How to Store Complex Annual Salary Requirements with Different Pay Periods

  • by Raghavendran Parthasarathy, Principal Consultant, Hexaware Technologies
  • July 23, 2012
Learn how to store annual salary details in infotype 0008 (basic pay) with complex pay periods in non-payroll SAP ERP HCM systems. You can then store variable pay periods for various employees with full annual salary details. This can be achieved with configuration without changing the standard SAP functionalities and without ABAP development.
Key Concept

In the SAP system, the SAP ERP concept for configuring salary can be made fairly simple and straightforward by using a few key features, such as ANSAL, and SAP ERP HCM tables, such as T539J. Using these configuration methods, most of the standard annual salary data can be effectively and efficiently maintained.

The SAP ERP HCM system captures the annual salary details of an employee for various purposes. The stored annual salary is not necessarily the actual amount paid to the employee, but it should be a fixed value that can be used for comparison and reporting purposes. (The actual amount paid to an employee is the net pay after taxes whereas the stored annual salary amount is the gross pay before taxes, so the amount stored in the system may not be what the employee is actually paid.) In this article I teach you how to store the annual salary details in infotype 0008 (basic pay). I also show you how to store annual salary details for different pay periods (other than 12) for different employees.

These configuration steps are appropriately implemented when there is a need for using variable pay periods for different employees. This would be the case, for example, with employees who are required by their collective-bargaining provisions or union agreements to be paid a certain way. In that case, the SAP ERP HCM system is used as a master system for storing gross pay details, and the net pay processing is done by third-party payroll systems. By doing this you can avoid having to do complex ABAP development, and you don’t need to worry about maintaining this functionality in the case of future releases of SAP ERP HCM Support Packages and version upgrades.

Storing Annual Salary

First, let’s cover the basics of storing an annual salary. As a gross component, it is stored in infotype 0008 (basic pay). The first step to store an annual salary is to choose the basic pay screen (screen number 2010) during configuration. This is the default screen in the SAP ERP HCM system for most countries. Other screens are available —2000 and 3000 — and they are used in implementations based on the need for the required fields. Next, to store the annual salary gross component in infotype 0008, you need to:

  1. Modify the indirect valuation module (ANSAL) feature as per your requirements
  2. Modify the per period (PRFREQ) feature
  3. Check the wage type characteristics and modify, if required
  4. Check the basic wage type and modify, if required

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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