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Former Member
Dec 15, 2011 at 05:52 AM

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.