Understanding Technical Wage Types in SAP HR

In the intricate world of SAP Human Resources (HR), wage types are the fundamental building blocks for payroll calculations. Among the many categories of wage types, technical wage types play a backstage yet pivotal role in ensuring accurate and streamlined payroll processes. Let’s delve into technical wage types, why they matter, and how they function within the SAP HR system.

What are Technical Wage Types?

Technical wage types are a special breed of wage types generated automatically during payroll calculations by the SAP HR system. They typically begin with a forward slash (/) or a section symbol (§) to distinguish them from regular wage types. While they don’t represent values directly entered in employee info types (master data records), they serve as vital intermediaries for computations and data transfers within the payroll process.

Why Do Technical Wage Types Matter?

Technical wage types contribute to the smooth operation of SAP HR payroll in several ways:

• Interim Calculations: They provide temporary storage buckets for intermediate results during complex payroll calculations.
• Data Transfer: They facilitate data transfer between different components of the payroll process.
• Statistical Evaluations: Some technical wage types allow for cumulating significant amounts for statistical reporting or analysis.
• Cross-Referencing: They can link calculations between an employee’s central personnel record and reference personnel numbers for more complex payroll scenarios.

Types of Technical Wage Types

SAP HR uses diverse technical wage types. Some common examples include:

• Splits: Technical wage types can split an original wage type into smaller segments for specific calculations or reporting needs.
• Cumulations: They can cumulate (add up) values from other wage types for further processing or statistical purposes.
• Transfer Wage Types: These wage types aid in transferring data between different areas of payroll processing.

Identifying Technical Wage Types

Recognizing technical wage types in SAP HR is straightforward:

• Prefixes: Technical wage types nearly always start with “/” or “§.”
• Table Lookups: You can find them listed in system tables like V_512W_O.

Key Points to Consider

• Technical wage types are rarely maintained directly. The system handles their generation and values.
• While crucial for internal processing, technical wage types usually don’t appear on employees’ pay stubs as they represent intermediate steps.
• A deep understanding of SAP HR payroll rules and calculations is often needed to work with and interpret technical wage types.

In Conclusion

Technical wage types represent a hidden but essential cog in the SAP HR payroll machinery. Though they might not receive the direct attention that primary wage types do, grasping the role of technical wage types deepens your understanding of how the SAP HR payroll system arrives at accurate compensation figures for your employees.