3/7/13 SAP HR and Payroll Solutions - Processing Classes

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Using Processing Classes in SAP Payroll
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Query Tools Processing classes are set for each wage type and are used in SAP payroll to determine how that wage type is to be Your Input
processed. For each processing class, there are usually a number of different options that can be configured.
Data Tools We are always updating
It may be, for example, that a particular payment is to be reduced depending on an employee's actual working time, in our articles and adding
Human Resources this case processing class 10 Mark Wage Types for Monthly Factoring would be set to 1 and the payment would new ones to the list.
automatically be pro-rated within the SAP standard calculation rule GVAL 'Valuate payroll elements using partial period Please let us know if there
factors', or the customized equivalent. Alternatively, if the payment is to be made for the full amount irrespective of the is a particular article you
FI/CO amount of time the employee has worked, then processing class 10, would be set to 0 no reduction. would like to see.

Cross System Customized Processing classes

Miscellaneous As standard, SAP provides 7 processing classes (91 to 97 inclusive), which can be customized to an individual
company's needs. It is not recommended to update the SAP standard processing classes by adding any additional
options or changing the wording, as any changes made are likely to be over written during HRSP upgrades or OSS note
BW
application.

Common Payroll Errors

One of the common errors experienced in payroll when cus tomized wage types are used, is the omission of that
amount from the employee's results. One of the reasons for this may be the setting used for processing class 20
Cumulation and Storage at the end of Gross Part. In the SAP standard calculation rule X023 'Gross Input and Storage'
wage types are either added to the results table, to the input table for further processing, or deleted depending on the
settings made.

Processing class 62 Deduct from Taxable Pay is another processing class which commonly causes errors in an
employee's results. SAP standard rule G030 'Distribute Pension Wage Types' uses the settings on this processing
class to determine how a wage type should affect pre-tax deductions, whether it should reduce them or not.

The SAP standard calculation rule G010 'Determine Valuation Basis' is used to determine if a particular wage type is to
be included in a valuation basis or not. Each wage type can have a total of three valuation bases assigned to it.
Calculation rule G010 is used to determine, according to settings against processing class 1 Assignment to Valuation
Bases, whether specific wage types are to be included in these bases, and therefore, whether they will have as
subsequent effect on other wage types to which those valuation bases have been assigned.

Use of Processing Classes in PCR Configuration

In order to use a particular processing class within a customized calculation rule, the decision VWCTL is used, with the
appropriate processing steps configured for any specifically required options for that processing class:

The above screen shot from SAP standard processing class G010, shows a decision on processing class 1
Assignment to Valuation Bases, with the result that wagetypes having this processing class set to:

0 should be added to the input table

1 should first be added to the input table, then have the time period ID eliminated, and then be processed
according the subsequently define steps.

The setting * is used for all wagetypes with a setting other than those specifically configured in the rule.

SAP Standard Processing Classes overview

A full list of the available SAP standard processing classes can be seen via the following IMG path:

Payroll Payroll: Great Britain Basic Settings Environment of Wage Type Maintenance Processing
Classes and Evaluation Classes Maintain Processing Classes and Their Specifications
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3/7/13 SAP HR and Payroll Solutions - Processing Classes

Processing
Name Options Meaning
Class
Wage type is not included in a valuation
0
basis
Wage type is included in valuation basis
1
/001
Wage type is included in valuation basis
2
1 Assignment to valuation bases /002
WType included in valuation basis /001
3
and /002

5 Division of valuation bases

Wage type not to be included in any
9
valuation basis
0 Transfer unchanged
RT storage, cumulation with ESG for PCR
1
and AC1 indicator
2 RT storage with ESG for PCR and A split
RT storage, cumulation for hourly wage
3
Cumulation and storage of time wage types only
3
in RT
RT storage with ESG for PCR and A split
4
for hourly wage only
RT storage, cumulation, accumulation of
5
overtime hours
RT storage with ESG for pers. calc. rule,
6
cumulation
0 Transfer in summarized form

1 Store in RT in summarized form

Summarized allocation according to C1

2
4 Process gross cumulative results indicator
Summarized allocation according to C2
3
indicator
6 Transfer unchanged

