Understanding the /564 Wage Type in SAP HR

In the SAP HR and payroll processing world, you may encounter the somewhat mysterious /564 wage type. This wage type has a specific function and understanding it can be important for accurate payroll calculations. Let’s unravel what it is and why it’s used.

What is the /564 Wage Type?

The /564 wage type, labeled as “Advance Payment,” is a technical wage type created automatically in SAP HR under specific circumstances:

• Multiple Payroll Runs: When you run payroll more than once during the same period.
• ‘Set flag for transfers’ Activated: The “Set flag for transfers” parameter is selected during the Data Medium Exchange (DME) process.

Why is the /564 Wage Type Created?

The /564 wage type plays a bookkeeping role in ensuring payroll accuracy. Here’s its purpose:

1. Tracking Payments: The system calculates an employee’s net pay during the initial payroll run. If a subsequent payroll run is necessary in the same period, the /564 wage type stores the amount already calculated.
2. Calculating Differences: The system compares the /564 amount (prior payment) with the new calculation.
   • If the Amounts Match: No additional action is needed.
   • If the Amounts Differ: The system might generate a claim or adjust the payment to reflect the discrepancy.

Technical Nature of /564

It’s crucial to remember that the /564 wage type is primarily a technical tool. It serves an internal accounting purpose and has the following characteristics:

• Not Posted to Financial Accounting (FI): The amounts in /564 don’t impact financial postings.
• Temporary: A temporary wage type is used within a specific payroll period.

Example

Let’s say an employee’s regular net pay is $2,000. You run an initial payroll and then discover an additional deduction must be applied. After running a second payroll, the system might look like this:

• /560 (Net Pay): $1,800 (updated amount)
• /564 (Advance payment): $2,000 (original amount)

The system recognizes the employee has already received $2,000 and will make necessary adjustments.

Should You Be Concerned About /564?

Generally, the /564 wage type appearing in a payroll result shouldn’t cause alarm. It’s a standard mechanism SAP HR uses to handle multiple payroll runs. However, it’s always good practice to double-check payroll results for accuracy, especially if you see unexpected /564 entries.

In Conclusion

While the /564 wage type might seem like a payroll puzzle at first, it’s actually a behind-the-scenes tool that ensures accurate calculations when payroll runs happen more than once within a period. Understanding its role can help demystify its appearance in your SAP HR system.