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OHAUA_TIMEWT_VAL_011 - Determine Adjustments for Average Calculation

OHAUA_TIMEWT_VAL_011 - Determine Adjustments for Average Calculation

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In this Customizing activity, you determine how the system adjusts the base amount for absence pay in line with Ukrainian legislation.

According to Ukrainian legislation, the amount on which an employee's absence pay is based must be increased in line with global and individual salary increases. Ukrainian legislation stipulates that the base amount before a global salary increase must be increased by the following adjustment factor:

Salary after global salary increase / salary prior to global salary increase

To ensure that the system applies the required adjustment factor to an employee's salary and processes any work center/basic pay (WPBP) splits, in this Customizing activity, you activate a Ukraine-specific function module to calculate the ratio and adjust the base amount that the Calculation of Averages (AVERA) function uses to calculate an employee's absence pay.

To determine whether a salary increase applies to all employees or only to individual employees, the aforementioned Ukraine-specific function module calls theGlobal Change of Basic Payments (36BPC) feature.

  1. To adjust the base amount for average calculation in line with Ukrainian legislation, make the following entries:
Adjustment Rule Adjustment Type
UADP X

Note: The adjustment rule is based on the Valuation Salary (/010) wage type.

  1. In the Customizing activity Create Calculation Rules for Averages -> Cumulation Rules for Bases for Calculating Average Values, use the adjustment rule UADP for all wage types that should be adjusted in accordance with the legislation.
UADP

Assume that one of your employees earns UAH 1,000.
On May 1, all employees in your company receive a 15% salary increase. On October 1, you grant one of your employees an individual salary increase of 20%.

The salary increases are as follows:

Salary (UAH) Period
1,000 January 1 - April 30
1,150 May 1 - September 30
1,380 October 1 - December 31

Assume that the employee takes vacation in December 2010.

To comply with Ukrainian legislation, when the system calculates the employee's absence pay, it calculates the employee's average earnings throughout the year, and applies an adjustment factor to the employee's salary before the global salary increase on May 1. The system calculates the adjustment factor as follows:

Salary earned in the month after the global salary increase / salary earned before global salary increase
1,150 / 1,000
1.15

When the system calculates an employee's absence pay, it applies the adjustment factor of 1.15 to the employee's salary prior to the global salary increase on May 1.






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