Factoring, also known as partial period proration, is a payroll process that proportionally calculates an employee's remuneration when their work or pay conditions change within a pay period. This process is triggered by changes to specific infotypes that affect the calculation basis.

A mid-period change to an employee's basic pay (Infotype 0008) necessitates factoring to calculate earnings at the old rate for one part of the period and the new rate for the other. Similarly, assigning a different work schedule rule (Infotype 0007) alters the employee's planned working hours, which is a fundamental component of their salary calculation, thus triggering proration.

A. A new main bank record is created.

This change (Infotype 0009) only affects the destination of the net payment and does not alter the calculation of gross pay or deductions, hence it does not trigger factoring.

C. An employee's name is updated.

Updating an employee's name (Infotype 0002) is a change to personal data that has no financial impact on the payroll calculation process.

1. SAP Help Portal

SAP ERP Central Component

Partial Period Remuneration: This document outlines the concept of factoring. It states

"The system carries out partial period remuneration if an employee’s master data or time data that is relevant to payroll changes in the course of a payroll period." It implicitly confirms that changes affecting pay (like Basic Pay) and work time (like Work Schedule Rule) are primary triggers.

2. SAP Help Portal

SAP ERP Central Component

Work Center Basic Pay (WPBP): This documentation explains that changes in infotypes such as Basic Pay (0008) and Planned Working Time (0007) during a payroll period cause a split in the WPBP table. This split is the technical mechanism that initiates factoring calculations in the payroll schema.

3. SAP Training Courseware

THR81 - SAP ERP HCM Payroll Configuration: Unit 5

"Partial Period Remuneration and Factoring

" details the configuration and triggers for factoring. It explicitly lists changes to Infotype 0007 (Planned Working Time) and Infotype 0008 (Basic Pay) as standard scenarios that cause a WPBP split and subsequent proration.