Customize Loan Wage Types and Create User-Friendly Payslips

  • by Raghavendran Parthasarathy, Principal Consultant, Hexaware Technologies
  • September 30, 2013
Learn a simple and straightforward approach for configuring company-specific loan wage types, mapping them to system-specific loan wage types, and displaying them in payslips.
Key Concept

Many companies need to have custom wage types created for company-specific loans that are offered to employees. Some examples of loan types include home loans, car loans, marriage loans (these are customary in India, to help employees pay for their daughters’ weddings), and personal loans. These employee loans come from the company’s accumulated provident fund account and are offered interest free or at a low interest rate. They are very common in India.

Most companies customize loan wage types to make it easier for end users to understand what is listed on their payslips. In many implementations, time constraints and strict project time lines keep companies from being able to customize some aspects of the standard SAP ERP HCM system. I show you how to customize the processing of employee loans in SAP Payroll.

First, I describe the standard SAP ERP HCM system and what it can do, and then I show you why and how to make changes to it. For the purposes of this article, I use a case study that is based on my actual implementation experience to illustrate my points.

Raghavendran Parthasarathy

Raghavendran Parthasarathy works for Hexaware Technologies as a Principal Consultant,where he manages SAP solution design for customers across the globe. He has worked in SAP ERP HCM for over 14 years in various capacities, including payroll projects in the Middle East, Europe, and Asia/Pacific. In addition to payroll, Raghavendran has experience in negative time management, personnel administration, and recruitment. He has also been a part of portal implementations. Currently, he is involved with cloud-based HCM applications such as SAP SuccessFactors and Workday.

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