In this step, you define partial period formulas for wage types that you enter in the Basic Pay infotype (0008) or the Recurring Payments/Deductions infotype (0014).
Since wage types from the Basic Pay infotype (0008) are created for each partial period if changes in the Organizational Assignment infotype (0001) or the Basic Pay infotype (0008) are not made at the start of a period, these wage types must be reduced by factors which are created on the basis of the partial periods.
Wage types from the Recurring Payments/Deductions infotype (0014), on the other hand, are created once per period only. For this reason, partial period factors can only be used for these wage types that are created on the basis of the entire period.
The standard system contains various partial period formulas.