Step 1: Create custom wage types using copy method

Step 2: Check wage type characteristics

Step 3: Revise Default Wage Types

Step 4: Define valuation of base wage types

Step 5: Enterprise structure for wage type model

We assign the maximum number of permitted wage types and the wage type model through the feature LGMST

Step 6: Revise Pay Scale Groups and Levels

Step 7: Define Pay Scale Groupings for Allowances

Step 8: Assign Pay Scale Groupings for Allowances

Step 9: Assign wage type model for pay scale grouping for allowances

Step 10: Calculate eligibility for RAPs (Reimbursements, Allowances and Perks)

Step 11: Assign the allowance grouping to Pay Scale Type, Area, Group and Level (V_T7INA3)

Defaulting wage type values in Infotype 0008