What is processing type in SAP PY - Payroll?

SAP Term: processing type

• Component: PY

• Component Name: Payroll

• Description: Indicator for time evaluation and time data processing in that controls the selection of wage types. The processing type is formed during time evaluation. &EXAMPLE& For times where time evaluation determined processing type M M=overtime, wage types can be selected other than those used for times where processing type S =planned work was determined. S = planned work time pair M = overtime pair A = absence pair included in the calculation of planned working time

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• Key Concepts: 
  Processing type is a feature in SAP Payroll that allows you to define the way payroll is processed. It is used to determine the sequence of payroll processes and the order in which they are executed. It also defines the rules for how payroll data is processed and stored. 
  
  How to use it: 
  Processing type can be used to define the order in which payroll processes are executed. It can also be used to define the rules for how payroll data is processed and stored. To set up a processing type, you must first create a processing type in the Payroll Control Center. Then, you can assign it to a payroll area and assign it to a payroll period. 
  
  Tips & Tricks: 
  When setting up a processing type, make sure that all of the necessary parameters are set correctly. This will ensure that payroll processes are executed in the correct order and that payroll data is processed and stored correctly. 
  
  Related Information: 
  For more information on setting up processing types in SAP Payroll, please refer to the SAP Help documentation.