Wage Type Catalog
In this step, you generate the customer wage types that you require for processing benefit plans by copying the model wage types provided in the standard SAP System.
Only wage types relevant to benefit plans are available for copying in this step. The copies of model wage types have the same characteristics as the model wage types with regard to processing in dialog as well as in Payroll. However, you can change these characteristics to meet your requirements.
Caution
Only use the name range reserved for your customer wage types (wage types that begin with a number). You should not copy wage types to the area reserved for SAP model wage types (those that begin with a letter or a symbol).
Activities
1. Generate
copies of the model wage types for benefit plans.
For detailed
information about setting up customer wage types, choose Help ->
Application help in the Copy Wage Type view or see
the documentation 
Wage Type Concept in the Payroll Data section of the Personnel
Administration IMG.
Wage Type Concept in the Payroll Data section of the Personnel
Administration IMG.2. Check
whether the copied wage types meet your requirements and, if necessary, make
changes to the wage type characteristics.
You do this in the
Personnel Administration IMG, in the step Payroll Data -> Basic Pay ->
Wage Type -> Check Wage Type Catalog ->
Check Wage Type Characteristics.
Check Wage Type Characteristics.