue wage types and technical wage types, wage types which are generated/calculated during payroll run can be categorised as payroll wage types, Deduction Wage Types. Deduction wage type can be defined by marking deduction wage type indicator in V_T51LWhen value is assigned to such wage types it is automatically reversed by multiplying it with -1 Elements of Wage Type Amount (AMT), Rate (RTE), Number (NUM) are different elements of wage type. Depending on wage type purpose it can have value in one, two or all fields. For Ex: Bonus pay will have only AMT and basic pay may have RTE and NUM Processing Wage types Processing Class, Cumulation Class, Evaluation class determines how wage type should be processed. These properties of wage type is defined in V_512W_D Processing Class:-Determines how a wage type should be processed during payroll run Example: If processing class 01 specification of wage type say TEST, 5 it means wage type is valuation base. Cumulation Class: Cumulation class defines how a wage type should be cumulated, Evaluation class: Value for evaluation class determines how wage type should be printed into Pay slip Wage type permissibility We use cookies and similar technologies to give you a better experience, improve performance, analyze traffic, and to personalize Content. By continuing to browse this website you agree to the use of cookies. For more information on how this website uses cookies, please select ‘Privacy Policy.” To opt-out of cookies, please select ‘More Information.” Accept Cookie More Information Privacy Policy | Powered by: “Trustare | TRUSTe hitpsiblogs sap.com/2014/05/12Wwage-type-concepte! 21814/2020 Wage type concepts | SAP Blogs Wage type model Wage type model is group of wage types which we want to get defaulted into IT0008 based on some criteria (like EG group, PSA, country, allowance grouping etc) We can group wage types in wage type model in table TS39A, Indirect evaluation The amount of wage type can be directly entered, or it may be indirectly evaluated, There are different methods available for indirect evaluation, one can give fixed amount to wage types based on allowance grouping or value for wage type can be derived from other wage types. Allowance Grouping Pay scale type, Pay scale area, group, level and ESG for CAP are grouped together in combination to form allowance grouping. LGMST is the feature which helps in defaulting wage type model to allowance grouping. Factoring In scenarios when employee has worked only for partial period or employee's data like unit, designation, salary etc. is changed in middle of period, payroll period needs to be divided into partial period in order to calculate exact pay of employee. It's called factoring/wage type split. In SAP factoring is done through partial period factors ranging from /801 to /816. Each representing different rule. Splits could be WPBP (Work Center Basic Pay split, Cost center Split (KR Split). In case of substitution during a payroll period an employee needs to be remunerated differently in such case ALP split (Split for different pay) is used. If for an employee country- specific information for tax, social insurance etc. is available then Country specific splits are used. Features and Tables Feature LGMST LGMST feature defaults wage type model. Which in turns decides which wage types should be defaulted in IT 0008, We use cookies and similar technologies to give you a better experience, improve performance, analyze traffic, and to personalize Content. By continuing to browse this website you agree to the use of cookies. For more information on how this website uses cookies, please select ‘Privacy Policy.” To opt-out of cookies, please select ‘More Information.” Accept Cookie More Information Privacy Policy | Powered by: “Trustare | TRUSTe hitpsiblogs sap.com/2014/05/12Wwage-type-concepte! ants14/2020 Wage type concepts | SAP Blogs UGMST Planned payment specificaticn IE © mores country Grouping 01 Germany 02 Switzerland 03 Auaveia 08 spain 05 Netherlands 05 France 07 Canada (09 Denmark 40 USA URBRAHRER © SUBTY subtype Bs © otherwise |e aaassteeye Grp 2 4 neste © PERSK Employee Suogroup © wo gourly otherwige 10/SALARY Wage type characteristic [V_T511] Wage type characteristics helps in determining following things. Is wage type is deduction wage type? Will wage type have amount, number/unit, both or either of them? What is maximum or minimum amount/number allowed? Modules of indirect valuation fe use cookies and