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PAY_PH_13M_009 - Select Additional Payment Wage Types

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To calculate an employee's 13th month pay based on the employee's average monthly salary for the year, the 13th Month Pay program (HPHCAWS0) retrieves the employee's total basic pay cumulated over the entire year, and calculates the average monthly amount.

In this step, you select the additional payment wage types that will cumulate into the annual basic pay amount. To do this, you flag cumulation class 08 for the relevant wage types.

You must have set up your additional payment wage types in the step Create Wage Type Catalog under the Basic Settings section of Customizing for Payroll Philippines.

The standard system contains model SAP wage types that are configured to cumulate into the total annual basic pay used in 13th month payment calculations. If necessary, modify the wage types to meet your requirements.

To cumulate additional payment wage types into the annual amount used to calculate an employee's average monthly salary, you:

1. Select the relevant wage type.
2. Flag cumulation class 08 to cumulate the wage type into technical wage type /108 Total Basic Pay (13 Mn).

To exclude additional payment wage types from the annual amount used to calculate an employee's average monthly salary, you:

1. Select the relevant wage type.
2. Set cumulation class 08 to blank.

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