What is adjustment rule for bases for calculating average values in SAP (PY - Payroll)?

SAP Term: adjustment rule for bases for calculating average values

• Component: PY

• Component Name: Payroll

• Description: An instruction that retroactively adjusts the average bases to reflect the changed collective agreement conditions. This ensures that individual or collective pay increases can be taken into consideration when creating average bases.

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• Key Concepts: 
  An adjustment rule for bases for calculating average values in SAP Payroll (PY) is a feature that allows you to define the basis for calculating the average values of certain payroll elements. This includes the number of days, weeks, or months used to calculate the average value. 
  
  How to use it: 
  To use this feature, you must first define the adjustment rule in the system. This can be done by navigating to the “Adjustment Rule for Bases” tab in the Payroll Configuration menu. Once there, you can select the desired payroll element and enter the desired number of days, weeks, or months to be used as the basis for calculating the average value. 
  
  Tips & Tricks: 
  When defining an adjustment rule for bases for calculating average values, it is important to consider how often the payroll element is paid out. For example, if a payroll element is paid out on a monthly basis, then it would make sense to use a month as the basis for calculating its average value. 
  
  Related Information: 
  For more information on how to configure adjustment rules for bases for calculating average values in SAP Payroll (PY), please refer to SAP’s official documentation on the topic.