Understanding the Wage Type Permissibility Table in SAP HR

In the SAP Human Resources (HR) world, the Wage Type Permissibility Table plays a critical role in ensuring accurate and streamlined payroll processes. This table fundamentally controls which wage types can be used within specific HR info types, adding precision and flexibility to your payroll configuration.

What are Wage Types?

Before delving into the table, let’s define wage types:

• Wage Types: These are unique codes in the SAP HR system that represent different elements of an employee’s compensation package. Examples include:
  • Basic Salary
  • Overtime Pay
  • Bonuses
  • Allowances
  • Deductions

What is the Wage Type Permissibility Table?

The Wage Type Permissibility Table defines the rules about which wage types are allowed to appear in specific HR info types. HR info types are data structures that store various categories of employee information. Here are some of the most common info types:

• Infotype 0008 (Basic Pay): Stores an employee’s base salary or wage information.
• Infotype 0014 (Recurring Payments/Deductions): Handles regular additions or subtractions to an employee’s pay.
• Infotype 0015 (Additional Payments/Deductions): Used for occasional or one-time payments or deductions.

Why is the Wage Type Permissibility Table Important?

1. Accuracy: This table helps prevent errors by ensuring that only relevant wage types are used in each info type. Use wage types to avoid incorrect payroll calculations.
2. Control: It gives organizations granular control over their payroll process, allowing them to restrict certain wage types to specific employee groups, personnel areas, or payroll periods.
3. Compliance: Many countries have labor regulations that dictate how different types of compensation should be classified. This table lets you tailor your SAP HR system to meet your compliance needs.

How to Configure the Wage Type Permissibility Table

Configuration is done via SAP’s transaction codes and involves a few key tables:

• V_001P_K: Personnel Subarea Grouping for Primary Wage Types
• V_503_G: Employee Grouping for Primary Wage Type
• V_511_B: Wage Type Permissibility

Example

Imagine an organization that wants to restrict a “Housing Allowance” wage type to only employees based in specific cities. The Wage Type Permissibility Table can be used to define this rule, ensuring that this allowance is only usable in the correct contexts.

Key Points to Remember

• The Wage Type Permissibility Table is a powerful tool that requires careful planning and design.
• Changes to this table could impact payroll calculations, so thorough testing is crucial.
• Collaborate with your HR and payroll specialists to ensure the configuration aligns with your organization’s requirements.

In Conclusion

Mastering the Wage Type Permissibility Table is essential for any SAP HR professional seeking to optimize payroll processes. By understanding its purpose and configuration, you can ensure that your SAP HR system delivers accurate, compliant, and streamlined payroll for your organization.