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Definition

Wage elements originate in Personnel Planning, and they are the different categories of cost that contribute to the cost of maintaining a staff. For example, wages and salaries, employer contributions to pension plans, and employee health and insurance benefits are all examples of different wage elements.

The different wage element categories, and default amounts for each, are user-defined through Customizing, in the Wage Element table (T77KL). You can use wage elements to represent any type of cost. For example, many clients use wage elements to represent the cost of training and educating staff, since these costs cannot be tracked through payroll records.

Use

You apply wage elements to objects using the Cost Planning infotype record, in the Organization and Planning module of PD. You can create and maintain Cost Planning infotype records for organizational units, work centers, positions, and jobs. You can also have more than one Cost Planning infotype record for a particular object, to record other information like salary surveys. (For details, see

In each infotype record, you can identify up to eight different wage elements, to specify costs for the object you are working with.

When you enter a wage element in a Cost Planning infotype record, you can perform one of the following:

This means that you accept the default amount set for the wage element in Customizing.

This means that you manually enter an amount that applies only in the current infotype record.

Integration

It is by reading the wage element amounts entered in Cost Planning infotype records that the system is able to calculate projected pay, in Personnel Cost Planning.

Caution

You must not confuse wage elements with wage types. Wage elements originate in Personnel Planning, and are set up for Personnel Planning purposes only. Wage types originate in Personnel Administration and Payroll Accounting, where they are used in personnel records to establish basic pay information and to calculate payroll.

 

See also:

Cost Items

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