
Use
Similarly to hourly wage earners, monthly wage earners‘ time allowances are compensated on the basis of actual working hours. Time allowances are usually calculated for a different period than the payroll period.

In February, you pay the deferred payment for the last part of January and the first part of February. The deferred pay period starts from the day after the last deferred date to the end date of January payroll period and runs until the next deferred date in February – that is, the time evaluation period consists of the deferred pay period in January and non-deferred pay period in February.

Prerequisites
You must have maintained the deferred date which is stored as the constant DEFER in Customizing under Deferred payment ® Set Deferred Payment Date.
See also:
Deferred Payment Wage Type of Deferred Payment