Example for AHP 

Suzanne Glen is a weekly paid employee in your company. She is hired on January 2, 2006. Her payments and deduction wage types are as follows:

 

Wage type		Payment/ Deduction	Amount (weekly) in EUR	PC 71 Specifcations	Description for Specifications
Z010	Bonus	Payment	25	1	Paid in HPPP
Z011	City Allowance	Payment	100	4	Not paid but left in RT
A130	Expenses	Payment	50	5	Paid in HPRP
Z013	Travel Allowance	Payment	75	3	Not relevant for AHP
Z014	Festival Allowance	Payment	20	5	Paid in HPRP
MT10	Basic Pay	Payment	15 per hour	6	Added to Holiday Pay and paid in HPPP
ZD10	VHI	Deduction	20	1	Paid in HPPP
ZD11	Pension	Deduction	15	3	Not relevant for AHP

 

Expenses wage type (A130) is provided in the standard system. You can copy this wage type and customize the same to create other wage types. The wage types other than Expenses wage type (A130) and Basic Pay wage type (MT10) mentioned in the above table, are not provided in the standard system.

Suzanne plans for a vacation in weeks 4 and 5 of her employment.

Her payroll periods are:

 

Week 2	Week 3	Week 4	Week 5	Week 6	Week 7
Normal week	HPPP	HPVP	HPVP	HPRP	Normal week

 

Let us see how the system processes her payments and deduction wage types when you run the payroll for week 2, which is a normal week and does not involve AHP.

 

The RT for week 2 displays the following results:

 

 

AHP Calculation During HPPP

In HPPP, Suzanne is eligible for payments for weeks 4 and 5 along with the payment for the current period, which is week 3.

In Additional Payments infotype (0015), you must do the following:

 

 

·        Select /HOL wage type in Wage type field

·        Enter the value 2 in Number field. This is the number of periods Suzanne is on vacation.

·        Enter any date that falls in week 3 in Date of origin field.

When you run the payroll for week 3, Advance Holiday Pay schema (IEAH) calls Add 1 to /HOL rule (IEAP). This rule adds the value 1 to the Holiday Pay wage type (/HOL) value to calculate the total number of periods for which you must pay Suzanne in HPPP.

The schema calls Payment Period Check rule (IEPY) to determine whether week 3 is HPPP. If the period is HPPP, the schema calls Holiday Pay rule (IEKT) to process each payment and deduction wage type as per the processing class 71 settings. The RT for period 3 displays the following results:

 

 

In the above figure, you can notice the following:

●      The system processes Basic Pay wage type (MT10) that has specification 6, to generate Advance Holiday Pay wage type (/HPY).

●      The Holiday Pay Periods wage type (/HOL) has the value 3, which is current period plus 2 vacation periods.

●      The system multiplies Bonus wage type (Z010) by the number of pay periods.

●      The City Allowance wage type (Z011) holds the value for just week 3. This value is stored in RT during HPVP.

●      The Expenses wage type (A130) holds the value for just week 3. This value is stored in GRT during HPVP and is paid during HPRP.

●      The Travel Allowance wage type (Z013) holds the value for just week 3. Suzanne is not eligible for travel allowance for vacation periods.

●      The system multiplies the value of VHI wage type (ZD10) by the number of pay periods. Suzanne is liable to pay VHI for vacation periods. This amount is deducted from her pay during HPPP.

●      Pension wage type (ZD11) holds the value for just week 3. Suzanne is not liable for contribution towards pension during the vacation periods.

●      The Total gross wage type (/101) caclulation is as follows:

...

 

<Table Caption>

Payments wage types	Amount
Advance Holiday Pay wage type (/HPY)	900
Hourly wage wage type (MT10)	450
Bonus wage type (Z010)	75
City Allowance wage type (Z011)	100
Expenses wage type (A130)	50
Travel Allowance wage type (Z013)	75
Total Payments	1650
Deductions wage types
VHI wage type (ZD10)	60
Pension wage type (ZD11)	15
Total deductions	75

 

Total gross wage type (/101) = Total Payments – Total Deductions = 1575

The GRT for week 3 displays the following results:

 

 

●      Advance Holiday Pay wage type (/HPY) stores the basic pay value for vacation periods.

450 x 2 = 900

●      Bonus wage type (Z010) stores the bonus pay for vacation periods.

