Explain significance of TARIF , SUMME and PRZNT in regards to indirect valuation? 

by: Manikya Raju

TARIF is also a wage type Indirect valuation module.
 
TRAIF is a feature used to default Basic Pay WT in IT0008.

Indirect Valuation : The system automatically calculates the wage type amount and enters it in the infotype. In this case, the wage type amount is imported and/or calculated from the table and does not have to be entered manually.
 
The TARIF module uses pay scale data that is taken from the pay scale groups and levels entered in the Basic Pay infotype.
 
The module TARIF has four variants (A - D), that have the following meaning:
A  Valuation is based on the pay scale group and level
B  Valuation is based on pay scale group/level and specific wage type
C  Valuation does not depend on pay scale level
D  Valuation does not depend on pay scale group or level

There are two modules that can be used for indirect valuation. Both of these modules are based on how the table "Base Wage Type Valuation" is set up. 

In the IMG structure, choose: Personnel Management > Personnel Administration > Payroll Data > Basic Pay > Wage Types > Define Valuation of Base Wage Types

The modules are:
SUMME - The wage type amount is the result of this valuation.
eg-Wage Type 1+ Wage Type 2= Wage type 3

PRZNT -  The result of this valuation is multiplied by the percentage specified.
eg-Wage Type 1+ Wage Type 2+Wage type 3=Wage type 3
  
There is TARIF feature which defaults pay scale type/pay scale area in the IT 008 we can default the Payscale data using the TARIF feature.

Certain wage types are calculated as a percentage of other wage types.

You can link the wage type that is to be valuated with several base wage types in the Base Wage Type Valuation table.

In "Define valuation of base wage types", you must specify which wage types are to be used to calculate the percentage bonus (PRZNT). A distinction is made between direct and indirect variants.

In the direct variant, you must enter the wage types to be used as a valuation basis in the infotype otherwise, they are not considered. The relevant wage types must not be in the infotype in the indirect variant. The monetary value is determined internally, and is used used as the basis for further calculations.

You must define which wage types are to be used to calculate the percentage bonus (SUMME). A distinction is also made between direct and indirect variants. In the direct variant, you must enter the wage types to be used as a valuation basis in the infotype otherwise, they are not considered. The relevant wage types must not be in the infotype in the indirect variant.  The monetary value is determined internally, and is used used as the basis for further calculations.

Unlike the PRZNT module, the percentage value in the SUMME module is entered in the table (field: Percentage) as a fixed value and is therefore linked to the wage type.

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