What is piecework wage in SAP (PY - Payroll)?

SAP Term: piecework wage

• Component: PY

• Component Name: Payroll

• Description: Type of incentive wage. Unlike time wages, remuneration is effected for quantities produced irrespective of the working time required to make them. There are three types of piecework wage: Piecerate work rare A fixed amount is paid for each unit that is produced. Quantity-based piecerate work rare A target quantity is specified for each unit of time. Time-based piecerate work common Remuneration is effected in proportion to the quantity produced, but the quantity is not used directly to calculate the amount paid. Instead, remuneration is based on the fixed standard time rather than on the time that was actually required to produce the quantity.

Smart SAP Assistant

• Key Concepts: 
  Piecework wage is a type of payment system used in SAP Payroll (PY) component. It is based on the number of pieces produced or services rendered by an employee, rather than the amount of time worked. Piecework wage is calculated by multiplying the number of pieces produced or services rendered by the rate per piece. 
  
  How to use it: 
  In SAP Payroll, piecework wage is used to calculate the wages of employees who are paid based on the number of pieces they produce or services they render. The system allows you to set up different rates for different types of pieces or services. You can also set up different rates for different employees, depending on their skill level and experience. 
  
  Tips & Tricks: 
  When setting up piecework wage in SAP Payroll, it is important to ensure that the rates are fair and accurate. It is also important to keep track of the number of pieces produced or services rendered by each employee, as this will affect their wages. 
  
  Related Information: 
  Piecework wage is just one type of payment system used in SAP Payroll. Other payment systems include hourly wage, salary, and commission-based payments. It is important to understand the differences between these payment systems in order to ensure that employees are paid accurately and fairly.