/551 Wage Type In SAP HR


/551 Wage Type In SAP HR

Understanding the /551 Wage Type in SAP HR

In the SAP Human Resources (HR) world, the /551 wage type plays a crucial role during retroactive payroll calculations. Retroactive changes can happen due to various reasons, such as salary corrections, promotions, or changes to tax calculations. Let’s dive into the meaning, mechanics, and implications of the /551 wage type.

What is the /551 Wage Type?

The /551 wage type, “Recalculation Difference,” is a technical wage type that SAP automatically generates during retroactive payroll runs. Its primary function is to:

  • Store the Difference: It captures the difference between the originally calculated net pay (/560) and the newly determined net pay after a retroactive adjustment.
  • Balance the Retroactive Pay: The /551 wage type acts as a counterbalancing entry, ensuring the retroactive payroll results are accurate and properly reflected in subsequent payslips.

How Does It Work?

  1. Retroactive Change Occurs: A change affecting an employee’s past pay is triggered (e.g., a backdated pay increase).
  2. System Recalculates: The SAP HR system recalculates the employee’s pay for the affected period.
  3. Difference is Determined: The system compares the original net pay (/560) with the newly calculated net pay. Any difference is stored in the /551 wage type.
  4. Adjustment in Subsequent Period: In the next payroll period, the difference stored in the /551 wage type is usually transferred to another wage type, /552 (“Subsequent Adjustment from Previous Month”). This transfer ensures that the adjustment from the retroactive calculation is reflected in the current month’s pay.


Let’s say an employee received a net pay of $2,000 in January. A retroactive salary increase is processed in February, resulting in a recalculated January net pay of $2,200.

  • The /551 wage type would store the difference of $200.
  • This $200 would likely be added to the employee’s net pay in February’s payroll through the /552 wage type.

Important Notes

  • The /551 wage type is technical; it’s generally not displayed on payslips.
  • The sign of the amount in /551 will be the opposite of the change in net pay. If the net pay increases retroactively, the /551 will be negative, and vice versa.
  • Proper configuration in the SAP payroll schema is essential for correctly handling the /551 and related wage types.

Key Takeaways

The /551 wage type is integral to SAP HR’s retroactive payroll processing. Understanding its purpose and how it works ensures that payroll adjustments are accurate and financially sound. If you are involved in SAP HR administration or configuration, having a solid grasp of the /551 wage type is vital.

You can find more information about  SAP  HR in this  SAP HR Link



Unogeeks is the No.1 IT Training Institute for SAP HR Training. Anyone Disagree? Please drop in a comment

You can check out our other latest blogs on  SAP  HR here – SAP HR Blogs

You can check out our Best In Class SAP HR Details here – SAP HR Training

💬 Follow & Connect with us:


For Training inquiries:

Call/Whatsapp: +91 73960 33555

Mail us at: info@unogeeks.com

Our Website ➜ https://unogeeks.com

Follow us:

Instagram: https://www.instagram.com/unogeeks

Facebook: https://www.facebook.com/UnogeeksSoftwareTrainingInstitute

Twitter: https://twitter.com/unogeeks


Leave a Reply

Your email address will not be published. Required fields are marked *