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PAYROLL Complete Functional
Enterprise Structure for Wage Type Model
When your company hires new employees or transfers employees from one department to another, the system proposes wage
types in the Basic Pay infotype (0008). These default values often depend on the personnel area and/or employee
group/subgroup.
For a better understanding of the procedure, read the next step before performing this one.
In this step, you can define the key for default wage types in accordance with the above conditions.
The actual wage types are defined in the next section.
If you want to define default wage types for some, but not all, employee subgroups, group those employee subgroups with the
same default wage types with this feature. This saves you work in the next step.
Example
The Basic Pay infotype (0008) should propose the wage type "standard pay" for pay scale employees, and "non-standard
salary" for non-pay-scale employees, when you hire an employee or transfer employees to another department.
Requirements
The terms you use to default the different wage types must have been defined, for example, personnel area, employee group
and subgroup.
Your personnel areas, employee groups and subgroups must be defined.
Your wage type catalog must be defined.
You have defined the permissibility of wage types for infotypes.
You have set wage type characteristics.
You have grouped employee subgroups and personnel subareas for primary wage types.
Standard settings
The standard SAP system contains a model for the feature Planned remuneration specification (LGMST).
Recommendation
Use this model.
Read the documentation on the feature LGMST.
Activities
Define keys for default wage types.
When your company hires new employees or transfers employees from one department to another, the system proposes wage
types in the Basic Pay infotype (0008). These default values often depend on the personnel area and/or employee
group/subgroup.
For a better understanding of the procedure, read the next step before performing this one.
In this step, you can define the key for default wage types in accordance with the above conditions.
The actual wage types are defined in the next section.
If you want to define default wage types for some, but not all, employee subgroups, group those employee subgroups with the
same default wage types with this feature. This saves you work in the next step.
Example
The Basic Pay infotype (0008) should propose the wage type "standard pay" for pay scale employees, and "non-standard
salary" for non-pay-scale employees, when you hire an employee or transfer employees to another department.
Requirements
The terms you use to default the different wage types must have been defined, for example, personnel area, employee group
and subgroup.
Your personnel areas, employee groups and subgroups must be defined.
Your wage type catalog must be defined.
You have defined the permissibility of wage types for infotypes.
You have set wage type characteristics.
You have grouped employee subgroups and personnel subareas for primary wage types.
Standard settings
The standard SAP system contains a model for the feature Planned remuneration specification (LGMST).
Recommendation
Use this model.
Read the documentation on the feature LGMST.
Activities
Define keys for default wage types.
Create payroll area
In this step, you set up the payroll areas (accounting areas) that your enterprise needs. The payroll area fulfills two functions
that are necessary for payroll:
Example
You define one payroll area for salaried employees and one for industrial workers.
Requirements
Get an overview of how many payroll areas you need in your enterprise.
Standard settings
The standard SAP System contains country-specific payroll areas for the usual employee groups.
Recommendation
Determine which employee groups you want to settle separately. On the one hand, this decision depends on whether you want
to settle individual employee groups (for example, business and salaried employees) at different times, and, on the other hand,
on how detailed you want the evaluations to be with regard to the payroll area.
Activities
1. Check the standard payroll areas and create new ones if necessary.
2. Determine for every payroll area whether it may be settled.
In this step, you set up the payroll areas (accounting areas) that your enterprise needs. The payroll area fulfills two functions
that are necessary for payroll:
- It groups together personnel numbers that are to be processed on the same date.
- It determines the exact payroll period.
Example
You define one payroll area for salaried employees and one for industrial workers.
Requirements
Get an overview of how many payroll areas you need in your enterprise.
Standard settings
The standard SAP System contains country-specific payroll areas for the usual employee groups.
Recommendation
Determine which employee groups you want to settle separately. On the one hand, this decision depends on whether you want
to settle individual employee groups (for example, business and salaried employees) at different times, and, on the other hand,
on how detailed you want the evaluations to be with regard to the payroll area.
Activities
1. Check the standard payroll areas and create new ones if necessary.
2. Determine for every payroll area whether it may be settled.
Create payroll area
In this step, you can set up the required payroll areas for your enterprise. The payroll area has two functions:
Example
You would like to define one payroll area for salaried employees and one for industrial workers.
