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Process documentation Annual Wage Supplement  Locate the document in its SAP Library structure

Purpose

The Annual Wage Supplement (AWS) is treated similarly to a bonus payment that depends on an employee's basic salary.

Prerequisites

The wage types that are to be used as AWS payments must be eligible for entry in the infotypes Additional Payments (0015) and Additional Payments Off-Cycle (0267), otherwise they cannot be stored in these infotypes.

Note Define the settings using the Implementation Guide of the Payroll Malaysia component. Choose AWS ® Wage Types ® Checking the Wage Type Catalog ® Check entry permissibility of wage types per infotype.

All wage types relevant to an employee's AWS calculation must be assigned a corresponding specification in evaluation class 10 (BS-Wage type allocation for AWS reporting).

Note You can make this assignment in the Implementation Guide of the Payroll Malaysia component. Choose AWS ® Check wage types.

Process Flow

To calculate the AWS for an employee, run a program that performs the necessary calculations and creates the AWS payments as special wage types is run. These are then stored in the infotypes Additional Payments (0015) and Additional Payments Off-Cycle (0267), depending on whether payment is to be effected in a regular or an off-cycle payroll run.

To import the AWS wage types into the infotypes mentioned above, a batch input folder is created during AWS calculation.

After the AWS amount is calculated, payment is made depending on which infotype the results are stored in.

Note You can split an employee's AWS into several payments that are made in different periods. This allows for a distribution of AWS over multiple regular payroll runs as well as for seperation into multiple off-cycle and regular payroll runs.

Note The AWS amount that an employee is to receive is MYR 1000. AWS is calculated on December 10th, the next regular payroll run is performed on December 28 th. MYR 400 is to be paid immediately, MYR 600 in the regular payroll run. This means that MYR 400 is entered in the infotype 0267, while MYR 600 are stored in infotype 0015.

When off-cycle payroll accounting is performed on December 10th, only the amount stored in infotype 0267 is processed, and the appropriate payment is made. When the regular payroll run is executed on December 28th, the MYR 600 stored in infotype 0015 are processed and paid with the employee's regular salary.