Constant Valuation Bases that Depend on the Collective Agreement Example
Initial Situation
In accordance with the collective agreement, overtime on public holidays should always be remunerated with $50 for every overtime hour, for all employees in pay scale group 1 and pay scale level 2. In other words, the overtime on public holidays wage type is always valuated using a constant valuation basis, that depends on the pay scale group and pay scale level. An employee with this pay scale group and level has worked two hours overtime, on a public holiday, which should be remunerated.
In Customizing for Personnel Administration under Check wage type characteristics, you have determined which module should be used to valuate the wage types.
In Payroll Customizing, under Time Wage Type Valuation ®
Valuation Bases ® Constant Valuation Bases ® Define Wage Type-Dependent Constants, you have defined the amount a wage type should be valuated with, depending on the wage type constant.
For more information on how to use a module to indirectly valuate wage types, see Customizing (IMG) for Personnel Administration under Personnel Administration ® Payroll data. Each infotype includes the section Wage type ® Checking the wage type catalog ® Check wage type characteristics, which describes how to code the wage types.
For more information on how to process pay scale groups and pay scale levels, for valuation with constant valuation bases that depend on the collective agreement, refer to the Payroll <country> Implementation Guide (IMG) and choose Time wage type valuation ® Valuation bases ® Constant valuation bases ® Define pay scale-dependent constants.
Procedure
In the SAP System, you first enter the overtime hours for the employee in the Time Management application component. The system then uses preset conditions to choose the appropriate
time wage type, in this case "Overtime on public holidays", with the number of hours as 2. This wage type is valuated with a valuation basis that is dependent on the following employee characteristics:The appropriate valuation basis is determined using the Pay scale module. The following values are available for the wage type overtime on public holiday:
Field |
Value |
NUM (Number) |
2 hours |
RTE (Rate) |
$50 per hour |
The system calculates the wage type amount ($100) by multiplying the number by a rate.
Result
The employee receives remuneration of $100 (Number of working hours * valuation basis).