Skip to Content
author's profile photo Former Member
Former Member

Payroll Calculation based on 26 Days///

Dear All,

We are implementing payroll for a customer who is into manufacturing & wants the payroll factor for all months to be 26 days flat. So 1 day basic salary is calculated as Basic Salary/26.

Requirement 1:

Payroll Factor = 26 days

Requirement 2:

Unpaid leave calculation:

Basic Salary = Basic Salary u2013 (Basic Salary/26)*No. of Unpaid Leaves

Requirement 3:

Employee is promoted/transferred on 21st march.

Basic Salary= $300 = BS1

Basic Salary after promotion= $400 = BS2

Actual working days from 1 to 20 is 17 (assuming 3 weekly off which are unpaid)

Actual working days from 21 to 31 is 10 (assuming 1 weekly off which is unpaid)

Salary for March calculated as follows:

Basic Salary = (BS1/26)17 + (BS2/26)10

Iu2019ve successfully mapped & fulfilled requirement 1 & 2 but requirement 3 I know can be mapped but is logically incorrect as in requirement 3 we are paying for 27 days whereas our payroll factor is 26 days. The deduction is based on 26 days but payments are based on actual working days. SAP best practice says to keep the factor same for payments & deductions. It is not just our company but many manufacturing companies who use the factoring base as 26 days.

Experts please advice how these scenarios can be mapped.

Regards,

VG

Add a comment
10|10000 characters needed characters exceeded

Related questions

3 Answers

  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on Dec 15, 2011 at 05:59 AM

    For which country payroll you are running kindly update and we can provide you the Inputs.If it is Indian payroll u need to go for custom PCR and even if go through custom PCR I doubt there are many mismatches while pro ration.

    Best Regards,

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Dec 15, 2011 at 06:14 AM

    Hi,

    If uor welversed with Pcrs then use in partial period parameter you nedd to use RTE=TKDIVP or RTE=TADIVP or RTE=TSDIVP insteed of TKSOLL, TKSDIVI etc...

    Constant of 26 days reference table is V_T510H for payrol constants.

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Dec 15, 2011 at 05:55 AM

    Hi,

    Could you please confirm whether your client want pay salary on payroll days or on calendar days ?

    Thanks

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.