Hi,
Processing Class will help the wage type how it should be processed during payroll run.
Ex.. U want a particular wage type to be taxed. So u maintain PC 68 & required specification..
Same is the case for other processing classes....
If u want the wage type to be cumulated, u maintain Processing class 30 and required specification...
Cummulation class is for calculation base.
Consider following info:
• Processing class has specification (maintained at view V_512W_D)
• These specification actually defines how the wage type will be processed in a particular Rule. For example: You can query processing class specification in a Rule using operation VWTCL. Based on the return value of this query (based on specification maintained at above view), you can specify one or more operations to be performed in the Rule. These operations will be performed on that particular wage type.
• Thus processing class specification actually decides treatment of a wage type during payroll. Please note this is the normal use. It is perfectly possible (but highly improbable in practice) that you write a report that will read processing class from this table and do something on that.
• Cumulation class is slightly different. It specifies that a particular wage type should be part of what "other wage types".
• "other wage types" mentioned above have to be one of the cumulation wage types (/1**).
• When you select cumulation class "11" for wage type X, you are configuring the system such that during payroll processing wage type X will be added to cumulation wage type /111.
• This does not happen automatically. ADDCU operation is responsible to perform this job. Thus, if you perform ADDCU operation on wage type X, you will see wage type /111 increased by amount of wage type X.
• As ADDCU is an operation, it needs to be called in a Rule.
• As expalined above, Rule performs one or more operations based on processing class specifications.
• Thus, to put everything together, you specify processing class of Wage type X such that, in a particular Rule, it will be processed through operation ADDCU. And you mark relevant cumulation class for wage type X. That will ensure that wage type X gets added to those cumulation wage types (relevant for cumulation class).
Evaluation class is completely different. It does not have anything to do with payroll. It is used for reporting purpose. In a report program, system can check for setting of evaluation class specification to decide on how the wage type should be displayed.
For example, on Form 16 annexure, system displays various heads of earning (gross salary, perks, IOS and exemptions u/s 10). Here you can specify which particular wage type is perk or exemption based on evaluation class settings. Not only that, even within perks, further break up is possible using evaluation class settings.
Processing Class
Definition
A wage type characteristic that controls processing during Payroll.
Use
There are different processing classes for the various processing steps that are performed within Payroll. During the payroll run, SAP R/3 processes a wage type in a specific processing step according to its individual specification in the respective processing class
Example
In the standard system, processing class 15 determines how a wage type is valuated in accordance with the principle of averages.
The standard system permits the following specifications, for example, for processing class 15:
Specification 1: valuation of averages for 3 months
Specification 2: valuation of averages for 6 months
Evaluation class
Wage type characteristic that controls processing when payroll results are evaluated and displayed.
Use
There are various evaluation classes for the different processing steps that are performed when payroll results are evaluated and displayed. During an evaluation, SAP R/3 processes a wage type in a specific processing step according to its individual specification in the respective evaluation class.
In the standard system, the specifications for evaluation class 02 determine how a wage type is printed on a form.
Specification 00: no printing on the form
Specification 01: prints personal payments/deductions
Specification 02: prints wage types included in the total gross amount
Specification 03: prints wage types derived from time-based payments and included in the total gross amount
Naming Conventions:
The following naming conventions are used for wage types:
• /0** – valuation
• /1** – cumulation
• /2** – averages
• /3** – country-specific, usually for social insurance
• /4** – country-specific, usually for tax
• /5** – legal net
• /700 – wage/salary plus ER shares
• /8** – period factoring
• /84* – cost accounting
• /A** – outgoing wage types in retroactive accounting period
• /Z** – incoming wage types from the previous period
Inputs given by Ram Manohar and Biraju
Regards
Sairam Maharaj S
Bluesky
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.