Creating Custom Wage Types

Creating Custom Wage Types

When I learnt about how to create Custom Wage Types during my beginner days in SAP HR, the procedure that I followed was from the SAP HCM Text Book HR305. While this method is a highly recommended one, if you are someone who consider yourself an expert in Payroll/PA or if you would like to understand various tables/views that a Wage Type Copy utility makes entries into, then you have another stepwise method that you will love.

Below is a step by step method that I found really helpful because this is truly error free. No matter which WT Group you are dealing with, you will find this procedure very easy.

Create Wage Types

1.Go To Transaction: OH11
Path: IMG > Personnel Management > Personnel Administration > Payroll Data > Basic pay > Wagetypes > Create wage type Catalog



















2. Enter Country code, Wage type group and select Model/Dialouge wage type MS40 and key in custome wage type code and its description. 















3. Click on COPY Icon and make sure Test Run check box is ticked so that before doing actual run we do test run to check any descripencies. 














4. Below tables are updated once we do TEST RUN.












5. Remove TEST RUN Check box and click on COPY Icon for actuall run.















Updated Tables after actuall run












6. Check wage type text along with maintain validity dates.
PATH: IMG > Personnel Management > Personnel Administration > Payroll Data > Basic Pay > Wage Types > Check Wage type text





7. Check Wage type permitted to Wage Type Group
PATH: IMG > Personnel Management > Personnel Administration > Payroll Data > Basic Pay > Wage Types > Check entry permissibility per infotype





8. Maintain wage type permissibilies for PS and ESG
PATH: IMG > Personnel Management > Personnel Administration > Payroll Data > Basic Pay > Wage Types > Define Wage Type Permissibility for each PS and ESG

















9. Maintain Wage type Characsticists

PATH: IMG > Personnel Management > Personnel Administration > Payroll Data > Basic Pay > Wage Types > Check Wage type characteristics





















10. Go To TCode: SM30 enter table V_512w_0 and maintain respective PCs / Cumulation and evaluation classes.

11. Define posting Assign wage type to symbolic account.
PATH : IMG > Payroll > Singapore > Reporting for posting payroll results to accounting > Activities in HR System > Maintaining wage types > Define posting characteristics of wage types

 Creating Custom Wage Types step by step

Determine the model wagetypes for copying and copying frm model wagetypes-PU30

review/change wagetype characteristics-sm30 -v_t511

change wagetype text --sm30 v_t512t

review/change permisibbilty on Infotype--sm30--vt512z

review/change permisbility on ESG grouping-sm30-v_511_b

review/change valuation base--sm30--v_512w_b

review/change deduction priority/retro characterisitics-sm30-v_t51p6

review/change deduction W/Balance setting--sm30--v_t51P1

review/change Evaluation class for form --sm30--v_t512w_d

review/change form settings--PE51--Form Name

Review/Change Posting to FI---SM30--V_T52EL_NOFM

Emp subgroup grouping for primary wagetypes---sm30--v_503_g

psa for primary wagetpes (PS grouping)----sm30---v_001p_k

Creating Customer Wage Types Using Prototypes

If you want to generate customer wage types using prototypes, you must have an exact overview of the wage types required at your company and know how you want to implement them. The dialog characteristics and processing method during payroll must be similar for as many wage types as possible.

The procedure consists of the following steps:

1. Generate the prototype

You create prototypes for particular kinds of wage type (for example, averages, absences, bonuses) by copying the appropriate model wage types.

2. Enter specifications for prototype.

You define the dialog characteristics and the processing of the prototypes within payroll. This means that you only process the prototypes when carrying out the steps within Customizing.

3. Copy prototype.

You then copy the prototypes in order to create all of the other wage types pertaining to the corresponding kind of wage type. You can correct the copies (for example, by changing the wage type text) if necessary.

The advantage of this procedure is that wage type maintenance is less time-consuming because you only need to process a few of the customer wage types in great detail. By copying the prototype, its characteristics are copied to all other customer wage types pertaining to the same kind of wage type.

Wage Type Configuration in SAP HR

Step1: Create Wage Type using Transaction: OH11

Select Copy and then enter the Country.

Enter the existing Wage Type in the left column and the new WT number. Before this we need to check the last WT number associated to an Infotype.
The following tables are updated when we create the WT.
T511      Wage Type Characteristics
T512T    Wage Type Text
T512W     Wage Type Valuation
T512Z     Wage Type Permissibility
T52DZ     Assign Customization Wage type to model wage type
T52EL     Wage Type Posting
T52EZ     Time Dependency of Wage Type Posting
T591B     Wage Type Dependent retroactive accounting trigger.
Step2: Enter the description for the WT using transaction “PDSY”


Step3: Check the WT Characteristics: Go to Transaction code SM30: V_T511

Step 4: Permissibility of Wage Type: V_511_B (T511)


Step 5: PCE V_512W_D (T512T, T512W): Select the Wage Type:


Step6: Wage Type Text – V_512W_T  (T512T, T512W)

Step7: Wage Type Permissibility V_T512Z (T512Z, T591B)