Temporarily Upgrade Hourly Pay Rates

  • by Clay Molinari, SAP HR Consultant, C&C Savant, Inc.
  • October 15, 2005
Time worked by hourly employees is recorded on infotypes in R/3. Each infotype allows you to enter “payment according to other position” as a way to temporarily pay an employee more than the standard hourly rate. Special configuration steps are required to activate this feature. Creating special “upgrade only” positions can significantly reduce the amount of ongoing maintenance required.
Key Concept

Compensable time is recorded on one of five different infotypes in R/3 Time Administration. In their simplest form, these infotypes merely record the number of hours worked. Hourly rate information is generally kept on the payroll side, so clerks and foremen do not need to stay current on pay increases and rate changes. They simply record the number of hours worked by each employee. Time Evaluation and Payroll processing calculate the hourly rate.

It is common in manufacturing settings for workers to temporarily perform duties normally done by another employee of a higher pay grade. Such work is often compensated at the higher rate. This practice is called a job class upgrade.

Here’s an example. Bill, a metal handler, becomes ill and leaves work early. John, a laborer, is assigned the metal handler job for the last four hours of his shift. The foreman wishes to upgrade John’s pay rate from his normal job rate to that of a metal handler for four hours. What follows is a reliable and easy-to-use way to enable this feature.

Clay Molinari

Clay Molinari has 20 years of experience in the IT industry and has been working as an SAP HR consultant since 1997. He is currently president of C&C Savant, Inc., an SAP consulting firm that specializes in combining standard SAP configuration and custom ABAP programming to help its clients solve unique or complicated requirements.

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