Wage Type Processing Basic Concepts Schemas
by Steve Bogner, Managing Partner, Insight Consulting Partners
3PE6
Relationship Relationship of Payroll Driver, Schema (Functions), Rules (perations) Each country payroll version supported by SAP has a program called the "payroll driver" that calculates payrolls. For example, in the U.S., the payroll d river is RPA!U, in #exico it is $#%A!, and in anada RPA!&. Each one is di''erent, but they share a common core o' 'unctionality. (he )ob o' the payroll driver is to process payroll 'unctions as speci'ied in a payroll schema. (hese payroll 'unctions each per'orm a speci'ic )ob, 'or example * reading data 'rom in'otypes, calculating taxes, and processing +age types. Some 'unctions process payroll rules. Rules are a collection o' payroll operations. Each operation does a small unit o' +or, such as multiplying a +age type-s number by a rate to get an amount.
Functions
Rules
3PE16
3PE06
9perations 3PE16
Payroll Results 3pc2payresult6
Schemas are edited +ith transaction PE, and rules Figure ! / ! / Processing relationships +ith PE0. Functions and operations are maintained +ith transaction PE1. (o vie+ payroll results, use transaction pc2payresult 3or in earlier R45 releases go to Tools"Payroll result"Display in the Payroll menu 6. 3See Figure !.6(he !.6(he standard payroll schema 'or a country can be derived 'rom table t7l. 8' the country in table t7l has an # in the l$ %aming Conv 'ield, Conv 'ield, then the schema is &R Country 'n$icator plus plus . . 9ther+ise, it is the 'S Co$e plus Co$e plus . . So the U.S. has schema U and 'or #exico it is #%. &ea$er an$ Tale Wage Type Concept :hen calculating payroll, +age types are read 'rom in'otypes and the (ime #anagement cluster and stored in an internal table called the 8nput (able 38(6. 3See Tale !.6 !.6 8n A;AP terms, this is simply an internal table.
(able : age type
=umber
Rate
Amount
0
.
0
.
10
0.
7
1
.5
10.
Tale ! 8nput ! 8nput (able
Creating Custom Schemas an$ Rules
Author> Steve Steve ;ogner, 8nsight 8nsight onsulting Partners Partners
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Schema an$ Rule %aming Conventions ustomer modi'ied schemas and rules need to begin +ith *. #any customers simply replace the 'irst letter o' the standard schema +ith a * / i.e., their modi'ied copy o' UAP becomes ?AP. ;ut there can be problems +ith that convention. For example, you might later implement anadian payroll and need a modi'ied version o' schema &AP, but ?AP is already used 'or the U.S. For many years, 8-ve used a naming convention o' ? plus the country identi'ier and a se@uential number 'or modi'ied rules and schemas. So a modi'ied UAP +ould become ?U and a modi'ied &AP becomes ?&. +$itor Documentation ocumentation 'or the 'unction, operation, schema, and rule editors is available online at http>44help.sap.com http>44help.sap.com.. lic on SP R-. an$ R-. +nterprise and then select your release level and language. (hen navigate to the &uman Resources"&R Tools section. Tools section. F! &elp 8n the schema and rule editors, place your cursor on a 'unction or operation and press F to get help text. A schema or a rule-s documentation is available in the editor via the /oto"Documentation menu. 8n the schema editor, the F1 ey sho+s possible values 'or each o' the 'our parameters 'or +hatever 'unction is entered on that line. (he same documentation / and more / is available via transaction PDSY. Creating a Test Schema For testing purposes, it is use'ul to have a version o' the payroll schema that does not care about the control record 3transaction PA036 settings. ;ypassing the control record lets you run and save the results 'or any pay period needed, +ithout having to update the control record. (here-s no problem +ith having such a schema around, since the payroll driver does not save payroll results 'rom a schema that ignores the control record in a production system. For examples, 8 +ill sho+ you ho+ to create t+o schemas / ?UA, +hich +ill be used in production and +ill chec the control record, and ?UA(, +hich ignores the control record and is used 'or testing purposes only. First, create a copy o' SAP-s schema U8= and name it ?UA0. 8n the schema editor 3transaction PE026 enter schema U8=, and clic the copy button, or Schema"Copy in Schema"Copy in the menu. Enter ?UA0 'or the To schema. schema. (hen edit ?UA0 and mae the CHECK ABR line executable by removing the asteris in the D column. 3See Figure 0.6 line 0.6 (he $E& 'unction 'unction is commented out by SAP in the standard schema, so you uncomment it here 'or use in the main ?UA schema.
