How Wage Type Valuation Bases Turn Payroll Numbers into Money

  • by Ian Moogan, SAP Support Consultant, Roc
  • December 15, 2003
Within any payroll, there will always be payments input as numbers that then need to be converted into money. The method of achieving this in R/3 is known as the "wage type valuation base." The author gives some background on valuation bases and shows how each works. He provides two examples of using valuation bases for processing, one for a charitable deduction and one for calculating the pay for five hours of overtime.

Within any payroll, there will always be payments input as numbers that then need to be converted into money. Examples are:

  • Number of hours of overtime paid at time and a half
  • Number of tickets in the company lottery
  • Different levels of coverage in the company health plan

The method of achieving this within R/3 is known as the “wage type valuation base.” You can use valuation bases in a number of different ways to process rates within the payroll schema. After I give you some background on valuation bases and how they are assigned to your wage types, I’ll show you how each of these methods works. I’ll end with two examples of using valuation bases for processing, one for a charitable deduction, and one for calculating the pay for five hours of overtime.

Ian Moogan

Ian Moogan has 15 years of SAP R/3 experience, covering configuration, ABAP, and Basis. For the past two years, he has worked as a consultant for ROC, providing HR and Payroll support to many clients in a variety of industries.

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