Prepare wage type overview

In this activity, you create a list of all wage types in your enterprise that are relevant to posting. This list is used as the basis for setting up posting to accounting.

During posting to accounting, all the costs incurred by payroll accounting are posted as personnel expenses . Offsetting entries for the payables incurred are made in various clearing accounts, depending on whether the payables relate to employees, the tax authorities or other agencies.

Wage types that are relevant to posting must therefore be grouped so that complete posting to accounting is possible. In SAP Payroll Accounting, the implementation of primary wage types (for example, remuneration elements such as standard pay) and secondary wage types (for example, the amount of a bank transfer) usually prevents wage types from being posted twice.

Example

An overview of all wage types might look as follows:

Primary wage types:

Wage type Significance for posting
Standard pay Expense
Bonus Expense
Overtime Expense
...

Secondary wage types:

Wage type Significance for posting
ER contr. SI Expense and payables
(double posting)
Bank transfer Payables
Tax Payables
EE contr. SI Payables
Lost salary Reposting expense
...

Example

2

The wage type employer's tax contribution is most commonly posted twice. In accounting, it represents both expense and payables for the enterprise. As a result, the wage type is assigned both an expense account and a payables account.

Activities

1. Check the wage types in your system as regards their significance for posting.
If your wage types are copies of the model wage types, the settings for posting are usually correct.
2. Check whether all items of information required by accounting are provided within payroll, and can be stored as wage types in the payroll result.