Figure 0 #aing 0 #aing the $E& A;R line executable =o+ copy the SAP*standard schema U to ?UA and comment out the initialiBation initialiBation schema U8= 3Figure 3 Figure .6. .6.
Author> Steve Steve ;ogner, 8nsight 8nsight onsulting Partners Partners
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Figure . omment out the initialiBation schema U8= 8n the schema editor, create the production schema 3don-t copy it 'rom anything6 in my example ?UA. ;e sure to chec the Schema can e e1ecute$ checbox. 3See Figure 2.6 9nly executable schemas can be entered into the payroll driver selection screen.
Figure 2 hec the Schema can e e1ecute$ checbox (he production schema ?UA is a simple one, )ust t+o lines. 3See Figure 3.6 First, you call the initialiBation schema, and then you call the main calculation schema ?UA.
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Figure 3 Schema ?UA9 opy schema ?UA to your test schema ?UA(. 3See Figure 4.6 Cou +ant ?UA( to ignore the control record, so have it use schema U8= 'or initialiBation. Remember that CHECK ABR is commented out in U8=. (here'ore, both the production and test schemas no+ use the same calculation logic in schema ?UA / +hich eeps them in sync.
Figure 4 opy schema ?UA to test schema ?UA( Cour custom rules 'or these examples +ill go in a copy o' schema UAP. opy UAP to ?UA5 and add lines 'or each o' the 'ive examples. 3See Figure 5.6 Edit schema ?UA to COPY ZUA3 instead o' COPY UAP0 3not sho+n6.
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Figure 5 Add lines 'or each o' the 'ive examples
Schema an$ Rule Documentation Creating Documentation 6ects #any customiBing ob)ects in Payroll can be documented online in SAP. (he documentation is added to a transport so that it can be migrated to each client in the development, DA, and production environments. (here are three +ays to document an ob)ect online in SAP. :hen changing schemas and rules, you can go directly to the Documentation section at the 'irst screen o' the editor. 9r, +hile editing, use the /oto"Documentation menu. Either method taes you to an editor. (he editor sho+n in Figure 7 is 'rom the Enterprise release, and the appearance and 'unctions can change 'rom one release to another. Rule ?UA has no documentation.
Author> Steve ;ogner, 8nsight onsulting Partners
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Figure 7 Editor 'rom the Enterprise release (ypical documentation might loo lie +hat is sho+n in Figure 8. Another U0 heading +as added 'or 9o$ification &istory.
Figure 8 9o$ification &istory header added
Author> Steve ;ogner, 8nsight onsulting Partners
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:hen modi'ying +age types, constants, and other data via vie+s in transaction SM30 or the 8#, clic on the blue i or 'nfo button 'or documentation. (he current documentation is brought up in display mode. lic on the edit button or press F7 to maintain it. (ransaction PDSY is a universal +ay to access all this documentation, regardless o' +here it comes 'rom.
+1pan$ing the Schema an$ Rules Report RPAS can be used to pull all the CP< schemas and rules into one list. (his is very use'ul +hen you are looing 'or certain things in the schema / 'or example, +here is +age type 9! usedG Running the report as sho+n in Figure ! lists all schemas, sub*schemas, rules, and sub*rules 'or the main schema ?UA(.