similar technologies to give you a better experience, improve performance, analyze trafic, and to personalize his website you agree to the use of cookies, For more information on how this website uses cookies, To opt-out of cookies, please select “More Information.” Content. By continuing to brow please select ‘Privacy Poli More Information Privacy Policy | Powered by: “Trustare | TRUSTe hitpsiblogs sap.com/2014/05/12Wwage-type-concepte! ans14/2020 ‘Wage type concepts | SAP Blogs 9S 8B @ vaime Wage type _ eee Hoary rate ndrect valuation Indrect evalmoduie [ARIF Module variant. fy Number/unt 6 _—SSSS 5 Time leveling and time sheet 1 Basic hours a CRewritabe Maintain wage type processing classes, cumulation classes and evaluation classes [V_512W_D] We use cookies and similar technologies to give you a better experience, improve performance, analyze traffic, and to personalize Content. By continuing to browse this website you agree to the use of cookies. For more information on how this website uses cookies, please select “Privacy Policy.” To opt-out of cookies, please select “More Information.” Accept Cookies More Information Privacy Policy | Powered by: “Trustare | TRUSTe hitpsiblogs sap.com/2014/05/12Wwage-type-concepte! sits14/2020 Wage type concepts | SAP Blogs Wage Type [TARY’ Hour rate [Je DE. 180s 2. 3925 rocesing PC Name of Processing Class > Name of Spec. of Proc. Class 1 [ssonment to vahaton bares] [| wr incdedw vation ba ET nd] (Cumustion and storage of time wage .. |0) [Pass on unchanged ‘Summarize WT acc.to TX and SI petio. (Geate net remuneration and totalex..| | | | —————— [Enter wage type fom old payroll acco. (9. [Wage type wil not be transfered ‘Cumuletions & Cumustion Wage Tye ¢ 1 [Total gross Oo a 2 [401 (ey Wages o 9 ER benefit comteiintions Oo 10 lies peyments/Deductions o ilies wer forse ————S*d:C SSS EC Name of Evaluation Class EY Name of Spec. of Eval. Cass | a pian neo oaeeaam ial Reeser oer Wage type model definition/defaulting wage types in ITO008 [V_T539A] Change View "Default Wage Types for Basic Pay": Overview D emand <> Colepse New Entries (Gk Demt OE HL | Wage type model Sequence. We use cookies and similar technologies to give you a better experience, improve performance, analyze traffic, and to personalize Start Date End Date Node Wage T... Wage Tye Lona | |pensron 1 01.01.1900 31.12.9999 F hsion/Retiree P saat 2 c2.01.1990 ¢1.42.99990 1600 Gabry |surane 2 1.011900 91.12.9999 © _-Md0s pay Petod Say /sazany 2 2.01.1900 91.12.9999 7 ERY _Houtlyrate Content. By continuing to browse this website you agree to the use of cookies. For more information on how this website uses cookies, please select ‘Privacy Policy.” To opt-out of cookies, please select ‘More Information.” Privacy Policy | Powered by: “Trustare | TRUSTe hitpsiblogs sap.com/2014/05/12Wwage-type-concepte! More Information 6514/2020 Wage type concepts | SAP Blogs _ Change View "Base Wage Type Valuation": Overview Y expand <> Colapse New Entries (B fh osimt 2 A HA [Wage Tyce... N..Start Date End Date Wage Type... Percent | Banafit based ..5 01.01.1800 31.12.9999 Pay Period Sala. 100.00 * Benefitbased ..11 01.01.1800 31.12.9999 Salary 100.00 = |NGALCSRL Compensation .1. 01.01.1900 31.12.9999 Hourly Rate 100.00 | JNSAL CSA Compensstion 3 01.01.1900 31.12.9999 Pay Period Sala. 100.00 ee Compensation ..12 01.01.1900 31.12.9999 Salary 100.00 TNSALNSAL —Annualsalay(.1 01.01.1800 31.12.9999 Annual sdary 100.00 BNSALNSAL —Annualsobry(.2 01.01.1200 1 2899 100.00 saby 4 01.01.1990 31.12.9999 Sabry 100.00 Wage type permissibility for PS and ESG [V_511_B] | Change View “Permissibility of Wage Types": Details wie ee ey (pends sited ‘wage Tyee (Sano rate |_| Ger. ss-ssso|s cease Wage type permissibility for Infotype [V_T512Z] fuse cookies and similar technologies to give you a better experience, improve performance, analyze traffic, and to personalize Content. By continuing to browse this website you agree to the use of cookies. For more information on how this website uses cookies, please select ‘Privacy Policy.” To opt-out of cookies, please select ‘More Information.” More Information Privacy Policy | Powered by: “Trustare | TRUSTe hitpsiblogs sap.com/2014/05/12Wwage-type-concepte! m614/2020 Wage type concepts | SAP Blogs Table/Vew eeiaz ] estrct Data Range (= | @no Restrictions Feld Name Work area ees ‘cel {ao} OVarent Country Grouping ‘Allowad wage types for Basic Pay |_| Wage T...