Methods for Compensating Time Quotas 
Definition
You customize your own subtypes of the Time Quota Compensation infotype (0416) in the Implementation Guide. The subtypes are referred to as time quota compensation methods.
Use
You can customize time quota compensation methods to control the data entry work involved for compensation records. You do this by defining specifications for the subtypes of the infotype in Customizing. As a result, only particular fields in the infotype may be ready for input. This enables you to reduce significantly the data entry work required of administrators.
Structure
You customize time quota compensation methods in the IMG for Personnel Management by choosing Personnel Administration ® Payroll Data ® Leave Compensation
In the IMG, you can set the following basic methods for recording time quota compensation:
Automatic compensation
If you use automatic compensation, you compensate quotas according to predefined rules. Default values for the deduction and remuneration of the quotas are stored in Customizing. This means that in the infotype you only need to enter the amount of quota you want to be compensated.
The following procedures are used to compensate quotas automatically:
The compensation is controlled by a deduction rule. The Customizing settings for the deduction rule determine the sequence in which the quotas are deducted. You can use the following criteria to determine the deduction sequence:

Quotas of one quota type are compensated. The quota type determines whether days or hours are compensated. The SAP System deducts first from the quota whose deduction period expires next.
Free compensation
You can set up a method for compensating time quotas that allows you to perform free compensation. A free compensation method allows you to overwrite all relevant fields of the Time Quota Compensation infotype (0416), including the Wage type and Amount fields. You use free compensation for unforeseeable situations or situations that are too employee-specific to merit a rule for automatic compensation.

The following procedures are used to for free compensation:
You use a deduction rule for the compensation. The SAP System selects the quotas to be compensated based on the specifications you made when you customized the deduction rule.
You specify a quota type for the compensation. The SAP System deducts the compensation from existing quotas of this type. It deducts quotas in the sequence of the earliest deduction-to date.
For manual compensation, you can overwrite the following infotype fields for each deductible quota:
In the other forms of compensation, the system determines the specifications for how the compensation is valuated from the Customizing settings. In manual compensation, you can specify a wage type or a wage type/amount for a quota to be compensated. In this case, the rules specified in Customizing for the selection or valuation of a wage type are overridden.
The following rules apply:
Fields with input
Field |
Field |
Field |
Processing in Payroll |
Number |
The wage type is determined using Customizing table T556W (Assign Wage Types to Quotas to be Compensated) The wage type is valuated by personnel calculation rule X015 in schema XT00 (where x = country indicator) | ||
Number |
Amount |
The amount entered is the total amount for the compensation. It is transferred, without being multiplied by the number, to the wage type specified in the Customizing table T556W (Assign Wage Types to Quotas to be Compensated) Note: You must enter the exact number so that the quota can be deducted correctly | |
Number |
Wage Type |
Amount |
The wage type is valuated, without being multiplied by the number, using the specified amount. Note: You must enter the exact number so that the quota can be deducted correctly |
See also:
Maintain Automatic Compensation Maintain Compensation Using Defaults Maintain Manual Compensation