Figure ! Report 'or main schema ?UA(
Running the Payroll Driver (he payroll driver can be run a number o' di''erent +ays. From the payroll menu 'or a speci'ic country, select the Payroll"Start payroll option. 9r use transaction PC00_Mxx_CALC , +here xx is the country identi'ier 3or #9!A6. (he payroll driver can also be executed 'rom transactions SE38 and SA38. Any +ay you go, this selection screen comes up 3using U.S. payroll and the test employee as an example6. 3See Figure !!.6
Author> Steve ;ogner, 8nsight onsulting Partners
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Figure !! Payroll driver selection screen 'or the United States 8' you are using the schema ?UA 'or production payroll, the payroll period is al+ays le't at Current perio$ unless you are only running simulations, +hich tells the payroll driver to get the current pay period 'rom the payroll control record. 8' you use the test schema ?UA(, you could select ther perio$ and then enter +hatever period and year you +ant to run, and save those results 3only in a non*production system6. (he payroll area in this section is re@uired and tells the payroll driver +hich payroll area to use 'or deriving the current period, the period begin and end dates, and other payroll area*related data. (he selection section speci'ies +hich groups o' employees you include in the payroll run. (he payroll area entered here determines +hich ones are included in the payroll run. (hese payroll areas need to have the same setup as the one entered at the top o' the screen / the same period de'inition and pay dates, 'or example. eneral program control is used to tell the payroll driver ho+ to run the payroll. 9''*cycle payroll uses various reason codes, and those codes can be entered here. 8' running an o''*cycle payroll, you speci'y the type o' payroll and the date o' that payroll in the ff=cycle payroll line. (he schema line speci'ies the main schema to use 'or the calculation. 8' you +ant to 'orce a payroll run to go bac to a certain date and recalculate everything since then, that date is entered in the Force retro>accounting as of 'ield. And 'inally, there is an option 'or a test run / also no+n as a simulation run.
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Each payroll 'unction and operation has the ability to put additional diagnostic in'ormation in the payroll log. For testing payroll, it is good to have the log sho+n. 8n a production payroll, sho+ing the log 'or a +hole payroll area +ill severely a''ect system per'ormance. (he log re@uires a lot o' temporary storage and signi'icant processing resources. 8' the Display log for time management a$$itionally is selected, then you +ill be able to )ump 'rom the payroll log into the day processing 3ACPR 'unction6 part o' the gross payroll schema U(. 9ther+ise, that part o' the log is not generated. isplay variants can be created to customiBe the +ay the payroll log is displayed, and i' one has been de'ined you can select it in the Display variant for log line. Finally, the remuneration statement parameters are used to de'ine +hich, i' any, $R Form is displayed at the end o' the payroll calculation. 8' a 'orm is speci'ied here and the log is not displayed, then the payroll driver displays the results via that $R Form. 8' the log is displayed, it 'irst displays the log but also gives you a button at the top to display the $R Form.
Rea$ing the Payroll Driver ?og (he payroll log varies 'rom one release to another and 'rom one country to another. 8t can also vary 'rom one customer to another depending on ho+ the schemas +ere customiBed. For these examples, the payroll log 'ollo+s the standard schema U very closely, on the Enterprise release. 3See Figure !0.6
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Figure !0 Payroll log in Enterprise (he log tells you that one employee +as selected, and one employee +as success'ully calculated. (he number o' periods calculated may be more than the number o' employees, since it counts the current and retrocalculated periods. Employees re)ected 'rom payroll +ould be counted in the Re6ecte$ line. (he payroll driver re)ects employees 'or t+o primary reasons / a lac o' basic and consistent master data, and customiBation errors. Each node can be opened to vie+ deeper levels o' processing, until you get do+n to a particular 'unction and4or rule. (o get to my example, you expand the nodes to the point sho+n in Figure !..
Figure !. Expand the nodes For the P8( 'unction and rule ?UAI, you can see the 'nput, Processing, and utput sections. (hese sections vary by 'unction and operation, but a re vital to testing and troubleshooting. 8' you double*clic the P'T 'unction, the payroll driver displays the contents o' the input, processing, and output sections together in one list. 9r you can double*clic any one section to see its contents alone. !ie+ise, you can 'urther expand each section to see individual components / in this case, +age types.
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8n many o' the detailed lists, you can see t+o icons / a green plus sign +ith a do+n arro+ and a red minus sign +ith an up arro+ 3Figure !26. (hese icons control the level o' detail that is displayed in the list. lic the green plus to see more detail and the red minus to see less.
Figure !2 reen and red icons control level o' detail
@n$erstan$ing Which Wage Types re Processe$ A rule can also 'ilter +age types, or it can process all +age types. 8t can 'ilter by employee*subgroup grouping and by +age type. (his is an attribute o' the rule, and di''erent logic can be executed 'or each set o' 'iltered +age types. 8n Figure !3, you tell the editor you +ant to edit the section o' the rule that +ill process +age type ;AS 'or all employee subgroup groupings. (o see all the various +age types a rule is set up 'or, clic the overvie+ button once you are editing the rule . (he various sections can be managed by the +$it"+S /rouping Aage or time type menu path inside the rule. 8' the employee subgroup grouping or +age type are set to asteriss, then they are valid 'or all values.
