1

Payroll India (PY-IN)

Purpose
This component enables the running of the payroll for all employees in line with Indian
legal and business requirements.
Implementation Considerations
The SAP HR Payroll India component must be implemented in cooperation with project
teams implementing other areas of SAPHuman Resources (HR), in particular SAP HR
Personnel Administration.

Integration
The SAP HR Payroll India component integrates with other SAP HR components such as
Personnel Administration and Personnel Time Management. There are interfaces to
Financial Accounting and Controlling. You can run payroll using a combination of SAP
and third-party products.

Features
The component uses data from other areas of SAP HR for calculating all statutory and
non-statutory additions and deductions for your employees. SAP HR Payroll India offers
a number of standard reports used in payroll, superannuation, leave, advance payments
and taxation.
In addition to the standard payroll functions, the payroll processing for India also
comprises the following country-specific functions:
Indirect Evaluation
Basic Increments
Dearness Allowance
Housing
Car and Conveyance
Long Term Reimbursements
Claims
Bonus
Income Tax





Section 80
Section 89(1)
Third Party Deductions
Income from Other Sources
Tax on Arrears
11 Exemptions
11 Exemption on Leave Travel Allowance

2
11 Exemption on Medical Reimbursements
11 Exemption on Medical Insurance
11 Exemption on Child Education Allowance
11 Exemption on Child Hostel Allowance
11 Exemption on Other Allowances and Reimbursements
11 Exemption on Leave Encashment
11 Exemption on Voluntary Retirement Scheme
11 Previous Employment Tax Details
Professional Tax
Provident Fund
Employee State Insurance
Labour Welfare Fund
Nominations
Minimum Net Pay
Recovery of Rounding off Amounts
Loans Enhancement
One Day Salary Deduction
Mid Year Go Live
Termination Work Bench
Gratuity
Superannuation
Form 24
Form 16
Form 217(A)

SAP HR Payroll India supports retroactive accounting. This function automatically
recalculates payroll in the event of changes to master data and time data in periods for
which payroll has already been completed.

3

Indirect Evaluation (INVAL) and 40ECS Feature

Purpose
Indirect Evaluation is a method to calculate the eligible amounts for some of the wage types.
INVAL is the Indirect Evaluation Module used to meet the Indian 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
been configured 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 the
infotype 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 Recur. Payments/Deductions infotype (0014) and Additional Payments infotype (0015), if you
enter an INVAL wage type, the eligible amount will get defaulted into the infotype. This is also due
to Indirect Evaluation.
In case of Basic Pay infotype (0008), Recur. 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 indicator for indirect evaluation will get cleared. Again, if you
delete this overwritten amount, the default amount and the indicator for indirect evaluation will get
selected. 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 as the start date of the Indirect Evaluation 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 wage
type, 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 MB10

b.

30% of M220

c.

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.

Once the percentage of the base wage type is calculated. the INVAL amount for M210 for the employee is the sum of i and ii. multiplied by iii and the result is subject to a maximum of iv. For defining INVAL D. Fixed amount b. D – This calculates the amount as one or any combination of the following INVAL Module variants based on Basic salary slabs: . ii. the wage type is configured as INVAL B.5000 In this case. . This resultant amount is then added to fixed amount or is compared with a maximum limit.. can be calculated for an INVAL wage type. Limit of Rs. 10% of MB10 ii. for an employee who falls in the Basic Salary slab of Rs. 4.5000. iii. For example.5000 In this case. is INVAL B. The INVAL amounts are: i. the result is multiplied with a factor. is INVAL C. 30% of M220 iii. the INVAL amount for M230 for the employee is the value of (i).15. INVAL D can be configured as only INVAL B or C. If you want to configure the wage type as a fixed amount for a particular slab. you can use the user exit EXIT_SAPLHRPADINA1_006. 10% of MB10 b. the INVAL amount will be the fixed amount of Rs. Fixed amount of Rs. to define additional wage types to be added to the Basic Salary. For example. Multiplication factor of 50% iv. available in the Enhancement HRINRAP5. a. The sum of all these wage types can then be compared with the salary slabs for the computation of INVAL D.000. C – This calculates the amount as a percentage of a base wage type subject to a maximum limit. In this case. Multiplication factor of 0% 3. In this case. the INVAL module variant for the wage type M230. In this case.. the amount that will be Indirectly Evaluated will be the sum of all such calculated amounts. instead of using only the Basic Salary to be compared with the salary slabs. the INVAL amount for the wage type M230 will be the sum of a and b subject to a maximum of c. for an employee who falls in the Basic Salary slab of Rs. For example. Limit of Rs. Percentage of a base wage type subject to a maximum limit In the SAP system. the different INVAL C amounts are: . The INVAL amounts are: 1. i. with same or different percentage of the base wage type.. 100% of MB10 2. subject to a maximum limit. multiplied by (ii) and the result added to iii.000 – 12. More than one such amount. the INVAL module variant for the wage type M210.4 3. the percentage of the base wage type is multiplied with the factor of 0% and then the fixed amount added to the result.000.10. for the wage type M230.7000 In this case.. 30% of M220 c. Percentage of a base wage type added to a fixed amount c. a.000 – 25.

or whether a dependent is eligible for any other allowance. you must configure the wage type in the IMG under Payroll India: Reimbursements. In this case. Only the wage types that are Indirectly Evaluated can be further calculated using the 40ECS feature. For an employee. go to the IMG under Payroll India: Reimbursements. In this table view. Allowances and Perks  Calculate Eligibility for RAPs. is entered in the Family/Related Person infotype (0021). Example of such parameters are. the factor returned by the 40ECS Feature will be multiplied with the INVAL amount and the total will be defaulted into the respective infotypes. you also have to configure the relevant wage types in the IMG under Payroll India: Reimbursements. These compensation factors are not considered to define the Pay Scale Grouping for Allowances. There are some compensation factors that affect selected employees only. To do this. C or D may be the Basic Salary. an employee is eligible for a Leave Travel Allowance of Rs. Features The important pay parameters that can be configured through the 40ECS feature are:  Number of children for children education allowance  Number of children for children hostel allowance In case of these parameters. you must select Check for Ee characteristics in the Elig Check field. These pay parameters are configured through the Feature to determine the eligibility for RAPs Feature (40ECS). .5 The base wage type in case of INVAL B. so that an employee who has children will get 25% extra for each child for a maximum of two children. a wage type may be evaluated using INVAL. But the same wage type may be configured in the 40ECS Feature for the employee. Allowances and Perks  Calculate Eligibility for RAPs. the Dearness Allowance or/and any other wage type the employee is eligible for. Allowances and Perks  Calculate Eligibility for RAPs. This feature determines the factor which is multiplied with the INVAL amount to arrive at the amount payable to the employee. Whether a child is eligible for Child Education Allowance or for Child Hostel Allowance. Implementation Considerations  If you want Indirect Evaluation for a wage type. But you can configure the 40ECS feature.  If you want the payroll to check the 40ECS Feature to determine the eligible amount for a particular wage type. marital status.  You have to maintain each INVAL wage type for a Pay Scale Grouping for Allowances in the IMG for Payroll India: Reimbursements. years of experience in the organization. Allowances and Perks  Maintain Wage Type Characteristics.24000 according to Indirect Evaluation. Only those factors. The 40ECS feature checks this infotype and accordingly calculates an eligibility amount for each of the allowances for each employee. you have to define it as a characteristic of the wage type. For example. which affect the compensation of the majority of employees are assigned to Pay Scale Grouping for Allowances. number of dependents. Integration In case of SAP GUI Defaulting and Indirect Evaluation for the Housing (HRA / CLA / COA) and Conveyance wage types happen only when you populate and save the respective infotypes – Housing (HRA / CLA / COA) infotype (0581) and Car & Conveyance infotype (0583).

For example. wage types MB10 and M230 are evaluated indirectly and M230 is evaluated as a percentage of MB10. For Inval type A . go to the IMG under Payroll India: Reimbursements. Then. 2. should have been evaluated previously. you must assign the Module variant for the wage type. In this activity.. go to the IMG under Payroll India: Reimbursements. You must save your entries for the INVAL wage types. it is required that MB10 be evaluated prior to M230 in the Basic Pay infotype (0008). Then. Indirect Evaluation (INVAL) and 40ECS Feature Definition Purpose This process describes how to define Indirect Evaluation Module INVAL for the different INVAL Module variants.  You must have assigned the wage types to the wage type models in case of wage types to be defaulted in the Basic Pay infotype (0008). Prerequisites ..module field. Allowances and Perks  Maintain Wage Type Characteristics. Province.. To do this. Allowances and Perks  Calculate Eligibility for RAPs. To do this. you must first assign INVAL in the Indirect eval.  You must have defined the Pay Scale Grouping for Allowances.6 The other parameters that can be configured through the 40ECS feature are:  Country Grouping  Company Code  Payscale Grouping for Allowances  Wage Type  Job  Gender Key  Marital status key  Region (State. County)  Personnel Number  Start date Constraints Indirect Evaluation requires that the base wage type. You must define the characteristics for all the wage types. on which the evaluation of any other wage type depends.. The process also describes how to use the 40ECS feature and to configure the INVAL wage types for this feature. Process Flow . 1. if the wage type has to be Indirectly Evaluated.

You can then create a new basic slab code for that wage type. the fixed amount (in case of INVAL B) or the upper limit (incase of INVAL C). if you want to change the basic salary slabs. The INVAL wage types that have to be modified by the 40ECS feature have to be configured. Payments/Deductions infotype (0014) or the Additional Payments infotype (0015). you must select Check for Ee characteristics in the Elig Check field. will be decided by your configuration of the wage type in Step 1. you can delimit the wage type for a basic slab code. You have to define the fixed amount for the wage type for each Pay Scale Grouping for Allowances. Allowances and Perks  Maintain Pay Scale Groups and Levels under Payroll India. To do this. To do this. Allowances and Perks  Calculate Eligibility for RAPs. Allowances and Perks  Calculate Eligibility for RAPs. go to the IMG under Payroll India: Reimbursements. You have to define the fixed amount for INVAL B and the limit for INVAL C. Allowances and Perks  Maintain Allowance Rules based on Slabs. You also have to define whether the wage type is for Indirect Evaluation Module variant B or C. 5. To do this. In this view. go to the IMG under Payroll India: Reimbursements. whether to use the amount mentioned in the field as the fixed amount for INVAL B or the limit for INVAL C. . Allowances and Perks  Maintain Valuation of Base Wage Types. for a wage type. If the wage type is for the Recur. For details on how you have to set up each IMG activity.7 3. For wage type. But. You can configure the 40ECS feature through the IMG under Payroll India: Reimbursements. To do this. Allowances and Perks  Calculate Eligibility for RAPs. the wage type has to be entered and the corresponding details have to be maintained here. INVAL D is dependent on the Basic salary slab to which the employee belongs. go to the IMG under Payroll India: Reimbursements. Allowances and Perks  Maintain Extra Eligibility Criteria for RAPs under Payroll. You also have to define the multiplication factor for INVAL D. refer to the IMG documentation. You have to maintain all INVAL wage types for a Pay Scale Grouping for Allowances in the IMG for Payroll India: Reimbursements. You have to define the upper limit of each slab for the wage type for each Pay Scale Grouping for Allowances. for the different salary slabs. go to the IMG under Payroll India: Reimbursements. Allowances and Perks  Calculate Eligibility for RAPs. go to the IMG under Payroll India: Reimbursements. 9. The same field is used to define the fixed amount for INVAL B and the limit for INVAL C. go to the IMG under Payroll India: Reimbursements. For Inval type B or C 4. You have to define the base wage types and the percentages for the wage types. above. To do this. 7. Feature to determine the eligibility for RAPs (40ECS) 8. For INVAL type D 6. To define all of this.

These pay parameters include. If you enter an INVAL wage type in the Recur. Pay scale level For example. 1. to which a standard set of rules can be applied. You can leave one or more pay parameters. Pay scale type 4. will be evaluated as configured in the 40ECS feature. The wage types configured (in step 8 above) as Check for Ee characteristics in the Elig Check field. You cannot even define the wage types without defining Pay Scale Grouping for Allowances. For example. number of dependents. Pay scale area then becomes one of the pay parameters to define Pay Scale Grouping for Allowances. Delhi. the department. Pay scale group 5. Here. Payments/Deductions infotype (0014) or the Additional Payments infotype (0015). You should determine those factors. and those wage types configured for INVAL will also have their amounts defaulted. affects the compensation of the employees to a great extent. the grade of the employee.. the configured wage types will get defaulted. marital status. unassigned.. Employee subgroup grouping for Collective Agreement Provision (CAP) 2. Some of these parameters are. The Pay Scale Grouping for Allowancesdepends on certain pay parameters. The city in which the branch is located. which affect the compensation of the majority of the employees. Pay Scale Grouping for Allowances determines the:  Compensation structure applicable to an employee  Value of compensation for an employee  Procedures for payroll processing Determining the Pay Scale Grouping for Allowances is the first step in the configuration of Payroll India. the location. Each of these groups share a set of characteristics. Pay scale area 3. Pune and Haldia. Only these important factors should be assigned to the pay parameters mentioned above. out of the five mentioned above. The system provides you with the following pay parameters: . can be configured through the Feature to determine the eligibility for RAPs (40ECS). your company has branches in Mumbai. This is helpful if there is a change in your organization . Pay Scale Grouping for Allowances Purpose Pay Scale Grouping for Allowances defines groups of employees. which affect the pay of selected employees. You can use all or any combination of any of the above pay parameters in determining the Pay Scale Grouping for Allowances for your company. years of experience in the organization can be taken care of by other compensation factors and it may not be necessary to assign it to a pay parameter. You should not assign those parameters to Pay Scale Grouping for Allowances that affect the compensation of selected employees only. years of experience in the organization. the amounts will get defaulted into the infotype. you can assign the different cities to Pay scale area. The other parameters.8 Result When you populate the Basic Pay infotype (0008).

For more than one combination of pay parameters. Pay scale group.first.  You enter the Employee Group and Employee Subgroup in Organizational Assignment infotype (0001). Integration When you hire an employee. of a Managerial grade. Both sets of employees can be eligible for the same compensation structure. might belong to a different Pay Scale Grouping for Allowances.9 and there is another important factor on which the compensation of your employees depend. This employee can belong to only one Pay Scale Grouping for Allowances. the employee automatically gets assigned to a Pay Scale Grouping for Allowances. you can have only one Pay Scale Grouping for Allowances. The employee automatically gets assigned to Employee subgroup grouping for Collective Agreement Provision (CAP). is located in Mumbai and works in the Marketing department. is located in Delhi and works in the Marketing department. you can have a single Pay Scale Grouping for Allowances. He belongs to the Pay Scale Grouping for Allowances. This is because. when you enter the Employee Group and Employee Subgroup in Organizational Assignment infotype (0001). you can check the output of the Initialization payroll India payroll function (ININI) from the payroll log for information on Pay Scale Grouping for Allowances. An employee cannot be directly assigned to a Pay Scale Grouping for Allowances. an employee. as mentioned above. MN01. But for a single combination of pay parameters. an employee who is of a Managerial grade. Pay scale group. Features Pay Scale Grouping for Allowances affects the following objects: .Prov. This is a result of the assignment of the pay parameters to the Pay Scale Grouping for Allowances in the IMG under Payroll India: Pay Scale Groupings  Assign Pay Scale Groupings for Allowances. Pay Scale Grouping for Allowances. For an employee. In this case. Pay scale level in the Basic Pay infotype (0008). Pay scale level in the Basic Pay infotype (0008). who is of a Managerial grade. In this case. MN01. second. if the employee. can have two combinations of employees . employees in Mumbai and Delhi. Pay scale type. This is the first implementation to be done in IMG for Payroll India. Pay scale type. For example.Agrmt. and Pay scale area. may be eligible for the same compensation structure. works in the Marketing department but is located in Pune. with the rest of the pay parameters same. Pay Scale Grouping for Allowances is not recorded in any of the infotypes.  You enter the Pay scale area. you can assign that factor to the unassigned parameter. He or she can be assigned to a Pay Scale Grouping for Allowances only when he or she gets assigned to the five pay parameters mentioned above. But. This is the result of the assignment of Employee subgroup grouping for Collective Agreement Provision (CAP) for each combination of Employee Group and Employee subgroup in the IMG under Personnel Management  Personnel Administration  Payroll Data  Basic Pay  Define EE Subgroup Grouping for PCR and Coll.

