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PAYROLL Complete Functional
Check wage type characteristics
Employee Subgroups for Primary Wage Type
This section allows you to combine employee subgroups for primary wage types, i.e. you group the employee subgroups
already named to groups.
You can use these groupings to specify which wage types may be entered for which employee subgroups.
Example
The "bonus" wage type should only be entered for 'executive' employee subgroups, of which there are two.
Both employee subgroups are assigned to grouping "9".
Requirements
Employee groups and subgroups must be defined.
Determine which wage types may be entered for which employee subgroups in your company.
Standard settings
The standard system contains groupings for primary wage types which can be used as a reference.
Activities
Assign your employee groups and subgroups to a primary wage type grouping.
This section allows you to combine employee subgroups for primary wage types, i.e. you group the employee subgroups
already named to groups.
You can use these groupings to specify which wage types may be entered for which employee subgroups.
Example
The "bonus" wage type should only be entered for 'executive' employee subgroups, of which there are two.
Both employee subgroups are assigned to grouping "9".
Requirements
Employee groups and subgroups must be defined.
Determine which wage types may be entered for which employee subgroups in your company.
Standard settings
The standard system contains groupings for primary wage types which can be used as a reference.
Activities
Assign your employee groups and subgroups to a primary wage type grouping.
Personnel Subareas for Primary Wage Type
In this section you define your personnel subareas for primary wage types, i.e. you group together the personnel subareas
you have already defined.
You can use these groupings to specify which wage types may be entered for which personnel subareas.
Example
The wage type "share of turnover" should only be entered for the personnel areas "Headquarters" and "Production".
Both personnel areas are assigned to grouping "9".
Requirements
Personnel areas and subareas must be defined.
Determine which wage types may be entered for which personnel subareas in your company.
Standard settings
The standard system contains personnel subareas for primary wage types which can be used as a reference.
Activities
Assign your personnel subareas to primary wage type groupings.
Further notes
This activity is not mandatory and should be carried out only if you want to limit the entry of wage types to certain personnel
subareas.
In this section you define your personnel subareas for primary wage types, i.e. you group together the personnel subareas
you have already defined.
You can use these groupings to specify which wage types may be entered for which personnel subareas.
Example
The wage type "share of turnover" should only be entered for the personnel areas "Headquarters" and "Production".
Both personnel areas are assigned to grouping "9".
Requirements
Personnel areas and subareas must be defined.
Determine which wage types may be entered for which personnel subareas in your company.
Standard settings
The standard system contains personnel subareas for primary wage types which can be used as a reference.
Activities
Assign your personnel subareas to primary wage type groupings.
Further notes
This activity is not mandatory and should be carried out only if you want to limit the entry of wage types to certain personnel
subareas.
Define valuation of base wage types
You may have already defined indirect valuation for certain wage types in the step " Check wage type characteristics".
Depending on which module you use for indirect valuation (see documentation on the Module name field), you need to
define additional procedures to ensure that indirect valuation functions correctly.
Example
In the Basic Pay infotype (0008), an employee has the wage types 'standard pay' and 'standard bonus'. You also want to
assign to your employee the wage type 'percentage bonus' which should be x% of the sum of the first two wage types.
You have defined the module PRZNT for the 'percentage bonus' wage type.
In this step, you must define the wage types to be used as the basis for calculating the percentage bonus.
Requirements
The wage type catalog and wage type characteristics must be defined.
Standard settings
The standard SAP R/3 System contains some models for valuating basic
wage types.
Recommendation
Read the documentation on the Module name and
Module variant fields in the section entitled "Check wage type characteristics".
Activities
1. Delete any entries that you do not need.
2. Create new entries based on your requirements and the definitions in the step "Check wage type characteristics"
You may have already defined indirect valuation for certain wage types in the step " Check wage type characteristics".
Depending on which module you use for indirect valuation (see documentation on the Module name field), you need to
define additional procedures to ensure that indirect valuation functions correctly.
Example
In the Basic Pay infotype (0008), an employee has the wage types 'standard pay' and 'standard bonus'. You also want to
assign to your employee the wage type 'percentage bonus' which should be x% of the sum of the first two wage types.
You have defined the module PRZNT for the 'percentage bonus' wage type.
In this step, you must define the wage types to be used as the basis for calculating the percentage bonus.
Requirements
The wage type catalog and wage type characteristics must be defined.
Standard settings
The standard SAP R/3 System contains some models for valuating basic
wage types.
Recommendation
Read the documentation on the Module name and
Module variant fields in the section entitled "Check wage type characteristics".
Activities
1. Delete any entries that you do not need.
2. Create new entries based on your requirements and the definitions in the step "Check wage type characteristics"
- a) Name the module that you want to use.
b) Enter the wage type you defined in the 'Check wage type characteristics' step.
c) Number the wage types which are to be used as the basis for indirect valuation.
d) Define the validity period.
e) Define base wage type(s) for indirect valuation.
f) Specify the percentage rate for weighting the base wage type.
Revise Default Wage Types
In this step, you can set up default wage types based on your internal company structure for the Basic Pay
infotype (0008) using the feature Planned remuneration specification (LGMST) defined in the previous step.
Example
You want the system to propose the wage type "standard pay" for salaried employees and industrial workers
in all personnel areas. So you assigned the key "----1DU" to these two employee subgroups in the previous
step. In this step, you determine the default wage type "standard pay" for this key.
Requirements
You have to define the LGMST feature.
Standard settings
The standard system contains a model default wage type for the LGMST feature. This model will not reflect the
situation in your company exactly.
Recommendation
Use the model as an example.
Activities
1. Delete and create entries as required.
2. For each new one, enter the return code of the LGMST feature.
In this step, you can set up default wage types based on your internal company structure for the Basic Pay
infotype (0008) using the feature Planned remuneration specification (LGMST) defined in the previous step.
Example
You want the system to propose the wage type "standard pay" for salaried employees and industrial workers
in all personnel areas. So you assigned the key "----1DU" to these two employee subgroups in the previous
step. In this step, you determine the default wage type "standard pay" for this key.
Requirements
You have to define the LGMST feature.
Standard settings
The standard system contains a model default wage type for the LGMST feature. This model will not reflect the
situation in your company exactly.
Recommendation
Use the model as an example.
Activities
1. Delete and create entries as required.
2. For each new one, enter the return code of the LGMST feature.
- a) Enter the key for the "feature for default wage types".
b) Define their validity period.
c) Assign numbers to the wage types if there are more than one.
d) Define how wage types are to be assigned by entering an indicator in the Mode field. The following
indicators are set:
- Indicator Meaning
F The wage type is assigned for basic pay and cannot
be overwritten (fixed value).
O The wage type can be entered and/or
overwritten.
BLANK No wage type entries may be made.
- e) In the Wage type field, enter the default wage type for basic pay.
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Check wage type characteristics
In this step, you define the wage type characteristics.
These characteristics describe entering of wage types and not how they behave in payroll.
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.
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
Only define wage types which can be entered in above infotypes; wage types which are generated in payroll do not need to be
defined.
In this step, you define the wage type characteristics.
These characteristics describe entering of wage types and not how they behave in payroll.
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.
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.
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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