Understanding the LGMST Feature in SAP HR: Streamlining Payroll Setup

In the intricate world of SAP Human Resources (HR), the LGMST feature is a potent tool to simplify payroll configuration and enhance data entry efficiency. Let’s explore LGMST, why it matters, and how it streamlines processes within your SAP HR system.

What is LGMST?

LGMST stands for Lohngruppen-Modifikations-Schlüssel, or, in English, Wage Type Model. This feature allows you to control which wage types can be assigned to employees based on various criteria, such as their employee group, personnel subarea, or other relevant factors.

Why Does LGMST Matter?

1. Payroll Accuracy: LGMST helps ensure only the appropriate wage types are used for specific employees. This reduces the chances of errors and inconsistencies in payroll calculations.
2. Efficiency: Payroll administrators save time and effort as the system automatically suggests relevant wage types during data entry. This also speeds up the overall payroll process.
3. Compliance: By defining permissible wage types based on employee characteristics, LGMST assists in adhering to company policies, labor regulations, or collective agreements.

How Does LGMST Work?

1. Configuration: The core of LGMST is configured in the following ways:

• • Feature: The feature LGMST is customized with decision trees to determine the wage types.
  • Table T539A: You maintain a table (T539A) specifying wage type models containing groups of permissible wage types.

1. Defaulting: When an employee’s Basic Pay Infotype (0008) is edited in SAP, the LGMST feature checks the employee’s relevant characteristics and proposes a group of default wage types based on the configured rules and wage type models.

Example

Suppose your company has different basic pay structures for factory workers and office staff. You could configure LGMST like this:

• Employee Group “Factory”: Allow wage types related to hourly pay, overtime, and shift allowances.
• Employee Group “Office”: Allow wage types related to monthly salary, bonuses, and benefits.

When a payroll administrator processes an employee in the “Factory” group, the system would only suggest the relevant wage types, preventing the accidental entry of a monthly salary type.

Key Points to Note

• LGMST works primarily with the Basic Pay Infotype (0008).
• The maximum number of wage types suggested is controlled within the LGMST feature.
• Customization and maintenance of LGMST typically require the expertise of an SAP HR functional consultant.

In Conclusion

The LGMST feature provides a valuable tool for managing the complexities of payroll configurations within SAP HR. TailoringTailoring wage-type assignments to specific employee groupsensures accuracy, simplifies processes, and supports compliance efforts within your organization.