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Author's profile photo Trong Minh (Woody) Nguyen

Relationship Time Evaluation and Payroll

I. Relationship

     In International Payroll, as you may know, technical wage types are very important, such as: /801, /802, etc. These wage types contain factoring and will be multiplied with current values in wage types (inputted in PA30 Personnel Administration) and final results are employee’s salary. In order to easier understand, let’s see an example below: employee A has basic salary (wage type 1000) in IT0008 with value 1000$. And his salary is calculated by multiplying wage type 1000 with technical wage type /801. If he works full month, rate in /801 is 1, so he gets full basic salary 1000$. If he absences (unpaid or leave without pay), of course Rate in /801 is decreased (it’s lower than 1), his salary is reduced as well.

     How are they processed in SAP HCM? Yes with 3 steps below:

1. Creating infotype involving salary (IT0008, IT0014, IT0015).

2. Time Evaluation

     2.1. Run daily and calculate how many working days or absence days (store in Time Type)

     2.2. When cut-off date comes, transferring value in Time Type into Time Wage Type.

3. Payroll:

     3.1. in sub-scheme XAL9 (Monthly factoring and storage (cumul.of gross amount) INTERNATIONAL), these technical wage type /801, /802, etc will be processed.

     3.2. multiply current value wage type in IT (0008, 0014, etc) with corresponding technical wage type (configured in processing class 10) /801, 802. etc.

     Finally, relationship is still TIME WAGE TYPE and process:

Time Evaluation run -> generate Time Type -> transferring to TIME WAGE TYPE -> Payroll run -> use TIME WAGE TYPE to calculate  Technical Wage Types.

     However, today I will not explain standard schema, I will share you solution to control your scheme by yourself to fit customer’s complicated requirement. If you need understand standard schema, you can go inside schema and pressing F1 key .

II. Requirement

     In customer system there is an Absence Type – Sick Leave. Annually Sick Leave total will impact employee’s salary as below:

1 From 01 -> 15 days FULL salary
2 From 16 -> 25 days 75% salary
3 From 26 -> 35 days 50%
4 From 36 -> 45 days 25%
5 above 45 days 0%

     With this request, modifying both Time and Payroll Schema by creating PCRs is good solution

III. Solution

    As mentioned in first part, some steps need to be done:

     1. Create 1 time type to accumulate Sick Leave Yearly.

     2. Creating 4 time types to store how many Sick Leave in 16 -> 25; 26 -> 35; 36 -> 45 and above 45. We have to store into 4 different Time Types, because the percentage salary doesn’t equal for all.

     3. On the cut-off date: moving values from 4 time types into 4 Time Wage Types.

    Cut-off date in current topic is EOM End Of Month, in Understanding Relationship PT and PY it’s 25th monthly, so there is a little bit different between configuration and logic. I don’t need to carry forward value from last period to current period, and clear accumulate value in Time Type as well.

     4. In payroll schema: the values in time types will modify Technical Wage Type /801, /802, etc.

     In scope of this document, only demonstrate customizing /801.

1.Time Type Accumulated Sick Leave Yearly

     Go to V_T555A with T-code SM30 / SM31 and configure as below:

  9WSL.png  

     Active Cumulate in period balance and Transfer prev. period to store all Sick Leave in 1 year. Don’t need to Transfer prev. year.

     Creating 1 PCR to accumulate Sick Leave:

   ZW05.png

     Absence Code of Sick Leave is 1020. Whenever data in TIP retrieved from Absence (Origin status is A) and Subtype is 1020 in internal table TIP, plus 1 into time type 9WSL. Thanks to configure in V_T555A, value in Time Type 9WSL will be accumulated in Function CUMBT. PCR ZW05 is inserted into Time Schema ZW04 as below (ZW04’s copied from standard schema TM04): after successfully call function P2001.

