How to Restrict Payroll Payments Based on Position or Location

  • by Raghavendran Parthasarathy, Principal Consultant, Hexaware Technologies
  • July 8, 2011
Learn how to restrict payroll payments for position- and location-based payments and automate the restrictions for every payroll period and for the entire organization. Also learn how to automate the calculations of payments based on constant values.
Key Concept
Companies sometimes have the need to restrict payments that are applicable only to employees in certain positions or certain locations. They can restrict some payment types based on position or location by appropriately using the relevant indirect evaluation module in wage type configuration. An indirect valuation module is a type of module assigned to a wage type in configuration that determines the wage type characteristics.

Most implementations of payment type restrictions are factory based. Using two examples, I show how to address position-based and location-based restrictions. In both of these examples, I show how to avoid errors in entering payroll payments in the SAP ERP HCM system, as the system restricts entries based on the users’ eligibility criteria.

Requirement A: Restrict Payment by Position

Company A’s payroll department has a typical requirement on wage types. The company is in the banking industry and the organization has branches across the country. Each of these branches has a position called cashier.

Cashiers handle cash transactions of at least 10,000 Euros a day on a busy working day, and Company A has a special monthly allowance payment only for cashiers because of the strenuous and risky nature of their job. This special payment is fixed at 1,000 Euros per month. The requirement is to restrict this payment only for the cashier positions and to default the payment while creating this record for the employee.

Prerequisites for Requirement A

The prerequisites for restricting payment by position are as follows:

  • A payment wage type with a required description
  • A clearly identified position for which this payment has to be made
  • The employee master data with an employee assigned to the above-referred position

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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