\Wage Type Long Text start Date End Date 200 1042-5 exemot wages ¢2.01.1900 31.12.9999 (20110425 ronexernt wages 01.01.1900 91.12, 9998 ‘/eox 1042 cfference (retro) ‘61.01.1300 31.12.9998 [eco Non-1042-S cunwiation c4.01.1900 31.12.9999 | |/eFC Total gross for FICA 01.91.1900 31.12.9999 ene Totalarount, no FICA ¢1.01.1900 31.12.9999 Jem Tax on 1042-5 wages c1.02.1900 31.12.9999 jes Total, 1042-5 taxes c2.02.1900 32.12.9999 _/20® Nonresident unpaid ¢2.01.1900 31.12.9999 | |rexm 10425 retro tox df ¢2.01.1800 31.12.9999 1200 Sabry c1.01.1900 32.12.9999 100 test bast selary 01.01.1900 31.12. 3993 3000 Stunden-Entgelt (-Gehat) 01.01.1900 31.12.9999 |s100 basic test 2.01.1900 31.12.9909 |szas BASIC SALARY ¢1.01.100 91.12.3999 Thanks & Regards, We use cookies and similar technologies to give you a better experience, improve performance, analyze traffic, and to personalize Content. 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For more information on how this website uses cookies, please select “Privacy Policy.” To opt-out of cookies, please select “More Information.” Accept Cookies More Information Privacy Policy | Powered by: “Trustare | Tauste hitpsiblogs sap.com/2014/05/12Wwage-type-concepte! ans14/2020 Alert Moderator Assigned tags HM Payroll | Related Blog Posts Yearly Bonus exemption for Garnishments /GO1 By Former Member , Jan 20, 2014 ‘SAP Payroll - Import Last Result Table (PCR ~ XO06) By Former Member , Dec 12, 2016 Get the GL Account for a given Wage Type By Former Member , Mar 21, 2016 Related Questions Newly created Customer Wage Type doesn't appear in transaction "Define Wage Type Permissibilty” and "Check Wage Type Characterist By Former Member , Aug 24, 2014 Wage Type By Former Member , May 01, 2010 We use cookies and similar technologies to give you a better experience, improve performance, analyze traffic, and to personalize Wage type concepts | SAP Blogs Content. By continuing to browse this website you agree to the use of cookies. For more information on how this website uses cookies, please select ‘Privacy Policy.” To opt-out of cookies, please select “More Information.” Privacy Policy | Powered by: “TrustAre | tnuste hitpsiblogs sap.com/2014/05/12Wwage-type-concepte! More Information 96‘12020 Wige type concepts | SAP Blogs You must be Logged on to comment or reply to a post. Q Upendra krishna May 22, 2014 at 3:49 am Jignya, ‘One word | have to comment ‘EXCELLENT; however, if you can edit the doc and elaborate the indirect valuation tab, it will be great. BR Upen ike (0) Y signya Joshi | Post author May 22, 2014 at 813 am Thanks Upendra. Point noted will edit Indirect Valuation point shortly, ‘Thanks for feed back ike (0) Q Madhava Rao Basava May 23, 2014 at 10:13 am Hi Jignya, This a good document. Hope i will see some extension to it. Because i felt there is lot more tobe added if you want to see it as a complete one. Thanks We use cookies and similar technologies to give you a better experience, improve performance, analyze traffic, and to personalize Content. By continuing to browse this website you agree to the use of cookies. For more information on how this website uses cookies, please select ‘Privacy Policy.” To opt-out of cookies, please select “More Information.” Privacy Policy | Powered by: “Trustare | TRuste hitpsiblogs sap.com/2014/05/12Wwage-type-concepte! 101614/2020 Wage type concepts | SAP Blogs ‘Thanks Madhav, For feedback Yes | know there is scope to add lot more to this document but have created this for beigneer who are looking for basics. | am planning to create document on Indirect Valuation as said by Upendra. Please let me know your suggetion detail document on which other topic relate to wage type will be beneficial. 0) gz Upendra Krishna May 23, 2014 at 1:50 am Jiignya please include that with this doc, will be handy then, else two docs to search if need arises would be cumbersome. If you are enthusiastic to help out peers then work on Valuation of Bases that is V_512W_8 and the PCRs involved and wage types effected. Thanks Upen (0) Q Madhava Rao Basava May 24, 2014 at 4:45 am Hi Jignya, You can add some wage type tools: Wage Type Reporter Wage Type Statement Payroll Journal PCOO_M99_DKON — for verifying the wage type config PC_PAYRESULT These tools would help the beginners during the config and also to verify the payroll results when the wage We use cookies and similar technologies to give you a better experience, improve performance, analyze traffic, and to personalize Content. By continuing to browse this website