     ZW04_01.png

2. Comparing Annual Sick Leave

     We have to check whether Accumulated Sick Leave with 15, 25, 35 and 45, as it effects employee’s salary. Creating 4 constants in V_T511K

  T511K.png

     4 Time Types to hold values whenever 9WSL > ZSLL1 (15):

Time Type
1 From 01 -> 15 days FULL salary N/A
2 From 16 -> 25 days 75% salary 9W75
3 From 26 -> 35 days 50% 9W50
4 From 36 -> 45 days 25% 9W25
5 above 45 days 0% 9W00

     4 Time Types share the same configuration as below:

  9W00.png

     Setup PCR ZW06 to check 9WSL and insert into schema after PCR ZW05

  ZW06.png

HRS=M9WSL  => Accumulated Sick Leave until the day before current day.

HRS+D9WSL  => plus value in current day (as accumulating only execute in Function CUMBT).

If (M9WSL + D9WSL) > ZSLL4 (45):

     value in current day 9WSL will be updated into Time Type 9W00.

If (M9WSL + D9WSL) > ZSLL3 (35) and (M9WSL + D9WSL) <= 45

     value in current day 9WSL will be updated into Time Type 9W25.

If (M9WSL + D9WSL) > ZSLL2 (25) and (M9WSL + D9WSL) <= 35

     value in current day 9WSL will be updated into Time Type 9W50.

If (M9WSL + D9WSL) > ZSLL1 (15) and (M9WSL + D9WSL) <= 25

     value in current day 9WSL will be updated into Time Type 9W75.

3. Transferring Time Type into TIME WAGE TYPE on cut-off date

     On the EOM (End Of Month), PCR ZW07 will be called to bring value in Time Types to TIME WAGE TYPE

  ZW07.png

     Time Type 9W75 => Time Wage Type 9050

     Time Type 9W50 => Time Wage Type 9055

     Time Type 9W25 => Time Wage Type 9060

     Time Type 9W00 => Time Wage Type 9065.

     And merge ZW07 into Schema ZW04  as below:

  ZW04_02.png

     These are all steps in Time Schema. As you can see, after running Time Evaluation, 4 wage types 9050, 9055, 9060 and 9065 contain sick leave days in current period, how many sick leave days in 16 -> 25, 26-> 35, 36 -> 45 and above 45.

4. Modify Technical Wage Type /801 in Payroll

     Copy standard sub-schema XAL9 into ZALW with 2 new PCRs ZK08 and ZW14:

  ZALW.png

     First we have to change Number in Time Wage Type  9050 Sick Leave 75%, 9055 Sick Leave 50%, 9060 Sick Leave 25% because they are not deduction full. Only Time Wage Type 9065 is kept current value. It’s executed in ZK08:

  ZK08.png

     Current value in 9050, 9055 and 9060 will be multiplied with corresponding Rates:

  ZPS25.png

Finally, calculation technical wage type /801 in PCR ZW14

  ZW14.png

III. Testing

     Hiring employee with basic salary is 1000$ per month.

     Configure Wage Type 1000 with processing class 10 in V_512W_D:

  WT1000.png

     In Apr-2012, employee took 22 Sick Leave Absence days:

IT2001_Apr.png

   And his salary was correct as picture below:

PY_Apr.png

In Jul-2012, he requested 23 Sick Leave Absence

IT2001_Jul.png

And Salary in Jul-2012 was exactly:

PY_Jul.png

In the document, I have shared you how to control Time and Payroll as well. There are a lot of difficult requests in fact, so understanding deeply Time and Payroll schema is very important. If you investigate the topic carefully, you will be control schema by yourself soon and not scare touching schema anymore

Hope it helps!

Regards!

Woody

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      43 Comments
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      Author's profile photo Former Member
      Former Member

      Hello Woody,

      Ton of Thanks for the awesome document, nice explanation clear understanding ..

      Thanks & Regards,

      Akhilesh Singh

      Author's profile photo Former Member
      Former Member

      Hi Woody,

      It's wonderful document.