.10 Basic . choose Human Resources  Payroll  Asia/Pacific  India  Utilities  Basic  General Increments. g. 2. d. 1. Choose Program  Execute. Depending on the Pay Scale Grouping for Allowances of the employee. e. The system checks the current Pay Scale Grouping for Allowances of the selected employees. From SAP Easy Access menu. 3. Prerequisites You must have maintained the IMG activities under Payroll India  Basic Salary for India..General Increments report screen appears. If the current basic pay of the employee does not fall in any slab. Based on the current Pay Scale Grouping for Allowances of the employee. 4. . Enter the date from which the increment has to be effective. If this Pay Scale Grouping for Allowances is not the same as that entered by you on the selection screen.General Increments Report (HINIBSG0) Use This function is used to perform a batch update of increments in the Basic Salary wage type in the Basic Pay infotype (0008). the employee is rejected. the employee is rejected. Based on the Basic Code and the Method Type. f. the system reads the table view Basic Slabs (V_T7INB7) for the salary slab in which the basic pay of the employee falls. The system checks whether the increment Effective Date entered by you on the selection screen falls in the last split of the Basic Pay infotype (0008). c. 6. Enter the Personnel number and Pay Scale Grouping for Allowances of the employees to whom you want to give increments in the Basic Salary. the system reads the Basic Code and the Method Type from the table view Basic Codes for Allowance Groups (V_T7INB5). Activities . Enter the name of the batch session. If the current basic pay of the employee is the greater than or equal to the upper limit of the highest slab. the system reads the Basic Salary and Personal Pay wage types of the employee from the table view Basic Wages (V_T7INB1). 5. b. If it does not. The system conducts the following eligibility checks: a. the employee is rejected. The Basic . the employee is rejected. The system reads the Basic Pay infotype (0008) for the current value of Basic Salary and Personal Pay wage types.

You can execute this batch session to update the Basic Pay infotype (0008). The system creates a batch session. employees for whom the Effective Date that you have entered on the selection screen does not fall in the last split of the Basic Pay infotype (0008). For a supervisory category. Accordingly.11 h. and the state authorities generally revise the CPI on a quarterly basis. employees for whom the Pay Scale Grouping for Allowances is not the same as the one that you have entered on the selection screen. The Dearness Allowance is related to the Consumer Price Index (CPI) for a given location. Errors . The Ambiguous Cases and the Errors are for information only. .Select this option to process the increment for all the eligible employees. Dearness Allowance is a non-statutory allowance that you pay to an employee on a monthly basis.Select this option to display the ambiguous cases. Increment . If the Method Type is Increment by Percentage. The payment of this allowance relates to the changes in the cost of living in a particular location. may affect Dearness Allowance. you generally call this component the Dearness Allowance. the system reads the table view Basic Slabs (V_T7INB7) for the type of percentage method. Download . For a non-management category. 8. The list of employees eligible for the increment appears. b. Ambiguous Cases . the system calculates the new basic pay and adds it to the current basic pay to arrive at new current basic pay. such as a transfer or a promotion. i. Dearness Allowance Purpose This component enables the computation of Dearness Allowance. 7. For example. c. A change in employee status. The allowance consists of a fixed and a variable portion.Select this option to display all error cases.Select this option to download the results in the desired format. You have the following options on the output screen: a. the system adds the increment amount to the current basic pay to compute the new current basic pay. you may call it the Cost Of Living Allowance (COLA). If the Method Type is Increment by Amount. For example. d.

Integration Income Tax During the computation of the annual exemptions and perquisites.DA (Report) (HINIDAB0) This report computes the Dearness Allowance for a selected range of employees and generates a batch program. the batch program updates the Basic Pay infotype (0008) of the employees. Dearness AllowanceComputations The standard SAP system provides the following methods for the computation of Dearness Allowance: 11 Non-Slab based calculation 11 Basic slab based calculation 11 Incremental basic slab based calculation 11 CPI slab based calculation 11 Incremental CPI slab based calculation 11 Basic slab based calculation. Housing Purpose This component helps you create and maintain information on the employee accommodation. the Dearness Allowance along with the basic salary typically forms the salary basis for computation of: Income Tax Gratuity Professional Tax Features Batch Program .12 Integration DA forms a part of the salary basis for the other components of Payroll India. . You can also compute the exemptions and perquisites applicable on a housing benefit. Upon execution. subject to minimum value You can configure the Dearness Allowance computation method through the IMG under Payroll India  Dearness Allowance. For example. the Income Tax functionality also includes the exemptions and perquisite wage types of the housing functionality.

For example:    Rented Accommodation Company Leased (Old) Perkable Hotel Accommodation . 11 Company Leased Accommodation (CLA) In a CLA. If an employee has a COA benefit. Employee eligibility towards CLA depends on the Pay Scale Grouping for Allowances. the system will compute the perquisite applicable on the CLA. the company leases an accommodation and provides it as a housing benefit to the employee. The system computes an exemption on the rented accommodation. the system will compute the perquisite applicable on the COA. the SAP system provides a standard set of Accommodation Types. If the stay in the hotel exceeds a fixed period. 11 Hotel Accommodation In this case. a perquisite is applicable on the cost of accommodation. If you have specified a perkable hotel accommodation in the Housing (HRA / CLA / COA)infotype (0581). the system will compute a perquisite. as specified by the Government. the system dynamically updates the Basic Pay infotype (0008) with the new or changed wage type for Housing. Employee eligibility towards COA depends on the Pay Scale Grouping for Allowances. the system will compute the applicable perquisites. Features  The SAP system caters to the following categories of accommodation:  Rented Accommodation In a Rented Accommodation. the employer provides a hotel accommodation to the employee.  You can specify the Accommodation Type for an employee.13  Basic Pay infotype (0008) When you create or modify a housing record using the Housing(HRA / CLA / COA) infotype (0581).  To create and process the different categories of accommodation. the employee receives a House Rent Allowance (HRA) to meet the expenses incurred by renting a residential accommodation. 11 Company Owned Accommodation (COA) In a COA. in case of SAP GUI.  If your company has provided furniture and helper(s) as a part of the accommodation. the company owns the accommodation and provides it as a housing benefit to the employee. If an employee has a CLA benefit. and maintain the housing details using Housing (HRA / CLA / COA) infotype (0581).

you cannot create Housing records in the Housing (HRA / CLA / COA) infotype (0581) that have two different Accommodation Types. For the same From Period.  To process the Housing functionality. however. If the system performs a standard set of validations on the infotype. The Housing functionality provides the following user exits:  EXIT_HINCALC0_005 User Exit in the Enhancement HRINHRA0 With the help of this user exit. Using this user exit. To access this user exit through the IMG.  User Exits If you have created your own Accommodation Types. Use this exit to determine all the housing related wage types during a payroll run. To access this user exit through the IMG. you must ensure that you also specify the computation rules for the standard set of Accommodation Types. . it may result in the generation of error messages. in particular the exemption and the perquisite wage types. you can only maintain one Accommodation Type for an employee. Constraints In the SAP system.14 You have the option of creating your own Accommodation Types also. You may also need to define your own set of validations for the Housing (HRA / CLA / COA) infotype (0581). to be performed in the Housing (HRA / CLA / COA) infotype (0581). choose Payroll India  Housing  User Exit: Determine Perk Value for Housing. you must also specify the computation rules for these Accommodation Types. This is because the standard computation rules will no longer apply on the any Accommodation Type. the system makes use of standard configurations. When you create your own Accommodation Types and specify their computation rules. 11 EXIT_MP058100_007 User Exit in the Enhancement HRINHRA1 With the help of this user exit. You can view these configurations using the following table views:    Housing code for taxation (V_T7INR1) Housing related statutory constants for taxation (V_T7INR5) Codes for Housing Types (V_T7INR7)  City category for housing type (V_T7INR9) SAP recommends that you do not change the default configurations of the tables listed above. You can do so through the IMGunder Payroll India  Housing Define Accommodation Types. you can define a customized set of validations. choose Payroll India  Housing  User Exit: Screen Validations for Housing infotype. at one point in time. you can define the computation methods for the Accommodation Types defined by you. you can override any error messages resulting from standard validations performed on the infotype data.

Process Flow . . you have selected the:  Accommodation Type as Rented Accomodation 11 The indicator for HRA to be tax exempt.. to compute the exemptions and perquisites on employee housing. For example. use these Accommodation Types only if you are processing payroll for the period before 30th September 2001. checks the housing records of the employee in the Housing(HRA / CLA / COA) infotype (0581). . the Accommodation Types . the employee has one of the following as the Accommodation Type:      Company Leased (OLD) Company Owned (OLD) Company Leased Company Owned Perkable Hotel Accomodation According to the IncomeTax act.. and for a Non-Metro.15 See also: Housing . You must therefore. It stores the data in the internal table HRA. it is ten percent.  Perquisites In the Housing(HRA / CLA / COA) infotype (0581). the percentage of exemption in case of a Metro is 50 percent..Company Leased (OLD) and Company Owned (OLD).Exemptions and Perquisites Exemptions and Perquisites on Housing Purpose This process describes the calculations performed by the SAP system. Prerequisites Exemptions In the Housing(HRA / CLA / COA) infotype (0581). The computations are mainly based on: 11 Accommodation Type – Determines whether the system must compute an exemption or a perquisite 11 City Category – Determines the percentage of exemption or perquisite that is applicable on an Accommodation Type.. The Housing(HRA / CLA / COA) Details payroll function (INHRA) reads the internal table HRA to compute the exemptions and perquisites on employee housing. The Housing (HRA / CLA / COA ) India payroll function (P0581). are only valid for the period before 30th September 2001.

CLA. as the exemption amount: The HRA basis wage type (/114) Actual Rent Paid Rent Paid minus ten percent of the HRA basis Perquisites (CLA. The Housing(HRA / CLA / COA) Details payroll function (INHRA) will process this difference in amount as per the configurations in the COA/CLA Delta Treatment constant (CADTR). for storing perquisite on helpers. and Perkable Hotel Accommodation. b and c. It generates the Perk value:helpers wage type (/3RC). see Payroll India  Housing  Maintain the processing options for CLA 11 After computing the perquisite. It stores the basis for COA. There may be a difference between the eligibility of the employee towards CLA/COA and the actual rental costs. If the employee received a domestic help benefit. of Months Where./133) * No./132). generated by the rule INCLA (/115 = / 124 . .  /134 is the Annual Non-perk amounts wage type  /133 is the Annual Exemptions wage type 11 The Housing(HRA / CLA / COA) Details payroll function (INHRA) also checks the table view Percentage/amount for housing related constant (V_T7INR3) for the percentage of perquisite applicable on perquisite basis. the Housing(HRA / CLA / COA) Details payroll function (INHRA) generates the Perk value:housing wage type (/3RB). the Housing(HRA / CLA / COA) Details payroll function (INHRA) will add a perquisite value to the gross salary. For more information.16 Exemptions The Housing(HRA / CLA / COA) Details payroll function (INHRA) takes the minimum of a. COA and Perkable Hotel Accommodation) 11 The Housing(HRA / CLA / COA) Details payroll function (INHRA) computes housing perquisite as: Perquisite basis = Perquisite basis (YTD)+ /115 + (/115 * projection) And (/134 .  /115 is the COA/CLA Basis wage type. of Months (CLA/COA) Divided by Total No.

For all percentages or values applicable during an exemption or a perquisite calculation. Allowances and Perks  Calculate Eligibility for RAPs (V_T7INA9). Features Exemption  The system processes exemption on the conveyance allowance given to the employee. To maintain new conveyance types. See also: Housing Car and Conveyance Purpose This component enables you to process the: Exemption on Conveyance Allowance Perquisite on Car Schemes and driver(s) provided by the company Integration The system reads the details for an employee maintained in the Car & Conveyance infotype (0583). you must maintain these wage types in table view Conveyance Allowance Eligibility (V_T7INC9). through the IMG under Payroll India  Car and Conveyance  Assign Eligibility Criteria for Conveyance Allowance. . The Housing(HRA / CLA / COA) Details payroll function (INHRA) generates the Perk value:furniture wage type (/3RD) for storing the perquisite on furniture.17 If the company has provided furniture to the employee. the Housing(HRA / CLA / COA) Details payroll function (INHRA) reads the table view Percentage/amount for housing related constant (V_T7INR3). You must make the following configurations if you want to give a conveyance allowance and exemption to your employees:  If you require to. Result The Income Tax functionality reads the exemptions and perquisite wage types generated by the Housing(HRA / CLA / COA) Details payroll function (INHRA) for further processing. you can maintain new conveyance types to suit your company requirements. the system will compute a perquisite on the same. go to the IMG under Payroll India  Car and Conveyance  Define Conveyance Types (V_T7INCA). The SAP System provides you with some default conveyance types. 11 Maintain the wage types for a Conveyance Type and a Pay Scale Grouping for Allowance through the IMG under Payroll India  Reimbursements. 11 If you want these wage types to be defaulted in Basic Pay infotype (0008).

 Exemption on Conveyance Allowance is the lesser of: . wherein the system takes you to the Basic Pay infotype (0008). . But.18 If you have maintained the wage type in this table view. you can maintain conveyance types to suit your company requirements. You must make the following configurations to maintain a Car Scheme and calculate perquisite on it:  You must maintain the car types through the IMG under Payroll India  Car and Conveyance  Define Vehicle Details (V_T7INC1). Perquisite Perquisite on Car Schemes and driver(s) provided by the company is valid only till financial year 2004 – 2005. The system processes perquisites on Car Schemes that the employer provides to the employee.  In case of a physically challenged employee under section 10(14)(xi). The wage type that you have maintained will get defaulted into the Basic Pay infotype (0008). you should maintain the wage type entries in table view Taxability of Wage Types (V_T7INT9) for taxcode SCNV. Allowances and Perks Assign Tax Code Limits to Wage Types (V_T7INT9). The Cubic Centimeter or the Horse Power of the car that you maintain here is used during the calculation of perquisite.. Amount maintained in Exemption limit for challenged constant (CHGEX) of table view Payroll Constants (V_T511P) for a physically challenged employee.. else you have to enter an amount here and save the infotype. only the Conveyance Type for which you require Exemption under Section 10. If required. You maintain payment wage types for all the Conveyance Types. 11 Maintain the conveyance tax exemption limit of these wage types for tax code SCNV through the IMG under Payroll India Tax  Tax Liability on Reimbursements. Select Yes for the Car Detail Flag to define the conveyance type as a Car Scheme. you must maintain an entry for the employee in Challenge infotype (0004) for the Challenge Type Disabled Sec10(14)xi (N1). go to the IMG under Payroll India  Car and Conveyance  Define Conveyance Types (V_T7INCA).  The SAP System provides you with some default Conveyance Types... In this . the amount is also defaulted. To do this. a dynamic action is triggered. If it is an INVAL wage type. Actual payment made to the employee for conveyance Exemption limit   Amount maintained for tax code SCNV in table view Taxability of Wage Types (V_T7INT9). when you save the Car & Conveyance infotype (0583) record for an employee.

The system provides you with the following Car Schemes:  Company Owned Car Scheme (COCS) In this case.  For a Pay Scale Grouping for Allowance and a Car Scheme. infotype (0014). you can capture the details of the vehicle in the Car & Conveyance infotype (0583). Ten percent of the total value of the second and third cars are taken as the perquisite values. the car is owned by the employer. This perquisite value is valid only for the first car. 11 Notional reimbursement of the expenditure through Additional Payments infotype (0015) or through Recur. Payments/Deds. you must maintain the Car Type and you can maintain the maximum age of the car.  For a Pay Scale Grouping for Allowance and a Car Scheme.19 case. These perquisite values are stored in the table view Perk Valuation for Cars (V_T7INC5). go to the IMG under Payroll India  Car and Conveyance  Define Amounts and Numbers for Car Schemes (V_T7INC7). in case . the vehicle is a car. The options that you get for the Car Type will be the ones that you have maintained in table view Car Types Master (V_T7INC1). infotype (0014). This particular amount depends on the Cubic Centimeter of the vehicle and is stored in the table view Perk Valuation for Cars (V_T7INC5). The perquisite value for Availing OYCS and OYCS Others is the actual expenditure reduced by a particular amount. The options that you get for the Car Scheme will be the ones for which you have selected Yes as the Car Detail Flag in table view Codes for Conveyance Types (V_T7INCA). To maintain this. that an employee is eligible for. the vehicle is an automotive conveyance other than a car. Actual expenditure can be the 11 Reimbursements made to the employee through Additional Payments infotype (0015) or through Recur. This percentage is stored in the Car perk calculation rate constant (CRPRK) of table view Payroll Constants (V_T511K).  Own Your Car Scheme(OYCS) In this case. To do this. you can maintain the eligibility of an employee for 11 The number of cars 11 The maximum amount of all the cars. This is based on the price of the cars. The system provides for following types of OYCS:  Availing Own Your Car Scheme (OYCS) In this case. go to the IMG under Payroll India  Car and Conveyance  Assign Type and Age of Car for Car Schemes (V_T7INC3). and can be   Maintained by the employer Maintained by the employee The perquisite amount for COCS depends on the Cubic Centimeter of the car. the vehicle is owned by the employee and is maintained by the employer. 11 Own Your Car Scheme Others (OYCS Others) In this case. The system uses these details to calculate the perquisite value of the vehicle. Payments/Deds.

