SAP HCM - Wage Type Creation (Basic Pay Info Type 0008)

Configuration Guide

Prepared by:
Eslam Hosny (SAP Team Lead)

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Contents
Concept of Wage types ................................................................................................................... 3
Technical Structure of a Wage Type .......................................................................................... 3
Wage Type Characteristics ......................................................................................................... 3
Document Scope ............................................................................................................................. 4
Employee Subgroups for Primary Wage Types.............................................................................. 4
Personnel Subareas for Primary Wage Type .................................................................................. 5
Create Wage Type Catalog ............................................................................................................. 6
Check Wage Type Catalog ........................................................................................................... 10
Check Wage Type Text ............................................................................................................ 10
Permissibility per Info Type ..................................................................................................... 11
Check Wage Type Characteristics ............................................................................................ 12
Wage Type Permissibility for each PS and ESG Grouping ...................................................... 15

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Concept of Wage types
▪ The wage type represents the basic element in Payroll Accounting.

▪ There are two categories of wage types:

1- Primary wage types:
▪ Are dialog wage types (which are entered in master data)
▪ You can enter a wage type in the following info types:
o Basic Pay info type (0008)
o Recurring Payments and Deductions info type (0014)
o Additional Payments info type (0015)
2- Secondary Wage Types:
▪ Are technical wage types generated by the system during payroll (You do not enter
secondary wage types on-line)
▪ The system generates secondary wage types during payroll accounting or derives
them from factors and makes them available.
▪ Secondary wage types are also wage type that cumulate several wage types or
temporarily store interim results.
▪ The technical name of a secondary wage type always starts with the character /, for
example, /001
e.g.: The standard system includes the secondary wage type /101 (Total gross
amount).

Technical Structure of a Wage Type

▪ A wage type consists of the following fields:
o RTE (Rate)
o AMT (Amount)
o NUM (Number)

Wage Type Characteristics

▪ A wage type is identified by the following characteristics:
▪ Characteristics that mainly control the on-line processing (Entry in Info Types)
▪ Characteristics that determine how the wage type will be processed in Payroll
Accounting.

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Document Scope
▪ In this section we will define wage types in Basic Pay Info Type (0008)

▪ Also, we will define the wage type's reactions and characteristics when maintaining
employee data.

▪ These settings do not affect how wage types are handled in payroll.

Employee Subgroups for Primary Wage Types

▪ You can define Employee Subgroups groupings to specify which wage types may be entered
for which employee subgroups.

PATH

SPRO → Personnel Management → Personnel Administration → Payroll Data → Basic Pay

→Wage Types →Employee Subgroups for Primary Wage Type

▪ You can define up to 10 groups starts from 0 to 9.

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Personnel Subareas for Primary Wage Type
▪ You can define Personnel Subareas groupings to specify which wage types may be entered
for which personnel subareas.

PATH
SPRO → Personnel Management → Personnel Administration → Payroll Data → Basic Pay
→Wage Types →Personal Subarea for Primary Wage Type

▪ You can define up to 10 groups starts from 0 to 9.

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Create Wage Type Catalog

▪ The standard system contains model wage types configured for payroll processing.

▪ These model wage types will cover many of your company's requirements.

▪ To create your own wage types, copy the SAP model wage types to your customer’s name
range that starts with number.

▪ You can then modify the copies to suit your requirements.

▪ The model wage types are listed in the SAP wage type catalog.

Notes:
▪ Only wage types for use in info type Basic Pay (0008) are proposed in this step.
▪ Please note that any copies you make of model wage types will have the same
characteristics as the models, both for processing in dialog and in payroll.
▪ As mentioned, the following steps enable you to check and, if necessary, change the dialog
characteristics of your wage types.

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PATH

SPRO → Personnel Management → Personnel Administration → Payroll Data → Basic Pay

→Wage Types →Create Wage Type Catalog

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Test Run Flag: used for simulating the copy process to check if there are any errors or not.

Original Wage Type:

▪ In this field, you should enter the name of the original wage type that you wish to take a
copy from it.
▪ This can either be an SAP model wage type or a wage type that already exists in the
customer’s name range.

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Customizing Wage Type:
▪ In this field, you should enter the name of the new wage type that you are creating from
a copy of the original.
▪ The new wage type name must be within the customer’s name range.

Then press the Copy button to create your wage type as is the above image

You can use another option for copying multiple wage types from an original wage type:
▪ Select an Original Wage Type then press on the below button.

Then

Wage Type Starts at: In this field, enter the wage type code with which your wage type copies
should start.
Number of Wage Types: the number of wage type copies you want to create.
Increase each step: numerical interval that defines the code of the Wage types.
Example:
▪ Wage Type starts is 1022
▪ Number of wage type is 2
▪ Increase each step is 2
▪ So, the code of the new two Wage types will be 1022,1024

Then press the Copy button to create your wage type(s)

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Check Wage Type Catalog
▪ This section allows you to change the characteristics of wage types created from model
wage types.

Check Wage Type Text

▪ This section allows you to change the texts of the sample wage types you have copied to
your wage type area.

PATH

SPRO → Personnel Management → Personnel Administration → Payroll Data → Basic Pay

→Wage Types →Check Wage Type Catalog →Check Wage Type Text

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Permissibility per Info Type

▪ This section allows you to define the date on which wage types may be entered in the info
type.

Example
▪ The "Housing Allowance" wage type may only be entered up to 31.12.2020
▪ The “Monthly Salary” wage type will be used from 01.01.2021

PATH

SPRO → Personnel Management → Personnel Administration → Payroll Data → Basic Pay

→Wage Types →Check Wage Type Catalog →Check Entry Permissibility Per Info Type

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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.

PATH

SPRO → Personnel Management → Personnel Administration → Payroll Data → Basic Pay

→Wage Types →Check Wage Type Catalog →Check Wage Type Characteristics

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Double Click on the required Wage Type

Amount Section
▪ Deduction WT Indicator:
o This indicator defines a wage type as a deduction wage type.
o You can then enter both payments and deductions as positive values.
▪ Minimum Amount: Lower limit for wage type amount
▪ Maximum Amount: Upper limit for wage type amount
▪ Add to Total Indicator:
o This indicator controls whether the wage type amount is considered when the basic pay
total is displayed or not.

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Number Section
▪ Time unit: specify the unit (Days, Hours…) for wage types
▪ Minimum Number: Lower limit for wage type number
▪ Maximum Number: Upper limit for wage type number

Input Combination Section

▪ Define whether the amount and/or number/unit must be maintained for this wage type.
▪ The following entry combinations examples are possible:

Amount Number/unit Meaning

'+' '-' Amount essential, no number/unit
'-' '+' No amount, number/unit essential
'+' '.' Amount essential, number/unit optional
'.' '+' Amount optional, number/unit essential

Indirect Valuation Section: will be discussed later in another document.

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Wage Type Permissibility for each PS and ESG Grouping

▪ In previous two steps, you grouped your employee groups and subgroups and personnel
subareas for primary wage types.

▪ In this section, you can define which wage types may be entered for your groupings.

PATH

SPRO → Personnel Management → Personnel Administration → Payroll Data → Basic Pay

→Wage Types →Check Wage Type Catalog →Define Wage Type Permissibility for each PS and
ESG Grouping

Double Click on a Wage Type

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