Create SAP HR Custom Wage types

This post explains the steps to create new wage type for Basic pay Infotype(0008).Similarly we can create new
wages for others also such as recurring Deduction/payment,Additional payment,Empl remuneration info type etc.

1.Create Wage Type Catalog

IMG --> Personnel Management-->Personnel Administration-->Payroll Data -->Basic pay -->Wage Types-->Create
Wage Type Catalog
T Code :OH11
Choose Copy
2.Check wage type group Basic pay
IMG --> Personnel Management--> Personnel Administration-->Payroll Data -->Basic pay --> Wage Types--> Check wage type
group Basic pay
Select an existing wage type & give details for new custom wage type.
Choose the wage type line item & click on copy button.
3.Define employee subgroup grouping for primary wage type
IMG --> Personnel Management--> Personnel Administration-->Payroll Data -->Basic pay --> Wage Types--> Define employee
subgroup grouping for primary wage type
4.Define personnel subarea grouping for primary wage type
IMG --> Personnel Management--> Personnel Administration-->Payroll Data -->Basic pay --> Wage Types--> Define personnel
subarea grouping for primary wage type
5.Check Wage type Catalog
IMG --> Personnel Management--> Personnel Administration-->Payroll Data -->Basic pay --> Wage Types-->Check Wage type
Catalog
6.Check Wage type text
IMG --> Personnel Management--> Personnel Administration-->Payroll Data -->Basic pay --> Wage Types-->Check Wage type
Catalog-->Check Wage type text
7.Check entry permissibility per info type
IMG --> Personnel Management--> Personnel Administration-->Payroll Data -->Basic pay --> Wage Types-->Check Wage type
Catalog--> Check entry permissibility per info type
8.Define Wage Type Permissibility for each PS and ESG
IMG --> Personnel Management--> Personnel Administration-->Payroll Data -->Basic pay -->
Wage Types-->Check Wage type Catalog-->Define Wage Type Permissibility for each PS and ESG
9.Check wage type characteristics
IMG --> Personnel Management--> Personnel Administration-->Payroll Data -->Basic pay --> Wage Types-->Check Wage type
Catalog--> Check wage type characteristics

Default wage types in 0008 info type

The purpose of this blog is to provide simple step by step process for defaulting wage types in 0008 infotype. Reading the discussions in the SCN
forum, I notice just how many other consultants are experiencing problems when configuring them.
Step 1 : Maintain Planned payment specification LGMST feature.
The Planned remuneration specification feature (LGMST) determines default wage types in conjunction with control features: company code,
personnel area, personnel subarea, employee
group, employee subgroup and the subtype of the record.
The return code matrix has the following structure: XX/YYYYYYYY, which
has the following meaning:
XX
maximum number of wage types per record
YYYYYYYY forms the name for the wage type model and is read from table T539A

Once the entry is maintained , activate the feature.

Step 2 : Set up default wage types for the Basic Pay infotype (0008)
Go to path SPRO--> Personnel Management --> Personnel Administration --> Payroll Data --> Basic Pay --> Wage Types --> Revise Default Wage
Types.
This configuration is country specific. When a new infotype record is created, the value defined using the feature is offered as a default value. Which
values you receive depends on the organizational assignment of the employee.
The defaulted wage type model can be deleted if it is marked with mode 0 (optional) in the view Default wage types for basic pay (V_T539A). When
wage types are marked with mode F (fixed) this is not possible.

While I am pretty sure that most of you are aware of these things I still wanted to publish these things for the benefit of other HCM consultants who are
not aware.

Annual Salary Field in IT0008 - Configuration Guide

Annual Salary Field Configuration

Purpose:
This is a configuration guide for Annual Salary field in IT0008. In a country like US, where you can have different pay cycles (e.g. Weekly, Biweekly,
Semimonthly..), the annual salary field needs to be configured correctly in order to calculate correct annual salary from the period salary or vice-versa.

Configuration Guide:
You can find the option to configure annual salary under Personnel Management > Personnel Administration > Payroll Data > Basic Pay > Define Annual Salary.
The configuration is done in 4 steps:
Wage type for annual salary
Payment frequency for annual salary
Wage Type Characteristics
Relevant wage types for annual salary valuation
1> Define wage type for annual salary
2> Setup Payment frequency feature (Multiplier) for annual salary
3> Wage Type Characteristics
4> Relevant wage types for annual salary valuation

Step 1: Define wage type for annual salary

Here you need to define which wagetype will be used to cumulate the annual salary.
The standard wage type is ASAL, but you can use a custom wage type too.
You need to set the wagetype in feature ANSAL.
Example of feature ANSAL: Country Grouping > 10 (USA) > ASAL. This means for country grouping 10 (USA) is set to accumulate annual salary in wagetype
ASAL.

Step 2: Setup Multiplier

The period salary (Weekly or biweekly) needs to be multiplied by an appropriate multiplier for calculation of annual salary.
e.g. If monthly salary is $10000 then Annual salary should be $10000 * 12. Here 12 is the multiplier.
This multiplier can be setup through feature PFREQ. It also takes into consideration the frequency of the payroll.
Example of feature PFREQ: Country Grouping > 10 (USA) > 52/26/24/13/12/04/01/02. The multiplier corresponds to payroll frequency weekly/ fortnightly/ halfmonthly/ four-weekly/ monthly/ quarterly/ annually/ semi-annually. For four-weekly payroll the multiplier is set to 13.

Step 3: Wage Type Characteristics

Set Indirect valuation module for wagetype ASAL (Or custom wagetype) to ANSAL. Since ASAL is standard, no real configuration is needed.

Step 4: Relevant wage types for annual salary validation

This is the step where you configure indirect valuation module ANSAL for the wagetype ASAL (or custom wagetype). Here you define which wagetypes on IT0008
would contribute to ASAL (or custom wagetype).

How the annual salary config works:

Example: IT0008 is created for an US employee with bi-weekly salary (Salary WT 1000) with period salary amount $3000.
As per step 1, ASAL would be used for calculation of annual salary which inturn will use indirect evaluation module ANSAL (per step 3).
As per step 4 in the configuration, 1000 is configured as the base wage type for ASAL. so ASAL = $3000 * Multiplier.
From step 2, the multiplier selected is 26. so ASAL = $3000 * 26 = $78000. This amount will show in the annual salary field on IT0008. :)
Note: SAP can also calculate period salary from annual salary entered on IT0008. There could be difference in few cents due to rounding rules.