Allowances and Perks  Assign Tax Code Limits to Wage Types (V_T7INT9). 11 SCNE in case of Availing Own Your Car Scheme (OYCS) 11 SCNO in case Own Your Car Scheme Others (OYCS Others) You can do this through the IMG under Payroll India Tax  Tax Liability on Reimbursements. If the company is providing the employee with a driver or drivers for a Car Scheme. are not valid after September 30. Legally. the system calculates the perquisite value for an employee only if the indicator for perquisite calculation is selected in the Car & Conveyance infotype (0583). 11 Perk value of driver (old) constant (DRVPK) Valid for payroll period until September 30. For a Car Scheme. there is a perquisite value attached to a driver. Process Flow Import Car and Conveyance Detailspayroll function (P0583) reads the following objects and generates the CCO cluster table:  Car & Conveyanceinfotype (0583) . 2001. for which the employee does not get a reimbursement.20 the employer incurs the maintenance expenditure directly. In these cases. the Car Schemes. COCS (Old) and OYCS (Old). Maintain the actual expenditure wage types for the tax codes. This perquisite amount for a driver is stored in the table view Payroll Constants (V_T511P) 11 Perk value of driverconstant (DRVP1) Valid for the payroll period from October 1. 2001 onwards. See also: Exemption and Perk Calculation for Car and Conveyance Car & Conveyance infotype (0583) Exemption and Perquisite Calculation for Car and Conveyance Purpose This process calculates: Exemption on Conveyance Allowance Perquisite on Car Schemes and driver(s) provided by the company Perquisite on Car Schemes and driver(s) provided by the company is valid only till financial year 2004 – 2005. the perquisite value is calculated on the Horse Power of the car. 2002.

2001 onwards 11 Perk value of driver (old) constant (DRVPK). in case the indicator for perquisite calculation is selected in the Car & Conveyance infotype (0583)  Table view Payroll Constants (V_T511P). The value of this wage type gets cumulated into the Annual Perk wage type (/127).India (INCCO) payroll function reads the internal table CCO and generates the following exemption and perquisite wage types:  Ann car perk wage type (/3C1) This is the annual perquisite value on car. The value of this wage type is projected for the entire financial year. reduced by the standard tax exempt amount (stored in table view Perk Valuation for Cars (V_T7INC5)). reduced by the standard tax exempt amount (stored in table view Perk Valuation for Cars (V_T7INC5)). for the perquisite value of the driver. in case there is an entry for the number of drivers in the Car & Conveyance infotype (0583) 11 Perk value of driverconstant (DRVP1).  Ann driver perk wage type (/3C2) This is the annual perquisite value on driver provided by the company. The value of this wage type is calculated on a monthly basis. in case the payroll is being run for the period before October 1.If an entry exists for this Challenge Type. The system generates this wage type in case of COCS or OYCS.  Convey amt monthly wage type (/3C3) This is the monthly conveyance allowance paid to the employee through Basic Pay infotype (0008). where the indicator for perquisite calculation is selected in Car & Conveyance infotype (0583).  Conveyance monthly exemp. The value of this wage type is projected for the entire financial year and added to the value of this wage type in the Cumulative Results Table to generate the Conveyance Annual Exempt wage type (/4E3). wage type (/3C4) This is the monthly exemption provided to the employee on the conveyance allowance. The year-todate value of this wage type is cumulated into Ann car perk wage type (/3C1). The value of this wage type gets cumulated into the Annual Perk wage type (/127).  Table view Perk Valuation for Cars (V_T7INC5) for the perquisite values of a Car Scheme. 2001. where there is an entry for the number of drivers in the Car & Conveyance infotype (0583). for the payroll period from October 1. The value of this wage type is projected for the entire financial year. The value of this wage type is calculated on a monthly basis.  Perk from Act Expn OTHERS wage type (/3C6) This is the actual expenditure incurred by the employer for an OYCS Others Car Scheme.  Perk from Act Expn OYCS wage type (/3C5) This is the actual expenditure incurred by the employer for an Availing OYCS Car Scheme.  Conveyance Annual Exempt wage type (/4E3) . the payroll function reads Exemption limit for challenged constant (CHGEX) of table view Payroll Constants (V_T511P) for the exemption limit. Car & Conveyance .21  Challenge infotype (0004) for the Challenge Type Disabled Sec10(14)xi (N1) . The system generates this wage type in case of COCS or OYCS. The year-todate value of this wage type is cumulated into Ann car perk wage type (/3C1).

the system will check the respective table views for the eligibility of an employee with respect to: 11 Car Type Table view Type and Age Eligibility for Car Schemes (COCS/OYCS) (V_T7INC3). The system allows you to enter the details of the number of cars .22 This is the annual exemption provided to the employee on the conveyance allowance.  If you select a Car Scheme as the Conveyance Type. To do so. The age of the car cannot exceed the age that you have maintained in this table view. the system checks the table view Type and Age Eligibility for Car Schemes (COCS/OYCS) (V_T7INC3) for the eligibility of an employee for a Car Scheme.  For a Car Scheme. The value of this wage type gets cumulated into the Exemption U/S 10 wage type (/130). go to the IMG under Payroll India  Car and Conveyance  Add-In: Perquisite and Exemption Processing. 11 Number of cars Table view Amount and Number Eligibility for Car Schemes (COCS/OYCS) (V_T7INC7). Perquisite on Car Schemes and driver(s) provided by the company is valid only till financial year 2004 – 2005. 11 Age of the car (Registration Date) Table view Type and Age Eligibility for Car Schemes (COCS/OYCS) (V_T7INC3). to define a different method of calculating perquisite and exemption. See also: Car and Conveyance Car & Conveyance infotype (0583) Car & Conveyance Infotype (0583) Definition This infotype stores for an employee the details of the: Conveyance type Car and driver for the different Car Schemes Use  The system calculates tax exemption and/or perquisite value for an employee depending on the Conveyance Type that you select for the employee. The age of the car is calculated from the registration date that you enter in this infotype. You can configure the HR_IN_CCO_PROCESSING Business Add-In (Add-In). You can assign only that Car Type that has been maintained in this table view for the Car Scheme that you have selected and the Pay Scale Grouping for Allowance that the employee belongs to.

and Car Scheme that you have selected in this infotype for the employee. you can enter the details of only one car. Availing COCS (Old) and Availing OYCS (Old). Ten percent of the total value. provided you have once created a record for that employee There cannot be more than one record for an employee  Conveyance Type for the employee. The Car Schemes.23 that you have maintained in this table view for the Car Scheme that you have selected and the Pay Scale Grouping for Allowance that the employee belongs to. This determines the age of the car for the purpose of eligibility.  Enter the date of registration of the car. for any day in a financial year:   There should necessarily be a Car & Conveyance infotype (0583) record for an employee. But. you get this choice only for the first car. You can enter the details of a maximum of three cars. The total value of the cars that you enter in this infotype should not exceed the amount maintained in this table view. you can enter the details of a maximum of three cars. 2001. In case of OYCS Car Scheme. The options that are available are the ones that you have maintained in the table view Type and Age Eligibility for Car Schemes (V_T7INC3) for the combination of:   Pay Scale Grouping for Allowance that the employee belongs to.  Enter the price of the car for the purpose of eligibility. You must also:  Enter the type pf car for the employee. are not legally valid after September 30. . You can delimit a record and create another record for an employee.  Select the indicator to specify whether you want the system to calculate the perquisite value for the car (valid only till financial year 2004 – 2005).  Enter the number of drivers provided by the company to the employee in case of COCS and OYCS schemes. which you enter as the price of the second and third cars. If the Car Scheme is COCS Employer Maintained or COCS Employee Maintained.   In case of COCS Car Scheme. Structure You must enter the:  Validity dates for the infotype record. are considered as perquisite values. The options that are available are the ones that you have maintained in the table view Codes for Conveyance Types (V_T7INCA). 11 Total value of the car or cars Table view Amount and Number Eligibility for Car Schemes (COCS/OYCS) (V_T7INC7). For a Car Scheme.

24 Integration If you have maintained the wage type in table view Conveyance Allowance Eligibility (V_T7INC9). a dynamic action is triggered.  Duration – Companies assign a fixed period to long term reimbursements. television. wherein the system takes you to the Basic Pay infotype (0008). Features Long Term Reimbursements infotype (0590) – You can maintain the Long Term Reimbursement claimed by the employees in this infotype and under one of the following subtypes:    Subtype SHFS – For maintaining details on the hard furnishing schemes Subtype SSFS . See also: Car and Conveyance Exemption and Perk Calculation for Car and Conveyance Long Term Reimbursements Purpose Long term reimbursements are benefits provided to the employees over a fixed period of years. Car Maintenance Scheme This is a benefit provided to employees for the purpose of maintenance of their car over a period of time. and computer. The wage type is defaulted in Basic Pay infotype (0008). washing machine. go to the IMG under Payroll India  Long Term Reimbursements  Maintain block of years for Long Term Reimbursements. The duration of the benefit generally varies between three to five years.For maintaining details on the soft furnishing schemes Subtype SCAR – For maintaining details on the car maintenance schemes For more information. Soft Furnishing Schemeor Other Reimbursements This is a benefit provided to employees for the purpose of acquiring consumer capital items like carpets and curtains. refer to Long Term Reimbursements infotype (0590). In the SAP system. If it is an INVAL wage type. the amount is also defaulted. else you have to enter an amount here and save the infotype. you can categorize Long Term Reimbursements into the following: Hard Furnishing Scheme This is a benefit provided to employees for the purpose of acquiring movable capital items like furniture. The duration of a long term reimbursements can be for a: . fridge. To do so. You can configure the duration of a Long Term Reimbursement using the Determine block of years for Long term reimbursements feature (40LTR). This period is generally for three years or five years.

the eligible amount is indicated by the HFS eligibility wage type (M213). The Feature to determine the eligibility for RAPs feature (40ECS) returns the Begin Date and End Date for the sub blocks. For a particular reimbursement however. It also returns the eligible amount and the number of times than an employee can make a claim in a sub block.000 for a block of 3 years. and fixed End date of a block using the Determine block of years for Long term reimbursements feature (40LTR). and having a fixed end date – The begin date would be from the date on which the employee acquires the asset. Within a year. if an employee joins your company after the start of a reimbursement block period. Fixed block of years divided into smaller blocks – The duration of the reimbursement is for a fixed block. the employee can submit a claim only twice. This type of duration is applicable on the Car Maintenance scheme. or with a promotion. you can create them using your own program and specifying the name of the program in the Feature to determine the eligibility for RAPs feature (40ECS). The eligibility for this wage type is handled through Indirect Evaluation. an employee is eligible to a Car Maintenance Allowance of Rs. You define the number of years in a block. this type of duration is applicable on Hard Furnishing schemes.  The Determine block of years for Long term reimbursements feature (40LTR) returns the value for the validity period of the main block. To do so.  Variable block of years – Here you specify the begin date of a soft furnishing scheme. you must create your own program. In the standard SAP system. For every sub block. If you have any other schemes with a disbursement type distributed over a block on ‚n‘ validity periods. Currently. starting from this begin date. and then specify the name of this program (against the wage type for Car Maintenance Scheme) in the Feature to determine the eligibility for RAPs feature (40ECS).000 every year. you must configure the Begin Date and End Date. This type of duration is applicable on Soft Furnishing schemes.5. and you in turn divide the block into smaller sub blocks or smaller validity periods. You can create your own subtype (Z***) through the table view Subtype Characteristics (V_T591A). you define the eligible amount and the number of times that the employee can claim the long term reimbursement.15. the End Date is already fixed in the system. For example.  Eligibility – Pay Scale Grouping for Allowances determines the eligibility of an employee towards a particular type of long term reimbursement. the system will prorate the eligible . An employee may become eligible for a particular long term reimbursement at the time of joining. The employee can claim a maximum of Rs. the eligible amount. and the limit on the number of times an employee can make a claim.25  Fixed block of years. and the duration will be for a fixed block of years. The Determine block of years for Long term reimbursements feature (40LTR) returns the value for the duration of the soft furnishing scheme. In the case of a Hard Furnishing Scheme. For every validity period.

Pay scale group 5. Each of these groups share a set of characteristics..  Perquisite – There is a perquisite value attached to the various long term reimbursements that you offer to an employee. to which a standard set of rules can be applied. subtype SSFS. Pay scale type 4. Pay Scale Grouping for Allowances determines the:  Compensation structure applicable to an employee  Value of compensation for an employee  Procedures for payroll processing Determining the Pay Scale Grouping for Allowances is the first step in the configuration of Payroll India. becomes eligible for a particular reimbursement because of a promotion..26 amount for the remaining block period. Pay scale area 3. or other similar maintenance schemes that you create. If the employee however. The system provides you with the following pay parameters: . The Pay Scale Grouping for Allowancesdepends on certain pay parameters. See also:  Long Term Reimbursements infotype (590)  Pay Scale Groupings for Allowances  Indirect Evaluation Pay Scale Grouping for Allowances Purpose Pay Scale Grouping for Allowances defines groups of employees. Pay scale level . Employee subgroup grouping for Collective Agreement Provision (CAP) 2. the system does not prorate the amount for the remaining period. The employee is eligible to the entire amount. 1. This value is stored in the Calculate Hard Furnishing Perk Value constant (HFPRC) of the table view Payroll Constants (V_T511K).  Car Maintenance Scheme – There is no perquisite value associated with the Car Maintenance Scheme.  Soft Furnishing Scheme – The system calculates perquisite value for the assets that an employee availed in the current financial year based on the perquisite percentage that you maintain in the Long Term Reimbursements infotype (590).  Hard Furnishing Scheme – The authorities specify a fixed percentage as the perquisite value applicable on the assets availed by the employee during a financial year. and the Calculate Hard Furnishing Perk Value payroll function (INHFS) calculates applicable tax on this perquisite value. You cannot even define the wage types without defining Pay Scale Grouping for Allowances.

you can assign the different cities to Pay scale area. Pune and Haldia. For example. the department.Agrmt. your company has branches in Mumbai. you can assign that factor to the unassigned parameter. Some of these parameters are. Pay scale area then becomes one of the pay parameters to define Pay Scale Grouping for Allowances. can have two combinations of employees . is located in Mumbai and works in the Marketing department. can be configured through the Feature to determine the eligibility for RAPs (40ECS).first. Pay scale level in the Basic Pay infotype (0008). Pay scale type. of a Managerial grade. an employee who is of a Managerial grade. marital status. affects the compensation of the employees to a great extent. This is the first implementation to be done in IMG for Payroll India. Delhi. years of experience in the organization. number of dependents. In this case. He belongs to the Pay Scale Grouping for Allowances. when you enter the Employee Group and Employee Subgroup in Organizational Assignment infotype (0001). Pay scale level in the Basic Pay infotype (0008). Integration When you hire an employee. Pay Scale Grouping for Allowances. if the employee. You should not assign those parameters to Pay Scale Grouping for Allowances that affect the compensation of selected employees only. Pay scale type. second. and Pay scale area. the grade of the employee. In this case. unassigned. out of the five mentioned above. the location. may be eligible for the same compensation structure. you can have a single Pay Scale Grouping for Allowances. You can use all or any combination of any of the above pay parameters in determining the Pay Scale Grouping for Allowances for your company. For an employee.Prov. . This is the result of the assignment of Employee subgroup grouping for Collective Agreement Provision (CAP) for each combination of Employee Group and Employee subgroup in the IMG under Personnel Management  Personnel Administration  Payroll Data  Basic Pay  Define EE Subgroup Grouping for PCR and Coll. This is a result of the assignment of the pay parameters to the Pay Scale Grouping for Allowances in the IMG under Payroll India: Pay Scale Groupings  Assign Pay Scale Groupings for Allowances. You should determine those factors. Pay scale group.  You enter the Employee Group and Employee Subgroup in Organizational Assignment infotype (0001). is located in Delhi and works in the Marketing department. This employee can belong to only one Pay Scale Grouping for Allowances. who is of a Managerial grade. This is helpful if there is a change in your organization and there is another important factor on which the compensation of your employees depend. Pay scale group. employees in Mumbai and Delhi. This is because. Only these important factors should be assigned to the pay parameters mentioned above. an employee. which affect the pay of selected employees. which affect the compensation of the majority of the employees. you can have only one Pay Scale Grouping for Allowances. MN01. The other parameters. These pay parameters include. the employee automatically gets assigned to a Pay Scale Grouping for Allowances. with the rest of the pay parameters same. The city in which the branch is located. might belong to a different Pay Scale Grouping for Allowances. years of experience in the organization can be taken care of by other compensation factors and it may not be necessary to assign it to a pay parameter.27 For example. works in the Marketing department but is located in Pune. The employee automatically gets assigned to Employee subgroup grouping for Collective Agreement Provision (CAP). Here. But for a single combination of pay parameters. You can leave one or more pay parameters. For example. For more than one combination of pay parameters.  You enter the Pay scale area. Both sets of employees can be eligible for the same compensation structure. MN01. as mentioned above.

