Wage Type Creation In SAP HCM
1. Wage type Creation – Steps by Step Process
1.1. Look at the existing wage types
- Use transaction code SM31 to view the table maintenance screen
- Enter the table name as V_512W_D
- Select Display tab and enter
- When prompted, type the country grouping for the company (ex. 08:Great Britain) and hit enter
- Select Edit Everything and press enter.
- The wage type table is displayed with all the wage types on the leftmost column- 4 characters long. Select any of the wage types and click on details icon
- Find an existing wage type that is similar to the one required to be created, and then look for the next available number
- Ensure that the wage type number that is chosen isn’t already assigned.
1.2. Copy the selected Wage type
- Go to transaction OH11; when prompted to choose a method of maintenance, select Copy n enter.
- A table is displayed with two sides-one to add the wage types to be copied and the other side to add the wage typed required to be created.
- Under Original wage type, type the old wage type to be copied (ex: 1430). In the right hand side, type in the number of the new wage type as decided before, followed by the long description and short text in the next two cells (in this case: 1511-Test Wage Type-TWT).
- The test log and results are displayed, once it is successful, go the previous screen, uncheck the box marked Test Run and click on Copy
- When prompted to save the changes, select a transport request and assign those changes to it, so that it could be moved to the production system
- Live log will be displayed listing the tables where the new entry has been made.
- T511: Wage types
- T512W: Wage type Valuation
- T512R: Cumulation wage types in Forms
- T512X: Accessibility of wage types for external S
- T512T: Wage type texts
- T512Z: Permissibility of wage types per infotype
- T52D7: Assign wage types to wage types groups
- T52DZ: Assignment: Customizing-Model wage type
- T52EL: Posting of Payroll wage types
- T52EZ: Time dependency of wage type posting
- T591B: Time constraints for wage types
- T596I: Calculation rules of Cumulation wage types
- T511M: Wage type Models
- T510S: Time wage type selection
- T510Y: Special rules for wage type generation
- T51D2: Wage type classes
- T51P1: Wage type assignment
1.3. Map Symbolic Account for the new Wage Type
- SPRO path: Payroll>Great Britain>Reporting for Posting Payroll Results to Accounting>Activities in AC System>Assign Account
- Select the type of account that is required to be linked to the Wage Type (Balance sheet/Expense Account etc.) and execute
- When prompted for the Chart of Accounts, type the relevant one (ex: MCOA) and enter.
- A table is displayed with the list of G/L accounts along with the symbolic accounts mapped to it (Millennium Charts of Accounts-MCOA).
- Find and select the symbolic account code that is to be mapped with the wage type and exit from the screen
- Go to IMG: Payroll> Great Britain> Reporting to Payroll Posting Results to Accounting> Activities in HR System> Maintain Wage Types> Define posting characteristics of Wage Types
- A table is displayed listing all the wage types- Select the new wage type (WT-1511)
- Double-click on the Posting a Wage type folder in the left side window.
- It displays the symbolic account same as the wage type that was used to create this one.
- Select and change the symbolic account for this wage type as per requirement
- Save the changes.
1.4. Test the new Wage Type
- Go to transaction PA30, select an employee.
- Type 0014 in the infotype field, 1511 in the subtype field
- Click on Create
- Add start date, end date and amount to that wage type and Save
- The wage type 1511 has been maintained for the employee for the given period.
- Make sure that the personnel number is not locked in Infotype-003
- Now go to Transaction PC00_Mxx_CALC – Payroll Calculation Driver
Note: xx refers to the country code for which the payroll has to be run. (Ex. 13 for Australia; 08 for Great Britain)
- Fill in the details like PY area, PY period, Personnel number, schema etc. as shown in Fig p.
- Ensure that the payroll is run during the period when the wage type is valid for the employee.
- Check the box marked Test Run
- Click on execute
- The test log and results are displayed, once it is successful (0 errors), go the previous screen, uncheck the box marked Test Run and execute
- The payroll is run successfully and log tree is displayed for the employee
- Payslip for the employee can be displayed by clicking on Form above. . This can also be checked via TCode: PC00_Mxx_CEDT
- The payslip contains the wage type 1511 and the amount being paid to the employee.
- Go back to the previous screen.
- The test wage type shows up in the output results table too where the details of the payroll can be viewed.
Fig p: Payroll calculation Driver
financial accounting. Steps as follows:
- Go to transaction PC00_M99_CIPE
- Fill in the details as in Fig t and execute
- Evaluation of posting Item screen is displayed; click to get into the balance sheet account folder
- The test wage type can be seen in the balance sheet account (under symbolic account 1WBS) as mapped before.
Fig t: Posting to Financial Accounting
1.5. Deleting a Wage Type
- Go to transaction OH11
- When prompted to choose the method of maintenance, choose Delete and enter. A table is displayed
- Under the wage type column, type the wage type to be deleted (WT 1511)
- Check the box marked Test Run
- Select the entry and click on Delete
- The test log and results are displayed, once it is successful, go the previous screen, uncheck the box marked Test Run and click on Delete
- When prompted to save the changes, select/create a transport request and assign those changes to it, so that it could be moved to the production system
- Live log will be displayed listing the tables from which the wage type has been deleted.
Note: Deletion of a wage type is highly unfavourable as it would affect the payroll past and lead to retro errors. A wage type should be delimited instead when not it use. This would not affect the payroll past for the employees and can also be enabled if required in future.
1.6. Points to Remember
- Wage types are the building blocks of the payroll module and are essential to compensate the employees
- LGMST is the unique feature to default the wage types allowed in Basic Pay infotype (IT- 0008).
- A wage type can only be copied and not be created directly in the system
- All the related tables get automatically updated when a wage type is copied
- A wage type has to be mapped with a symbolic account in order to link it with an actual account for financial postings
- The new wage type can be tested by running a payroll for the period it is maintained for a set of employees.
- A wage type should not be deleted as it would adversely affect the retroactive accounting. Instead, it should be delimited when not in use.