Understand Payroll Wage Type Processing: Payroll Schema and Rule Basics

  • by Steve Bogner, Managing Partner, Insight Consulting Partners
  • August 15, 2003
Payroll schemas and rules are the bridge between HR Master Data and Payroll results. Creating that bridge is similar to writing programs and performing table configuration. Rules and schemas can be a confusing process for those who are not familiar with the concepts. Configured correctly, they can lead to a stable payroll calculation. Done incorrectly, they can produce difficult errors. In the first article of a two-part series, the author illustrates the basic principles of the payroll schema and rule process with the example of a cost of living allowance

Payroll schemas and rules are the bridge between HR master data and payroll results. Creating that bridge is similar to writing programs and performing table configuration. Rules and schemas can be a confusing process for those who are not familiar with the concepts. Configured correctly, they can lead to a stable payroll calculation. Done incorrectly, they can produce difficult errors.

This two-part series aims to familiarize you with the payroll schema and rule process. In this article, I’ll illustrate the basics with the example of a cost of living allowance (COLA) that I want the system to automatically calculate and pay to employees. I’ll present five COLA examples to show how the rules and schemas are applied.

For a download of background information on basic wage type processing concepts such as the relationship between a schema and a rule and for more detail for the examples that follow, click here: download. This series won’t make anyone an expert – the subject is too complex and broad to master without practice and experience – but it will get you started in the right direction.

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.

See more by this author


Comments

No comments have been submitted on this article. 


Please log in to post a comment.

To learn more about subscription access to premium content, click here.