Indirect Valuation Modules: Customize Your Wage Calculations

  • by Rehan Zaidi, Senior SAP Technical Consultant
  • April 15, 2005
R/3 provides a variety of indirect valuation modules for determining the entry amounts for wage types. However, in many scenarios, the existing modules may not suffice and you may need to create your own. Moreover, these computed entry amounts are not stored in the same manner as other fields of an infotype. The handling of such data is done via a set of function modules. Learn about the steps required in creating your own customer-specific modules and the basic code that makes them accessible.
Key Concept
The HR module uses the indirect valuation technique for making users’ tasks easier. This technique provides numerous advantages. With direct valuation, the user enters the wage type as well the amount on the infotype screen. In indirect valuation, however, R/3 calculates the value automatically based on predefined formulas or criteria. Indirect valuation is best for computing complex formulas for determining the amount that should be assigned to a particular wage type while maintaining master data.

SAP R/3 provides a variety of indirect valuation modules to help users create error-free entries of allowances and deductions in the Personnel Administration (PA) submodule. The option of activating indirect valuation for a wage type relieves the users from calculating the wage-type amounts manually, which would waste a considerable amount of time.

Rehan Zaidi

Rehan Zaidi is a consultant for several international SAP clients (both on-site and remotely) on a wide range of SAP technical and functional requirements, and also provides writing and documentation services for their SAP- and ABAP-related products. He started working with SAP in 1999 and writing about his experiences in 2001. Rehan has written several articles for both SAP Professional Journal and HR Expert, and also has a number of popular SAP- and ABAP-related books to his credit.

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