Basic Pay
Definition
Basic pay is one of the three sources of costing information you can use in Personnel Cost Planning.
Use
Use basic pay if:
If a planned pay raise has already been recorded in the Master Data component, you can use basic pay to project future personnel costs.
Integration
With basic pay, the system mainly uses the data that originates in the Personnel Administration and Payroll Accounting components as a basis for its calculations, although, it also uses information from the Personnel Planning and Development component.
Basic pay identifies the amount paid to an employee. This is established by assigning wage types to an employee in the Basic Pay infotype (0008) in the Personnel Administration component.
Although wage types may represent any type of cost incurred to hire an employee, for example third party payments, basic pay is only concerned with amounts paid to employees.
However, the cost stated is not as accurate as payroll results since variable costs, for example, overtime or employee bonuses, cannot be included in calculations. These costs are not fixed, and must be calculated for each payroll run.
Planning information is used when the system detects a position vacancy. Because no employee is assigned to this position, there are no wage type assignments, and therefore no employee data.
At this point, the system uses information contained in the Cost Planning (1015) and Work Schedule (1011) infotypes to determine costs for the period of the vacancy.
See also:
Cost Items