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Author's profile photo BALASUBRAMANIAN AP

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):

img5391_2.PNG

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”) :

img511.JPG

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:

IT15_SAMPLE1.png

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.

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      7 Comments
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      Author's profile photo Former Member
      Former Member

      Hi Bala,

      Thank you for sharing your knowledge.

      Best Regards,

      Praneeth kumar

      Author's profile photo BALASUBRAMANIAN AP
      BALASUBRAMANIAN AP
      Blog Post Author

      Hi Praneeth,

      Thank you for your encouragements & Wishes.

      Regards,

      Bala.

      Author's profile photo Former Member
      Former Member

      Hi Bala,

      Thanks for sharing document.

      Cheers

      Ratan

      Author's profile photo BALASUBRAMANIAN AP
      BALASUBRAMANIAN AP
      Blog Post Author

      Hi Ratan,

      Thank you for your encouragements & wishes.

      regards,

      Bala.

      Author's profile photo Mamedo Mahmoud
      Mamedo Mahmoud

      sorry i can't understand that , how we are get "100" which has been divided on 30

      Author's profile photo BALASUBRAMANIAN AP
      BALASUBRAMANIAN AP
      Blog Post Author

      Hi 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.

      Author's profile photo Mamedo Mahmoud
      Mamedo Mahmoud