# Purpose and use of Indirect Evaluation in SAP HCM

**Purpose and use of Indirect Evaluation in SAP HCM**

**Purpose:**

Indirect Evaluation is a method to calculate the eligible amounts for some of the wage types. INVAL is the Indirect Evaluation Module used to meet the Indian specific business requirements. INVAL calculates the eligible amounts for certain wage types that are defaulted into the Basic Pay infotype (0008) or entered in the Recur. Payments/Deductions infotype (0014) and the Additional Payments infotype (0015)

Instead of, computing the eligibility as a currency value amount, INVAL can also calculate the eligibility in terms of numbers, if the wage type has been configured accordingly. For example, an employee can be eligible for 70 liters of petrol.

Configuration that have to maintain for INVAL ( for India Payroll )

The below given tables should be maintained for INVAL (A,B,C,D)

T511 Wage type Characteristics

T510 Maintain PSG and Levels

T539J Maintain Valuation Base Wage Types

T7INA9 Calculate Eligibility for RAP

T7INA7 Maintain Allowance Rules Based on Slabs

T7INB1 Basic Wage Type in Allowance Grouping

See the details below_

INVAL A

It is for fixed amount ,No percentage calculation

It will pick value from T510

INVAL B

The values will be a fixed percentage + Constant value Or only percentage

It will pick % from T539J

It will pick constant Value from T7INA9

INVAL C

This calculates the amount as a percentage of a base wage type subject to a maximum limit. More than one such amount, with same or different percentage of the base wage type, can be calculated for an INVAL wage type. In this case, the amount that will be Indirectly Evaluated will be the sum of all such calculated amounts, subject to a maximum limit.

By comparing the percentage amount from T539J and the constant value from T7INA9 which ever is lesser, that value will be picked. % will be picked from T539J

It will pick constant Value from T7INA9 For checking the limit

INVAL D (B)

It will Add the percentage amount with a constant on condition basis

It will pick % from T539J

It will check for the condition from T7INA7

For INVAL D you have to check whether you maintain the table T7INB1

INVAL D (A)

It is not in use , you can maintain INVAL D (B) with a 0% multiplier Instead of using INVAL D(A)

INVAL D (C)

It will take the percentage amount and compare with a constant amount With respect to some conditions

Which ever is less that amount will take

It will pick percentage from T539J

It will check for the condition from T7INA7

For INVAL D you have to check whether you maintain the table T7INB1

### Indirect evaluation module

The following indirect valuation modules are available in the standard system:

**TARIF****PRZNT****SUMME****UNITS****CONST****ARBPL****ANSAL****CHSTD**

### PRZNT

Valuation according to the “basic wage type” specifications in the IMG.

Country grouping assigned to the employee master (derived from the personnel area)

MODUL = ‘PRZNT’

Valuated wage type = indirectly valuated wage type

- Module variant ‘B’

The basic pay is determined from the total of all basic wage type amounts entered in infotype 0008 according to the specifications in the “basic wage type valuation” step irrespective of which infotype is being valuated. Wage types in the Wage Maintenance infotype (0052) are then valuated using the wage types in the Basic Pay infotype (0008).

The value of the wage type to be valuated indirectly is calculated by multiplying the basic pay by the percentage specified for the wage type to be valuated.

- Module variant ‘D’

The basic pay is determined from the total of all basic wage type amounts specified in the infotype currently being valuated according to the specifications in the “basic wage type valuation” step. The wage types in the Wage Maintenance infotype (0052) are then valuated using the wage types in the Basic Pay infotype (0008).

The value of the wage type to be valuated indirectly is calculated by multiplying the basic pay by the percentage specified for the wage type to be valuated.

- Module variant ‘I’

The basic pay is determined from the total of all basic wage type amounts weighted with GWCHT according to the specifications in the “basic wage type valuation” step. All these basic wage types are valuated indirectly even if these wage types are valuated directly in the infotype.

The value of the wage type to be valuated indirectly is calculated by multiplying the basic pay by the percentage specified for the wage type to be valuated.

- Module variant ‘J’

Like module variant ‘I’ except that basic wage types are not reduced.

### SUMME

- Module variants ‘B’, ‘D’, ‘I’,’J’

The ‘SUMME’ module corresponds to the ‘PRZNT’ module except that the value of the wage type to be valuated indirectly is always the entire basic pay.

- Module variant ‘M’

Corresponds to the module variant ‘D’. The basis wage types are valuated as unreduced.

- Module variant ‘O’

Corresponds to the module variant ‘I’. The basic wage types are not weighted in payroll.

### UNITS

- Module variants ‘B’, ‘D’, ‘I’, ‘J’

The ‘UNITS’ module corresponds to the ‘PRZNT’ module with the exception that the value of the wage type to be valuated indirectly is calculated by multiplying the basic pay by the number entered for the wage type to be valuated.

**Take an example of UNITS module:**

We can calculate Leave encashment without any PCR to calculate 1 day salary and then multiply with the Encashed days. Simply maintain UNITS for all the basis wage types.

In our example Basic pay (1000) and DA (1001) with 3.33%

EX:

Basic salary = 8000

DA = 2000

So the value of wage type 1902 ( Earned Leave Encashment ) will be 3.33% of 10000

= 10000 * 3.33% = 333

which is equal to 1 day basis ( 10000/30 = 333.33 )

Now whatever amount will be maintained in 1902 wage type will be multiplied with this amount.

Say 20 days maintained in 1902, so the Leave encashed amount will be 333 * 20 = 6660

See the below screen shots for reference _

Thanks,

*Gaurav Sharma*

I was badly needed for this type of explainations. Thank you very much.

You are welcome akshat !

Document is really helpful...

just adding one more ind eval method...custom evaluation ðŸ™‚

custm ind eval is pretty much effective in various scenarios to address buss requirement by avoiding manual intervention.... there is one problem in 40ECS tht we cn nt read Indirectly computed wages to use in calculation to compute indirect value for other wage type...its bit tricky but user may asked for such complex requirement.

## UNITS - Explanation is very nice.

Here your have mentioned 3.33 %.

But

Jan - 100/31 = 3.22 %

Feb - 100/(28/29) = (3.57/3.44

Apr - 100/30 = 3.33 %

Percentage is varying based on month.

My requirement is Monthly Basic salary / month days * Number

Is there any possibility for below:

Percentage = 100/365(days)

day salary = annual salary * percentage

Hi Saravan,

It will work only when days are fixed as 30

If u want to take month days...u need to write a small pcr

Thanks,

Gaurav

Hi Gaurav,

Thank you very much, it's a useful document. This kind of requirement is comes from almost all clients for HRA calculation ect. Without doing enhancement we can configure diff % in single WT.

Thanks

Baldev

Thanks Baldev