The R/3 system uses primary and secondary wage types. Secondary wage types are formed during the payroll run. The primary wage types must be entered with values, which can be used again during the payroll run. In Customizing for Payroll under Incentive Wage Types ® Payroll ® Wage Types ® Check Wage Type Catalog ® Check Wage Type Characteristics you determine how the wage types should be valuated. The Valuation of dialog wage types is different from the Valuation of time wage types.