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How to set Deduction Priority of deduction wage types to handle Negative Salary Case

After reading this document you will get to know the meaning of deduction priority and how to set configuration of it. Before starting about configuration we should know about deduction priority.

In normal case employee can have earning as well as deduction wage types. A wage type may be defined as deduction wage type and the value entered for such a wage type in master data ( say IT0015 ) is automatically reversed ( multiply by -1 )when the payroll is run. Although in Infotype values are shown without reversal and with a deduction indicator.

In special case an employee may not have enough salary for all the deductions. No in this situation we need to decide deduction priority to be specified for deduction wage types.

SPRO path: Payroll->Payroll: India->Deductions

Follow the Path or use Table: VV_52D7_B_7001_AL0


In our case we have taken a deduction wage type 5DED and put it in tables for to set Deduction Priority



(Table: V_51P6_B)


Choose the options accordingly


(Table: V_51P6_C)





Change the Processing class 20 and put 1, see the below screen shot



(Table: v_t51p1)


Note: As we have changed Processing class 20 from 8 to 1 for all deduction Wage types

So we have to handle it in PCR (X023)

Copy the Standard PCR( X023) to User defind PCR( Y023) Tcode: PE02



Now to the same change for 1 and 3 also as shown in the below screen shot:


Now we have to put this PCR in schema YNAL (Copy of Std schema INAL)



Note: What we have done in this schema-> IF it is an original run of payroll schema will read PCR(X023) otherwise will read PCR( Y023) and treat processing class 20 (1) as 20(8) 

Check in the system, if we have given deduction more than earning and we have given 3 in (Table: V_51P6_B)

System will generate zero salary and deduct the remaining amount from next salary

Check the below screen shots for April and May month salary slips:

Ex: In the month of May we have given 50000 in some deduction WT but earning is only 50100 and system has to deduct other deductions also like Income Tax and PF etc. so system will deduct only 34842 amount from that WT


Now the the month of MAY system will recover rest of the amount (15158)


Hope you enjoyed the document..


Gaurav Sharma

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      Author's profile photo Daya nand
      Daya nand

      Thanks Gaurav, It's very helpful

      Can you please advise if this works for Loan repayments as well ? I read that it doesn't and we have to manually adjust in IT0045.

      If you have any other solution to manage loans, please advise. Thanks again


      Author's profile photo Sikindar T
      Sikindar T

      No Manual intervention is required, Set the deduction Priority system will deduct the repayment amount in the next pay period when the employee is on lop or having insufficient earnings

      Author's profile photo Karpagam Rajbabu
      Karpagam Rajbabu

      Hi Dayanand,

      Have you found solution of the loan repayment deduction arrear.  Could you pl. share the solution.  I'm facing the same scenario.  I've assigned the deduction priority for the loan repayment wage type.  But still getting error as per screenshot :

      Author's profile photo Karpagam Rajbabu
      Karpagam Rajbabu

      Error resolved by assigning /LRP with priority A 1 in table V_T51P6