Factoring:

Factoring is when you want to pay your employee exactly according to the number of hours he worked, if your company pays u on the number of days u work then it will calculate accordingly. The processing class is 10.The Rule INP1and XVAL will process the Factoring activity in schema IN00 for payroll india

Example - let’s say in your company they pay you on day wise, that is, they consider 22 working days in a month on an average. Your salary is RS 10,000/- in the month of January. but in 15th of January you came to know that your salary has been increased to Rs.15,000/-.so in that case the PCR X010 will do factoring and u will get rs.4545.4545 for 1st 10 days and Rs.8181 for the rest 12 days. Accordingly if u r getting payment on hourly basic u can calculate taking an average working hrs per month.(may be 176 or so)

Factoring is reduction, which is used to pay for1) unpaid absences,2)Basic pay change in a payroll period.3) If EE joins in mid of the month4) If EE gets terminated

The PCR's for factoring are triggered "XPPF, XPP0, XPP1, XPPP, XVAL.

Dynamic action:Lock Indicator:

Rehire:

Seperation:

Pay Grade Mapping to Expense Type:

Pay Grade Mapping with Time sheet Type

Dynamic Action Create IT0019 with Sub Type 01.

SAP HCM Integration with Finance

Wage Types linked to “Symbolic Accounts” “symbolic Accounts” are linked to “GL Accounts”

1) Define Employee Grouping Account Determination

2) Define Symbolic Accounts

AATyp

3) Define Positing Characteristics of wage type:

4) Maintain Posting Date for Payroll Periods

5) Create Posting Variants

6) Assign Accounts

Assign Balance Sheet Accounts

Assign Expense Accounts

Assign Technical accounts

Assign Vendor AccountsAssign Customer Accounts