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Processing class

Former Member
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Hi Experts,

What is meant Processing class and Evaluation class,When to use that.


Accepted Solutions (1)

Accepted Solutions (1)

Active Participant
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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


A wage type characteristic that controls processing during Payroll.


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


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.


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


Sairam Maharaj S

Active Contributor
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good work




Former Member
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Thanks for u r reply


Former Member
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Thnaks Sairam, really useful to get insight into processing, cumulation and evaluation classes.

Former Member
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Hi Sai,




- Rajesh

Answers (2)

Answers (2)

Former Member
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Hi Amul,

Sometime back I had posted the below in the forum.

Every wagetype has 2 containers in it, 1 container holds the amount and another holds the Number. Processing class are methods to process the 2 fields. Example Employee was on Leave without pay for 5 days, so uwould like to reduce his salary by a prticular factor. Through Pclass 10, u will assign a factor to the wagetype , let's say/801.

U need to attach a formulae to this factor , so in rule INP1 U attach the formulae through which the wagetype get processed. /801 Working Days factor-LWOP RTE=TKSOLL Set RTE-TKAU** Subtraction RTE*KGENAU Multiplication RTE/TKDIVI Division ADDWT * OT Output table. So, you gave a command to the wagetype that whenever there is a LOP the formulae is as said. Similarly you have other processing classes: PClass 30 e.g says Cumulation update that means after the processing of the wagetype, how will the amount get cumulated, or stored, will it get stored as monthly or yearly or fortnightly. If u say pclass 30 specification T- i.e cumulate according to table t54c3 then system will go to t54c3 and find out the type of cumulation and process the wagetype.

Please go through pclasses and wagetypes to see the coomon plclasses that are set for all wagetypes u will get good idea.

Now Cumulation class: Cumulation class means groups into whic wagetype will be categorized, whether it is: Regular income, irregular income or perk or Ptax or PF and so on. Through Cumulation class all wagetypes marked with the cumulation class will come and get stored in 1 bucket and appear as Regular inc...or irregular... simple. Basic pay Reg inc= 2000 HRA=1000 , Both are ticked as CUMCLASS 24 so Total becomes 3000 as monthly reg inc and 3*12=36000 as annaula regular income.

Next Evaluation class : This deals with Where and how should the wagetype appear after getting processed, should it appear in form 16, payslip..or not to be shown. suppose u want a wagetype to appear in form 12ba i.e PERK Then u have to map it in evaluation class 9 Perk, then in form 16 under 12ba u will se the wagetype as Perk. 1. PCLASS - Takes u to formulae to process wt 2.Cum class- Groups the wagetype into similar income components 3. Eval class : Appearance of wagetype. Coming to your scenario: You need to elaborate a lot on this as how is ur org wanting to process. Please take the respective wagetypes, and assign the factor. Please see the INP1 and copy that and make ur factors to proceed.

Enjoy and share ur idea.



Former Member
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Hi Sai,

Really helpful.