Topic 26: Recurring Payments & Deductions (IT0014)

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Payment Models

In this section you are told how to set up payment models.

The payment model defines

1. when data records of the Recurring payments/deductions infotype (0014) are transported
2. the periods in which the payments are made

You can assign a payment model instead of a payment parameter to the Recurring payments/deductions infotype (0014). For this you should define

1. the employee group for which the payment model is valid
2. the wage type for which you want the payment model to appear as a default

Payment models are especially useful if the frequency of the transports does not correspond to the payroll areas.

Only edit the following steps if your enterpise uses payment models.

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Define Payment Models

In this section you define your payment models.

Examples

1. Mr Smith works in an American branch of your enterprise. He is paid on a weekly basis. Monthly insurance contributions totalling $60 are to be deducted from his remuneration. The total monthly deduction is to be spread over two deductions of $30 in the first and last week of each month. To do this you would like to introduce the payment model ZM01.
Proceed as follows:

• • Determine the periodicity of the payment model ZM01.

Since the date modifier and the period parameter of the payroll area determine when Mr Smith is paid, you have to define the same date modifier and the same period parameter for the payment model ZM01.
Use the calendar type M to determine that the deductions for payment model ZM01 are monthly.

• • Determine the deduction periods of the payment model ZM01.

Since the number of weeks per month and therefore the date of payment can vary from year to year, you have to define the deduction periods for each year individually.
2. Mrs Müller works in a German branch of your enterprise. She is paid on a monthly basis. 1000 DM are to be deducted from her remuneration every six months for a company insurance. In the first six months a partial amount (1/6 of 1000 DM) is to be deducted every month, whereas for the second six-month period the full amount is to be deducted by the end of the year. To do this you would like to introduce the payment model ZM02.
Proceed as follows:

• • Determine the periodicity of the payment model ZM02.

Define the date modifier and the period parameter to match your chosen payroll area.
Choose the calendar type X (six-monthly).

• • Determine the deduction periods of the payment model ZM02.

Since the number of months per year is the same for every year, you can define the deduction periods for several years in advance.
3. Mr Schmidt also works in a German branch of your enterprise. He is paid monthly. He is to have weekly deductions from his remuneration.
This means that there are more deduction dates than payment dates, and you cannot therefore introduce a payment model because there are insufficient payment dates to allow for the deductions.

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Define periodicities

In this step you define the periodicities of your payment models.

Standard settings
The SAP standard system comes with model entries which you can copy, if necessary.

Activities
To define the periodicity of a payment model, proceed as follows:
1. Choose New entries.
2. Assign any four-digit alphanumeric key to your payment model in the field Payment model.
3. In the field Name, enter a name (e.g. Weekly payments or Monthly deductions) for the payment model.
4. Enter the appropriate date modifier in the field DM and the period modifier in the field PerPar. for the chosen payroll area.
5. In the field CalTyp, enter an appropriate calendar type for the deductions frequency.

Further notes
Rounding differences are balanced with the last deduction in each deduction interval.
Three requirements must be met for the adjustment procedure:

• The wage type is cumulated over the deduction intervals determined by the period parameter.

For further information on cumulations see " Cumulations".

• The employee was active in the enterprise throughout the entire deduction period.

• The deduction wage type is not maintained for the editing of arrears.

For further information on arrears see " Arrears and priorities".