Employee-Related Valuation Basis 

Definition

Individual value for every employee for whom payroll is carried out on the basis of wage types.

You can valuate the bonus wage types using a percentage premium in accordance with the conditions specified in the collective agreement. This premium is a supplement to the employee’s basic remuneration.

Use

You create employee-related valuated bases by copying model wage types in a wage type group. The standard system contains the secondary wage types /001, /002, /003 and /004. In these secondary wage types the rate of the respective dialog wage types are collected. These rates are the respective valuation bases.

Secondary wage types /001 and /002 are used on an hourly basis for valuating wage types. Secondary wage types /003 and /004 are only used in the German payroll to valuate wage types on a daily basis.

To include a wage type in one of these valuation bases, the wage type in question must be coded in processing class 1 with a specification from the following table.

Specification

Meaning

0

The wage type is not written to a valuation basis.

1

The wage type is written to secondary wage type /001 (and also to secondary wage type /003 for Germany).

2

The wage type is written to secondary wage type /002 (and also to secondary wage type /004 for Germany).

3

The wage type is written to secondary wage types /001, /002, /003 and /004.

5

The wage type amount is divided by the total hourly amount.

All of the wage types that you enter using the Basic Pay infotype (0008) must be coded in processing class 1.

The secondary wage types /001 and /002, must be coded in processing class 1 with specification 5. In doing this, the basic pay for hourly-wage earners, which is cumulated in these wage types, is divided by the number of working hours in the payroll period. The resulting rate can be used as a valuation basis.

The German payroll system also requires that secondary wage types /003 and /004 are coded with specification 5 in processing class 1. No other wage types may be coded with specification 5.

In Customizing for Payroll under Time Wage Type Valuation®Valuation Bases ®Assign Valuation Bases ®Maintain Basic Pay for Valuation Bases you determine which dialog wage type is included in which valuation basis.

In Customizing for Payroll under Time Wage Type Valuation®Valuation Bases ®Assign Valuation Bases you determine which time wage type is calculated with which valuation basis. Additionally, you can determine the percentage of a valuation basis used to valuate a time wage type, and whether derived wage types are considered.

For further information on system settings, see the Implementation Guide (IMG) for Payroll:<country> under Time Wage Type Valuation ® Valuation Bases ® Create Person-Related Valuation Bases.