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Learn a few simple configuration steps for automating employee pay based on constant values stored in back-end tables.

by Margaret Hein

October 27, 2011

by M.S. Hein, HR Expert  

This excerpt (below) is from the HR Expert article Use the Indirect Valuation Module CONST to Easily Achieve Complex Wage Type Calculations, by Raghavendran Parthasarathy, published October 2011.

In his newest HR Expert article, posted online October 27, 2011, Raghavendran explains easy methods for configuring wage types for constant values (in his examples, for fuel allowances and bonus payments).

In this section, Raghavendran discusses how to configure payment based on an employee’s fuel consumption.

 

My first example scenario is to configure and use the payment wage type with a constant value that is stored in the back-end table and calculates in the front-end screen. The system takes the user’s variable input in infotypes 0014 o r 0015 as its calculation base and performs the calculation step with the constant values, which are in the back-end table. Following are some examples of how to achieve this.

Scenario 1: There is a payment type in your organization that is based on fuel consumption units. For example, if an employee has travelled 100 kilometers in a given payroll month, he is paid 2.00 Euro per kilometer based on the market price of petrol.

In this example he is paid 200.00 Euro (100 x 2.00 Euro = 200.00 Euro) for this month. Next month, if the consumption is 250.00 Euro, then he is paid 250.00 x 2.00 Euro = 500.00 Euro. The payroll administrator enters only the unit and consumption values and the system calculates the total payment amount.

Let’s first frame the requirements before configuring the system. The following are the requirements of the organization:

  • A wage type for fuel consumption with a default unit of kilometers
  • The fuel rate is 2.00 Euro per kilometer
  • The system has to calculate the dollar amount multiplied by the number of kilometers, per payroll period

Now, let’s create a new wage type called “fuel allowance” for this purpose. In this example, I am assuming that the payroll administrator enters this wage type for an employee in infotype 0014 (recurring payments and deductions).

 

(If you are already a subscriber to HR Expert, you can read the complete article here: Use the Indirect Valuation Module CONST to Easily Achieve Complex Wage Type Calculations.)

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