You use this function when you want to set up deductions so that a specified total amount is deducted in equal installments over several periods. You can use it, for example, to easily set up interest-free loans for your employees.

To set up a deduction in the system that is valid over several payroll periods, you generally create a record in the infotype Recurring Payments/Deductions (0014). If you want the individual deductions to add up exactly to a specified total amount you must choose the validity period for this infotype record so that the sum of the partial amounts corresponds to the total amount. This procedure can not only require considerable maintenance, but is also prone to errors if, for example, one of the following occurs:

• The employee changes to another payroll area with a different payroll periodicity.
• The deduction is factored because the employee has unpaid absences.
• The net amount in a period is not sufficient, so the amount is only partially deducted or is not deducted at all.

In these cases it is not established from the start how long the infotype record must be valid for in order that the total amount can be completely deducted. You can use the balances & totals function to ensure that the required total amount is deducted in full.

To do this you link three wage types in Customizing for Payroll under Deductions ® Wage Types for Deductions With Balances and Totals.

• Deduction:

• Balance:

• Total:

Deductions are withheld during payroll runs until the total amount has been reached. If necessary, the deduction is reduced in the last period to the amount that is still outstanding. In all subsequent periods nothing will be deducted, even if the record in the infotype Recurring Payments/Deductions (0014) is still valid.

All three wage types (deduction, balance and total) are stored for each period in the RT table.

A total amount of USD 250 should be deducted by USD 50 per period.. The following graphic describes the interaction of the wage types during several periods:

• Deduction (in infotype Recurring Payments/Deductions (0014): USD 50
• Balance (in infotype Additional Payment (0015): USD 250

The record of the infotype Recurring Payments/Deductions (0014) creates a deduction in each payroll period of USD 50. The balance wage type decreases from the starting amount of USD 250 by USD 50 for each deduction until it has decreased to zero in period 05. The totals wage type increases simultaneously per payroll period by USD 50 and adds up, therefore, to USD 250 in period 05. In the subsequent periods the system does not deduct anything.