Features Pay Scale Grouping for Allowances affects the following objects: . go to the IMG under Payroll India: Pay Scale Groupings  Calculate Eligibility for RAPs. Reimbursements. Basic salary and increments 4. Allowances and Perks  Maintain Default Wage Types for Basic Pay. Recur. An employee cannot be directly assigned to a Pay Scale Grouping for Allowances. Rounding off Recovery 12. Housing and Car & Conveyance 6. When an employee gets assigned to a Pay Scale Grouping for Allowances.. . Dearness Allowance 5. Payments/Deductions infotype (0014) or the Additional Payments infotype (0015).. Superannuation 10. the wage type has to be defined for the Pay Scale Grouping for Allowances to which this employee belongs. 3. But. using the Indirect Evaluation Module INVAL. Gratuity 9. Default Wage Types You can maintain the default wage types for an employee through the IMG under Payroll India: Reimbursements. in the Recur. 1. Long Term Reimbursements 11. Payments/Deductions infotype (0014) and Additional Payments infotype (0015) If you enter an Indirect Evaluation wage type. you can check the output of the Initialization payroll India payroll function (ININI) from the payroll log for information on Pay Scale Grouping for Allowances. Leave Travel Allowance 8. 2. To define this. the default wage types maintained for that Pay Scale Grouping for Allowances can get defaulted into the Basic Pay infotype (0008) for that employee. He or she can be assigned to a Pay Scale Grouping for Allowances only when he or she gets assigned to the five pay parameters mentioned above.28 Pay Scale Grouping for Allowances is not recorded in any of the infotypes. Provident Fund See also: Pay Scale Grouping for Allowances Definition Pay Scale Grouping for Allowances Definition Purpose This process describes how to define Pay Scale Grouping for Allowances and assign pay parameters and default wage types to it. Allowances and Perks 7. One day salary deduction 13.

Here. For example. You must assign a wage type model for each Pay Scale Grouping for Allowances defined by you. You must save all the default INVAL wage types. For further details on setting up each IMG activity. To do this. . See also: Pay Scale Grouping for Allowances Claims Purpose This component enables the processing of claims submitted by an employee. Payments/Deductions infotype (0014) and the Additional Payments infotype (0015). You must define the Pay Scale Grouping for Allowances. 1. Reimbursement allowances can be of the following types: Amount (monetary) – Monetary claims are reimbursements against a particular eligibility amount. To do so. refer to the IMG documentation. You can assign only one Pay Scale Grouping for Allowances to a Wage Type model and vice versa.15. Result You have defined the Pay Scale Groupings for Allowances for your company. go to the IMG under Payroll India: Reimbursements. like the Recur. 3. To do so. you must assign the wage types to be defaulted into the Basic Pay infotype (0008). Allowances and Perks  Calculate Eligibility for RAPs. Allowances and Perks  Assign Wage Type Model for Pay Scale Grouping for Allowances. go to the IMG under Payroll India: Reimbursements.29 Process Flow . go to the IMG under Payroll India: Reimbursements. subject to a maximum amount of Rs. in a given assessment year. you define the Wage Type models as well as assign them to the allowance groupings. as a part of their compensation package. Some of these wage types can be Indirectly Evaluated using the Indirect Evaluation Module INVAL.000/-. To do so. Indirect Evaluation defines the actual amounts for each wage type that the employee is eligible for according to his or her Pay Scale Grouping for Allowances. Allowances and Perks  Maintain Default Wage Types for Basic Pay. 4. Employees are eligible for certain monetary and non-monetary benefits. You have also defined the wage types to be defaulted in the Basic Pay infotype (0008) for all employees who belong to one of the Pay Scale Groupings for Allowances. Also. 5. to avail these benefits. To do so. For each wage type model defined. go to the IMG under Payroll India: Pay Scale Groupings  Define Pay Scale Groupings for Allowances. You must assign the pay parameters to the Pay Scale Grouping for Allowances defined by you in the previous step.. here you must enter the wage types that also have to be Indirectly Evaluated for other infotypes.. go to the IMG under Payroll India: Pay Scale Groupings  Assign Pay Scale Groupings for Allowances. 2. a medical reimbursement. Employees submit a claim based on their eligibility.

You maintain slab based claims using the Long term reimbursements infotype (0590). and number of litres of petrol. For more information.30 Unit or a number (non-monetary) – Non-monetary claims are those claims that an employee typically makes for the purpose of company work. Features Reimbursement for Employees transaction (PC00_M40_REMP) You can process claims using the Reimbursement for Employees transaction (PC00_M40_REMP). Off-cycle payroll run – The system updates the One-Time Payments Off-Cycle infotype (0267) with the information that you enter in this report. or all claims submitted during the week may be disbursed on one particular day of the week. Processing of Claims The Pay Scale Grouping for Allowances determines the Reimbursement Types for which an employee is eligible. or may be dependent upon some event or action. and you pay this amount to the employee across several financial years. claims may be disbursed on the same day. the employee is eligible for a car maintenance allowance of Rs. The validity period of such reimbursements can be either a fixed block of years.5000. Slab based claims Some types of reimbursements have a validity period that is greater than a year. . the eligibility is Rs.per financial year. Claims of non-monetary nature are made in whole units. the eligibility is Rs. Amount. For example. In this case. briefcases. You define the different Reimbursement Types through Tax Codes.000. Claims of non-monetary nature are made in whole units. for which the employee can submit a claim only twice in that financial year. the employee is eligible to a certain amount.7. an employee must also submit a proof of expense (monetary benefit). protective clothing. an employee is eligible for a car maintenance allowance with a validity period of four years. subject to a number limit on the number of times that you can claim the allowance – For example. In the third year. a stitching allowance eligibility of Rs. In this transaction. For example. and are called Long Term Reimbursements. The approved claims can be disbursed through an off cycle payment process. or a proof of entitlement (non-monetary benefit). and disburses the claim along with the regular payroll. calculators. The validity period starts from the date of purchase of the car.500 and in the fourth year.10. The employee can claim the tax exemption by submitting a proof of expense or a proof of entitlement.1000/. you can disburse claims through a: Regular payroll run – The system updates the Additional Payments infotype (0015) with the information that you enter in this report. For example. refer to Long Term Reimbursements. While submitting a claim. For the first and second year. Some reimbursable allowances are exempt from tax for a certain limit.

using Pay Scale Grouping for Allowances. semi annually.eligibility and calculations (V_T7INA9). the system prorates the employee eligibility to a rounded up value. the system will determine the eligibility for that employee using the infotype instead of through Pay Scale Grouping for Allowances. For a Reimbursement Type. the system prorates the same accordingly. you can define different kinds of validity periods. you may do so through the user exits provided in the system.  Non-monetary in nature. You can also restrict the number of times that a claim is made within a validity period. Period end treatment At the end of the validity period of a particular Reimbursement Type. The system determines the eligibility through a combination of Indirect Evaluation (monetary) and Pay Scale Grouping for Allowances (nonmonetary). Validity Period You can configure the validity period of a reimbursement through Pay Scale Grouping for Allowances and Reimbursement Types. refer to Indirect Evaluation. refer to the IMG under Payroll India  Reimbursements Allowances and Perks  User Exit: Save and Retrieve Claims Data. For more information. on Tax Code configuration. you can configure the system to treat the unclaimed balances in the following ways: . refer to the IMGactivity under Payroll India  Reimbursements. the system determines employee eligibility through the Indirect Evaluation of a particular Reimbursement Type. The following criteria determine the processing of a claim: Eligibility The system determines whether an employee is eligible for a particular reimbursement or not. If the reimbursement is:  Monetary in nature. the system determines employee eligibility using Pay Scale Grouping for Allowances. refer to the IMG under Payroll India  Tax  Tax Liability on Reimbursements. the system will determine the eligibility for that employee using the infotype instead of through Indirect Evaluation. and specifying their validity periods. such as monthly. A reimbursement can be either monetary or non-monetary in nature. If an Individual Reimbursements infotype (0589) exists for an employee. quarterly. If there is a change in the Pay Scale Grouping for Allowances of the employee. as per configurations. For more information on configuring reimbursement wage types. For more information. For more information. If there is a change in the eligible amount for the employee. Allowances and Perks  Assign Tax Code Limits to Wage Types.  Monetary in nature. You can configure the eligibility for the non-monetary reimbursements in the RAP no field of the table view Reimbursement Allowances Perks . If you want to configure your own eligibility criteria. refer to Pay Scale Grouping for Allowances. Allowances and Perks  Calculate Eligibility for RAPs. or annually.31 For more information. If an Individual Reimbursements infotype (0589) exists for an employee. but with a limit on the number of times the employee can make a claim.

you have been provided with user exits for: Saving and printing additional claims information – Using the screen enhancements provided in the Reimbursement for Employees transaction (PC00_M40_REMP). nor does it carry it forward to the next validity period. you are going live on 1st April. You can upload this legacy information into the SAP system using the Claims Balance upload program (HINUUPCF). you can record additional claims information which is specific to your organization. You typically use this report to upload Claims Balance information from a legacy system. For example. Balance carry forward – The system carries forward the unclaimed balance across one or more validity periods. You can run this report only once during validity period and it is advisable that you run it at the end of the validity period. Lapse – The system neither disburses the unclaimed balances of a validity period. For more information. For more information. For more information refer to the IMG under Payroll India  Reimbursements Allowances and Perks  Claims  Badi: Save and Retrieve Claims Data. or if there are any carry forward balances that need to be carried forward to the year of going live. refer to the IMG under Payroll India  Reimbursements Allowances and Perks  Claims  Capture Additional Claims Disbursement Information  User Exit: Save and Print Claims additional information.  Claims Balance Disbursement report (HINCREMT) – To disburse the balance at the end of the validity period. you can use this report and upload the data.  Claims Carry Forward Balance report (HINCREMC) – To carry forward the unclaimed balances for a reimbursement wage type. see Period End Treatment of Claims. Saving and retrieving claims data – You have an option to save the claims data generated using the Reimbursement for Employees transaction (PC00_M40_REMP) in customized tables and infotypes.32    Balance disbursement – The system pays the unclaimed balance to the employee. and there are balances of the Medical reimbursements for the previous financial year. Reports You can generate the following reports using the Claims functionality:  Status for Claims report (HINCREMS) – To check the balance and the status of claims made by employees. User Exits For customization purposes.  Claims Balance upload program (HINUUPCF) – To upload employee Claim status/balance from a local database file into the SAP system. Determining the Carry Forward Dates – You can create your own company specific dates for carrying forward the unclaimed balances at the end of their validity period. For more information. which needs to be carried forward into the current year. refer to the IMG under Payroll India  Reimbursements Allowances and Perks  Claims  User Exit: Determine Carry Forward Dates. . In the event of your company going live in the middle of the financial year.

Integration Additional Payments infotype (0015) The SAP system updates this infotype after a regular bonus computation. BON5 – Tax after bonus payment and at the marginal rate of tax. BON1 – Tax at a standard company wide rate BON2 – Tax before bonus payment and at the marginal rate of tax. You can compute both regular and off-cycle bonus. for individual employees. It is inclusive of surcharge. It is exclusive of surcharge.33 Calculating the eligibility – The standard SAP system determines the employee eligibility for a Reimbursement Type based on factors such as the Pay Scale Grouping for Allowances. The Income Tax Deduction at Source for OffCycle Bonus Payment payroll function (INBTD) determines the rate of Tax Deduction at Source (TDS) for an off-cycle bonus.. Bonus Purpose This component enables the processing of employee bonus. You have the option of computing bonus:     As per the Payment of Bonus Act On a monthly salary basis or an annual salary basis For ex-employees As a regular bonus or an off-cycle bonus or both Off-Cycle Taxation When the bonus is as an off-cycle payment. for individual employees. Features India specific Bonus calculation report (HINCBON0) This report computes the employee bonus. the SAP system will compute the applicable Tax Deduction at Source (TDS). BON4 – Tax after bonus payment and at the marginal rate of tax. for a Reimbursement Type. This function has the following parameters: Param 1 . refer to the IMG under Payroll India  Reimbursements Allowances and Perks  Claims  User Exit: Save and Retrieve Claims Data. Additional Off-Cycle Payments infotype (0267) for off-cycle bonus The SAP system updates this infotype after an off-cycle bonus computation. BON3 – Tax before bonus payment and at the marginal rate of tax.. and Tax code. You also have an option to create customized eligible amounts.Determines the TDS computation method. It is exclusive of surcharge. for individual employees. For more information. or numbers. . Param 1 can have the following values: . Personnel number. for individual employees. It is exclusive of surcharge.

which carries out payroll at fixed regular intervals. For an off-cycle bonus. you can give one administrator authorization to carry out off-cycle payroll runs. Features The Off-Cycle Activities component comprises the following areas: Off-Cycle Workbench This provides a uniform user interface for all off-cycle activities. You can maintain your own tax code for Bonus through the table view Taxability of wage types (V_T7INT9). administrators that use the Off-Cycle Workbench have all authorizations for the whole transaction. You can enter a check number into the system retrospectively for a payroll result for which you have already issued a check manually. go to the IMG under Payroll India  Bonus User Exit: Determine Income Tax Rate on Bonus Paid through Off Cycle. torn). Off-Cycle Activities. refer to the authorization object P_OCWBENCH. In the standard system. you also have the option of maintaining your own tax rates. this function enables you to carry out specific off-cycle payroll activities for individual employees on any day.34 Param 2 . The standard SAP system has the Tax Code for Bonus as SBON. Off-Cycle Activities (PY-XX-OC) Purpose As an addition to regular payroll. For example. You can issue a check to replace payments that were originally made to an employee by check or by transfer but which the employee did not receive. You can give another administrator the authorization to reverse payroll results. or if the check is in an unusable condition (for example. you must edit the Off-Cycle Activities section in Customizing for Payroll. To restrict authorizations. Implementation Considerations To implement the Off-Cycle Activities component. To do so.Determines the Tax Code for bonus. For more information on authorization maintenance. For more information see. You can reverse payroll results that were created by a regular or off-cycle payroll run. Off-Cycle Subsequent Processing . refer to Users and Roles (BC-SEC-USR).

You can make a bonus payment to an employee for a special occasion. Constraints Off-Cycle Activities are not available in all country versions. if an employee was hired shortly before the payroll date and his or her data could not be entered on time. if. Depending on the function that you have executed. For example. you specify on the selection screen the process model that you have created for off-cycle subsequent processing. for example. the system still has to carry out various subsequent activities. an employee is to leave the company or wants to take leave and is to receive payment for these periods immediately. Off-Cycle Workbench The Off-Cycle Workbench offers the following functions: Off-Cycle payroll The types of payroll run that you can carry out depend on the settings made in Customizing. You use the process model to specify which subsequent programs the system should run. a remuneration statement must be issued. following an off-cycle payroll run.that was issued manually . or a reversal is to be further processed. but not received by an employee. for example. Off-Cycle Subsequent Processing Depending on the country. When you start the report. depending on whether an off-cycle payroll result. . You can carry out an immediate correction run if. You can run payroll for several periods in advance. You can process payments that you have created in the Payroll Results Adjustment infotype (0221). The type of subsequent processing varies. The reports are located in the Off-Cycle menu. the process still has to be completed. This is necessary. an employee’s master data was changed. In some countries that implement the component not all of the functions outlined here are available. off-cycle subsequent processing is carried out using one or several batch reports. for example. You can carry out a regular on demand payroll run for an individual employee independently of the payroll area. in advance.35 Once you have performed a function in the Off-Cycle Workbench. such as leave. You can pay an absence. Reverse a payroll result Assign at a later date the number of a check .to the relevant payroll result. and in which order they should be run. a payment replacement. Replace a payment that was made to.

Irregular Income . You can access this from the IMG for Payroll India: Tax  Maintain Annual Taxable Income.Ann Irr Income wage type (/411) . Conveyance Allowance. which an employee receives every month and is projected for the entire financial year. to project the annual regular income. For example.Mon Irr Income wage type (/125). House Rent Allowance. For example.36 Income Tax Purpose This component computes tax on the income received by an employee for a financial year. which an employee receives for a particular period and is not projected for the entire financial year.Mon Reg Income wage type (/124).This is that part of the salary.Ann Reg Income wage type (/410) The value of Ann Reg Income wage type (/410) is the sum of: Value of Mon Reg Income wage type (/124) in the Cumulative Results Table Value of Mon Reg Income wage type (/124) for the current period Value of Mon Reg Income wage type (/124) for the current period. multiplied by the value of Projection Factor wage type (/401) Value of the Projection Factor wage type (/401) is the number of remaining periods that payroll has to be run in the current financial year. for the employee.   Monthly irregular income .   Monthly regular income . We recommend that you use a single tax calculation method. The projection of the remaining periods can be until the end of the financial year or until the employee is terminated or the retirement date of the employee. Annual irregular income . Bonus. This wage type is the cumulation of the values of all the wage types for which you have configured the Cumulation Class as 24. Leave Travel Allowance. Income of an employee may consist of all or any of the following components: Regular Income . System projects the annual regular income using either Actual Basis or Nominal Basis. Basic Pay. either Actual Basis or Nominal Basis throughout the financial year. Annual regular income . This wage type is the cumulation of the values of all the wage types for which you have configured the Cumulation Class as 25.This is that part of the salary. The system by default uses Actual Basis to project annual regular income. whichever is the earliest.

