SAP Knowledge Base Article - Public

2345689 - How to: Explain Pay Component Calculation

Symptom

This KBA Explains Pay Component Calculations

Image/data in this KBA is from SAP internal systems, sample data, or demo systems. Any resemblance to real data is purely coincidental.

Environment

SAP SuccessFactors Employee Central - Compensation

Reproducing the Issue

The field frequency has an effect only on the calculated amount for the employee pay components (which is not visible in the customer instance)

Example: Pay Component

EC Pay Component.png

Pay Component: Base Salary (BS)

EC Pay Comp Frequency.png

Go to test User compensation information

EC Pay Comp Test.png

Resolution

 The intended functionality is as follows:

  • The percent value (field amount in the employee pay comp) is always calculated from the annual frequency as an annual amount:
  • First the system calculates the annual value for the Base Pay Component group (here Base Salary = 40105 THB * 12 Months = 481260 THB).
  • Then the percentage is taken (12.5% of 481260 THB Annually = 60157.50 THB Annually).
  • The field frequency is therefore not relevant for the calculation of the pay component group sums.

The field frequency has an effect only on the calculated amount for the employee pay components (which is not visible in the customer instance). If this were displayed, the customer would see the following (after saving the data to set the calculated amounts):

Pay Component

Amount

Currency

Frequency

calculated amount

Base Salary

40105

THB

Monthly

40105

OTC_P

12.5%

THB

Quarterly

10539.37

where 10539.37 = 60157.50 Annually / 4 Quarters per year

If the customer then goes and changes the frequency of the employee pay component OTC_P to Monthly, the annual value in the pay component group would remain 60157.50 THB, but the calculated amount would change when the data are saved:

Pay Component

Amount

Currency

Frequency

calculated amount

Base Salary 

40105

THB

Monthly

40105

OTC_P

12.5%

THB

Monthly

5013.125

See Also

2136061 - How to determine which Pay Range is used in the Compa-Ratio and Range Penetration calculations - Employee Central

Keywords

Frequency, Monthly Quarterly, Pay Component, Base Salary,C ompensation, Calculated, Amount, ECT-56240 EC , KBA , LOD-SF-EC-CMP , Compensation Information & One-Time Bonus , LOD-SF-EC , Employee Central , How To

Product

SAP SuccessFactors Employee Central all versions