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Indirect Evaluation (INVAL) and 40ECS Feature

Purpose Indirect Evaluation is a method to calculate the eligible amounts for some of the wage types. INVAL isthe Indirect Evaluation Module used to meet theIndian specific business requirements. INVAL 

calculates the eligible amounts for certain wage types that are defaulted into the Basic Pay Infotype(0008) or entered in the Recur. Payments/Deductions Infotype (0014) and the Additional Payments

Infotype (0015). When you populate the Long term reimbursements Infotype (0590), the infotype checks the INVAL amounts for eligibility. The Claims programs also check the INVAL amounts while processing claims. 

In addition to, or instead of, computing the eligibility as a currency value amount,INVAL can also calculate the eligibility in terms of numbers, if the wage type has beenconfigured accordingly. For example, an employee can be eligible for 50 liters of petrol. 

When you are populating the Basic Pay Infotype (0008), the wage types get defaulted into theinfotype depending on the Pay Scale Grouping for Allowances of the employee. Pay Scale Grouping for Allowances determines the eligible wage types for the employee. For some of these wage types,which get defaulted into the Basic Pay Infotype (0008), the eligible amounts also get defaulted. This

happens due to Indirect Evaluation Module INVAL. For R ecur. Payments/Deductions Infotype (0014) and Additional Payments Infotype (0015), if youenter an INVAL wage type, the eligible amount will get defaulted into the infotype. This is also due toIndirect Evaluation. In case of Basic Pay Infotype (0008), R ecur. Payments/Deductions Infotype (0014) and Additional Payments Infotype (0015), if you overwrite the Indirectly Evaluated amounts, the amounts entered by

you are valid. In this case, the I indicator in the Ind. Val. will disappear. Again, if you delete thisoverwritten amount, the default amount and the I indicator in the Ind. Val. will reappear. The INVAL amount for a default wage type for an employee may change in the middle of the year. In this case,you can check the eligibility amount on a particular date, by entering that date in the start date of the

IV field at the bottom of the Basic Pay Infotype (0008). There are four module variants for INVAL: 

1. A ± This calculates the value of the wage type as a fixed amount.2. B ± This calculates the amount as a percentage of a base wage type added to a fixed

amount. More than one such amount, with same or different percentage of the base wagetype, can be calculated for an INVAL wage type. In this case, the amount that will be Indirectly

Evaluated will be the sum of all such calculated amounts, added to a fixed amount. For example, for the wage type M230, the different INVAL B amounts are

a. 10% of MB10b. 30% of M220c. Fixed amount of Rs.1000

In this case, the INVAL amount for the wage type M230 will be the sum of a, b and c. 3. C ± This calculates the amount as a percentage of a base wage type subject to a maximum

limit. More than one such amount, with same or different percentage of the base wage type,can be calculated for an INVAL wage type. In this case, the amount that will be Indirectly

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Evaluated will be the sum of all such calculated amounts, subject to a maximum limit. For example, for the wage type M230, the different INVAL C amounts are

a. 10% of MB10b. 30% of M220c. Limit of Rs.5000

In this case, the INVAL amount for the wage type M230 will be the sum of a and b subject to a

maximum of c. 4. D ± This calculates the amount as one or any combination of the following INVAL Module

variants based on Basic salary slabs: a. Fixed amountb. Percentage of a base wage type added to a fixed amount

c. Percentage of a base wage type subject to a maximum limit

In the SAP system, INVAL D can be configured as only INVAL B or C. Once the percentageof the base wage type is calculated, the result is multiplied with a factor. This resultant

amount is then added to fixed amount or is compared with a maximum limit. For example, theINVAL module variant for the wage type M210, for an employee who falls in the Basic Salary

slab of Rs.10,000 ± 12,000, is INVAL C. The INVAL amounts are: i. 10% of MB10ii. 30% of M220iii. Multiplication factor of 50%iv. Limit of Rs.7000

In this case, the INVAL amount for M210 for the employee is the sum of i and ii, multiplied byiii and the result is subject to a maximum of iv. If you want to configure the wage type as a fixed amount for a particular slab, the wage typeis configured as INVAL B. In this case, the percentage of the base wage type is multipliedwith the factor of 0% and then the fixed amount added to the result. For example, the INVAL 

module variant for the wage type M230, for an employee who falls in the Basic Salary slab of Rs.15,000 ± 25,000, is INVAL B. The INVAL amounts are:

 i. 100% of MB10ii. Multiplication factor of 0%iii. Fixed amount of Rs.5000

In this case, the INVAL amount for M230 for the employee is the value of i, multiplied by ii and

the result added to iii. In this case, the INVAL amount will be the fixed amount of Rs.5000. 

