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Split Unconditional Deductions into Paid Amount and Advance

In this step, you maintain several wage types and the connection between them so that you can split an unconditional deduction into the amount retained and an advance.

An unconditional deduction (value 1 in the Arrears characteristic field) is made in full and paid even if the net amount is not large enough to cover it.

This means that the employee is given an advance by the employer for the difference between the deduction amount and net amount.

You want this advance to be displayed as a separate entry in the payroll results. To do this, you must generate a new wage type for the advance. This is stored in the results table.

The advance is carried over to the next payroll period. During the next run, the payroll driver tries to retain the advance amount from the employee's net pay.

If the net amount covers the advance, it is deducted. The system then generates a further new wage type for this repaid amount.

Example

You want to print on a form only the amount paid by the employee. If the advance is paid back to the employer during a later period, you want to display the amount in this later period.

Requirements

Determine all unconditional deductions that must be split in this way.

Standard Settings

The standard system contains model wage types that you can copy.

Activities

1. You must create three new wage types for each unconditional deduction that needs to be split:
2. Check that all wage types required for this step are correctly assigned to the wage type group 'Deductions, advance processing'.
3. To carry out processing correctly during payroll, set the following values for the new wage types:

Advance wage type for current period
Priority of wage type
Same priority as deduction wage type
Arrears characteristic
A Advance from employer for unconditional deductions

Advance wage type from previous period
Priority of wage type
Same priority as deduction wage type
Arrears characteristic
A Advance from employer for unconditional deductions

Advance repaid in later period
Priority of wage type
Same priority as deduction wage type
Arrears characteristic
B Advance repaid by employer, next period
4. Maintain the connection between the four wage types:
Indicator
Deduction wage type 00 Advance wage type in current period
Current advance 01 Advance wage type from previous period
Previous advance 02 Repaid advance

Further Notes

1. If no entries are found for indicator 00 for an unconditional deduction in the last view, the deduction is not split during arrears processing.
If the deduction to be split is entered under indicator 00, it is important that the wage types into which the deduction will be split are entered under indicators 01 and 02.
2. If the unconditional deduction is a deduction before tax, the full amount is deducted from the gross tax amount.
3. For further information on the SAP wage type concept, see Wage Type Concept in the Implementation Guide for Personnel Management. For a detailed description of the copy procedure, choose Help -> Extended help in the maintenance view.