Ask the HR Expert: How Do I Use Processing Classes in SAP Payroll?

  • by Steve Bogner, Managing Partner, Insight Consulting Partners
  • November 15, 2005
Explore how your Payroll system uses processing classes. Our HR expert offers helpful hints and tips and explains how to create your own processing classes.
Key Concept

Dear HR Expert,

I have worked in SAP HR Payroll/Time for a couple of years, but I still do not completely understand the concept of processing classes in wage type table T512W. Can you please explain?

— Venkata Atkuru, Systems Analyst, Metropolitan Water Reclamation District of Greater Chicago, IL

Processing classes are one of the key methods of processing wage types in SAP Payroll. Processing classes are attributes of a wage type. When payroll runs, various procedures select and process wage types based on their processing class values. In addition to standard processing classes delivered by SAP, customers can create their own for custom payroll processing — for example, a class for fringe benefits.

A wage type has 99 processing classes, though Payroll does not use every one of them for every country’s payroll. Table T52D8 shows which processing classes apply to each country. Customers can use processing classes 90 through 99 for their own purposes and the others are delivered by SAP.

Several views maintain processing classes, but V_512W_O is a good, general view that lets you work with all 99 processing classes at once. Figure 1 shows this view for wage type 0SAL, which is a US salary wage type. Processing classes with a white box beneath them are available for US payroll. The Payroll system does not use the other processing classes for US payroll processing, so they are unavailable for input. Some processing classes are blank because Payroll does not use them for this type of wage type in some cases. For example, Payroll uses processing class 72 to define whether a wage type is an employee tax or an employer tax. Since salary is neither, the screen displays no value.

Steve Bogner

Steve Bogner is a managing partner at Insight Consulting Partners and has been working with SAP HR since 1993. He has consulted for various public, private, domestic, and global companies on their SAP HR/Payroll implementations; presented at the SAP user's group ASUG; and been featured on the Sky Radio Network program regarding SAP HR.

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