Incentive Wages

Purpose

This component is implemented for performance-oriented remuneration. The following forms of remuneration are covered:

  • Time wages

  • Premium wages

  • Piecework wages

You can implement both individual incentive wages and group incentive wages.

Implementation Considerations

Install this component if you want to:

  • Transfer employee-related data from a Logistics system to Human Resources , or

  • Maintain employee performance-related data manually,

and you want to valuate this data in the Payroll component according to each employee’s performance.

Integration

Employee-related data can be transferred to Incentive Wages from the following Logistics components:

  • Production Planning and Control/Production Planning for Process Industries (PP/PP-PI)

  • Plant Maintenance and Customer Service (PM/CS)

  • Project System (PS)

The Incentive Wages component is highly integrated with the Payroll component. Data determined by Incentive Wages is processed using personnel calculation rules in Payroll.

Features

Incentive Wages automatically reads employee-related data from a Logistics system, prepares the data according to the form of remuneration, and makes it available to the Payroll component. The valuated remuneration elements can be transferred from Payroll to Financial Accounting (FI) and, from there, to Controlling (CO).

It is also possible to make manual corrections within the automated process.

You can also record incentive wages data without integration to Logistics.

Evaluations are available before and after payroll.