Concept of Factoring using a Business Scenario…

Factoring is prorata calculation of remuneration for an exact period or reduction in pay.  We shall try to understand factoring using the following business scenario:

A company pays the total instructor’s bonus of 100.00 if the employee works on at least five of the planned working days in the payroll period. If the employee has worked less than 5 planned working days, he or she does not receive an instructor’s bonus for that period:

1.  Create a custom PCR (ZP43) with the relevant calculation formula to determine the partial period factor in /803, by copying the std PCR XPPF as follows:

Insert the custom PCR ZP43 in custom schema ZA43 copied from Std schema XAL9 as follows:

Now insert the custom sub schema into custom schema MR00 copied from X000 (Intnl. Payroll Schema) as follows:

2.  Assign partial period factor to the wage type (here 6003 wage type) that is to be reduced using Processing class 10 and specification 3 in V_512W_D as follows:

3. Maintain the wage type 6003 (Trainer Bonus) in IT0008 and less than 17 days absences to the employee and run payroll to see the Trainer Bonus included as follows:

b) Now maintain more than 17 days absences and run payroll to see that Trainer bonus (wage type 6003) not included as follows