PY QnAs Set 3

Q. Priority for deductions for deduction wage types 

A. Priorities can be set for each deduction wage type. This is done using table V_T51P6.

• The priority field assigns a priority to any deduction wage type used in arrears processing.
• In the arrears functions, deductions are sorted according to the priority assigned to them and processed in this order. The highest priority deductions are subtracted from the net amount first, then the next highest and so on in descending order until the net amount has been used up. Within one level of priority, the deductions are sorted according to wage type name. 

Further reference: http://help.sap.com/saphelp_470/helpdata/en/71/4c495c4c4611d1890b0000e8323d3a/content.htm

Q. Use of processing classes in SAP HR

A. 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.

Further Reference: http://www.sd-solutions.com/SAP-Payroll-Processing-Classes.html

Q. Pay Scale Groupings for Allowances

A. Pay scale groupings for allowances are used to group employees based on their eligible compensation benefits, i.e. for various allowances, reimbursements and perks.

Each pay scale grouping is assigned to a combination of pay scale level, pay scale area, pay scale type, pay scale group and employee subgroup grouping for Collective Agreement Provision (ESG for CAP).

Q. Basic Codes

A. Basic codes are used to define the basic salary range. The range of basic salary is also referred to as basic slabs. These slabs are used to fix each employee's basic salary.

Q. Wage Type Model for Pay Scale Grouping for Allowances

A. The Wage Type Model indicates which benefits would apply to, or what amounts will be deducted from a particular Pay Scale Grouping for Allowance.

Wage Type Models are a set of 'Wage Types (WTs)' used by SAP. These WageTypes can be an amount or a deduction and  must be prefixed with '20/' to indicate that, a maximum of 20 wage types can be stored in a particular WT model.