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Compensate Overtime

In this step, you determine how overtime wage types are compensated.

The options are to remunerate overtime hours, or to grant the employee time off for working overtime and possibly cumulate the overtime in special time types.

The type of compensation can be predefined for each individual wage type. You can also control overtime compensation by means of the overtime compensation type in the Attendances (2002), Attendance Quotas (2007), or Overtime (2005) infotypes. In this case, the compensation can be varied according to the individual employee and time period.

Example

Requirements

Standard Settings

Compensation depends on the value of processing class 17 of the overtime wage type. Processing class 17 is evaluated by function POVT TC20 GEN in the standard SAP system, and the specifications are as follows:

0 Remuneration without relevance for overtime time types
A Remuneration with cumulation in overtime time type
B Compensation (time off) on a 1:1 ratio, bonuses paid
C Compensation (time off) using factor from % rates of wage type
D Depends on compensation type. Default as for A
E Depends on compensation type. Default as for B
F Depends on compensation type. Default as for C

If you use 0, A, B or C, the method of compensation is defined once
only and cannot be overridden by the overtime compensation type.

If you use D, E or F, compensation depends on the overtime compensation
type specified in the Attendance Quotas (2007) and Overtime (2005) infotypes. The type of compensation is different for D, E and F only if no compensation type has been specified (default setting).

Compensation (time off) for overtime involves multiplying the overtime
hours by a factor, and crediting them to a compensation account.
The factor is derived from the total of percentage rates specified
in the overtime wage type:

% rate of base wage type / 100
+ % rate of 1st derived wage type / 100
+ % rate of 2nd derived wage type / 100
----------------------------------------------------
= factor with which the hours are credited to the
compensation account

In the standard system, the compensation account is maintained in time type 0410 (time off for overtime). Absence quota 02 in infotype 2006
also keeps track of it.

The following time types are maintained in order to count the number of
overtime hours worked:
0041 - Compensation (time off) with factor from % rates of wage type
0042 - Remuneration with cumulation in overtime time type
0043 - Compenation (time off) on a 1:1 ratio, bonuses paid

Night bonuses are a common example of overtime wage types which are not
maintained in the time types.

Recommendation

To use the compensation rules mentioned above, you do not have to modify personnel calculation rule TC20. Simply assign the appropriate
specification to the overtime wage type.

Activities

1. Decide whether the type of compensation should be determined by the wage type, the specifications in infotypes 2007, Attendance Quotas and 2005, Overtime, or if there should be no options at all for the wage type.
1. Consider how you want to compensate overtime wage types and enter the appropriate specification in processing class 17.

Further Notes

Overtime compensation is effected in the standard system using function POVT TC20 GEN and specifications A - F for processing class 17.

You can also use function POVT TC10 GEN. TC10 processes the
numeric specifications of processing class 17. The main difference
to specifications A - F is that the compensation factor is not
determined from the percentage rates of the wage type, but is
specified explicitly in personnel calculation rule TC10.