Use the PRATE Function to Perform a Simple Wage Type Proration Based on Infotype Record Validity

  • by Nadime Salamé, SAP HCM Consultant, SAPERGY
  • March 29, 2013
Automatically prorate your split infotype wage types using the PRATE operation. With a few configuration steps see how easy it is to set up this functionality in your payroll rules.
Key Concept

Wage type splits are a common occurrence during payroll runs; however, they do not always behave the way you would like by default. Custom rules and configuration can be created in order to prorate each split according to specifications. PRATE is an operation that can be called within personal calculation rules in your payroll schema. The operation modifies wage types originating from infotypes to prorate their amounts based on their infotype record dates. Since the operation depends on infotype record validity it should only be used in rules that process infotypes with wage types such as infotypes 0014 and 0015.

Occasionally, it may be necessary to prorate an employee’s wage type. To avoid the tedious manual changes that this could bring about, an automated solution needs to be devised. For instance, if an employee receives a car allowance every pay period (e.g., biweekly) through the recurring payments infotype (0014), and goes on a leave of absence half way through the pay period, then the amount that the employee receives as a car allowance for this particular pay period should be halved (depending on company policy). In this case, the car allowance wage type should be prorated in order for the employee to receive the appropriate allowance.

There are a few different ways to set up automatic wage type proration in the SAP system to reduce the need for manual intervention and error (e.g., using partial period factoring). In this article, however, I focus on using the payroll operation PRATE.

Nadime Salamé

Nadime Salamé has a bachelor’s degree in both Biology and Information Systems. He has been working in the SAP HR field since 2006. He is currently working as an SAP HCM Consultant at SAPERGY based in Montreal, Quebec.

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