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SAP HR and Payroll Solutions - Processing Classes

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Using Processing Classes in SAP Payroll

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Processing classes are set for each wage type and are used in SAP payroll to determine how that wage type is to be processed. For each processing class, there are usually a number of different options that can be configured. It may be, for example, that a particular payment is to be reduced depending on an employee's actual working time, in this case processing class 10 Mark Wage Types for Monthly Factoring would be set to 1 and the payment would automatically be pro-rated within the SAP standard calculation rule GVAL 'Valuate payroll elements using partial period factors', or the customized equivalent. Alternatively, if the payment is to be made for the full amount irrespective of the amount of time the employee has worked, then processing class 10, would be set to 0 no reduction.

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Customized Processing classes

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 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 Classes and Evaluation Classes Maintain Processing Classes and Their Specifications Processing

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Processing Class

SAP HR and Payroll Solutions - Processing Classes

Name Options 0 1 2 3 5 9 0 1 2 Cumulation and storage of time wage types in RT 3 4 5 6 0 1 4 Process gross cumulative results 2 3 6 0 1 3 5 Create net remuneration and total expenditure 4 5 6 0 6 Enter wage type from old payroll account in LRT 1 2 0 1 2 3 4 5 6 7 8 9 A B C 10 Mark wage types for monthly factoring D Meaning Wage type is not included in a valuation basis Wage type is included in valuation basis /001 Wage type is included in valuation basis /002 WType included in valuation basis /001 and /002 Division of valuation bases Wage type not to be included in any valuation basis Transfer unchanged RT storage, cumulation with ESG for PCR and AC1 indicator RT storage with ESG for PCR and A split RT storage, cumulation for hourly wage only RT storage with ESG for PCR and A split for hourly wage only RT storage, cumulation, accumulation of overtime hours RT storage with ESG for pers. calc. rule, cumulation Transfer in summarized form Store in RT in summarized form Summarized allocation according to C1 indicator Summarized allocation according to C2 indicator Transfer unchanged Store in RT without split indicator Addition in statutory net amount and total expenditure Transfer in summarized form Summarized storage in RT and subtraction in net Summarized storage in RT and addition in total expenditure Transfer in summarized form with out eliminating splits Wage type is not transferred Wage type is taken from previous payroll Wage type is taken from same year No reduction Reduction with factor /801 Reduction with factor /802 Reduction with factor /803 Reduction with factor /804 Reduction with factor /805 Reduction with factor /806 Reduction with factor /807 Reduction with factor /808 Reduction with factor /809 Reduction with factor /801, with rounding 005 Reduction with factor /801, with rounding up Reduction with factor /802, with rounding up Reduction with factor /803, with rounding up

Assignment to valuation bases

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SAP HR and Payroll Solutions - Processing Classes

D E F up Reduction with factor /803, with rounding 005 Reduction with factor /803, with rounding up Reduction with factor /804, with rounding 005 Reduction with factor /804, with rounding up Reduction with factor /805, with rounding 005 Reduction with factor /805, with rounding up Reduction with factor /806, with rounding 005 Reduction with factor /806, with rounding up Remove wage type Average processing type 01 (over 6 periods) Average processing type 02 (reserved for SMP) Average processing type 03 (reserved for SSP) Average processing type 04 Store wage type (TC10) Compensation 1:1, bonuses remunerated (TC10) Compensation on a 1:1 ratio (TC10) Compensation on a 1:1.25 ratio (TC10) Compensation on a 1:1.5 ratio (TC10) Compensation on a 1:2 ratio (TC10) Overtime compensation type decisive (1:1) (TC10) Overtime compensation type decisive (1:1.25) (TC10) Overtime compensation type decisive (1:1.5) (TC10) Overtime compensation type decisive (1:2) (TC10) Remuneration (TC20) Compensation ratio 1:1 and overtime bonus remunerated (TC20) Compensation with factor from wage type percentages (TC20) Overtime comp. type decisive. Default as for A (TC20) Overtime comp. type decisive. Default as for B (TC20) Overtime comp. type decisive. Default as for C (TC20) V 18 Processing for work center-related remuneration 1 2 3 4 20 Cumulation and storage at end of gross part 5 6 7 8 Transfer unchanged Delete wage type RT storage and cumulation RT storage without splits RT storage with ESG for PCR and A split RT storage with A split Transfer in summarized form Route as is and cumulate Remuneration with addition to overtime time type

H I J K L 0 1 15 Valuation acc.to the principle of averages 2 3 4 0 1 2 3 4 5 6 7 8 17 Overtime compensation (personnel calculation rule TC10 or TC20) 9 A B C D E F

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SAP HR and Payroll Solutions - Processing Classes

