# Indirect Valuation of Wage type using UNITS

**Introduction:**

We want to valuate a wage type named “Holiday Payment – Plant” using the following formula:

(Basic Pay + Dearness Allowance )/30 per day.

Basic pay and Dearness allowances will be maintained in Infotype 0008 (Basic Pay).

**Valuation Method:**

We can use indirect valuation of wage type using module “UNITS” (Module Variant “B”).

This can be created in the configuration view V_T539J (as given below):

In the above configuration, 100/30 = 3.33 (which is entered as Weight column), since we

want to add Basic & Dearness allowance and this total is to be divided by 30 as per our

required formula.

Wage Type Properties of Wage type “9000” defined in Table: V_T511 as given below

(specify the indirect valuation module “UNITS” with variant “B”) :

**Input Wage types in IT0008 (Basic Pay):**

8000 – Basic Pay Value: 16,800 (INR)

8001 – Dearness Allowance Value: 16,884 (INR).

**Output:**

Output Wage type 9000 (Holiday Payment – Plant) is maintained in IT0015. When we enter the

“Number/Unit” as 15 Days, the output will be as follows:

**Calculation:**

(Basic Pay + Dearness Allowance)/30 = (16,800 + 16,884)/30

= 33,684/ 30

Per Day Rate = 1122.8

For 15 Days = 1122.8 x 15 = 16,842.00

**Disclaimer:**

This document is not any kind of reproduction and the example mentioned

here is not a real data. The images used are purely to demonstrate the concept

in a better way to the forum users.

Hi Bala,

Thank you for sharing your knowledge.

Best Regards,

Praneeth kumar

Hi Praneeth,

Thank you for your encouragements & Wishes.

Regards,

Bala.

Hi Bala,

Thanks for sharing document.

Cheers

Ratan

Hi Ratan,

Thank you for your encouragements & wishes.

regards,

Bala.

sorry i can't understand that , how we are get

"100"which has been divided on 30Hi Mamedo,

The formula is entire Basic+DA (which is 100%) is to be divided by 30 which is 3.33 is to be entered in the percent/weight field as given in the example.

regards,

Bala.

thanks BALASUBRAMANIAN

Hi @ BALASUBRAMANIAN,

Nice blog!

I have a query, what if I want to multiply the Wage Type "x" by the number of Hours?

Your blog is deriving the value based on other Base Wage Types, but what if my Base WT and Valuated WT are the same?

For instance, let us assume that I have stored a rate in table T510.

Now, from Employee central, when the number of hours is sent, this number has to get multiplied with the rate stored against the employee's Pay scale structure in Table T510

What is the module variant that I should use for the Wage type "x" ?

Kindly advice.