Figure !3 Select the section o' the rule that +ill process +age type ;AS
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(he rule-s treatment o' +age types is also a''ected by ho+ it is called by the 'unction. (he rule gets its +age types 'rom the 'unction, so the 'unction controls +hat the rule can process. Parameter 0 has the 'ollo+ing values> •
E= / 9nly access the KLLLL- +age type section o' the rule.
•
Pxx / !ie E= but brings along the value o' the processing class Kxx-.
•
Exx / Same as Pxx except 'or evaluation classes.
•
3blan6 / Access the section o' the rule that corresponds to the current +age type
Parameter 5 can have t+o values> •
=9A; / 9nly access the KL- employee subgroup grouping section o' the rule.
•
3blan6 / Access the rule speci'ically 'or each employee subgroup grouping
(he employee subgroup grouping 'or personnel calculations rules is maintained via vie+ v2752b.
+1ample ! Calculating a C? Wage Type (he 'irst example multiplies +age type ;AS by .7 and puts the result into +age type 9!. Figure !4 sho+s the 8( be'ore rule ?UA.
Figure !4 8( be'ore rule ?UA Figure !5 sho+s the processing section 'or rule ?UA, sho+ing calculation done on +age type ;AS.
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Figure !5 Processing section 'or rule ?UA See Figure !7 'or the 8( a'ter rule ?UA +as processed, sho+ing the ne+ +age type 9! +ith the same A and AP splits as +age type ;AS, and .7 in the =U# 'ield to re'lect the percentage used in calculation.
Figure !7 8( a'ter processing o' rule ?UA
+1ample 0 = Restricting C? to Specific /roups of +mployees Rule ?UA5 sho+s ho+ to restrict 9!A based on personnel area and employee subgroup. (he calculation is the same / 7 percent o' +age type ;AS is put into +age type 9!. (he 8( is the same as rule ?UA, both be'ore and a'ter processing. (he di''erence is in the processing section 3Figure !86.
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Figure !8 Processing section 'or rule ?UA5 8' the employee is in personnel area AAF, then you loo at +hich employee subgroup they are in 39U(:P operation +ith the PERS; option6. 8' they are in employee subgroup PS, then you calculate 9!A. For employees +ho are not in personnel area AAF, or are in AAF but not employee subgroup PS, you per'orm the A:( L operation. (his copies +age type ;AS 'rom the header ro+ to the 8(. 8' you didn-t do this, that +age type +ould be dropped 'rom the payroll calculation at this point.
+1ample . = Bracete$ Calculations Flat=mount verri$e (he third example sho+s ho+ to use the A#( operation to mae decisions based on a +age type-s value. A nested decision structure is used calculate 9!A +ith various rates. 8' +age type 9! already has a value then you eep that amount instead o' doing the calculation. Since you ran out o' room in the variable ey in rule ?UA1, you brea the logic into t+o rules, calling rule ?UA7 'rom ?UA1 +hen needed. (he 8( be'ore processing is the same as in the previous examples, but the processing is signi'icantly di''erent 3Figure 06.
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Figure 0 Processing using A#( operation =otice ho+ the P8( 'unction starts +ith rule ?UA1, branches to ?UA7 and then returns. :hen +age type 9! is entered via in'otype 0, the rule-s behavior changes. (he 8( be'ore processing no+ has 9! in it 3Figure 0!6.
Figure 0! 8( +ith 9! (he processing section no+ sees 9! and simply passes it on to the outgoing 8( table 3Figure 006.
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Figure 00 9utgoing 8( table +ith 9! =otice that i' +age type 9! is entered 'or someone +ho is not in personnel area AAF and employee subgroup PS, then it +ould be paid any+ay. Rules ?UA1 and ?UA7 are processed only 'or +age type ;AS. So i' +age type 9! existed in the 8( be'ore this rule, it +ould simply be passed on to the next 'unction. (his can be restricted by customiBing vie+s v272b, v2752g and v2p2 so that 9! cannot be entered 'or this combination o' personnel areas and employee subgroups.