9 24 Control of bank transfers 0 1 0 25 Processing at end of payments/deductions 1 0 1 30 Cumulation update 2 3 0 1 2 3 0 1 2 3 4 5 6 32 Only used for conversion 7 8 A B C D E F 0 35 Shift change comp. for substitutions (not yet used) 1 2 0 38 Change in loan balances (not yet used) 1 2 1 2 3 4 41 Cumulation and storage of wage types to delimit 5 6 7 8 9 B 42 Final processing f. gross-net PA split (not yet used) 0 1 Summarized RT storage and cumulation Effect transfer up to amount payable only Always effect transfer in full Transfer unchanged Summarized RT storage with transfer indicator Wage type must not be cumulated Amt and no. of wage type to be cumulated in current year BETRG of wage type must be cumulated in current year ANZHL of wage type must be cumulated in current year WT does not lead to cost center debits/credits Calculate paid non-working time, differentiated Calculate paid non-working time, totalled Calculate paid non-work and unpaid absence time Not relevant to FI/CO Post financial acc. +/- to D/C Post financial acc. +/- to C/D Post customer acc. +/- to D/C Post customer acc. +/- to C/D Post vendor acc. +/- to D/C Post vendor acc. +/- to C/D Customers (loan) +/- to D/C Customers (loan) +/- to C/D Post cost acc. +/- to D/C Post cost acc. +/- to C/D Post financial account twice Post financial account twice Cost account and financial account Cost account and financial account Wage type is not included in the calculation Wage type included in the calculation with bonuses Only bonuses are included in the calculation The wage type does not affect the loan balance The wage type is subtracted from the loan balance The wage type is added to the loan balance Transfer unchanged data Eliminate wage type RT storage and cumulation RT storage without splits RT storage with ESG for PCR and A split RT storage with A split Transfer summarized Transfer and cumulation unchanged Summarized RT storage and cumulation RT storage with V0 split and cumulation Wage type is stored in ET Wage type is stored in DFT

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Breakdown of month.lump sums f. cost distribut.

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SAP HR and Payroll Solutions - Processing Classes

1 0 43 Initial processing of net if G/N (not yet used) 1 2 0 1 44 Enter WTy from old payroll account in LRT (not yet used) 2 3 4 1 45 Enter WTy from VD in IT or vice versa (not yet used) 2 3 4 46 Process time tickets for incentive wage earners 1 2 A 47 Special processing of variable payments/deducts P Q Deductions processing using 'Balances und Totals' 1 2 0 61 Deduct GB court orders from net 1 2 3 0 1 62 Deduct from taxable pay 2 3 4 0 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 0

Wage type is stored in DFT Wage type is stored from BRT in RT Wage type is stored from BRT in IT Wage type is neither stored in IT nor in RT Wage type is not transferred Wage type is taken from previous payroll Wage type is taken from same year Wage type is not transferred if certain master data change Wage type is transferred from the same year (storage RT) inspeisung inspeisung inspeisung inspeisung rd hschnitt No special processing Pro rating of Infotype 14 Force transfer even though limit has not been reached Wage type processed as deduction Wage type processed as balance Placing in RT with 3 split GB Court order deductions to find net pay Passed on unchanged Discard Pass on unchanged Place in RT without split Pre-tax deduction & standard contribution Pre-tax deduction & AVC Add to taxable pay and pass on without splits Pass on unchanged Place in RT without splits Deduct from working net pay & arrest. earnings without splits Add to working net pay & arrest. earnings without splits Deduct from working net pay without splits Add to working net pay without splits Place in RT without splits, add to employers costs Place in RT without splits, subtract from employers costs Place in RT, add to working net pay, subtract from employers costs Pass wage type to RT without absence split Pass wage type to RT (no splits) Add wage type to total SSP and pass to RT Add wage type to total SSP Add wage type to total SMP and pass to RT Add wage type to total SMP Add wage type to total SSP and pass to RT Pass wage type to RT with absence split Pass on unchanged

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63

GB deductions from working net pay

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GB SSP/SMP absence amounts

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SAP HR and Payroll Solutions - Processing Classes

1 2 65 Gross up: Cumulation and retroactive processing 3 4 P Q R 66 Minimum wage processing 1 1 2 67 GB employers NICs cost distribution 3 4 68 Assignment for non-payment benefits 1 Place into RT, Retro diff. into /5F1 Place into RT, Cumuate if copied from prev. Result Subtract previous result's value Place previous result's value into RT Place into RT, Retro diff. into /5F5 Place into RT, Retro diff. into /5F7 Place into RT, Retro diff. into /5F3 Wage type is included in the Minimum wage processing Wage type for cost centre distribution Niable pay Wage type for cost distribution of employer's NICs Wage type for cost distribution of employee's NI rebate paid to Er Wage type for cost distribution of employer's NI rebate Childcare Vouchers Pass on unchanged 69 GB employers NICs cost distribution 0 1 Add to ER Pen. Pay Add to ER Pen. Pay with no Part Period Factor

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