Housing Perk. In case you have configured Multiple Form 16. these values are automatically captured in the system when an employee gets transferred from one group of the company to another group in a financial year. and the profit and loss from House Property. Previous Employment Salary    Prev Gross salary wage type (/4V1) Val of perk u/s 17(2) wage type (/4VJ) Profts wrt sal u/s 17(3) wage type (/4VK) These values are captured directly through the Previous Employment Tax Details infotype (0580).Example. Integration India Income Tax computations payroll function (INTAX) computes the tax on the income received by an employee for a financial year. The different taxation slabs for the tax codes are defined in the table view Taxation Slabs (V_T7INT3).Exemption U/S 10 wage type (/130) The value of Exemption U/S 10 wage type (/130) is the sum of the values of: .under pro...to sec17(2) wage type (/414) Section 10 Exemptions .37 The value of Ann Irr Income wage type (/411) is the sum of: . Value of Mon Irr Income wage type (/125) in the Cumulative Results Table Value of Mon Irr Income wage type (/125) for the current period Perquisite . Implementation Considerations SAP provides you with the following configurations: The slab codes are defined in the table view Slab Codes for Taxation (V_T7INT1) for a financial year/years.   Annual Perk wage type (/127) Annual Perk wage type (/413) The value of Annual Perk wage type (/413) is equal to the value of Annual Perk wage type (/127). These are legal settings and you cannot modify them. Income from Other Sources  Any other Income wage type (/131) This includes the income captured through Income From Other Sources infotype (0584) Other Sources subtype (0002). Loan Interest Advantage. Features The system calculates the income tax for an employee after taking into consideration the following: Exemption   Medical Exemption .Exm.

The total income tax (including surcharge).Professional Tax.38          CEA Annual Exemption wage type (/4E1) .Gratuity Exemption In addition to these wage types.Exemption on Child Education Allowance CHA Annual Exemption wage type (/4E2) ..Aggrg Deduction wage type (/424) The value of Aggrg Deduction wage type (/424) is the equal to the value of Empmnt tax (Prof Tax) wage type (/422) .Agg of Chapter VI wage type (/432) Relief Section 89(1) Relief . the value of Tax payable and surcharge wage type (/450) cannot exceed the sum of:   Income tax on INR 10..Exemption on Leave Travel Allowance Prev exemp u/s10 wage type (/4V2) . you can define your own annual exemptions for allowances and reimbursements using the General Payroll function for Allowance/Reimbursement Treatment (INCTX).00.000.Exemption on House Rent Allowance LTA Annual Exemption wage type (/4E5) . Exemption wage type (/4E6) .Sec 89 relief wage type (/451) The system also takes into consideration the following components of tax while processing income tax for an employee: Surcharge on Income Tax Surcharge of 10% is applicable on Tax payable wage type (/446) if the value of the Total Income wage type (/434) is greater than INR 10. Deduction Aggregate Deduction .000 Amount of income that exceeds INR 10. Chapter VI Section 80 Deductions .00.00. which is the difference between the value of Total Income wage type (/434) and INR 10.Leave Exemption Allowance Gratuity Cont. Empmnt tax (Prof Tax) wage type (/422) includes the value of Prev prof. Exemption wage type (/4E8) .000.Exemption on Voluntary Retirement Leave Salary Exemption wage type (/4E7) . .000.Conveyance Exemption HRA Annual Exemption wage type (/4E4) . tax paid wage type (/4V3).00.Previous Employment Exemptions Voluntary Ret.Exemption on Child Hostel Allowance Conveyance Annual Exempt wage type (/4E3) . . that is.

The system provides you with three options for voluntary tax deduction:   Deduction of an additional tax amount in a period without changing the annual tax deduction amount. Deduction of a fixed tax amount in a period without changing the annual tax deduction amount. Deduction of a fixed amount of voluntary tax over the annual tax liability. The value of Income Tax wage type (/460). calculated for the period by India Income Tax computations payroll function (INTAX). which is not based on any other component. Tax on Arrears Tax on Bonus The system allows you to generate the following tax reports: Form 16 Form 24 See also: Previous Employment Tax Details . calculated for the period by India Income Tax computations payroll function (INTAX). The value of Income Tax wage type (/460). The total tax deducted in the year is increased by this fixed amount of voluntary tax. This additional tax that is deducted in a particular period is adjusted in the following payroll periods. The India Income Tax computations payroll function (INTAX) calculates and stores the amount of education cess in the Education Cess wage type (/449). This additional tax that is deducted is not adjusted in the following periods of the financial year. Education cess is calculated as 2% of the sum of tax payable and surcharge. Tax deduction in the following periods is adjusted accordingly. You have been provided with the model wage type Voluntary Tax (MVT0) for this purpose. You have been provided with the model wage type Voluntary Tax (MVT1) for this purpose. The Voluntary tax deduction rule (INVT) calculates this Voluntary Tax.39 Example Education Cess All employees have to pay an education cess of 2%. is replaced by this fixed amount. You have been provided with the model wage type Voluntary Tax (MVT2) for this purpose. is increased by this additional amount. is increased by the value of Additional Voluntary Tax wage type (/462). The value of /449 = 2% (/446 + /448). Voluntary Tax An employee can choose to pay certain amount of tax. The value of Income Tax wage type (/460). calculated for the period by India Income Tax computations payroll function (INTAX). The Voluntary tax deduction rule (INVT) generates the Additional Voluntary Tax wage type (/462) for this fixed amount.

  The value entered as the number of times the employee has claimed LTA exemptions. contribution. If you create an Exemptions infotype (0582) LTA subtype record for an employee in the first year of the new block of four years. When you create an Exemptions infotype (0582) LTA subtype record for an employee. whenever a new employee joins your organisation For all employees who have joined your organisation in the past from some other employment.This wage type stores the amount entered as the value of perquisites under section 17(2). This indicates whether an LTA Exemption has been carried forward for the employee from the previous block of four years pertaining to his or her previous employers. The indicator for whether the employee has carried forward an LTA claim from the previous block of four years. deduction details of the employee pertaining to the previous employments in the current financial year. The amount in Val of perk u/s 17(2) wage type (/4VJ) is added to the currentGross Salary wage type (/416). when you are going live with the SAP System.40 Previous Employment Tax Details Purpose This component provides for the computation of: Tax in the current financial year. Prev Gross salarywage type (/4V1) . Integration You must create a Previous Employment Tax Details infotype (0580) record   For an employee. gets stored in the PET internal table as a checkbox. by capturing the salary.. This LTAEX field indicates the number of times the employee has claimed LTA Exemption with his previous employers for the current block of four years. Val of perk u/s 17(2)wage type (/4VJ) . gets stored in the PET internal table as LTAEX field.This wage type stores the amount entered as the salary as per provisions under section 17(1). the system will check the LTAEX field to see if the employee has claimed an LTA Exemption for this block of four years in his or her previous employment. by capturing certain lifetime exemptions from all previous employers. .. If the checkbox has been selected. the exemption granted will be against the carried forward LTA Exemption from the previous block of four years. The Previous Employment Tax Details payroll function (P0580) reads the Previous Employment Tax Details infotype (0580) and populates the details in the internal table PET. the system will check the PET internal table to see if the checkbox has been selected or not. Previous Employment Tax Details payroll function (INPET) processes the internal table PET and generates the following wage types: . The amount in Prev Gross salary wage type (/4V1) is added to the current Gross Salary wage type (/416). Tax exemption when the employee separates from the current employment. exemption.

VRS Exemption wage type (/4V9) gets processed only on the event of the separation of the employee from your organisation. Gratuity Exemption wage type (/4V8) gets processed only on the event of the separation of the employee from your organisation. tax paidwage type (/4V3) .This wage type stores the amount entered as the Provident Fund.This wage type stores the amount entered as the sum of all leave encashment exemptions availed. Prev exemp u/s10wage type (/4V2) .This wage type stores the amount entered as the total Income Tax paid by the employee.This wage type stores the amount entered as the exemptions under section 10. The amount in Prev prof. See also: Previous Employment Tax Details infotype (0580) .This wage type stores the amount entered as the total gratuity availed. The amount in Prev exemp u/s10 wage type (/4V2) is added to the current Section 10 exemption wage type (/130). The amount in Profts wrt sal u/s 17(3) wage type (/4VK) is added to the current Gross Salary wage type (/416).This wage type stores the amount entered as the medical exemption claimed by the employee. Leave Encashment Exemt wage type (/4V7) gets processed only on the event of the separation of the employee from your organisation. Prev Tax Deductedwage type (/4V5) . VRS Exemption wage type (/4V9) . The value of this wage type gets deducted from the maximum exemption limit for gratuity exemption amount. Gratuity Exemptionwage type (/4V8) . tax paid wage type (/4V3) is added to the Professional Tax annual deduction wage type (/422).This wage type stores the amount entered as the profits in lieu of salary under section 17(3). No tax exemption is given. The value of this wage type gets deducted from the maximum exemption limit for leave encashment exemption.This wage type stores the amount entered as the Voluntary Retirement Scheme (VRS) exemption amount availed. in case the employee has availed of the same with any of the previous employers.41 Profts wrt sal u/s 17(3) wage type (/4VK) . The amount in Prev Medical Exempt wage type (/4V6) is added to the Medical Reimbursement wage type (/414).This wage type stores the amount entered as the Professional Tax. Prev PF contributedwage type (/4V4) . Leave Encashment Exemtwage type (/4V7) . The amount in Prev PF contributed wage type (/4V4) is added to the Annual Provident Fund contribution wage type (/3F6). Prev prof. Prev Medical Exemptwage type (/4V6) . The amount in Prev Tax Deducted wage type (/4V5) is added to the Total tax deducted so far wage type (/456).

42

Section 80 Deduction

Purpose
Section 80 deductions are pre tax deductions from the Gross Taxable Income. Examples of
components for Section 80 deductions are Contribution to certain Pension funds, Medical
Premium paid, Donations to certain funds/charitable institutions and deductions for Permanent
physical disability.
The SAP System provides you with the all the Section 80 subsections and the divisions of the
subsections. The maximum limit of contribution for each subsection and each subsection division
has also been provided by the system. This means that even if you contribute more than the limit,
the payroll will consider only the limit for tax deduction.
Some of the contributions under Section 80 deductions are fully tax deductible, while some are
partly tax deductible. The percentage of deduction for each of them is also configured by the SAP
System.
A subsection of Section 80 may have different types of investments. Each of these different types
of investments within a subsection is called a division in the SAP system.
The employee can declare the amount he or she wants to contribute towards each division of the
subsection of Section 80. This can be done at any point of time in the year. You can populate this
as proposed contributions in the Section 80 Deductions infotype (0585). The tax for each period
will be calculated outside the payroll based on this proposed contribution. The actual
contributions can also be populated in the Section 80 Deductions infotype (0585). You can
calculate the tax for an employee or for all employees by considering the actual contributions of
the employee. This is typically done towards the end of the year, when the employee has
submitted all his declarations. If you want to calculate the tax for all or selected employees based
on actual Section 80 contributions, you can run the Batch Program for section 80 (HINIS800) for
those employees, instead of updating the infotype record of each employee.
Contributions to Section 80 investments can be made directly from the payroll of the employee. In
this case, you must maintain the contribution details in the Membership Fees infotype (0057). In
this case, the contribution amount for a particular subsection or division will be calculated by
adding the contributions maintained in the Membership Fees infotype (0057) and the Section 80
Deductions infotype (0585).
Section 80C and Section 80CCC
Section 80C and Section 80CCC deductions are applicable from financial year 2005 – 2006
onwards.
The deductions under Section 80C includes all the investments that were valid under Section 88
till financial year 2004 – 2005. You can enter these deductions in the system using Section 80C
Deductions infotype (0586).
The deductions under Section 80CCC includes certain pension funds.
The maximum amount of deduction available is INR 1,00,000. This includes the total of Section
80C and Section 80CCC deduction.

Integration
The payroll reads the Section 80 data from the Section 80 Deductions infotype (0585) for the
purpose of tax deduction.
In case of a physically challenged employee, you have to create a Challenge infotype (0004)
record and store the relevant disability information there. As soon as you save this infotype

43
record, a Membership Fees infotype (0057) record for Section 80U deduction is created
automatically for the employee. The employee gets this tax deduction each year for as long as
the above two infotype records are valid.
Section 80 Contribution Details function (P0585) retrieves the data from the Section 80
Deductions infotype (0585) and updates the cluster table S80. Processing Request for
Membership Fees function (P0057) retrieves the data from the Membership Fees infotype (0057)
and updates the table P0057. Third Party Deductions payroll function (INTPD) reads S80 and the
table P0057, and updates the cluster table S80. Section 80 Deductions for India payroll function
(INS80) processes the cluster table S80 to generate the wage type for Total Section 80 deduction
(/3I1). Actual Section 80 deduction wage type (/432) is the lower of the Total Section 80
deduction wage type (/3I1) and the Gross Total Income wage type (/430). Gross Taxable Income
wage type (/434) is equal to Gross Total Income wage type (/430) minus Actual Section 80
deduction wage type (/432).

Features
The parameters for Section 80 subsections and divisions have been configured in the SAP
System as follows:
...

1. In the table view Subsection description (V_T7INI5), the subsection descriptions have
been maintained.
2. In the table view Subsection limit (V_T7INI7), the maximum limits for each subsection
has been maintained.
3. In the table view Sub division description (V_T7INI8), the subsection division
descriptions have been maintained.
4. In the table view Sub division details (V_T7INI9), the upper limit of contribution, the
percentage to be considered for tax deduction and the validity periods for the subsection
divisions have been maintained.
You do not need to configure these views.
If you are populating the Section 80 data for an employee from the Membership Fees infotype
(0057), you must configure the wage types for those Section 80 subsections or divisions. To do
this, go to the IMG under Payroll India: Tax  Third Party Deductions  Configure Wagetypes
for Section 80. You can configure more than one wage type for a subsection or a division.
If you want to add any subsections or divisions to Section 80, you have been provided with a user
exit EXIT_HINCALC0_003 in the Enhancement HRINITAX. You can access this from the IMG for
Payroll India: Tax  Tax Liability on Reimbursements, Allowances and Perks  User Exit:
Define User Rules for Section 80 and 88.
See also:
Third Party Deductions

Section 89(1) Relief

Purpose
This component computes the relief from tax in case of
Arrears payments of past financial years. There can be situations where the payments that
pertain to previous financial years are made in the current financial year. These payments
typically arise due to salary revisions or bonus payments in this financial year for past
financial years.

44
Advance payments of future financial years. There can be situations where the payments that
pertain to future financial years are made in advance in the current financial year.

There can be situations where the arrears or advance salary is taxed at a higher rate in the
year of receipt as compared to the year to which it pertains. In such a case, the employee
is given a relief from tax. This relief is the amount of additional tax that the employee
pays in the current year on account of receiving the arrears in the current period as
against having received it in the year to which it pertains.

Integration
During a retroactive payroll run across financial years, the following wage types will be
populated in the Difference table (DT) for the last period of the retrospective year:
Add Gross Salary wage type (/616)
This wage type stores the difference between the Gross Salary actually paid and that
including the arrears payments.
CF Empmnt tax (Prof Tax) wage type (/622)
This wage type stores the difference between the Professional Tax deducted for that year
and the amount that would have been deducted if the arrears were paid in the year to
which it pertains.
CF Section 88 Investment wage type (/6I2)
This wage type stores the difference between the Section 88 for that year and the amount
that would have been contributed if the arrears were paid in the year to which it pertains.
This difference in Section 88 contribution arises due to the difference in Provident Fund
contribution.
Add Tax payable and surch wage type (/650)
This wage type stores the difference between the Tax and Surcharge deducted for that
year and the amount that would have been deducted if the arrears were paid in the year to
which it pertains.

