Title
13th Month Pay (HPHCAWS0)

Purpose
This program lets you calculate 13th month and any nth month paymentsin line with Philippine legal and business requirements. The programcan calculate the payments based on either:

• An employee's basic pay on a specific date

The 13th month calculation is based on an employee's monthly basicsalary as at a given date, for example, December 24th, 2000.

• An employee's average salary

The 13th month calculation is based on an employee's average monthlysalary for the entire year, for example, the 2000 financial year.
Note:
As an employee's payroll results for the year are rarely available bythe time the 13th month payment is calculated, selecting this methodmay result in longer processing times. In addition, this methodrequires you to project annual basic pay values through simulatedpayroll runs.

Prerequisites
You must have maintained the 13th and Nth MonthPayments section of Customizing for Payroll Philippines.
In particular, you must ensure that you have maintained evaluationclass 10 for all the wage types that constitute an employee'sbasic salary, and cumulation class 08 for all the wage typesthat constitute an employee's average monthly salary. Also, the paymentwage types must be eligible for entry in the Additional Payments(0015) and the One-Time Pay Off-Cycles (0267) infotypes.
To calculate 13th and nth month payments based on an employee's basicpay on a specific date, you must have maintained the OrganizationalAssignment (0001), Planned Working Time (0007), and theBasic Pay (0008) infotype records for the relevant date.

Activities
RESET N1
Enter the relevant selection criteria (for example, one or morepersonnel numbers, payroll areas, company codes, personnelareas/subareas/cost centers, employee groups/subgroups).
In the 13th month accounting period field, enter the dates ofthe year for which the 13th or nth month payment is to be calculated.
Note:
This is usually set for the entire year and determines the 1/12 divisorin the calculation.
If you run a mid-year bonus, SAP recommends that you enter the entireyear (for example, 01.01.1999 - 31.12.1999) and 0.5 months as the nthmonth pay multiplier to calculate half of the 13th month payment. Ifyou enter half the year (for example, 01.01.1999 - 31.06.1999), youmust still enter a nth month multiplier of 0.5 months to calculate halfof the 13th month amount.
To calculate the 13th or nth month payment based on an employee's basicsalary, flag the Basic salary field and enter the relevant date(the date you enter determines the infotype 0008, 0014 and 0015 recordsused in the calculation).
Or
To calculate the 13th or nth month payment based on an employee'saverage monthly salary, flag the Average salary field.
In the Nth month pay multiplier field, enter the value by whichthe basic or average salary is multiplied to calculate the 13th monthamount, mid-year amount, or nth month amount.
Example:
To calculate the 13th month amount, you enter 1.00 months
To calculate the mid-year amount, you enter 0.50 months
To calculate the 14th month amount, you enter 2.00 months
In the Wage type for IT0015/0267 field, enter the wage type thatwill hold the 13th or nth month payment.
Note:
The relevant wage type must be valid for entry in the AdditionalPayments (0015) and the One-Time Pay Off-Cycles (0267)infotypes. In addition, it must be configured to cumulate intotechnical wage types /102 for tax processing and /109
for 13th month year-to-date adjustment processing.
To pay the 13th or nth month amount in an off-cycle payroll run, enterthe off-cycle reason, the payment date, and flag the Off-cyclepayroll field.
Or
To pay the 13th or nth month amount in a regular payroll run, enter thepayment date and flag the Regular payroll field.
Note:
You should use the off-cycle reason 13th Month Pay (13MN).
After running the 13th Month Pay program, you execute a batchinput session to update either infotype 0015 or 0267 with the 13thor nth month amount depending on the data entered in the PaymentInformation group box.
To calculate 13th month payments for employees terminated during theaccounting period, flag the Calculate 13th month pay for terminatedemployees field. To check and/or modify the calculation parametersfor terminated employees, choose Calculation rule for ex-employees
.
Note:
SAP recommends that you always check the calculation parameters forterminated employees.
You can enter a different nth month multiplier for terminated employees(for example, half of the 14th month amount). In addition, you canspecify several options for the basis amount for terminated employees,and you can calculate:
Basic salary on a specific date
Basic salary on the termination date
Average salary on the termination date
In the General proration rule group box, flag the relevantproration rule.
Note:
If you prorate the 13th month payment by the number of months, you mustalso enter the rounding type used if an employee works for part of amonth only.
If you prorate the 13th month payment by the actual number of daysworked by an employee throughout the year, you can also enter theabsence types that are not eligible for 13th month payment. This is theonly proration rule that enables you to exclude absences from 13thmonth pay calculations.
You can also prorate the 13th month amount by the number of calendardays that an employee is officially employed by your company during theyear.
To define whether an employee is eligible to a 13th month payment fromthe first day of service or only after one month of service, flageither the At least one month or the None fieldaccordingly.
To pay a fixed 13th month amount, enter the relevant amount in theAmount paid field.
Note:
The fixed amount must be higher than the statutory minimum of at least1/12 of an employee's annual salary. If the fixed amount is higher thanthe statutory minimum, it overrides the calculated amount.
To identify the batch input session, enter a prefix.
To perform a simulated run of the 13th Month Pay program, flagthe Test on field. If you leave the field blank, the programwill run and create a batch input queue.

Output
The 13th Month Pay program lets you generate the followingreports:


• 13th Month Status Report

The report contains the following information:
Company name
Company address
Accounting period
Payment date
Total number of employees selected
Total number of employees with 13th month pay
Total amount of the 13th month benefits paid
Authorized signatory
Position
The Philippines Labor Code describes this as a Report of Complianceto PD 851. The report should be submitted to the nearest RegionalLabor Office before January 15th of each year.

• 13th Month Detailed Payment List

This report is generated in the ABAP List Viewer (ALV) format andcontains the following information:
Personnel number
Employee name
13th month amount paid
Payment date
To display the following additional information, choose Currentdisplay variant:
Employee status
Start date
End date
Infotype used
Previous 13th month paid
Monthly salary
Pro-rate factor
Nth month multiplier

• Error List

Issues a list of error messages for any processing errors.
After running the 13th Month Pay program, you run the BatchInput program to update infotypes 0015 and 0267. You can execute theprogram by choosing System -> Services -> Batch input -> Sessions
.
Once the 13th month amounts have been entered successfully into eitherinfotype 0015 or 0267, you can run a regular or an off-cycle payrollrun.
If you perform an off-cycle payroll run, make sure that the off-cyclereason and the payment date match the details entered in the 13thMonth Pay program.