To define the different types of severance pay, you need to modify the following settings:

• Define severance pay codes: The severance pay codes identify the severance pay types. The standard severance pay types provided by SAP have their own severance pay codes. However, if you want to create your own severance pay types, you can do this using the Implementation Guide, in the section Payroll Argentina ® Severance Pay ® General Settings ® Severance Pay Definition ® Define Severance Pay Codes.
• Define severance pay calculation: You calculate the severance pay using function modules. The standard SAP R/3 system provides already defined function modules for the calculation of severance pay types. However, if you want to create your own function modules for the calculation of your own severance payments, you can do this using the Implementation Guide, in the section Payroll Argentina ® Severance Pay ® General Settings ® Severance Pay Definition ® Define Severance Pay Calculation.
• Define severance pay wage type: The standard SAP R/3 system provides guaranteed net amount wage types that are already set. However, if you want to create your own wage types and corresponding settings, you can do this using the Implementation Guide, in the section Payroll Argentina ® Severance Pay ® General Settings ® Severance Pay Definition ® Define Severance Pay Wage Type.

It is also necessary to:

• Assign severance pay codes to the corresponding employment regime:You do this using the Implementation Guide, in the section Payroll Argentina ® Severance Pay ® General Settings ® Assign Severance Pay Codes to Work Regime.
• Define rules for severance pay calculation: You can define these rules using the Implementation Guide, in the section Payroll Argentina ® Severance Pay ® General Settings ® Define Rules for Severance Pay Calculation.