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

SAP Error Message - Details

• 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 that the wage type in question is correctly assigned to the relevant Employee Subgroup.
  
  
  
  Review PCR Configuration:
  
  Use transaction code PE02 to check the Payroll Calculation Rules (PCR).
  Ensure that the PCR being used is correctly configured to handle the wage type and that it includes the necessary ESG.
  
  
  
  Check Employee Master Data:
  
  Verify the employee's master data (transaction code PA30) to ensure that the Employee Subgroup is correctly assigned.
  Make sure that the employee's data is complete and that there are no missing fields that could affect payroll processing.
  
  
  
  Test Payroll Run:
  
  After making the necessary adjustments, perform a test payroll run to see if the error persists.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or consult with your SAP support team for specific guidelines related to your organization's payroll configuration.
  
  
  
  Related Information:
  
  
  Transaction Codes:
  
  SPRO: Access the SAP Reference IMG for configuration.
  PE02: View and edit Payroll Calculation Rules.
  PA30: Maintain employee master data.
  
  
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional troubleshooting steps.
  
  
  User Forums: Consider visiting SAP Community forums or other user groups where similar issues may have been discussed.
  
  
  By following these steps, you should be able to identify the cause of the P0423 error and implement the necessary solutions to resolve it.