+1ample 2 $ard*coding amounts and +age types into rule is a bad practice. Example 1 is the same calculation logic as Example 5, but the amounts are moved into constants, and use a processing class to speci'y the 9!A +age base. (able t7, or vie+ v2t7, holds payroll constants. (hese constants are date*e''ective, and are read +ith the end*date o' the pay period being calculated. First you set up the ne+ processing class. For customer*de'ined processing classes, start +ith JJ and +or do+n. For this case, use processing class J. 8n the 8#, go to the section 'or processing and evaluation classes 3Figure 0.6.
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Figure 0. 8# section 'or processing and evaluation classes Execute the 9aintain processing classes an$ their specifications item, and create processing class 8. =ote that you can clic on the blue "iE icon to document the processing class 3Figure 026.
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Figure 02 lic on the blue "iE icon to document the processing class Select the processing class J ro+ and then double*clic on Processing class specifications. $ere is +here you de'ine each value o' processing class J 3Figure 036. Cou can also document each value. (hen go to vie+ v270+2o to set +age type ;AS processing class J e@ual to .
Figure 03 Set +age type ;AS processing class 8 e@ual to ! =o+ you create the constants in t7 3using transaction sm5 and vie+ v2t76. Each constant can be documented 3Figure 046.
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Figure 04 reating constants Rule ?UA5 also changes since you no+ have to execute a rule 'or a speci'ic processing class. Use the P8 value 'or parameter 3line !36. 3See Figure 05.6
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Figure 05 Use the P8 value 'or parameter 3line !36 :hen payroll runs, the processing section 'or rules ?UA and ?UAH loo much the same as be'ore, except you see constants and processing classes 3Figure 076.
Figure 07 Processing section 'or rules ?UA and ?UAH +ith constants and processing classes
+1ample 3 (he last example involves the handling o' +age type splits. Some o' the splits have documentation, others don-t. :hen vie+ing the R( table +ith the pc2payresult transaction 3or the isplay Results option in the (ools menu in Payroll6, select a split value +ith your cursor and then press F 'or help. (his gives you the 'ull name 'or the split indicator. Some documentation is also available in transaction PDSY, using operations E!8#8 and SP!8(. See Tale 0 'or common split indicators.
(able 0 * ommon Split 8ndicators Split indicator
!ins to table in payroll results
escription
A
=4A
(his is the ES grouping 'or the +age type, and it is matched up to an ES grouping section o' a payroll rule 'or processing
AP
:P;P
(able :P;P holds basic data 'rom in'otypes , H, and I.
Author> Steve ;ogner, 8nsight onsulting Partners
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, 0, 5 ountry*dependent
(his varies by country, but it is typically used to lin a +age type to tax authorities. 8n the U.S., split lins the +age type to a tax authority in table (A%
&oRe
ost assignment overrides can be entered 'or +age types and time data, and that override data is stored in table .
v(vn
<
(he variable assignment type 3v(6 and number 3vn6 lin a +age type to table <, and the purpose varies per country. 8n the U.S., this is the lin to a bene'it plan.
Tale 0 ommon split indicators 8n the article in the August4September 05 issue o' HR Expert , 8 gave an example o' an employee changing cost centers in the middle o' a pay period. (his causes +age type ;AS to split / allocating a certain amount to each cost center via the AP split. (he challenge, though, is to calculate 9!A 'or each split value, based on the +hole* period amount o' ;AS. (o do this, you create another +age type to hold the +hole*period amount. :hen you cumulate to that +age type / J9! / you eliminate the splits, and that is +hat causes it to store the amount 'or the +hole period. ;y using J9! and processing class J, you can no+ have multiple +age types cumulate to the 9!A +agebase, +hich is more realistic. (he other thing you did +as to move the 9! +age type 'rom in'otype 0 to in'otype 1. (his +as so that you could allocate the 9! +age type across the multiple splits. 8n'otypes di''er on ho+ they +or +ith splits. 3See Tale ..6
(able 5 / ho+ 8n'otypes 0, 7 and 1 handle splits 8n'otype
Split $andling
0
Allocates the AP split based on +hatever day it 'alls +ithin the pay period. For example, the pay period is Man to Man 5, and it splits on Man 0. So Man to Man J is AP split N , and Man 0 to Man 5 is split APN0. 8' the in'otype 0 +age type is dated Man J, it +ill be assigned to AP split O i' in'otype 0 is dated Man 0 it is assigned to AP split 0.