For defining INVAL D, instead of using only the Basic salary to be compared with thesalary slabs, you can use the user exit EXIT_SAPLH R PADINA1_006 , available in theEnhancement H R IN R AP5 , to define additional wage types to be added to the Basic

salary. The sum of all these wage types can then be compared with the salary slabsfor the computation of INVAL D.

The base wage type in case of INVAL B, C or D may be the Basic salary, the

Dearness Allowance or/and any other wage type the employee is eligible for. Only those factors, which affect the compensation of the majority of employees are assigned to Pay Scale Grouping for Allowances. There are some compensation factors that affect selected employeesonly. These compensation factors are not considered to define the Pay Scale Grouping for 

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Allowances. These pay parameters are configured through the40ECS Feature. Example of suchparameters are, number of dependents, marital status, years of experience in the organization. Only the wage types that are Indirectly Evaluated can be further calculated using the 40ECS feature.This feature determines the factor which is multiplied with the INVAL amount to arrive at the amountpayable to the employee. For an employee, a wage type may be evaluated using INVAL. But thesame wage type may be configured in the 40ECS Feature for the employee. In this case, the factor 

returned by the 40ECS Feature will be multiplied with the INVAL amount and the total will bedefaulted into the respective infotypes. For example, an employee is eligible for a Leave TravelAllowance of Rs.24000 according to Indirect Evaluation. But you can configure the 40ECS feature, sothat an employee who has children will get 25% extra for each child for a maximum of two children.  Implementation Considerations 

y If you want Indirect Evaluation for a wage type, you have to define it as a characteristic of thewage type. To do this, go to the IMG under Payroll India: R eimbursements, Allowances and Perks -> Maintain Wage Type Characteristics.

y You have to maintain each INVAL wage type for a Pay Scale Grouping for Allowances in theIMG for Payroll India: R eimbursements, Allowances and Perks -> Calculate Eligibility for R APs.

y

If you want the payroll to check the 40ECS Feature to determine the eligible amount for aparticular wage type, you must configure the wage type in the IMG under Payroll India: 

R eimbursements, Allowances and Perks -> Calculate Eligibility for R APs.

Integration Defaulting and Indirect Evaluation for the Housing (HRA / CLA / COA) and Conveyance wage typeshappen only when you populate and save the respective infotypes ± Housing (HRA / CLA / COA)Infotype (0581) and Car & Conveyance Infotype (0583). Features The important pay parameters that can be configured through the 40ECS feature are: 

y Number of children for children education allowance

y Number of children for children hostel allowance

In case of these parameters, you also have to configure the relevant wage types in the IMG under Payroll India: R eimbursements, Allowances and Perks -> Calculate Eligibility for R APs. In this view,you must select Check for Ee characteristics in the Elig Check field. Whether a child is eligible for Child Education Allowance or for Child Hostel Allowance, or whether a dependent is eligible for anyother allowance, is entered in the Family/Related Person Infotype (0021). The 40ECS feature checksthis infotype and accordingly calculates an eligibility amount for each of the allowances for eachemployee. The other parameters that can be configured through the40ECS feature are: 

y Country Grouping

y Company Code

y Payscale Grouping for Allowances

y  Wage Type

y Job

y Gender Key

y Marital status key

y Region (State, Province, County)

y Personnel Number 

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y Start date

Constraints Indirect Evaluation requires that the base wage type, on which the evaluation of any other wage typedepends, should have been evaluated previously. For example, wage types MB10 and M230 are

evaluated indirectly and M230 is evaluated as a percentage of MB10. Then, it is required that MB10be evaluated prior to M230 in the Basic Pay Infotype (0008). See also: