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Understanding Processing Classes in SAP HR

Processing Classes determines how wage types are processed during the payroll run. Every processing class has its own specifications, with which each wage type processed in a different way. SAP has given 1-89 as standard processing classes. Further, custom processing classes can also be created. These may be numbered from 90 to 99. These are maintained in V_512W_D.

Often the organizations may have requirements for specific processing classes, which would need creating custom processing classes.

The steps to create custom processing classes are mentioned below in detail.

Example: We will consider a simple example where two wage types (variable pay(s)) need to be cumulated to a third wage type (total variable pay). Let the wage types be named as 1VIP, 2IVP getting cumulated to TVIP.

Below are the steps to create custom processing classes

  • Maintain Processing Classes and Their Specifications
  • Create processing rule for the newly created processing class
  • Edit payroll schema to insert the PCR
  • Assign processing classes to required wage types
  • Check the output

Detailed Steps

  1. Maintain Processing Classes and Their Specifications

Basic Settings > Environment of Wage Type Maintenance > Processing and Evaluation Classes > Maintain Processing Classes and Their Specifications

Table: V_T52D1

Click on Maintain Processing Classes and Their Specifications. Create new entries by clicking on ‘new entries’

Table: V_T52D2

Select the row corresponding to newly created processing class 90 and double click on “Processing class specifications” (on left panel) to maintain the specifications.

Click on “New Entries to maintain the values”.

Here the specification type 2 refers to the specification for variable pay.

2. Create personnel calculation rule

Go to T code PE02 to write custom rule ZVIP for the processing of class. This rule will be processed for all the wage types having processing class as 90. Wage types not having value as 2 will be added as it is to output table.

3. Edit payroll schema to insert the PCR

The rule is added after the processing of deductions and storage.

Function PIT calls the PCR which processes the contents of the IT as per designated rules.

4. Assign processing classes to required wage types

The below screenshot refers to the assignment of specification “2” for total variable pay (TVIP) against processing class 90. Similarly, the assignment is made for the other two wage types also.

Table: V_512W_D

5. Checking the output

Once the above configuration has been set, we can check the payroll results table

  • Entry in basic pay wage type (IT 08)

  • Output Table

Resulting TVIP wage type created with cumulated values of 1VIP and 2IVP

P.S. : This is cross-posted from http://saphrqna.blogspot  (blog is authored by me)

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      30 Comments
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      Author's profile photo Former Member
      Former Member

      Hello Neha 🙂

      Nice to see you here.

      This posting is helpful. However, the screen shots you pasted is not showing.

      Please check.

      Thanks

      PD

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Hi PD,

      What a coincidence to see you here 🙂 . Yday I was able to see, but not now... Will surely check and try pasting links again..

      Rgds

      Neha

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Hi PD,

      Just checked the screenshots and they are very much visible at my end. Not sure where the hitch is.. Seemingly version issue..

      Rgds

      Neha

      Author's profile photo Former Member
      Former Member

      Thank you, Neha. I will check this and revert.

      Take care

      PD

      Author's profile photo Shankar Sasikumar
      Shankar Sasikumar

      Thanks for explaining processing classes.

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Thanks Shankar..

      Author's profile photo Former Member
      Former Member

      HI neha,

      Really appreciated ....Excellent work done by you .....expecting more docs from you

      Regards,

      Jwala.

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Tx Jwala..

      Rgds

      Neha

      Author's profile photo Former Member
      Former Member

      well done Neha !!!

      you are our star now... 🙂

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Tx a lot PD 🙂

      Author's profile photo Former Member
      Former Member

      Thanks Neha for the wonderful explanation...

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Thanks Sidharth 🙂

      Author's profile photo Former Member
      Former Member

      Neha

      Helpful Document, will expect more docs from your side...

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Thanks Mohsin. Will surely continue to share knowledge as and when time allows 🙂

      Author's profile photo Former Member
      Former Member

      nicely explained.

      Author's profile photo Former Member
      Former Member

      Iam trying your scenario but couldnt able to figure out what exactly we are trying to achieve

      I want to know TVIP is deduction wagetype or additional payment wagetype or basic pay infotype wagetype

      You mention another two wagetypes that is 1VIP and 2VIP what are those Are those are deduction wagetype

      Could you please clarify I tried your scenario but not understanding

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Hi Priya, Apologies have been busy for quite some time. Will check and reply to you soon, which makes it easier for your understanding 🙂

      Cheers

      Neha

      Author's profile photo Former Member
      Former Member

      I tried your scenario it is cumulated What is TVIP???

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      total variable incentive pay

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Hi Priya, Apologies had been occupied with other work.. Here's the answer to your questions. Pls let me know if you have any other question. Thank you.

      • All are basic pay infotype wagetypes (addition WT)
      • 1VIP / 2VIP are two variable pay wagetypes which are added to the Total Variable Pay Wagetype - TVIP.

      Author's profile photo Former Member
      Former Member

      Hi Neha

      Thank you for your reply TVIP is standard wage type or it is customized wagetype ??

      I will paste the screen shot of my scenario The total amount is coming wrong.

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      It's a custom wage type. I am so sorry for late replies. have been busy with work for quite some time now 🙁

      Author's profile photo Former Member
      Former Member

      Nice Article..... Very helpful Neha.. 🙂

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Thanks Rajesh 🙂

      Author's profile photo Leela Mohan
      Leela Mohan

      Dear Neha,

      Nice work you done. And also expecting more such document's.

      Ur's Mohan

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Thanks Mohan 🙂

      Will surely try, just that occupied with work as of now.

      Regards

      Neha

      Author's profile photo Former Member
      Former Member

      Hi Neha,

      Nice Doc.Just a query, since u want 1VIP and 2VIP to be cumulated to TVIP. I am skeptical why we need specification as 2 in PC 90 for TVIP, as doing the settings for 1VIP and 2VIP should be enough. In case  you want a scenarion that ,no matter whether user enter 1VIP or 2VIP or TVIP, all should get cumulated into TVIP.

      Regards

      Mohinder

      Author's profile photo Former Member
      Former Member

      Dear Neha,

      Wow.....

      Thanks

      Sivavardhan Reddy

      Author's profile photo Sriram Tamil
      Sriram Tamil

      Hi Neha,

      Good one i have understood, can you explain the same with standard one.. so i will learn little better on this.

      Thanks

      Sriram

      Author's profile photo Former Member
      Former Member

      Hello,

      Wow…Amazing Blog…Nice

      Very Helpful…Thanks