7
:hen read into payroll the AP split is eliminated, so its AP split is blan. For accounting and reporting purposes, it +ill be assigned to the last organiBation assignment 3table :P;P in particular6, but 'or payroll operations it is not associated +ith either split.
1
8' processing class is set to something other than Bero, then it +ill be split across the pay periods. 9ther+ise it is handled lie in'otype 7. So i' there is an AP split in the period, in'otype 1 +ill create multiple +age types in the 8( / one 'or each AP split.
Tale . $o+ in'otypes 0, 7, and 1 +or +ith splits (he behavior o' each in'otype can be customiBed in the payroll rules that are processed +hen 'unctions P0, P7, and P1 are executed. (he logic listed in (able 5 is the standard logic 'rom SAP 3'or the U.S.6 / it could be customiBed in your system. So to get 9!A in my example to +or 'or splits, 8 moved 9! to in'otype 1 and set its processing class to a . 8n this case, processing class is used to tell payroll to allocate +age types across payroll splits.
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=o+, instead o' cumulating the 9!A +age base to +age type J9!, you could cumulate it into a p ayroll variable. (his is similar to a +age type, but it is not stored in the payroll result. 8nstead o' doing ADDWT 9COL , you +ould do ADDWT&9COL . (he "" adds it to the Kvariable- table
Figure 08 ;AS +ith t+o +age types 8n the processing section o' rule ?UAI, you can see that it +as called once 'or each ;AS 3Figure .6.
Figure . Processing section o' rule ?UAI called once 'or each ;AS
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For each o' those executions, the same logic is per'ormed. First, chec to see i' the current +age type has a processing class J o' . (hen, chec to see i' the employee is in a valid personnel area and employee subgroup. 8' it passes those t+o tests, then it 'irst passes the current +age type along into the output / you don-t +ant to lose the base pay +age types. Eliminate all the splits and add the +age type to the output as J 9!. :age type J9! then has no splits 'or the +hole pay period, and holds the sum o' all +age types +hose processing class J e@uals . 3See Figure .!.6
Figure .! :age ;uilding +agetype J9! Cou can see that even though ;AS had splits, +age type J9! in the resulting 8( does not have splits, and represents the sum o' the t+o 3Figure .06.
Figure .0 8( representing the sum o' the splits
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=o+ that you have the +hole*period amount 'or the 9!A +age base, you can process 9!A 'or each o' the +age base components. Rule ?UAA is also processed 'or all +age types that have processing class J e@ual to . 8n this case, that is the t+o +age types ;AS. Each one is processed as sho+n in Figure ...
Figure .. Processing o' ;AS +age types First, set the amount e@ual to 9! to see i' there is an override 9!A amount. (he A#( operation loos 'or +age type 9! in the 8( +here the split indicators in the 8( are the same as in the header o' the 8(. So +age type ;AS is in the header +ith an AP split o' . 8t loos 'or +age type 9! +ith a split AP o' in the 8(. (his is +hy you read 9! into the 8( via in'otype 1 and processing class N . 8' the amount is e@ual to Bero, then you don-t have a 9! +age type. =o+, eliminate the splits on ;AS in the header ro+, and go loo 'or J9! in the 8(. 8' you 'ind J9!, then test the amount to see +hat +age bracet you 'it into. (hen restore the original splits and reset the amount in the header bac to the original amount / i.e., 'rom the J9! amount to the ;AS amount. =o+ you are bac to the original ;AS in the header ro+. #ultiply that amount by the 9!A rate 3constant ?R56 and create +age type 9! +ith the result. :age type 9! in this case has all the same attributes / including the split values / as +age type ;AS. So the 9!A amounts are split and allocated in the same manner as the +age types maing up the 9!A +age base 3Figure .26.
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Figure .2 9!A amounts split and allocated in the same manner as the +age types maing up the 9!A +age base. Steve ;ogner is managing partner at 8nsight onsulting Partners and has been +oring +ith SAP $R since JJ5. $e has consulted various public, private, domestic, and global companies on their SAP $R4Payroll implementationsO presented at the SAP user-s group ASUO and been 'eatured on the SyRadio =et+or program regarding SAP $R. Cou may reach Steve via email at sbognerQinsightcp.com.
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