Understanding SAP HR Infotype 14: Recurring Payments/Deductions

In the intricate world of SAP Human Resources (HR), info types are the fundamental building blocks for storing various categories of employee data. Among these info types, Infotype 14 holds particular significance as it deals with recurring payments and deductions – those elements of an employee’s compensation that occur at regular intervals.

What is Infotype 14?

Infotype 14, formally known as “Recurring Payments/Deductions” within the SAP HR system, provides a structured way to manage additional payments or deductions beyond a single payroll period. It allows you to define wage types (specific payment or deduction components), amounts, intervals, and any necessary cost assignment details for these recurring elements.

Everyday Use Cases for Infotype 14

Here are some typical scenarios where Infotype 14 comes into play:

• Regular Allowances: Monthly allowances such as transportation, special project, or housing allowances.
• Periodic Deductions: Deductions for company loans, insurance premiums, or contributions to savings plans.
• Bonuses and Incentives: Quarterly or annual bonuses or performance-based incentives spread across multiple pay periods.
• Garnishments or Repayments: Court-ordered garnishments or the repayment of company-provided advances.

Critical Elements of Infotype 14

1. Wage Type: The specific code representing the type of payment or deduction (e.g., housing allowance, loan repayment).
2. Amount/Number: The value of the recurring payment or deduction.
3. Unit: If applicable, the unit of measurement (e.g., hours, percentage)
4. Start and End Date: The period during which the recurring element is practical.
5. Payment Interval: The frequency of the recurring payment or deduction (e.g., monthly, quarterly).
6. Cost Assignment: Information to link the payment or deduction to relevant cost centers or internal orders for accounting purposes.

Why Use Infotype 14?

• Streamlined Payroll Processing: Automates the inclusion or exclusion of recurring elements, reducing manual effort and potential errors in payroll calculations.
• Consistency and Accuracy: Ensures that recurring payments and deductions are applied consistently and accurately across specified pay periods.
• Flexibility: Accommodates various recurring scenarios and allows for easy modification as needed.

How to Access and Maintain Infotype 14

SAP HR administrators and authorized users can typically access and maintain Infotype 14 through the following transactions:

• PA30: Used for maintaining employee master data, including info types.
• PA20: Used to display employee master data.

Important Considerations

• Thoroughly understand the wage types suitable for Infotype 14. Consult your SAP documentation and internal HR policies.
• Configuration of wage types about Infotype 14 settings is crucial for correct payroll calculations.
• Always test any changes to Infotype 14 records in a test environment before implementing them in your production system.

In Conclusion

If you manage HR processes in an SAP environment, Infotype 14 is essential for handling the complexities of recurring payments and deductions. Understanding its purpose and functionality will empower you to streamline payroll processes and maintain the accuracy and consistency of your employee compensation data.