      Regards,

      Hafeez

      Author's profile photo Trong Minh (Woody) Nguyen
      Trong Minh (Woody) Nguyen
      Blog Post Author

      Thanks Akhilesh Sign and Hafeez for your kind words 🙂 I am very happy to hear that my document is useful for you 😀

      Regards!

      Woody

      Author's profile photo Former Member
      Former Member

      Hi Wooday,

      really nice presentation on Time and payroll integration, i have a request for you.....

      could you please prepare a presentation on SAP HCM Support process?  i would like to clearly understand the Support from top to bottom. plz help me here.

      Author's profile photo Trong Minh (Woody) Nguyen
      Trong Minh (Woody) Nguyen
      Blog Post Author

      Thanks SAP enjoin:) :!

      Hi Kishore!

      I don't under what do you mean 😕 You are working in maintaining project right?

      Whenever receiving any request from customer, you have to clarify what exactly their expectations. And of course you have to clear current processes & businesses by investigating configuration documents (given by last implementers) and checking system carefully through testing many times. After that you can know where you can change, create new or modify configurations 😀

      Regards!

      Woody

      Author's profile photo Former Member
      Former Member

      Many thanks woody for sharing the knowledge.  no worries kg

      Author's profile photo Former Member
      Former Member

      Hi Woody,

                       Many Thanks for the Document.

      Thanks & Regards

      Khaiser

      Author's profile photo Trong Minh (Woody) Nguyen
      Trong Minh (Woody) Nguyen
      Blog Post Author

      Thanks Khaiser!

      Hope you will be control Time and Payroll schema soon 😉

      Regards!

      Woody

      Author's profile photo Former Member
      Former Member

      Hi Woody

      Super Work on Relationship Time Evaluation and Payroll

      hope to hear more from you .

      Thx...

      Author's profile photo Former Member
      Former Member

      Hi Woody

      Super Work on Relationship Time Evaluation and Payroll

      hope to hear more from you .

      Thx...

      Author's profile photo shibani laxman
      shibani laxman

      Good one

      Informative

      Author's profile photo Former Member
      Former Member

      Nice document Woody 😀 ,

      Thanks for sharing.

      Regards,

      Mike

      Author's profile photo Trong Minh (Woody) Nguyen
      Trong Minh (Woody) Nguyen
      Blog Post Author

      Thank John, Shibani and Mike 🙂

      Regards!

      Woody

      Author's profile photo Former Member
      Former Member

      Nice work...

      Author's profile photo Trong Minh (Woody) Nguyen
      Trong Minh (Woody) Nguyen
      Blog Post Author

      Thanks Mr. King 😀

      Author's profile photo PRINCE ELVIS VINOLTON
      PRINCE ELVIS VINOLTON

      Nice document Woody...Thanks a lot.

      Author's profile photo Former Member
      Former Member

      Very Very Nice

      Author's profile photo Former Member
      Former Member

      Excellent

      Author's profile photo Trong Minh (Woody) Nguyen
      Trong Minh (Woody) Nguyen
      Blog Post Author

      Thanks Prince and Nadir 🙂 Very happy to hear more good comments from another consultant 😀

      Regards!

      Woody

      Author's profile photo Former Member
      Former Member

      Excellent Work Woody

      Author's profile photo Former Member
      Former Member

      I read it again, really helpful!

      Author's profile photo Trong Minh (Woody) Nguyen
      Trong Minh (Woody) Nguyen
      Blog Post Author

      Thanks Anil!

      @Micheal: what a wonderful spirit 😉 kool keep it up 🙂

      Author's profile photo Former Member
      Former Member

      Dear Woody

      Iam a regular follower of your pots, as soon as I login scn, am searching for your newer blogs 🙂 , I really want to get in depth to TIme Management 😏 . Could you please send a configuration document on Time Management ( Negative)..please

      Thanks

      Anil

      Author's profile photo Trong Minh (Woody) Nguyen
      Trong Minh (Woody) Nguyen
      Blog Post Author

      Hi Anil!

