You can use balances & totals when you want to deduct a specified total amount equally over several periods.

SAP supplies the following model wage types for balances & totals with the standard system:

• MD70: Balance wage type
• MD80: Deductions wage type for the balance
• MD90: Total wage type

You must identify the wage types that you want to use to process balances & totals with processing class 50. This processing class has the following valid specifications:

Specification 1: The wage type is processed as a deduction wage type that is included in balance processing.

Specification 2: The wage type is processed as a balance wage type.

• USA
• Canada, up to and including R/3 Release 4.0B

Indicators for assigning wage typesTo link the deduction, balance, and totals wage types the system uses the following indicators for the balance functionality:

The indicators are stored in table T51P3 (Indicator for Wage Type Assignment) for each country grouping.

The link between the affected wage types is made in table T51P1 (Wage Type Assignment):

• You set up the link between the recurring deduction wage type and the balance wage type, and enter a validity period for the link.
• You set up the link between the balance wage type and the associated totals wage type and enter a validity period for the link.

There is an activity available for this in Customizing for Payroll under Deductions ® Wage Types for Deductions With Balances and Totals ® Assign Processing Classes to Wage Types.

You create a recurring deduction in the infotype Recurring Payments/Deductions (0014). In this way you define how high the deductions should be in the individual periods.

You specify the total amount that should be deducted in the infotype Additional Payment (0015). This is the balance wage type. The validity date for this record is in the payroll period in which the partial payments will start. The amount of the infotype record must be positive.

Whilst you are entering data in the infotype Recurring Payment/Deduction (0014) the system checks whether a balance wage type is defined in table T51P1 for the specified deduction wage type. If this is the case the system accesses the infotype Additional Payment (0015) and proposes the balance wage type directly.

You do not have to create the totals wage type yourself because the system creates this wage type during the payroll run.

During the payroll run, the system reads the wage types from the infotypes and stores them in the IT table. The system performs balance processing in the subschema xDPO (Processing Deductions, Balances and Totals).

The system reduces the balance wage type amount by the deduction amount, and increases the totals wage type amount by the deduction amount. In this way, the balance is reduced for every period in which a deduction is made, whilst the totals wage type increases by the same amount. The system makes deductions until the total amount is achieved.

If in one period the deduction amount is greater than the remaining balance, the system only deducts what is necessary to achieve the balance. The part of the amount that exceeds the balance is stored in table DDNTK (Deductions not effected) for information. The system does not make any deductions in the subsequent periods because the balance wage type in the infotype Additional Payment (0015) is already at zero. The deduction from the infotype Recurring Payments/Deductions (0014) is stored in the table DDNTK until the validity end date.