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Understanding Processing Classes in SAP
HR
Introduction
Processing Classes determines how wage types are processed during the payroll run. Every processing class has its
own specifications, with which each wage type processed in a different way. SAP has given 1-89 as standard processing
classes. Further, custom processing classes can also be created. These may be numbered from 90 to 99. These are
maintained in V_512W_D.
Often the organizations may have requirements for specific processing classes, which would need creating custom
processing classes.
The steps to create custom processing classes are mentioned below in detail.
Example: We will consider a simple example where two wage types (variable pay(s)) need to be cumulated to a third wage
type (total variable pay). Let the wage types be named as 1VIP, 2IVP getting cumulated to TVIP.
Below are the steps to create custom processing classes
• Maintain Processing Classes and Their Specifications
• Create processing rule for the newly created processing class
• Edit payroll schema to insert the PCR
• Assign processing classes to required wage types
• Check the output
Detailed Steps
1. Maintain Processing Classes and Their Specifications

2. Understanding Processing Classes in SAP HR
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Basic Settings > Environment of Wage Type Maintenance > Processing and Evaluation Classes > Maintain Processing
Classes and Their Specifications
Table: V_T52D1
Click on Maintain Processing Classes and Their Specifications. Create new entries by clicking on ‘new
entries’
Table: V_T52D2

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Select the row corresponding to newly created processing class 90 and double click on “Processing class
specifications” (on left panel) to maintain the specifications.
Click on “New Entries to maintain the values”.
Here the specification type 2 refers to the specification for variable pay.
2. Create personnel calculation rule
Go to T code PE02 to write custom rule ZVIP for the processing of class. This rule will be processed for all the wage types
having processing class as 90. Wage types not having value as 2 will be added as it is to output table.

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3. Edit payroll schema to insert the PCR
The rule is added after the processing of deductions and storage.
Function PIT calls the PCR which processes the contents of the IT as per designated rules.
4. Assign processing classes to required wage types

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The below screenshot refers to the assignment of specification “2” for total variable pay (TVIP) against
processing class 90. Similarly, the assignment is made for the other two wage types also.
Table: V_512W_D
5. Checking the output
Once the above configuration has been set, we can check the payroll results table
• Entry in basic pay wage type (IT 08)
• Input table during the execution of ZVIP rule

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• Processing of the rule for the individual wage types
• Output Table
Resulting TVIP wage type created with cumulated values of 1VIP and 2IVP