Processing Classes and Valuation Classes

Explain in detail about processing class and valuation class in payroll.

Processing Class: 

A wage types characteristic that controls processing during Payroll. There are different processing classes for the various processing steps that are performed within Payroll. During the payroll run, SAP R/3 processes a wage type in a specific processing step according to its individual specification in the respective processing class.

The standard system contains processing classes that have different specifications. You can also create customer processing classes and specifications in Customizing for Payroll by choosing:

Basic Settings -> Environment of Wage Type Maintenance -> Processing and Evaluation Classes -> Maintain Processing Classes and Their Specifications. 

Example: -

In the standard system, processing class 15 determines how a wage type is valuated in accordance with the principle of averages. The standard system permits the following specifications, for example, for processing class 15:
- Specification 1: valuation of averages for 3 months 
- Specification 2: valuation of averages for 6 months

Cumulations Classes:

We use this classes to cumulate the wagetype value in the technical wagetype. Example: -
- 1 Total gross
- 5 Working net pay
- 9 Cumulated overtime
- 10 Net deductions /benefits
- 11 pensionable pay
- 21 Taxable Pay
- 31 NIable Pay

Evaluation Classes: 

Wage type characteristic that controls processing when payroll results are evaluated and displayed. There are various evaluation classes for the different processing steps that are performed when payroll results are evaluated and displayed. During an evaluation, SAP R/3 processes a wage type in a specific processing step according to its individual specification in the respective evaluation class.

The standard system contains evaluation classes with different specifications. You can also create customer evaluation classes and specifications in Customizing for Payroll by choosing:

Basic Settings - Environment of Wage Type Maintenance

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