0 Store in RT without split indicator

Addition in statutory net amount and total
1
expenditure
3 Transfer in summarized form
Create net remuneration and total Summarized storage in RT and
5 4
expenditure subtraction in net
Summarized storage in RT and addition
5
in total expenditure
Transfer in summarized form with out
6
eliminating splits
0 Wage type is not transferred
Enter wage type from old payroll account in
6 1 Wage type is taken from previous payroll
LRT
2 Wage type is taken from same year

0 No reduction
1 Reduction with factor /801

2 Reduction with factor /802

3 Reduction with factor /803

4 Reduction with factor /804

5 Reduction with factor /805

6 Reduction with factor /806

7 Reduction with factor /807

8 Reduction with factor /808

9 Reduction with factor /809

Reduction with factor /801, with rounding

A
005
Reduction with factor /801, with rounding
B
up
Reduction with factor /802, with rounding
C
up
10 Mark wage types for monthly factoring
Reduction with factor /803, with rounding
D
up
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3/7/13 SAP HR and Payroll Solutions - Processing Classes
D
up

Reduction with factor /803, with rounding

E
005

Reduction with factor /803, with rounding

F
up

G Reduction with factor /804, with rounding

005
Reduction with factor /804, with rounding
H
up
Reduction with factor /805, with rounding
I
005

Reduction with factor /805, with rounding

J
up

Reduction with factor /806, with rounding

K
005

Reduction with factor /806, with rounding

L
up
0 Remove wage type

Average processing type 01 (over 6

1
periods)

Average processing type 02 (reserved for

15 Valuation acc.to the principle of averages 2
SMP)

Average processing type 03 (reserved for

3
SSP)
4 Average processing type 04

0 Store wage type (TC10)

Compensation 1:1, bonuses
1
remunerated (TC10)
2 Compensation on a 1:1 ratio (TC10)

3 Compensation on a 1:1.25 ratio (TC10)

4 Compensation on a 1:1.5 ratio (TC10)

5 Compensation on a 1:2 ratio (TC10)

Overtime compensation type decisive

6
(1:1) (TC10)
Overtime compensation type decisive
7
(1:1.25) (TC10)
Overtime compensation type decisive
8
(1:1.5) (TC10)
Overtime compensation (personnel
17 Overtime compensation type decisive
calculation rule TC10 or TC20) 9
(1:2) (TC10)

A Remuneration (TC20)
Compensation ratio 1:1 and overtime
B
bonus remunerated (TC20)
Compensation with factor from wage type
C
percentages (TC20)

Overtime comp. type decisive. Default as

D
for A (TC20)

Overtime comp. type decisive. Default as

E
for B (TC20)

Overtime comp. type decisive. Default as

F
for C (TC20)

Remuneration with addition to overtime

V
time type

Processing for work center-related

18
remuneration

1 Transfer unchanged
2 Delete wage type

3 RT storage and cumulation

4 RT storage without splits

20 Cumulation and storage at end of gross part 5 RT storage with ESG for PCR and A split

6 RT storage with A split

7 Transfer in summarized form

8 Route as is and cumulate

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9 Summarized RT storage and cumulation

0 Effect transfer up to amount payable only

24 Control of bank transfers
1 Always effect transfer in full

0 Transfer unchanged
25 Processing at end of payments/deductions Summarized RT storage with transfer
1
indicator
0 Wage type must not be cumulated

Amt and no. of wage type to be cumulated

1
in current year
30 Cumulation update BETRG of wage type must be cumulated
2
in current year

ANZHL of wage type must be cumulated

3
in current year
WT does not lead to cost center
0
debits/credits

Calculate paid non-working time,

Breakdown of month.lump sums f. cost 1
31 differentiated
distribut.
2 Calculate paid non-working time, totalled

Calculate paid non-work and unpaid

3
absence time
0 Not relevant to FI/CO

1 Post financial acc. +/- to D/C

2 Post financial acc. +/- to C/D

3 Post customer acc. +/- to D/C

4 Post customer acc. +/- to C/D

5 Post vendor acc. +/- to D/C

6 Post vendor acc. +/- to C/D

32 Only used for conversion 7 Customers (loan) +/- to D/C

8 Customers (loan) +/- to C/D

A Post cost acc. +/- to D/C

B Post cost acc. +/- to C/D

C Post financial account twice

D Post financial account twice

E Cost account and financial account

F Cost account and financial account

Wage type is not included in the

0
calculation

Shift change comp. for substitutions (not yet Wage type included in the calculation with
35 1
used) bonuses

