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Use

You can use this function to specify that the deductions for an employee do not exceed a certain amount in a certain period. This can be useful, for example, if you want to prevent a too high amount from being deducted for an emloyee in a payroll period. You can therefore define maximum values for certain wage types, or groups of wage types. These maximum values are called Limits.

Note

In limits processing you can not only define maximum values for deductions, but also for payments.

The deductions and payment wage types are grouped together as wage type classes. As the system totals the wage type amounts for the amount of the wage type class, you should only take into account either the payment wage types or the deduction wage types within a wage type class.

You can use the Limits on Deductions function if, for example, you want to limit the amounts of the following wage types or groups of wage types to a certain maximum value:

Integration

All amounts required to edit the Limits on Deductions are determined and processed by the function LIMIT (Limiting Deductions) during the payroll run, in particular the amounts of the wage type classes and the associated limits.

For more detailed documentation on this function, refer to Structure linkEditor for Functions and Operations.

Scope of Function

You can create different limits for a wage type class.

A constant limit has a fixed amount. You define these limits in table T51D1 (Limits on Deductions).

A limit can also be calculated using a rule for limits.

You can set up personal limits for a certain employee or a group of employees in the Infotype Limits on Deductions (0165). These limits override constant limits if their wage type class and interval for limits are compatible. For a personal limit you can either enter a constant amount or a rule for limits.

Each limit has a certain validity period. You can also set up several different limits for the same wage type class, for example a constant limit as well as a limit that is calculated using a rule for limits.

The payments and deductions are read from different infotype records and added to the amount of each wage type class. The system uses the function Limits on Deductions to compare whether the amounts of the wage type classes exceed the lowest limit for this wage type class or not.

If the limit is exceeded, the system does not effect all payments or deductions in this period completely, but only takes into account the amount up to the maximum limit. In this case, the wage types that are assigned to this wage type class are reduced according to certain reduction methods.

For more information about how to set up Limits on Deductions, access the Implementation Guide (IMG) for Payroll and choose Deductions ® Limits on Deductions.

Example

You can define, for example, the following limits for a wage type class:

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