In the DT, the year for which the wage type pertains to is also mentioned against the
wage types. For example, in the current period April 2002, if there is a retrospective run
from 2000 onwards, then in DT, /616 wage type will appear for the two years, 2000 and
2001, separately. Same is applicable for the other three wage types mentioned above.
The India Income Tax computations payroll function (INTAX) reads the DT for these
wage types and generates the cluster table S89. Taking the above example, in April 2002,
the India Income Tax computations payroll function (INTAX) will read the DT for the
above four wage types for the two years, 2000 and 2001, and will generate the cluster
table S89.
In case of a retroactive run across financial years, if the Results Table (RT) does not exist
For Period 12 In Period 12 for an employee, the system will stop the processing of the
payroll for the employee and will display an error message. There are some exceptions:
In case of a retroactive run across financial years for an employee who was
terminated before Period 12 of the year for which the retrospective payroll
run is being executed, the Results Table (RT) does not exist For Period 12 In
Period 12. In this case, the values of the above four wage types in the DT
will be incorrect. The Modify DT with the latest available results in the 'for
year' for S89 operation (INDTL), however, corrects the values of these wage

go to the IMG under Payroll India  Tax  Section 89(1) Relief  Maintain Sec89(1) Switch at Implementation Level. This operation is called by the Personnel calculation rule IN91 (IN91) of the Retroactive accounting INDIA schema (INNR).45 types in DT. You can provide Section 89(1) relief to certain employees. while calculating tax for the previous year including the arrears payments. For example. even if you have chosen not to provide the relief to your employees at the implementation level. You can choose. the arrears payments made in the current year for the previous year is also taken into consideration while recalculating tax for that year. In the Sec 89 Switch Implement. To do this. if you want to provide Section 89(1) Relief to your employees.   Set the Value field to 1. to provide Section 89(1) Relief to your employees. Set the Value field to 0 or leave the field blank. the Results Table (RT) does not exist For Period 12 In Period 12. level constant (S89SW) of the table view Payroll Constants (V_T511K). the amount deducted as Professional Tax remains unchanged. In case of Exemptions. if you do not want to provide Section 89(1) Relief to your employees. In this case. you must set the value of the Cross fin Yr retro from March constant (CYFRM) of table view Payroll Constants (V_T511K) to 1. The default value of this constant is 0. at the implementation level. To do this. This amount is treated as part of the current year's Professional Tax amount for calculating current year's tax including arrears. while calculating tax for the previous year by including the arrears payments. is stored in the Professional Tax Difference wage type (/622). For example. In case of a retroactive run across financial years for an employee who joined the organization in Period 12. the House Rent Allowance (HRA) exemption is recalculated for the previous year. and whose payroll was not run in Period 12. The extra amount is carried forward to the current period and treated accordingly. Features In case of Rebates and Statutory Deductions. in the Other Statutory Deductions infotype (0588) 0004 subtype. the previous year's original amounts are taken into consideration while recalculating tax for that year. The additional amount that should have been deducted if the arrears payments had been made in the previous year. You can do this in the IMG under Payroll India  Tax  Section 89(1) Relief  Configure Cross Financial Year Retro for March. Third Party Deductions Purpose This component provides for the calculation of Section 80 deduction and Section 88 rebate when payments to external parties are made directly from the payroll of the . select the indicator for Section 89(1) eligibility at employee level.

Mediclaim. LIC Premium. you can make an entry through Basic Pay infotype (0008). If the Third Party Deductions are made through Membership Fees infotype (0057).  Types of contributions through the IMG for Payroll India  Tax  Third Party Deductions  Configure Wagetypes for Section 88. To do this. If you make the Third Party Deductions through Basic Pay infotype (0008). go to the IMG under Payroll India  Tax  Third Party Deductions  Define Membership/Deduction Types. Integration  The different types of deductions through Membership Fees infotype (0057) have to be maintained as subtypes of the infotype. infotype (0014). by the system. Feature If you are making Third Party Deductions and you want the system to calculate tax after taking Section 80/Section 88 contributions into consideration. P0057 and the wagetypes in the internal table. For example. See also: Membership fees infotype (0057) . respectively. Recur. These deductions are in addition to the declarations that an employee makes for the Section 80 and Section 88 contributions through Section 80 Deductions infotype (0585) and Investment Details (Sec88) infotype (0586). you must maintain the wage type for this infotype through the IMG for under Payroll India  Tax  Third Party Deductions  Check entry permissibility for Membership Fees Infotype (0057). Additional Payments infotype (0015) and Membership Fees infotype (0057). and updates the internal tables S80 and S88. Recur. Payments/Deds. you must configure the wage types for the different:  Divisions or the subsections through the IMG for Payroll India  Tax  Third Party Deductions  Configure Wagetypes for Section 80.  If you are making Third Party Deductions through the Membership Fees infotype (0057). the system will only consider the past and present contributions while calculating tax and not the projected contributions. Payments/Deds.46 employee. S88. The Third Party Deductions payroll function (INTPD) reads the internal tables S80. the projected payments will also be considered while calculating tax. infotype (0014) or Additional Payments infotype (0015). The amount the employee proposes to contribute in the future months of the financial year is also taken into consideration. along with the past and the present payments. You do not require to maintain the details in these two infotypes for the the Section 80 and Section 88 deductions processed through the payroll. while calculating the total Section 80 and Section 88 contributions. For Third Party Deductions.

/3O5 . for either Partly Let Out House Property or Wholly Let Out House Property.Business Profits This is the amount that you have entered as the Business Profits in the Income from Other Sources infotype (0584) Income from Other Sources subtype (0002).47 Income from Other Sources Purpose This component helps you to consider for taxation.Annual Lettable Value This is the amount that you have entered as the Final Lettable Value in the Income from Other Sources infotype (0584) Income from House Property subtype (0001). . in the current financial year. respectively and generates the following wage types in the Internal Table: /3O1 . the income that is incurred from sources other than that from your employment. The Income From Other Sources payroll function (P0584) reads the Income from Other Sources infotype (0584) and generates the internal table IOS.Short Term Capital Gains This is the amount that you have entered as the Short Term Capital Gainsin the Income from Other Sources infotype (0584) Income from Other Sources subtype (0002). Integration The system reads the details from the Income from Other Sources infotype (0584).Long Term Capital Gains (Normal Rate) This is the amount that you have entered as the Long Term Capital Gains (Normal Rate) in the Income from Other Sources infotype (0584) Income from Other Sources subtype (0002).Income from Dividends This is the amount that you have entered as the Income from Dividends in the Income from Other Sources infotype (0584) Income from Other Sources subtype (0002). /3O3 . /3O6 .Income from Interests This is the amount that you have entered as the Income from Interest in the Income from Other Sources infotype (0584) Income from Other Sources subtype (0002). /3O2 . then that income also has to be taken into consideration for taxation during a regular payroll run. The SAP System divides the income from other sources into:  Income from House Property  Income from Other Sources Implementation Considerations If an employee chooses to declare income from sources other than that from current employment. /3O4 . Deduction under Section-24 payroll function (INS24) and Details of Income from Other Sources payroll function (INIOS) read the Internal Table and the internal table IOS for the Income from House Property subtype (0001) and Income from Other Sources subtype (0002) data.

The sum of amounts in these wage types is added to the Any other Income wage type (/131).Deduction u/s 24 (Interest) This is the amount that you have entered as the Deduction of Interest under section 24 in the Income from Other Sources infotype (0584) Income from House Property subtype (0001).Other Income This is the amount that you have entered as the Other Income (Unspecified) in the Income from Other Sources infotype (0584) Income from Other Sources subtype (0002).Deduction u/s 24 (House Repairs) This is the amount that you have entered as the Deduction on Account of Repairs under section 24 in the Income from Other Sources infotype (0584) Income from House Property subtype (0001). Short Term Capital Gains on Listed Securities and Other Income are added to the normal tax to form the Tax on Total Income wage type (/436).48 /3O7 . Long Term Capital Gains Special Rate wage type (/3OD). In the Repairs under Section 24 constant . the Deduction on Account of Repairs under section 24 is limited to a percentage of the Final Lettable Value. /3OS . /3OD . In case of Let out House Property (Wholly or Partly). Short Gains on Listed Sec wage type (/3OS) and Other Income wage type (/3O7) from the Gross Total Income wage type (/434).Short Gains on Listed Sec This is the amount that you have entered as the Short Term Capital Gains (Listed Securities) in Additional Payments infotype (0015) for the wage type associated with the tax code STCG. This percentage may vary across financial years. Special and Normal Rate. The tax calculated on Long Term Capital Gains. Before calculating tax on total income. Section 80 Deductions are made from Gross Total Income wage type (/430) to form the Gross Total Income wage type (/434).Deductions u/s 23 /3O9 .Long Term Capital Gains (Special Rate) This is the amount that you have entered as the Long Term Capital Gains (Special Rate) in the Income from Other Sources infotype (0584) Income from Other Sources subtype (0002). /3OA . for either Partly Let Out House Property or Wholly Let Out House Property..Deduction u/s 24 (Others) This is the amount that you have entered as the Deduction on Account of Other Expenses under section 24 in the Income from Other Sources infotype (0584) Income from House Property subtype (0001). for either Partly Let Out House Property or Wholly Let Out House Property.. 1. The amount in this wage type is added to the amount in Income under Head Salaries wage type (/426) to form the Gross Total Income wage type (/430). /3O8 . the system deducts the amounts in Long Term Capital Gains Normal Rate wage type (/3O3). /3OG – Gift Income This is the amount that you have entered as the Gift Income in Additional Payments infotype (0015) for the wage type associated with the tax code SGFT. /3OB . Features The parameters for Income from Other Sources have been configured in the SAP System as follows: .

LCSRT . .rate constant (OTHRT) of the table view Payroll Constants (V_T511K). In such a case.000 b. LNSMX . Following constants have been maintained for the different interest exemption amounts: . of the table view Payroll Constants (V_T511K). LNS01 . You can maintain whether a Loan Type is valid for Section 24 exemption. The entire amount that you enter as the Deduction of Interest under section 24 in the Income from Other Sources infotype (0584) Income from House Property subtype (0001). to be taxed in the payroll run in which the arrears are paid.000 e. are generally a high value figure. 2. LNS02 ..Rs.000 c. the maximum amount of interest for which you can get tax exemption under section 24 has been maintained.Rs.49 (REP24). this percentage has been maintained. 3. Spreading the tax on arrears over the remaining payroll periods of the financial year results in high tax incidence on the employee in the subsequent periods.150. a. Tax on Arrears Purpose This component provides for the arrears generated during the retrospective regular payroll run. arising due to salary increments.000 d. the rate of taxation for Other Income (Unspecified) has been maintained. Gain rate (Listed Sec) constant (SCGRT) of table view Payroll Constants (V_T511K).Long Term capital Gains (Special Rate) 4. The arrears.Long Term capital Gains (Normal Rate) b.100. the rate of taxation for Short Term Capital Gains on Listed Securities has been maintained.. In the table view Payroll Constants (V_T511P).Rs.30. LCNRT . In the table view Payroll Constants (V_T511K). In the Other Income . a. refer to the IMG documentation. is tax exempt. with insufficient payments to match. this functionality provides for the arrears generated during the retrospective payroll run to be taxed in the payroll run in which the arrears are paid..There is no limit in this case.. the rate of taxation for Long Term Capital Gains have been maintained in the following constants: . In the ST Cap.75. To do this. This amount may vary depending on the financial year during which the loan was taken. LNS03 . LNS04 .Rs. For details on configuring the IMG activity. go to the IMG under Payroll India  Company Loans  Master Data  Maintain Deduction Details Under Section 24. long term settlements or revision of loss of pay. for Self Occupied \ Deemed Self Occupied House Property. 5.

of an i. of an e.Marginal tax rate (including surcharge) after arrears.TDS % constant (ARTDS) and Arrear amount limit constant (ARLMT) in the IMG under Payroll India  Tax  Tax on Arrears  Maintain Tax Limit and Tax Rate for Arrears Payment. ii. You can maintain the Determine TDS % for arrears operation (INTDS) in the Determine TDS rate and Calculate Tax on Arrears rule (INTD) in the IMG under Payroll India  Tax  Tax on Arrears  Maintain Schema for Tax on Arrears.Marginal tax rate (excluding surcharge) after arrears. who have a low salary and have no tax liability. employee. b. BON4 . stored in temporary variable table. based on any of the following parameters: .  Employees. You can maintain the Arrear Payment . at the rate brought forward by the Determine TDS % for arrears operation (INTDS) and stores this tax in the Income Tax wage type (/460). a. the arrears are stored in the Stat.Standard tax rate at company level configured in Arrear Payment .net recalc. of an d.Marginal tax rate (including surcharge) before arrears. BON1 . You must configure the Determine TDS % for arrears operation (INTDS) to determine the tax rate. in the original period the Stat. Exemptions Purpose This component comprises of: .. of an c.TDS % constant (ARTDS) of table view Payroll Constants (V_T511K).Marginal tax rate (excluding surcharge) before arrears. employee.diff.50 Integration During a retroactive payroll run. BON5 . tax on arrears will not be calculated even when the parameter for the Determine TDS % for arrears operation (INTDS) is maintained as BON1. You must maintain this particular arrears amount in the Arrear amount limit constant (ARLMT) of table view Payroll Constants (V_T511P).  You must maintain the Determine TDS rate and Calculate Tax on Arrears rule (INTD) for the parameter of the Determine TDS % for arrears operation (INTDS)..net recalc. employee. The Calculate Arrears for Taxation rule (INAR) reads. then the arrears is taxed by the Determine TDS rate and calculate Tax on Arrears rule (INTD).diff. wage type (/551). BON3 . Features  If the total arrears generated in the regular run exceeds a particular amount. BON2 . employee. Determine TDS rate and Calculate Tax on Arrears rule (INTD) calculates the tax on arrears. wage type (/551) for each of the payroll periods and stores the total arrears in the temporary variable table.

Additional Payments infotype (0015) and Additional OffCycle Payments infotype (0267). Payments/Deds. P0015 and P0267 read the Basic Pay infotype (0008). Integration Whenever an employee submits the travel tickets for LTA exemption as proof. Payroll functions WPBP. infotype (0014). Your organisation can give LTA to the employees in the following ways: . . By specifying an annual (normally. but not necessarily) amount for LTA and making payments against claims submitted by the employee. For more information on LTA reimbursements.. You must create one record for every trip for which the employee is claiming an exemption. Whether the employee has carried forward a trip for LTA exemption from previous block of four years to the current block. respectively for LTA and populates the Input Table with LTA wage types. To read infotype 0582 payroll function (P0582) reads the Exemptions infotype (0582) and forms the Internal Table EXM. P0014. see the Claims section. Additional Payments infotype (0015) or Additional OffCycle Payments infotype (0267). you must create an Exemptions infotype (0582). Recur.. By giving the employee a certain amount as LTA on a monthly or a periodic basis. infotype (0014). Payments/Deds. You must update the Previous Employment Tax Details infotype (0580) with the following LTA Exemption details:   The number of times the employee has claimed LTA Exemption in the current block of four years. The total amount of payments in the curent period is stored in the LTA reimbursement wage type (/3L1).51  Exemption on Medical Reimbursements and Medical Insurance Premiums  Exemption on Leave Travel Allowance  Exemption on Child Education Allowance and Child Hostel Allowance  Exemption on Other Allowances and Reimbursements  Exemptions on Leave Encashment  Exemption on Voluntary Retirement Scheme  Exemptions on Housing  Exemptions on Conveyance Exemption on Leave Travel Allowance (LTA) Purpose This component calculates the tax exemptions applicable to Leave Travel Allowance (LTA). Recur. You can make the payments for LTA through the Basic Pay infotype (0008). LTA subtype record for the employee.

January 19.000+Rs.24. infotype (0014).000. EXM for the total amount of the tickets submitted as proofs. In the current block 2002 .15. which is the minimum of the eligible LTA and the total amount (Rs. But this Exemption has to be claimed in the first year of the next block.. If the employee has not claimed the LTA Exemption for one or both the trips in the current block. which is the minimum of the eligible LTA and the travel tickets submitted as proof.. he/she has carried forward one trip from the previous block.. LTA subtype. This exemption is against the carry forward trip from the previous block and one trip of the current block. The employee gets an exemption of Rs. An employee can claim the LTA Exemption for self and for the dependents.January 19.000) of the travel tickets submitted as proof.20.000 for the journey undertaken between April 10.52 To calculate LTA exemption amount payroll function (INLTA) reads the: . The employee has to submit the tickets as proof to avail of the tax exemption. An employee is eligible for an LTA of Rs. There is no LTA exemption amount limit stipulated by the government.. is the total LTA Exemption for the financial year. This exemption is against the carry forward trip from the previous block. 2002.000 annually for the financial year 2002 . Total LTA payments made for the financial year through Basic Pay infotype (0008). In the current block 2002 .2005. 2002 . Additional Payments infotype (0015) or Additional Off-Cycle Payments infotype (0267).. LTA Slab Begin Year (LTABG) and LTA Slab End Year (LTAEN) respectively.26. He/she also submits another set of travel tickets of Rs. Features . The details of the declaration are populated in the Exemptions infotype (0582).. 2002.24. Exemption against LTA is the lesser of: . An employee can get an exemption of the entire allowance amount. An employee is eligible for an LTA of Rs.2005. LTA Exemption for one trip can be carried forward to the next block. . Payments/Deds. LTA subtype.20.000 for the journey undertaken between the January 2. Total amount of the travel tickets submitted as proof of travel and entered in the Exemptions infotype (0582). Input table and the CRT for the LTA wage types for the total LTA payments in the current financial year. You must populate the Exemptions infotype (0582). The employee gets an exemption of Rs. The lesser of the amounts in a and b above. LTA subtype with the details of the travel tickets submitted as proof to avail of the LTA exemption. The employee submits the travel tickets of Rs.2003. Recur. Example . An employee can claim the LTA exemption for only two trips in a block of four years.36.35.000 for the journey undertaken between the January 2.2003.000.April 28. 2002 ..15. of the table view Payroll Constants (V_T511K).000 annually for the financial year 2002 . The Begin Date and End Date of this block is maintained in the constants. he/she has carried forward one trip from the previous block. otherwise the LTA exemption that is carried forward lapses. The employee submits the travel tickets of Rs. 2002. 2002 ..