Requirements
Determine which payroll areas you require in your enterprise.
Standard settings
The SAP standard system contains country-specific payroll areas for common employee groups.
Recommendation
Determine which employee groups should be accounted in separate runs. This depends on whether you want to run
payroll for different employee groups, such as salaried employees and industrial workers, at different times, and on
how specific reporting should be for the payroll area in question.
Activities
In this step, you can set up the required payroll areas for your enterprise. The payroll area has two functions:
- It combines personnel numbers that are to be accounted in the same payroll run.
- It defines the exact date of the payroll run.
Example
You would like to define one payroll area for salaried employees and one for industrial workers.
Requirements
Determine which payroll areas you require in your enterprise.
Standard settings
The SAP standard system contains country-specific payroll areas for common employee groups.
Recommendation
Determine which employee groups should be accounted in separate runs. This depends on whether you want to run
payroll for different employee groups, such as salaried employees and industrial workers, at different times, and on
how specific reporting should be for the payroll area in question.
Activities
- 1. Check the payroll areas supplied in the standard system and add any new ones you require.
2. Assign a period parameter to each payroll area.
3. Define the payroll areas for which payroll should be run.
4. Assign different date modifiers to payroll areas that have the same period parameter but are to have
different paydays.
Create control record
In this step, you set up the system controls for the payroll control record. This control record has the following
functions in payroll:
Requirements
You must have defined the payroll areas.
Activities
1. Create a new control record for each payroll area.
2. Assign the necessary data to each of these control records.
In this step, you set up the system controls for the payroll control record. This control record has the following
functions in payroll:
- It determines the current payroll period for the exact date.
- It defines the payroll past for the retroactive accounting recognition.
- It locks the master data and the time data to prevent changes from being made during the payroll run.
- This lock is valid for the payroll past and the payroll present. Changes which affect the future can still be
made.
- It determines the earliest retroactive accounting period.
Requirements
You must have defined the payroll areas.
Activities
1. Create a new control record for each payroll area.
2. Assign the necessary data to each of these control records.
Define Period Parameters
In this step, you check the period parameters for Payroll and, if required, adjust them in accordance with your needs. You
need the period parameter to define specific payroll periods with start and end dates. If you run payroll for all employees
in the same time interval, you only require one period parameter.
Standard settings
The standard system contains entries for all the usual payroll periods for various countries.
Recommendation
Do not change the SAP period parameters.
Activities
If, in addition to the SAP period parameters, you want to define your own period parameters, make the following
settings:
1. In the Period parameters field, enter a two-character numerical key of your choice.
2. In the Description field, enter a text for the period parameter.
3. Assign a Time unit to the period parameter.
4. Define the Start date for the period parameter. You can specify a start date in the past.
5. Save your entries.
Further notes
The period parameter only specifies the frequency with which payroll is run. You define the specific duration of each
payroll period with start and end date in this section of the Implementation Guide, in the step Generate Payroll Periods.
You must create the payroll periods separately for each of the period parameters that you use in your system.
In this step, you check the period parameters for Payroll and, if required, adjust them in accordance with your needs. You
need the period parameter to define specific payroll periods with start and end dates. If you run payroll for all employees
in the same time interval, you only require one period parameter.
Standard settings
The standard system contains entries for all the usual payroll periods for various countries.
Recommendation
Do not change the SAP period parameters.
Activities
If, in addition to the SAP period parameters, you want to define your own period parameters, make the following
settings:
1. In the Period parameters field, enter a two-character numerical key of your choice.
2. In the Description field, enter a text for the period parameter.
3. Assign a Time unit to the period parameter.
4. Define the Start date for the period parameter. You can specify a start date in the past.
5. Save your entries.
Further notes
The period parameter only specifies the frequency with which payroll is run. You define the specific duration of each
payroll period with start and end date in this section of the Implementation Guide, in the step Generate Payroll Periods.
You must create the payroll periods separately for each of the period parameters that you use in your system.
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integrity. Information used on this site is at your own risk.
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Enterprise Structure for Wage Type Model