Only bonuses are included in the

2
calculation
The wage type does not affect the loan
0
balance

The wage type is subtracted from the loan

38 Change in loan balances (not yet used) 1
balance

The wage type is added to the loan

2
balance

1 Transfer unchanged data

2 Eliminate wage type

3 RT storage and cumulation

4 RT storage without splits

Cumulation and storage of wage types to 5 RT storage with ESG for PCR and A split
41
delimit 6 RT storage with A split
7 Transfer summarized

8 Transfer and cumulation unchanged

9 Summarized RT storage and cumulation

B RT storage with V0 split and cumulation

Final processing f. gross-net PA split (not yet 0 Wage type is stored in ET

42
used) 1 Wage type is stored in DFT
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3/7/13 SAP HR and Payroll Solutions - Processing Classes
1 Wage type is stored in DFT

0 Wage type is stored from BRT in RT

43 Initial processing of net if G/N (not yet used) 1 Wage type is stored from BRT in IT

2 Wage type is neither stored in IT nor in RT

0 Wage type is not transferred

1 Wage type is taken from previous payroll

2 Wage type is taken from same year

Enter WTy from old payroll account in LRT
44
(not yet used) Wage type is not transferred if certain
3
master data change

Wage type is transferred from the same

4
year (storage RT)

1 inspeisung
Enter WTy from VD in IT or vice versa (not yet 2 inspeisung
45 used)
3 inspeisung

4 inspeisung

Process time tickets for incentive wage 1 rd

46
earners 2 hschnitt
A No special processing

Special processing of variable P Pro rating of Infotype 14

47
payments/deducts
Force transfer even though limit has not
Q
been reached

Deductions processing using 'Balances und 1 Wage type processed as deduction

50
Totals' 2 Wage type processed as balance

0 Placing in RT with 3 split

1 GB Court order deductions to find net pay

61 Deduct GB court orders from net
2 Passed on unchanged

3 Discard

0 Pass on unchanged

1 Place in RT without split

2 Pre-tax deduction & standard contribution

62 Deduct from taxable pay
3 Pre-tax deduction & AVC

Add to taxable pay and pass on without

4
splits

0 Pass on unchanged
1 Place in RT without splits

Deduct from working net pay & arrest.

2
earnings without splits

Add to working net pay & arrest. earnings

3
without splits

Deduct from working net pay without

4
63 GB deductions from working net pay splits
5 Add to working net pay without splits

Place in RT without splits, add to

6
employers costs

Place in RT without splits, subtract from

7
employers costs

Place in RT, add to working net pay,

8
subtract from employers costs
Pass wage type to RT without absence
1
split

2 Pass wage type to RT (no splits)

Add wage type to total SSP and pass to

3
RT

4 Add wage type to total SSP

64 GB SSP/SMP absence amounts
5 Add wage type to total SMP and pass to
RT

6 Add wage type to total SMP

Add wage type to total SSP and pass to

7
RT

8 Pass wage type to RT with absence split

0 Pass on unchanged

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3/7/13 SAP HR and Payroll Solutions - Processing Classes

1 Place into RT, Retro diff. into /5F1

Place into RT, Cumuate if copied from

2
prev. Result
Gross up: Cumulation and retroactive 3 Subtract previous result's value
65
processing
4 Place previous result's value into RT

P Place into RT, Retro diff. into /5F5

Q Place into RT, Retro diff. into /5F7

R Place into RT, Retro diff. into /5F3

Wage type is included in the Minimum

66 Minimum wage processing 1
wage processing

Wage type for cost centre distribution

1
Niable pay
Wage type for cost distribution of
2
employer's NICs
67 GB employers NICs cost distribution
Wage type for cost distribution of
3
employee's NI rebate paid to Er

Wage type for cost distribution of

4
employer's NI rebate

68 Assignment for non-payment benefits 1 Childcare Vouchers

Pass on unchanged

0 Add to ER Pen. Pay

69 GB employers NICs cost distribution
Add to ER Pen. Pay with no Part Period
1
Factor

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