What is wage type characteristic in SAP PY - Payroll?

SAP Term: wage type characteristic

• Component: PY

• Component Name: Payroll

• Description: Determines how a wage type is to behave online or when payroll is run. Wage type characteristics can be subdivided as follows: Wage type characteristics that determine the behaviour of a wage type online, for example: Permissibility of entry Treatment of a wage type as a payment or deduction wage type Direct or indirect treatment of a wage type Wage type characteristics that determine the behaviour of a wage type in payroll or in the evaluation of the payroll results, for example Processing classes Cumulations Evaluation classes

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• Key Concepts: 
  A wage type characteristic is a feature of a wage type in SAP Payroll (PY) that determines how the wage type is processed. It can be used to define the tax treatment, the payment method, and other characteristics of the wage type. 
  
  How to use it: 
  In order to use a wage type characteristic, you must first create a wage type in SAP Payroll. Once the wage type is created, you can assign a wage type characteristic to it. This can be done by going to the “Wage Type Characteristics” tab in the Wage Type Maintenance screen. From there, you can select the desired characteristic and assign it to the wage type. 
  
  Tips & Tricks: 
  When assigning a wage type characteristic, make sure that you select the correct one for your needs. Different characteristics have different effects on how the wage type is processed, so it is important to select the right one. 
  
  Related Information: 
  For more information on wage type characteristics in SAP Payroll, please refer to SAP Help documentation.