# 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.

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• Hi Bala,

Thank you for sharing your knowledge.

Best Regards,

Praneeth kumar

• BALASUBRAMANIAN AP Post author

Hi Praneeth,

Thank you for your encouragements & Wishes.

Regards,

Bala.

• Hi Bala,

Thanks for sharing document.

Cheers

Ratan

• BALASUBRAMANIAN AP Post author

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 30

• BALASUBRAMANIAN AP 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.

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