you agree to the use of cookies. For more information on how this website uses cookies, please select “Privacy Policy.” To opt-out of cookies, please select ‘More Information.” Accept Cookie More Information Privacy Policy | Powered by: “Trustare | TRuste hitpsiblogs sap.com/2014/05/12Wwage-type-concepte! nis14/2020 Wage type concepts | SAP Blogs Coming to the retro, you can throw some light on it. Some wage types are related to Garnishments and for ‘Taxation as well. Finally we have posting to Fl on how these wage types are posting to Fl. So its all depends on for what purpose these wage types are required. Ihave posted some documents on wage type config tool and also on India payroll end to end process (which ‘comes in 6 parts). | thought of posting similar docs on US payroll & Canada Payroll, but, due to time constraints iwas not able to. Wage Type Too! for Wage Type Configuration SAP India Payroll End to End Documentation ~ Part-I It seems that you are working for a US client. So, if possible, please compile everything in to one and submit a document so that it would be useful for everyone. Thanks Madhav. ike (0) g Upendra Krishna May 24, 2014 at 5:22 am © © A Month's project work assigned!! But yes all mentioned are well sorted in the real time world, All the Best Jignya, looking for those yummy docs. BR Upen ike (0) Q Former Member February 9, 2015 at 6:19 am i Jignya, We use cookies and similar technologies to give you a better experience, improve performance, analyze traffic, and to personalize Content. By continuing to browse this website you agree to the use of cookies. For more information on how this website uses cookies, please select ‘Privacy Policy.” To opt-out of cookies, please select “More Information.” Accept Cookies More Information Privacy Policy | Powered by: “Trustare | Tauste hitpsiblogs sap.com/2014/05/12Wwage-type-concepte! 12614/2020 Wage type concepts | SAP Blogs ‘riven Kumar Reddy. ike (0) sicahartha pari February 12, 2015 at 6:35 am Documents really good, helped me. Regards Siddhartha ike (0) Q Sriram tami April 6, 2018 at 7:54 am Hi Jignya, Very good document. this document would definitely help beginners like me Thanks Sriram ike (0) Q Former member May 30 201500 pra Jena, Good document indeed. In SAP the fand far Pavroll is wacetvnas: having said that Pavrall ctarts with wacatvne eancent navelin We use cookies and similar technologies to give you a better experience, improve performance, analyze traffic, and to personalize Content. By continuing to browse this website you agree to the use of cookies. For more information on how this website uses cookies, please select ‘Privacy Policy.” To opt-out of cookies, please select “More Information.” More Information Privacy Policy | Powered by: “Trustare | Tauste hitpsiblogs sap.com/2014/05/12Wwage-type-concepte! 13614/2020 Like (0) & Former Member July 30, 2015 at 6:04 am Nice document .... John ike (0) & Former Member June 24, 2016 at 9:50 am Excellent Document for Beginner... ike (0) Q Meenakshi cupta April 10, 2019 a 557 pm Excellent documentation Jignya. Wage type concepts | SAP Blogs have also read your blog on accrual and it was superb! | was trying to find some help for editing US payroll schema, Please let me know if you will be able to assist. | have posted my question here ~ https://answers. sap.com/questions/12662104/sap-us-payroll-schema- changes-tax-offset-for-a-wag html We use cookies and similar technologies to give you a better experience, improve performance, analyze traffic, and to personalize Content. By continuing to browse this website you agree to the use of cookies. For more information on how this website uses cookies, please select ‘Privacy Policy.” To opt-out of cookies, please select “More Information.” Privacy Policy | Powered by: “TrustAre | tnuste hitpsiblogs sap.com/2014/05/12Wwage-type-concepte! More Information 14614/2020 Wage type concepts | SAP Blogs April 26, 2019 at 5:40 am But what is wage type? everything is excellent , no words , but a layman can not understand , | prefer , an article should be even understandable by a layman. thanks Find us on Privacy Terms of Use Legal Disclosure Copyright ‘Trademark Cookie Preferences Newsletter Support We use cookies and similar technologies to give you a better experience, improve performance, analyze traffic, and to personalize Content. By continuing to browse this website you agree to the use of cookies. 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