Reduction method
Definition
Method used to reduce the amounts of wage types in a certain wage type class if the amount of this wage type class exceeds its limit.
Use
If not all the amounts of wage types in a wage type class can be deducted because the limit is exceeded, you can use the reduction method to determine how the system should proceed. In this case the amounts of the wage types are always reduced. The amount is only reduced up to the limit, while the excess amount is flagged as a deduction that was not made.
You can assign a certain reduction method to each wage type class. In this way you define how the wage types in this wage type class should be reduced. In particular you can also determine the order in which the system makes deductions from the wage types.
Structure
The following reduction methods are available in the standard system:
The system reduces the wage types in a wage type class according to their priority. You can enter a priority for each wage type by accessing Customizing for Payroll and choosing Deductions ® Set Up Wage Type Classes and Attach Limits.
The system reduces all wage types in a wage type class by the same percentage.
The system reduces all wage types in a wage type class by the same amount.
Integration
The partial amounts of wage types in a wage type class, which exceed the limit in a particular period, are stored in table DDNTK (Deductions not effected)
During the payroll run the function LIMIT (Limiting Deductions) determines the amounts of the wage type class and the limts, compares these amounts and, if necessary, reduces the wage types. For more detailed documentation on this function, refer to
Editor for Functions and Operations.