1/10/2023

Partial Period Remuneration (Factoring)

Generated on: 2023-01-10 03:43:47 GMT+0000

HR Renewal Support Package Versions | 2.0, Feature Pack 5 SP 83

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Factoring Parameter
The formula, with which the partial period factor is determined, is lled as follows:

Planned working time

Planned working time is determined using table PSP ( Personal Work Schedule ). The values of the planned working time
parameter can be different for employees in the same period if they have different personal work schedules.

Flat rate period working time

The at rate period working time is determined using table WPBP ( Work Center/Basic Pay ).

Absence

In reductions, absence means the working time during which an employee was not at work and did not get paid. The absence is
paid out in counting classes.

Partial period

If remuneration elements are calculated for exact periods, employee remuneration is calculated separately for speci c partial
periods. These partial periods are determined using table WPBP (Work Center/Basic Pay) .

Divisors

The at rate or individual period working time is used as a divisor in accordance with table PSP (Personal Work Schedule).

The parameters have the following meaning:

Value of whole period Value of a partial period Meaning

GSSOLL TSSOLL Planned working time in hours

GASOLL TASOLL Planned working time in work days

GKSOLL TKSOLL Planned working time in calendar days

GSAU** TSAU** Unpaid absence in hours for all counting

classes

GAAU** TAAU** Unpaid absence in work days for all

counting classes

GKAU** TKAU ** Unpaid absence in calendar days for all

counting classes

GSAP** TSAP** Paid absence in hours for all counting

classes

GAAP** TAAP ** Paid absence in work days for all counting

classes

GKAP** TKAP** Paid absence in calendar days for all

counting classes

GSAX** TSAX** Work on public holidays in hours for all

counting classes

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GAAX** TAAX** Work on public holidays on a work day for
all counting classes

GKAX** TKAX ** Work on public holidays on a calendar day

for all counting classes

GSDIVI TSDIVI Individual period working time in hours

GADIVI TADIVI Individual period working time in work days

GSDIVP TSDIVP Flat rate period working time in hours

GADIVP TADIVP Flat rate period working time in work days

GKDIVP TKDIVP Flat rate period working time in calendar

days

PWS Method

De nition
The method used to calculate partial period factors.

Use
If the PWS method is used to calculate the partial period factor, the individual, actual planned working time according to the
employee’s personal work schedule (PWS) is used as the divisor.

The PWS method is suitable for use in the following situations:

for reductions if planned working time is speci ed exactly and you enter all deviations from planned working time in the
following infotypes:

- Absences infotype (2001)

- Substitutions infotype (2003)

- Planned Working Time infotype (0007)

Rules for calculating partial payments for exact periods

The PWS method is not suitable if the payroll is run for monthly periods. The employee then has a lower reduction amount in
periods with less planned working time (short months) than in periods with more planned working time (long months).

Structure
The partial period factor is calculated as follows:

Factor = (planed working time - absence) / individual period working time

Payment Method
De nition

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The method used to calculate partial period factors.

Use

If the payment method is employed, the employee is remunerated for the period actually worked or for paid absences. The
constant for the at-rate period working time is used as the divisor.

If the payroll is run for monthly periods, the general divisor determines that each calculation unit (hour or day) has the same
value, irrespective of whether the period is a short or long month.

The payment method is suitable for use in the following situations:

The employee has many unpaid absences.

The actual length of the period is not different from the general length of the period (for example, weekly payment).

The payment method is not suitable to use in the following situations:

Payroll is run for an employee on a monthly basis (monthly or half-monthly) and the employee has only few unpaid
absences.

In long months (for example, July) remuneration could be calculated and the amount could exceed the basic
remuneration amount for the period, despite the absences.

In short months (e.g. February) an employees remuneration is reduced too much even if there are few absences.

Partial payments must be calculated for exact periods.

The employee would receive an amount that is different from the remuneration amount for the period because the number of
hours or days does not correspond to the average.

Structure

The partial period factor is calculated as follows:

Factor = (planed working time - absence) / general period working time

 Note

You can use the average values typical for your particular country, industry, or company as general period working time.

Deduction Method
De nition

The method used to calculate partial period factors.

Use

If the deduction method is employed, a prorata amount is deducted from employee remuneration for the period of his or her
unpaid absence. The constant for the at-rate period work time is used as the divisor.

If the payroll is run for monthly periods, the general divisor determines that each calculation unit has the same value,
irrespective of whether the period is a short or long month.

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The deduction method is suitable to use in the following situations:

The employee has few unpaid absences.

The actual length of the period is not different from the general length of the period (for example, weekly payment).

The deduction method is not suitable to use in the following situations:

Payroll is run for an employee on a monthly basis (monthly or half-monthly) and the employee has only a few unpaid
absences.

In long months (e.g. July) a large number of absences could result in negative remuneration, i.e. money would be claimed
from the employee.

In short months (e.g. February) the employee also receives remuneration if he was absent for the whole month.

Partial payments must be calculated for exact periods.

The employee would receive an amount that is different from the remuneration amount for the period because the number of
hours or days does not correspond to the average.

Structure

The partial period factor is calculated as follows:

Factor = (general period work time - absence) / general period work time

 Note

You can use the average values typical for your particular country, industry, or company as general period working time.

Hybrid of Payment and Deduction Methods

De nition

The method used to calculate partial period factors.

Use

Since the deduction method is used for a lot of absences and the payment method is used for few absences it is recommended
that each individual should decide which method should be used. For few absences the payment method should be used
because then the remuneration is high. For a lot of absences the deduction method should be used because then the employee
would earn less accordingly.

 Example

Mary Brown receives a basic monthly pay of 5,456.00 and has a general period working time of 22 workdays. In a month that
contains 23 workdays, she has an unpaid absence of 10 workdays.

Reduction using different methods

Days of absence Factoring method Partial period factor Standard salary

10 Deduction (22-10)/22 = 12/22 2 976,00

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10 Payment (23-10)/22 = 13/22 3 224,00

11 Deduction (22-11)/22 = 11/22 2 728,00

11 Payment (23-11)/22 = 12/22 2 976,00

The calculation shows: If Mary Brown were to be absent and unpaid for 11 days she would earn just as much if the calculation
was made using the payment method as she would if the absence were calculated for 10 days using the deduction method.

All or Nothing Method

De nition

The method used to calculate partial period factors.

Use

If the all or nothing method is employed, the employee receives either the entire wage type amount or nothing at all. A criterion
for entitlement to the entire amount could, for example, be a minimum period that the employee must have worked. If the
condition is met, the factor is 1. If the condition is not met, the factor is 0.

The all or nothing method is suitable to use in the following situations:

Cost transfer of travel allowance

If the employer pays a savings plan allowance

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