1. Allowances and Perks Assign Tax Code limits to Wagetypes. For details on how to set up each IMG activity. Allowances and Perks Define tax Codes. in the Exemptions infotype (0582) LTA subtype. The tax code used for LTA reimbursement is SLTA.. go to the IMG under Payroll India  Tax  Tax Liability on Reimbursements. Process Flow . submitted as proof by the employee. This infotype can be created at any point of time during a financial year. go to the IMG under Payroll India  Tax  Tax Liability on Reimbursements. Number of days of Leave and the Leave Counting Method for the LTA wage type. each time there is a regular payroll run. 3. Prerequisites You must maintain the details of the travel tickets. You must configure the Attendence/Absence Type. You must define the taxcode for LTA reimbursement. You must configure the wage type for the Tax Type and the Tax Code. To do so.. To do so.53 See also: Defining Exemption on Leave Travel Allowance (LTA) Exemptions infotype (0582) LTA subtype Defining Exemption on Leave Travel Allowance (LTA) Purpose This process describes how to define the wage types for Exemption on Leave Travel Allowance (LTA) and assign characteristics to it. 2. go to the IMG under Payroll India  Leave Travel  Maintain Minimum Eligibility Period for Leave Travel Allowance. refer to the IMG documentation. Exemptions Infotype (0582) LTA Subtype Definition The LTA subtype of the Exemptions infotype (0582) stores the details of the travel submitted as proof for Leave Travel Allowance (LTA) tax exemptions. The infotype records are read for the entire financial year. For further details on setting up the wage type. Use The details in this subtype are used during the calculation of LTA tax exemption. To do so. see INVAL. .

Integration  If you select the indicator for self travel of the Exemptions infotype (0582) LTA subtype.  The journey start point.  You can combine the amounts of more than one Exemptions infotype (0582) LTA subtype record to account for a single LTA exemption. the data from the Family/Related Person infotype (0021) records get defaulted into this infotype record.  If the employee has been a part of the trip for which the employee is claiming the LTA Exemption. If the trip has been undertaken by the dependents only.  A dependent can be exempt only once for a particular trip exemption counter code. the system checks the Absences infotype (2001). you must select the indicator for self-travel. you must enter the same two digit code as the trip exemption counter for all the records that are to be considered for a single exemption. If the employee is on leave for the period of the trip. If there are a number of tickets for the same trip. This defaulting of data into the Exemptions infotype (0582) LTA subtype record is for information only and does not affect the actual LTA exemption. See also: Exemption on Leave Travel Allowance (LTA) .  The ticket numbers.  The mode of travel used for the journey  The class of travel. the system will save the infotype record.  The journey destination. Otherwise. you must not select this indicator.  The end date of the journey. the system will show an error. You can select the indicator to specify that the employee has declared the related person as a dependent. then you must select the indicator.  The start date af the journey. To do so. This happens only if Family/Related Personinfotype (0021) records exist for the employee. Structure You have to enter the following details in this subtype:  The date on the ticket.  If the exemption is for the trip carried forward from the previous block of four years. this date can represent any one of the tickets.  The exemption amount.54 When you create an Exemptions infotype (0582) LTA subtype record for an employee. which the employee has submitted as proof.  The system will allow you to enter only two unique codes as the trip exemption counter for an employee in a block of four years. which is the total amount against which travel tickets have been submitted as proof for LTA exemption.

MDA subtype record for the employee. Medical reimbursement payroll function (INMED) reads the Exemptions infotype (0582). you must create an Exemptions infotype (0582). . Payments/Deds. respectively for Medical Reimbursements and populates the Input Table with Medical Reimbursement and Medical Reimbursement to be treated as Medical Insurance wage types. Allowances and Perks Assign Tax Code limits to Wage types. Recur. P0014. and generates the Medical Reimbursement Exemption wage type (/3M1). Payments/Deds. The system stores the Medical Exemption that is brought forward from the previous employer in the Input Table against the Previous Employment Medical Exemption wage type (/4V6). Recur. Exemption against Medical Reimbursement is the minimum of: . submitted as proof for medical exemption. By giving the employee a certain amount as medical allowance on a monthly or a periodic basis. To configure this maximum limit go to the IMG under Payroll India  Tax  tax Liability on reimbursements. MDA subtype. infotype (0014). The details of the declaration are populated in the Exemptions infotype (0582). Payroll functions WPBP. but not necessarily) amount for Medical Reimbursement and making payments against claims submitted by the employee.. the Input Table and the Cumulative Results Table. You can make the payments for Medical Reimbursement through the Basic Pay infotype (0008). infotype (0014). Additional Payments infotype (0015) and Additional Off-Cycle Payments infotype (0267). Integration Whenever an employee submits the bills for medical exemption as proof.. MDA subtype record. The employee has to submit the medical bills as proofs to avail of the tax exemption.. Medical Reimbursement is tax exempt up to a maximum limit as per the Income Tax Act. Features .55 Exemptions Infotype (0582) MDA Subtype Exemptions Infotype (0582) SCEA/SCHA Subtypes Exemption on Medical Reimbursement Purpose This component calculates the tax exemptions against Medical Reimbursements. see the Claims section. By specifying an annual (normally.. You can create a record for each bill submitted by the employee or you can create a record by cumulating all the bills. For further information on Medical Reimbursements.. Additional Payments infotype (0015) or Additional OffCycle Payments infotype (0267). You can give Medical Reimbursements to your employees in the following ways: . P0015 and P0267 read the Basic Pay infotype (0008)..

this Medical Insurance premium amount is treated as Medical Reimbursement.20.. which is the minimum of the above three amounts. you can ignore the entries in the Exemptions infotype (0582). X. Additional Payments infotype (0015) or Additional Off-Cycle Payments infotype (0267). MDA subtype record in which you enter the details of this proof.000.10. You have been provided with an option. MDA subtype. MDA subtype. above. To give this benefit to an employee. exemption on Medical Reimbursement is the lesser of a and c. for the purpose of claim. above. Hence. In this case. See also: Medical Reimbursement Definition Medical Exemption Incremental Medical Perk Medical Insurance Exemptions infotype (0582) MDA subtype Exemption on Medical Insurance Premium Purpose This component calculates the tax exemptions against Medical Insurance premiums. Maximum limit of the exemption against Medical Reimbursements as configured in point 1. infotype (0014).000 for the financial year. to the Medical reimbursement payroll function (INMED).. whereby. by sending a parameter. You can provide Medical Insurance to your employees in the following ways: . you must: . the employee gets a tax exemption of Rs.000. Example The tax exemption limit for Medical Reimbursement is Rs. Enter the constant 1. as the Assignment Number in the Additional Payments infotype (0015) record through which you make the payment for this claim. . this amount is treated as Medical Insurance premium. You must populate the Exemptions infotype (0582).. In such a case.56 Total Medical Reimbursement payments made for the financial year through Basic Pay infotype (0008). Select the indicator for Medical Insurance Exemption in the Exemptions infotype (0582).10. Recur.000 and he or she submits proofs of Rs. But for the purpose of taxation.. MDA subtype with the details of the medical bills submitted as proofs to avail of the medical exemption on Medical Reimbursements. An employee may be allowed to claim Medical Insurance premium against the Medical Reimbursement limit set by the employer. Payments/Deds. An employee is eligible to a medical allowance of Rs.15. Total amount of medical bills submitted as proofs and entered in the Exemptions infotype (0582). By specifying an annual amount for Medical Insurance and making payments against claims submitted by the employee.

Recur. Payroll functions WPBP. The reimbursement of Medical Insurance premium does not form part of the Gross Taxable Income of the employee. respectively for Medical Insurance premium payments and populates the Input Table with Medical Insurance and Medical Reimbursement to be treated as Medical Insurance wage types. . the excess amount is added to the Gross Taxable Income. In such a case. MDA subtype record for the employee. You can disburse the payments for Medical Insurance through the Basic Pay infotype (0008). infotype (0014).. MDA subtype. The employee must submit the Medical Insurance premium bills as proof to avail of the tax exemption. If the employee has claimed. you must create an Exemptions infotype (0582). Recur. Integration Whenever an employee submits a bill for medical premium as proof. the Input Table and the Cumulative Results Table. P0014 and P0015 read the Basic Pay infotype (0008). Total amount of the Medical Insurance premium bills submitted as proof and entered in the Exemptions infotype (0582). an amount that is greater than the bills submitted as proof. in the Exemptions infotype (0582). for the Medical Insurance policy on the health of the employee or his or her family members is tax exempt. Recur. You have been provided with an option.. Additional Payments infotype (0015) or Additional OffCycle Payments infotype (0267).57 By giving the employees a certain amount as Medical Insurance allowance on a monthly or a periodic basis. MDA subtype record and populates the details in internal table EXM. Features . Total Medical Insurance payments made for the financial year through Basic Pay infotype (0008). infotype (0014) and Additional Payments infotype (0015). MDA subtype. whereby. Payments/Deds.. Payments/Deds. Payroll functions WPBP. respectively and populates the internal table. Recur. Additional Payments infotype (0015) or Additional Off-Cycle Payments infotype (0267). Payments/Deds. You must enter the bill date. Medical reimbursement payroll function (INMED) reads the Exemptions infotype (0582). The To read infotype 0582 payroll function (P0582) reads the Exemptions infotype (0582).. and generates the Medical Insurance Exemption wage type (/3M2). exemption amount and select the dependents for whom the bills are submitted. infotype (0014) and Additional Payments infotype (0015). You must select the indicator for Medical Insurance Exemption in this infotype record. MDA subtype record. as Medical Insurance premium. to the Medical reimbursement payroll function (INMED). X. you can ignore the entries in the Exemptions infotype (0582). exemption on Medical Insurance is the total Medical Insurance payments made for the financial year. MDA subtype. Payments/Deds. by sending a parameter. Reimbursement of premiums. paid by the employee. Exemption against Medical Insurance is the lower of: . P0014 and P0015 read the Basic Pay infotype (0008). infotype (0014). Medical reimbursement payroll function (INMED) reads EXM and the internal table and generates the Medical Insurance wage type (/3M2).

See also: Medical Insurance Definition Medical Exemption Medical Reimbursement Exemptions infotype (0582) MDA subtype Claims Exemption on Child Education Allowance/Child Hostel Allowance Purpose This component calculates the tax exemption on Child Education Allowance (CEA) and Child Hostel Allowance (CHA).000 for the financial year. Enter the constant. /4E2 EAR Consider Exemptions infotype (0582). subtypes SCEA and /4E1. To give this benefit to an employee. this amount is treated as Medical Insurance premium. 1..000 is added to the Gross Taxable Income of the employee.16. /4E2 . as the Assignment Number in the Additional Payments infotype (0015) record. through which you make the payment for this claim. In this case.. Rs. But for the purpose of taxation.58 An employee may be allowed to claim Medical Insurance premium against the Medical Reimbursement limit set by the employer.4. Select the indicator for Medical Insurance Exemption in the Exemptions infotype (0582). /4E1.20. MDA subtype record in which you enter the details of this bill.000 and he or she submits Medical Insurance premium bills as proof of Rs. that is. you must . the components are projected for the financial year to arrive at the annual exemption. subtypes SCEA and SCHA entries on an annual basis and treat the components as an allowance. Integration The Children Education Allowance exemption payroll function (INCEA) can generate the following wage types depending on the parameter setting: /4CE Monthly exemption on education of children /4CH Monthly exemption on hostel accommodation of children /4E1 Annual exemption on education of children /4E2 Annual exemption on hostel accommodation of children Parameter Setting Description Wage Types Generated EAA Consider Exemptions infotype (0582). Example An employee is eligible to a Medical Insurance allowance of Rs.

. /4E1. subtypes SCEA and SCHA entries on a monthly basis and treat the components as an allowance. /4E2 XOR Ignore Exemptions infotype (0582). that is. /4E1. /4CH. only year-to-date values are considered to arrive at the annual exemption. subtypes SCEA and SCHA entries and treat the components as an allowance. only year-to-date values are considered to arrive at the annual exemption. that is. only year-to-date values are considered to arrive at the annual exemption. /4E1. /4E1. that is.. /4E2 EMR Consider Exemptions infotype (0582).59 SCHA entries on an annual basis and treat the components as a reimbursement. subtypes CEA and CHA entries on a monthly basis and treat the components as a reimbursement. the components are projected for the financial year to arrive at the annual exemption. EMA Consider Exemptions infotype (0582). that is. /4CE. the components are projected for the financial year to arrive at the annual exemption. /4E2 Ignore Exemptions infotype (0582). /4E2 XOA Ignore Exemptions infotype (0582). Features . /4CE.. that is. that is. /4CH. subtypes SCEA and SCHA entries and treat the components as an allowance. /4E2 ' ' Default parameter /4CE. subtypes SCEA and SCHA entries and treat the components as a reimbursement. the components are projected for the financial year to arrive at the annual exemption. /4E1. /4CH.

Allowances and Perks Assign Tax Code Limits to Wagetypes. go to the IMG under Payroll India  Tax  Tax Liability on Reimbursements. See also: Defining Exemptions on Child Education/Child Hostel Allowances Exemptions infotype (0582) SCEA/SCHA subtypes . Total CEA and CHA payments made for the month or the financial year through Basic Pay infotype (0008). as per the Income Tax Act. exemption on Child Education and Child Hostel Allowances is the lesser of a and c. the exemption amount will be the number in point 1 multplied by the amount in point 2. for whom the exemption can be availed on the allowance component. A fixed amount of CEA and CHA are tax exempt for a child per month. infotype (0014). Number of children entered and declared as eligible for the allowance component in Family/Related Person infotype (0021) subtype 2. The annual projection of Child Education and Child Hostel Allowances is limited to the earlier of:  End of the financial year  End Date of the Family/Related Person infotype (0021) subtype 2 record.. CEA and CHA subtypes. To configure this maximum limit.. SCEA and SCHA subtypes. respectively. This number is stored in the No children exmpt for CEA/CHA constant (NOCHL) of table view Payroll Constants (V_T511K). You have been provided with an option..60 The number of children eligible for the tax exemption on CEA and CHA is the lesser of: . Recur. by sending a parameter to the Children Education Allowance exemption payroll function (INCEA). In such a case. In this case. above. SCEA and SCHA subtypes. whereby. Additional Payments infotype (0015) orOne-Time Payments Off-Cycle infotype (0267). as per the Income Tax Act. Total expenditure submitted as proofs and entered in the Exemptions infotype (0582). Number of children eligible for the exemption multiplied by the amount per child fixed by the government for each of the two components.. The CEA Annual Exemption wage type (/4E1) and CHA Annual Exemption wage type (/4E2) are calculated by projecting the CEA Monthly Exemption wage type (/4CE) and CHA Monthly Exemption wage type (/4CH) respectively. above. you can ignore the entries in the Exemptions infotype (0582). Payments/Deds. The employee has to submit the expenditure as proof to avail of the tax exemption. Exemption against CEA and CHA is the minimum of: . The details of the declaration are populated in the Exemptions infotype (0582). Maximum number of children.

3. To do so. Allowances and Perks Define tax Codes. respectively. For details on configuring each IMG activity. Process Flow . Allowances and Perks  Assign Tax Code limits to Wagetypes. submitted as proofs by the employee. See also: Exemption on Child Education Allowance/Child Hostel Allowance Exemptions infotype (0582) SCEA/SCHA subtypes Exemptions Infotype (0582) SCEA/SCHA Subtypes Definition The SCEA and SCHA subtypes of the Exemptions infotype (0582) stores the details of expenditure submitted as proofs for exemptions on child education and hostel allowances. You must configure the wage type for the Exemption Limit and the Tax Code. go to the IMG under Payroll India  Tax  Tax Liability on Reimbursements. 2. To do so. go to the IMG under Payroll India  Tax  Tax Liability on Reimbursements.. Use The details in this subtype are used during the calculation of tax exemption on child education and hostel allowances. You must define the tax code for CEA and CHA. see INVAL.61 Defining Exemptions on Child Education/Child Hostel Allowances Purpose This process describes how to define the wage types for Exemption on Child Education Allowance (CEA)/Child Hostel Allowance (CHA) and assign characteristics to it. You must configure the Children Education Allowance exemption payroll function (INCEA). in the Exemptions infotype (0582).. Prerequisites You must have maintained the details of the expenditure bills. For further details on configuring the wage type. This infotype can be created at any point of time during . The tax code used for the Exemptions infotype (0582) SCEA subtype is SCEA and for SCHA subtype is SCHA. refer to the IMG documentation. SCEA and SCHA subtypes. 1. for the parameter settings. in the IMG under Payroll India  Tax Exemptions  Maintain Schema for Exemption on Child Education and Hostel Allowances.

