What is valuation basis in SAP PY - Payroll?

SAP Term: valuation basis

• Component: PY

• Component Name: Payroll

• Description: Amount per unit for a wage type that the system multiplies during the payroll run by the number of time units usually hours that the employee has worked. &EXAMPLE& An employee has worked 10 hours. You enter 10 in the Hourly wage wage type. The valuation basis for this wage type is USD 20.00. The employee therefore receives USD 200.00 remuneration.

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• Key Concepts: 
  Valuation basis is a feature in SAP Payroll (PY) that allows you to define the basis for calculating the value of an employee’s salary. This includes factors such as the employee’s job title, experience, and other qualifications. The valuation basis is used to determine the employee’s salary and other benefits.
  
  How to use it: 
  To use the valuation basis feature in SAP Payroll, you must first define the criteria for calculating the value of an employee’s salary. This includes factors such as job title, experience, and other qualifications. Once these criteria have been defined, you can then use the valuation basis to determine the employee’s salary and other benefits.
  
  Tips & Tricks: 
  When setting up the valuation basis in SAP Payroll, it is important to ensure that all criteria are accurately defined. This will ensure that the employee’s salary and other benefits are calculated correctly. Additionally, it is important to regularly review and update the valuation basis to ensure that it remains up-to-date with any changes in job titles or qualifications.
  
  Related Information: 
  For more information on setting up and using the valuation basis in SAP Payroll, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed instructions on how to set up and use this feature.