Processing Annual Wage Supplements 
Processing Annual Wage Supplements
Purpose
The Annual Wage Supplement (AWS) is treated similarly to a bonus payment dependent on an employee's basic salary.
Prerequisites
The wage types that are to be used as AWS payments must be eligible for entry in the Infotypes Additional Payments (0015) and Additional Payments Off-Cycle (0267), otherwise they cannot be stored in these infotypes.
You can make the corresponding settings in the Implementation Guide of the Payroll Singapore component. Choose AWS
All wage types relevant to an employee's AWS calculation must be assigned a corresponding specification in evaluation class 10 (BS-Wage type allocation for AWS reporting).
You can make this assignment in the Implementation Guide of the Payroll Singapore component. Choose Annual Wage Supplement
Process Flow
To calculate an Annual Wage Supplement (AWS) for an employee, you run a program that carries out all the necessary calculations and creates the AWS payments as special wage types. These must then be stored in the infotypes Additional Payments (0015) and Additional Payments Off-Cycle (0267), depending on whether payment is to be effected in a regular or an off-cycle payroll run.
In order to import the AWS wage types into the infotypes mentioned above, a batch input folder is created during AWS calculation.
After the AWS amount has been calculated, payment is effected depending on which infotype the results are stored in.
It is possible to split an employee’s AWS into several payments that are made in different periods. This allows for a distribution of AWS among multiple regular payroll runs as well as for a separation into multiple off-cycle and regular payroll runs.
The AWS amount that an employee is to receive is SGD 1000. AWS is calculated on December 10th, the next regular payroll run is performed on December 28th. SGD 400 are to be paid immediately, SGD 600 in the regular payroll run. This means that SGD 400 are entered in the infotype 0267, while SGD 600 are entered in the infotype 0015.
When off-cycle payroll accounting is performed on December 10th, only the amount stored in infotype 0267 is processed, and the appropriate payment is made. When the regular payroll run is executed on December 28th, the SGD 600 stored in infotype 0015 are processed and paid along with the employee’s regular salary.