Incentive Wages: Overview

Familiarity with the technical aspects of SAP Payroll is a prerequisite for understanding incentive wages accounting. In particular, you must understand the following terms: personnel calculation scheme, personnel calculation rule, function, and operation.

The extensive options for implementing SAP Incentive Wages make system standardization difficult. If the time ticket types and the manner in which time tickets are recorded differs greatly from one enterprise to the next, then valuation of time tickets can often be completely different. Therefore, it does not make sense to elaborate incentive wages accounting processes in detail to cover all possible accounting scenarios.

Following, you will find a number of versions as examples to use when setting up your own incentive wages accounting process. The international version contains an accounting process for hourly-wage earners, while the German version features two additional processes for monthly wage earners based on the collective agreement provisions existing in the Federal German states of Baden Wuerttemberg and North Rhein-Wesfalia. Please refer to the Implementation Guide (IMG) for further information.