25 x 2 = 50

●      VHI wage type (ZD10) stores the amount liable for the vacation periods

20 x 2 = 40

 

AHP Processing During Week 4 – HPVP (1)

When you run the payroll for week 4, which is the first vacation period, Advance Holiday Pay schema (IEAH) calls Payment Period Checkrule (IEPY) to determine whether week 4 is HPVP.

If week 4 is HPVP, the schema calls:

●      Read OGRT to GRT rule (IEKO) to transfer the values of wage types from OGRT to the current period’s GRT.

●      Reduce holiday pay vacation period by 1rule (IEPB).This rule subtracts the value 1 from Holiday Pay Periodswage type (/HOL) value to determine the number of vacation periods remaining.

●      Subtract from GRT rule (IEKG) to subtract the value 1 from the Holiday Pay Periods wage type (/HOL) value to determine the number of vacation periods remaining.

●      Subtract from GRT rule (IEKG) to process each payment and deduction wage type as per the assigned processing class 71 specification. The RT for period 4 displays the following results:

 

 

In the above figure, you can notice:

·        Holiday Pay Periodswage type (/HOL) value has reduced by 1, indicating that there are two vacation periods remaining, which are weeks 4 and 5.

·        City Allowance wage type (Z011) value with specification 4 is stored in RT during HPVP.

 

The GRT for week 4 displays the following results:

 

 

●      Advance Holiday Pay wage type (/HPY) holds the value for the remaining one vacation period, excluding the current period.

450 X 1 = 450

●      The bonus for vacation period 1 is offset against Bonus wage type (Z010). Hence, the current value is for the remaining 1 vacation period.

25 X 1 = 25

●      The VHI for vacation period 1 is offset against VHI wage type (ZD10). Hence, the current value is for the remaining 1 vacation period.

20 X 1 = 20

●      Expenses for HPVP - 1 is moved to GRT during HPVP to be paid during HPRP.

50 X 1 = 50

 

AHP Processing During Week 5 – HPVP (2)

In this period, Suzanne is eligible to receive a Festival Allowance of EUR 20. This payment wage type is assigned to specification 5 of processing class 71. You enter this information in Additional Payments infotype (0015).

The AHP processing for this period is similar to that of HPVP (1).

The RT displays the following results:

 

In the above figure, you can notice:

●      Holiday Pay wage type (/HOL) value has reduced by 1, indicating that there is only one vacation period remaining.

●      The value for City Allowance is stored in the RT during HPVP.

The GRT for week 5 displays the following results:

 

 

●      Holiday Pay wage type (/HOL) holds no value, as there is no more vacation period remaining.

●      The bonus for vacation period 2 is offset against Bonus wage type (Z010). Hence, the current value is zero.

25 X 0 = 0

●      The VHI for vacation period 2 is offset against VHI wage type (ZD10). Hence the current value is zero.

20 X 0 = 0

●      Expenses for HPVP – 2 is added to the Expenses wage type (A130). Thus, the wage type now holds the value for two periods.

50 X 2 = 100

●      The value of Festival allowance is added to the GRT to be paid off during HPRP.

 

AHP Processing During Week 6 – HPRP

During this period, the values in GRT during the last vacation period are paid. Thus, there is no GRT during this period as the values are moved to RT. The system carries forward the values in RT during HPVP to RT in HPRP.

 

The RT for HPRP displays the following results:

 

 

In the above figure, you can notice:

●      Value of Expenses wage type (A130) in OGRT is carried forward to the RT in HPRP to be paid during the current period. Therefore, the total value in this wage type is the amount carried forward from OGRT plus the current period's performance allowance.

100 + 50 = 150

●      Festival Allowance from the HPVP (2) is carried forward to the current period's RT

 

Retroactive Payroll Run in HPRP

The basic pay for Suzanne is increased from EUR 15 per hour to EUR 16 per hour, and this is made effective from week 4 – HPVP.1.

When you perform a retroactive payroll run during HPRP, the Holiday Pay schema (IEAH) calls rule Add Vacation period retro Difference rule (IEKS). This rule adds the difference of basic pay during each vacation period to the value of basic pay wage type in HPRP.

When you run payroll retroactively during HPRP, the RT displays the following result:

 

 

In the above figure, you can notice that the value of Basic Pay wage type (MT10) is 540, which is derived as follows:

Current month’s value + Difference in wage type value during HPVP. 1 + Difference in wage type value during HPVP. 2

480 + 30 + 30 = 540