      Thanksssss 🙂 I have only ebook for Negative Time Management HR311 mySAP HR Time Evaluation Without Clock Times, Please download it. Anyway the CORE is Schema, if you can control your schema, you will be expert 😉 And investigate all documents I've publicized already on SCN. The most important is F1 key and T-code PDSY 🙂 You can start by study schema: TM04.

      Regards!

      Woody

      Author's profile photo Former Member
      Former Member

      Thanks much Woody

      Author's profile photo Former Member
      Former Member

      hi woody,

      great job,

      kindly throw some light on how fico posting is done in separate document it will be very helpful for us.

      Author's profile photo Trong Minh (Woody) Nguyen
      Trong Minh (Woody) Nguyen
      Blog Post Author

      Hi Mohammed!

      Thanks. Involving posting: please look at 2 documents below:

      http://www.iprocon.de/data/wissen/veranstaltungen/HCM_BEST_PRACTICE/A2-SAP_HR_Payroll_Posting_into_FI-CO.pdf

      http://www.integratedcg.com/pdfs/FI2004_2.pdf

      They are best and very clear. I cannot create any document involving the topic better than ones 😀

      Regards!

      Woody

      Author's profile photo Former Member
      Former Member

      hi woody,

      Thank you so much for the help

      Author's profile photo Former Member
      Former Member

      Excellent Document Woody 🙂 Great Understanding .

      Author's profile photo Former Member
      Former Member

      Hi Woody,

      Thanks for your sharing, it's very usefull document ^^.

      Author's profile photo Upendra Krishna
      Upendra Krishna

      Thanks woody, this doc would come very much handy for Novices like me.

      Author's profile photo Trong Minh (Woody) Nguyen
      Trong Minh (Woody) Nguyen
      Blog Post Author

      Thanks Mohammed Zakir, Ravin Joshi, Rasolar Duong and Upendra Krishna. Hope all of you will be clear payroll soon.

      Regards,

      Woody

      Author's profile photo Former Member
      Former Member

      Hi Woody,

      Request you if you could please reply to the below mentioned thread:

      http://scn.sap.com/thread/3585358

      Thanks a lot 🙂

      Regards,

      Gopal

      Author's profile photo Former Member
      Former Member

      Nice Doc Woody

      This is really very handy.. Infact its pretty well described & elaborated.. keep coming those more..

      Cheers 😉

      Pradyp

      Author's profile photo Vinodh L K
      Vinodh L K

      Super Doc Woody,

      Really spoon feeding doc.

      Regards

      Vinodh L K

      Author's profile photo Former Member
      Former Member

      Hi Woody,

      Excellent document...very helpful for SAP HCM consultants.

      Expecting regular postings form you like this...

      Regards

      Harini

      Author's profile photo Former Member
      Former Member

      Dear Woody,

      It is really understanding and very helpful like your other postings, Keep posting like this Woody.

      Thanks & Regards,

      Naresh

      Author's profile photo Trong Minh (Woody) Nguyen
      Trong Minh (Woody) Nguyen
      Blog Post Author

      Thanks for your comments Pradyp, Vinodh, Harini & Naresh.

      I am happy because the article is useful 😀

      Best regards,

      Woody

      Author's profile photo Bhabagrahi Sahu
      Bhabagrahi Sahu

      ***You are a Star***

      Author's profile photo Former Member
      Former Member

      great work..keep it up buddy

      Author's profile photo Former Member
      Former Member

      Superb Woody

      Your doc is very helpful for us..........

      Regards,

      Chandra

      Author's profile photo Trong Minh (Woody) Nguyen
      Trong Minh (Woody) Nguyen
      Blog Post Author

      Thanks all Gopal, Sahu, Ravi and Reddy. Thanks for "enjoy" my document 😀

      Author's profile photo Former Member
      Former Member

      Hi Woody,

      Thanks a ton!
      It was really helpful for me.

      Regards,
      Kotesh