How To Fix P0423 - Please enter ESG for PCR and wage type

P0423 - Overview

• Message type: E = Error

• Message class: P0 - Messages for Transactions PE01, PE02 and PE03

• Message number: 423

• Message text: Please enter ESG for PCR and wage type

What causes this issue?

You have entered either the payroll type or the wage type.
However, since these terms always appear together, entries
must be made in both fields.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message P0423 - Please enter ESG for PCR and wage type ?

  The SAP error message P0423, which states "Please enter ESG for PCR and wage type," typically occurs in the context of payroll processing. This error indicates that the system requires an ESG (Employee Subgroup) to be specified for a particular Payroll Calculation Rule (PCR) and wage type combination.
  
  Cause:
  
  Missing ESG Configuration: The error often arises when the system cannot find a valid Employee Subgroup (ESG) associated with the specified PCR and wage type. This can happen if the configuration for the payroll schema is incomplete or incorrect.
  Incorrect Payroll Schema: The payroll schema may not be set up to handle the specific wage type or PCR correctly.
  Wage Type Assignment: The wage type may not be properly assigned to the relevant Employee Subgroup in the payroll configuration.
  
  
  Solution:
  
  
  Check ESG Configuration:
  
  Go to the transaction code SPRO (SAP Reference IMG).
  Navigate to Payroll > Payroll USA (or your relevant country) > Wage Types > Define Wage Types.
  Ensure