Exemptions on Leave Travel Allowance. infotype (0014) or Additional Payments infotype (0015) for the payments made for the allowance or reimbursement. This default of data into the Exemptions infotype (0582) SCEA or SCHA subtype record is for information only and does not affect the actual exemption. You can select the indicator to specify that the employee has declared the related person as a dependent.62 a financial year. Child Hostel Allowance.  The exemption amount. which is the total amount against which the employee has submitted expenditure as proofs for exemption on child education and hostel allowances. which the employee has submitted as proof. Recur. Structure You have to enter the following details in this subtype:  The date on the receipt. The system reads the Basic Pay infotype (0008). Medical Reimbursement. this date can represent any one of the receipts. You must use this component only: For those tax exemptions that have not been provided as a standard by the system. Integration The General Payroll function for Allowance/Reimbursement Treatment payroll function (INCTX) calculates the tax exemption on any allowance or reimbursement that you may want to give to your employees. Child Education Allowance. Medical Insurance. When the tax exemption is not a fixed amount and varies from one employee to the other depending on the proof of expenditure provided by the employee. . the data from the Family/Related Person infotype (0021) records get defaulted into this infotype record. the system reads the infotype records for the entire financial year. Each time there is a payroll run. If you are making a consolidated entry for a number of expenditures. See also: Exemption on Child Education Allowance/Child Hostel Allowance Defining Exemptions on Child Education/Child Hostel Allowances Exemption on Other Allowances and Reimbursements Purpose This component is used to calculate tax exemption on any allowance or reimbursement that your company may want to give to the employees. For example. Payments/Deds. When you create an Exemptions infotype (0582) SCEA or SCHA subtype record for an employee.

. Exemption on the allowance or the reimbursement is the minimum of: . See also: Exemption on Other Allowances and Reimbursements Configuration Leave Encashment Purpose This component computes exemptions on the Leave Encashment received by an employee at the time of separation from employment. Payments/Deds. When the employee submits the proof of expenditure.  Previous Employment Tax Details Infotype (0580) – If an employee has claimed an exemption on Leave Encashment in a previous employment. Recur. Features . see Exemptions on Leave Encashment Integration  Termination Workbench – This functionality computes the Leave Encashment amount for the employee. Product of Average Monthly Salary and Number of months of leave encashed For more information. Leave Encashment Amount 2. Maximum limit of exemption maintained in table view Taxability of Wage Types (V_T7INT9). and then compute the current exemption.63 The system reads the exemption amount from the subtype of Exemptions infotype (0582).. The system computes exemption on Leave Encashment as the minimum of: 1.. Exemption limit 3. infotype (0014) or Additional Payments infotype (0015).. you can capture the exemption amount in this infotype. created by you through table view Subtype Characteristics (V_T591A). Product of the Average Monthly Salary and the Multiplication factor 4.  Income Tax – The exemption on Leave Encashment is reported by the Income Tax functionality under Section 10 Exemptions. Total amount of exemption entered in the subtype created by you for Exemptions infotype (0582). you must enter the amount in the subtype created by you for Exemptions infotype (0582). The system will deduct this claimed amount from the maximum exemption limit. . Allowance or reimbursement made through the Basic Pay infotype (0008).

. the Voluntary Retirement Service Taxation payroll function (INVRS) checks the table view Taxability of wage types (V_T7INT9) for the VRS tax code.64 Exemption on Voluntary Retirement Scheme Purpose This process describes the computation of the exemptions. the Processing request for additional payments payroll function (P0015) reads the Additional Payments infotype (0015) and stores the wage type for VRS in the internal table. Tax limit 3. SVRS and the wage type that is associated with this tax code. It also determines the eligibility for VRS through Pay Scale .   To identify the tax code for VRS and the VRS wage types associated with the tax code. Product of the Number of months of Salary from VRS date to Normal Retirement Date and the Current nominal basis VRS payments received Gratuity contribution taxationpayroll function (INGTX) checks the internal table IT for the VRS wage type and obtains the amount received as VRS Payment. You can also directly enter the VRS amount in the Additional Payments infotype (0015). Number of months of salary payable for every completed year of service 4. After identifying the VRS wage type.. During payroll processing in the termination period. 2. the Voluntary Retirement Service Taxation payroll function (INVRS) checks the table view Taxability of wage types (V_T7INT9). associated with the tax code SVRS. 1. VRS payments received 2. Before checking the internal table for the VRS wage type and amount.. Voluntary Retirement wage type (MVR0) is the model wage type that is associated with tax code SVRS. The Termination Workbench computes the amount payable as VRS and stores the wage type for VRS in the Additional Payments infotype (0015).. It computes the exemption on VRS as a minimum of the following factors: . . on the amount received by an employee under a Voluntary Retirement Scheme (VRS). 1. the Voluntary Retirement Service Taxation payroll function (INVRS) looks for this VRS wage type in the internal table and obtains the VRS payment amount. Process Flow Voluntary Retirement Service Taxationpayroll function (INVRS) computes exemptions on the VRS at the time of termination.

wage type (/129). the value of the factor is three. it makes use of the Last nominal basis rule (INLN). The Nominal Cumulations rule (IN72) checks the Basic and Dearness Allowance wage types for the Processing Class 72 and cumulates them into the Voluntary Retirement Bas. You can also make the payment on VRS through the Additional Payments infotype (0015). .  Ensure that you have configured the eligibility wage type (MVR0) as Cessation Payment in the table view Reimbursement Allowances Perks eligibility and calculation (V_T7INA9). taken for each year of service. 1. The Month Factor Pre VRS Service constant (MFPVR) of table view Payroll Constants (V_T511K) stores the Multiplication factor for VRS and as of year 2001-2002.65  Grouping for Allowances from the table view Reimbursement Allowances Perks .. 2. Voluntary Retirement Service Taxation payroll function (INVRS) checks for the maximum amount of VRS that can be exempt from tax.eligibility and calculation (V_T7INA9).. 1. Multiplication Factor for VRS The Multiplication factor is a predefined number of months of salary. Tax limit . Voluntary Retirement Service Taxation payroll function (INVRS) will not process an exemption on VRS in the current employment. of years of continuous service The Termination Workbench calculates the number of years of service based on the employment Start Date and End Date. If the employee received an exemption on the VRS amount from a previous employment. Latest Nominal basis The system takes the Basic and Dearness Allowance components of an employee's salary as the VRS basis. You can view the maximum limit for the tax code SVRS using the table view Taxability of wage types (V_T7INT9). claimed in a previous employment using the Previous Employment Tax Details infotype (0580). In the Termination Workbench.. No. 2. The Voluntary Retirement Bas. You can maintain the VRS exemption. wage type (/129) stores this computed VRS basis amount. The Voluntary Retirement Service Taxation payroll function (INVRS) takes the last nominal basis as the current nominal basis and for obtaining the same. The VRS Exemption wage type (/4V9) stores the exemption amount previously claimed. 2 and 3: . 3.. The maximum limit is as specified by the authorities. Cessation Payment is an option under the Reimbursement/ allowance/perk indicator. Number of months of salary for every completed year of service The number of months of salary for every completed year of service is computed as the product of 1. you have the option of overwriting the value computed by the Termination Workbench.

. The Processing the last results table payroll function (PLRT) makes use of the B/F Termination related exemptions for Payroll after termination rule (INTT) to import the results.66 Product of the Number of months of Salary from VRS date to Normal Retirement Date and the current nominal basis The system computes the remaining period of service by taking the difference between the:  Date of actual termination  Date on which the employee would have normally retired. The rule checks the Last Results Table (LRT) for the VRS wage type and imports them into the current period. Voluntary Retirement Service Taxation payroll function (INVRS) computes exemption on VRS only when at least one of the following conditions applies:  The employee has completed 10 years of service in the company.5 and then rounding off the value to the nearest lower integer. if the employee had not opted for the VRS Voluntary Retirement Service Taxation payroll function (INVRS) computes the value by dividing the remaining number of days by 30. Exemption wage type (/4E6). Result When you process payroll for the employee in a period after termination. and processes the Voluntary Retirement Service Taxation payroll function (INVRS) only when the employee meets at least one of the two conditions. The Determine VRS Eligibility rule (INVR) performs the check for these two conditions. Retroactive Computation Voluntary Retirement Service Taxation payroll function (INVRS) computes exemption on VRS only in the month of termination. After selecting the minimum of the four exemption factors.  The employee has reached the age of 40. You can create and maintain the date of normal retirement in the Date Specifications infotype (0041). the system will import the VRS exemption results from the termination period into the period under consideration. the Voluntary Retirement Service Taxation payroll function (INVRS) generates the Voluntary Ret. Ensure that you select the Date Type as N0. The system does not make any changes in the imported results. in which it stores the exemption on VRS. The Min Age for VRS exemption constant (VRSYR) of table view Payroll Constant (V_T511K) stores the value for the number of years in service.

gets stored in the PET internal table as a checkbox.This wage type stores the amount entered as the value of perquisites under section 17(2). The Previous Employment Tax Details payroll function (P0580) reads the Previous Employment Tax Details infotype (0580) and populates the details in the internal table PET. exemption. Prev Gross salarywage type (/4V1) . This LTAEX field indicates the number of times the employee has claimed LTA Exemption with his previous employers for the current block of four years.   The value entered as the number of times the employee has claimed LTA exemptions. contribution. Tax exemption when the employee separates from the current employment. whenever a new employee joins your organisation For all employees who have joined your organisation in the past from some other employment. The indicator for whether the employee has carried forward an LTA claim from the previous block of four years.67 Previous Employment Tax Details Purpose This component provides for the computation of: Tax in the current financial year. Previous Employment Tax Details payroll function (INPET) processes the internal table PET and generates the following wage types: . gets stored in the PET internal table as LTAEX field. Val of perk u/s 17(2)wage type (/4VJ) . The amount in Prev Gross salary wage type (/4V1) is added to the current Gross Salary wage type (/416). Integration You must create a Previous Employment Tax Details infotype (0580) record   For an employee. the exemption granted will be against the carried forward LTA Exemption from the previous block of four years. deduction details of the employee pertaining to the previous employments in the current financial year. by capturing the salary. the system will check the PET internal table to see if the checkbox has been selected or not... . The amount in Val of perk u/s 17(2) wage type (/4VJ) is added to the currentGross Salary wage type (/416). by capturing certain lifetime exemptions from all previous employers. This indicates whether an LTA Exemption has been carried forward for the employee from the previous block of four years pertaining to his or her previous employers.This wage type stores the amount entered as the salary as per provisions under section 17(1). the system will check the LTAEX field to see if the employee has claimed an LTA Exemption for this block of four years in his or her previous employment. when you are going live with the SAP System. If the checkbox has been selected. When you create an Exemptions infotype (0582) LTA subtype record for an employee. If you create an Exemptions infotype (0582) LTA subtype record for an employee in the first year of the new block of four years.

in case the employee has availed of the same with any of the previous employers. The amount in Prev Medical Exempt wage type (/4V6) is added to the Medical Reimbursement wage type (/414). Prev exemp u/s10wage type (/4V2) . Gratuity Exemption wage type (/4V8) gets processed only on the event of the separation of the employee from your organisation. The amount in Prev PF contributed wage type (/4V4) is added to the Annual Provident Fund contribution wage type (/3F6). tax paidwage type (/4V3) .This wage type stores the amount entered as the exemptions under section 10. See also: Previous Employment Tax Details infotype (0580) . The amount in Profts wrt sal u/s 17(3) wage type (/4VK) is added to the current Gross Salary wage type (/416). Prev prof. The value of this wage type gets deducted from the maximum exemption limit for leave encashment exemption.This wage type stores the amount entered as the total gratuity availed. Prev Tax Deductedwage type (/4V5) . VRS Exemption wage type (/4V9) .68 Profts wrt sal u/s 17(3) wage type (/4VK) .This wage type stores the amount entered as the sum of all leave encashment exemptions availed. No tax exemption is given. The amount in Prev prof. VRS Exemption wage type (/4V9) gets processed only on the event of the separation of the employee from your organisation. Gratuity Exemptionwage type (/4V8) . Leave Encashment Exemt wage type (/4V7) gets processed only on the event of the separation of the employee from your organisation. The value of this wage type gets deducted from the maximum exemption limit for gratuity exemption amount. The amount in Prev exemp u/s10 wage type (/4V2) is added to the current Section 10 exemption wage type (/130).This wage type stores the amount entered as the Voluntary Retirement Scheme (VRS) exemption amount availed. tax paid wage type (/4V3) is added to the Professional Tax annual deduction wage type (/422).This wage type stores the amount entered as the total Income Tax paid by the employee.This wage type stores the amount entered as the Professional Tax.This wage type stores the amount entered as the Provident Fund. Prev Medical Exemptwage type (/4V6) .This wage type stores the amount entered as the medical exemption claimed by the employee. The amount in Prev Tax Deducted wage type (/4V5) is added to the Total tax deducted so far wage type (/456). Prev PF contributedwage type (/4V4) .This wage type stores the amount entered as the profits in lieu of salary under section 17(3). Leave Encashment Exemtwage type (/4V7) .

The amount in Val of perk u/s 17(2) wage type (/4VJ) is added to the currentGross Salary wage type (/416). .This wage type stores the amount entered as the salary as per provisions under section 17(1). Previous Employment Tax Details payroll function (INPET) processes the internal table PET and generates the following wage types: . by capturing the salary.69 Previous Employment Tax Details Purpose This component provides for the computation of: Tax in the current financial year. deduction details of the employee pertaining to the previous employments in the current financial year.. the exemption granted will be against the carried forward LTA Exemption from the previous block of four years. If the checkbox has been selected. gets stored in the PET internal table as LTAEX field.   The value entered as the number of times the employee has claimed LTA exemptions. the system will check the PET internal table to see if the checkbox has been selected or not.This wage type stores the amount entered as the value of perquisites under section 17(2).. by capturing certain lifetime exemptions from all previous employers. gets stored in the PET internal table as a checkbox. the system will check the LTAEX field to see if the employee has claimed an LTA Exemption for this block of four years in his or her previous employment. Integration You must create a Previous Employment Tax Details infotype (0580) record   For an employee. when you are going live with the SAP System. exemption. Tax exemption when the employee separates from the current employment. The Previous Employment Tax Details payroll function (P0580) reads the Previous Employment Tax Details infotype (0580) and populates the details in the internal table PET. Prev Gross salarywage type (/4V1) . When you create an Exemptions infotype (0582) LTA subtype record for an employee. whenever a new employee joins your organisation For all employees who have joined your organisation in the past from some other employment. This indicates whether an LTA Exemption has been carried forward for the employee from the previous block of four years pertaining to his or her previous employers. If you create an Exemptions infotype (0582) LTA subtype record for an employee in the first year of the new block of four years. The amount in Prev Gross salary wage type (/4V1) is added to the current Gross Salary wage type (/416). This LTAEX field indicates the number of times the employee has claimed LTA Exemption with his previous employers for the current block of four years. Val of perk u/s 17(2)wage type (/4VJ) . contribution. The indicator for whether the employee has carried forward an LTA claim from the previous block of four years.

The amount in Prev Medical Exempt wage type (/4V6) is added to the Medical Reimbursement wage type (/414). Prev exemp u/s10wage type (/4V2) . Prev PF contributedwage type (/4V4) . The amount in Prev Tax Deducted wage type (/4V5) is added to the Total tax deducted so far wage type (/456). Gratuity Exemption wage type (/4V8) gets processed only on the event of the separation of the employee from your organisation.This wage type stores the amount entered as the profits in lieu of salary under section 17(3). VRS Exemption wage type (/4V9) . Gratuity Exemptionwage type (/4V8) . tax paid wage type (/4V3) is added to the Professional Tax annual deduction wage type (/422). in case the employee has availed of the same with any of the previous employers.This wage type stores the amount entered as the Voluntary Retirement Scheme (VRS) exemption amount availed.This wage type stores the amount entered as the total gratuity availed. The amount in Prev exemp u/s10 wage type (/4V2) is added to the current Section 10 exemption wage type (/130).This wage type stores the amount entered as the Provident Fund.This wage type stores the amount entered as the total Income Tax paid by the employee. Prev Medical Exemptwage type (/4V6) . See also: Previous Employment Tax Details infotype (0580) . Leave Encashment Exemt wage type (/4V7) gets processed only on the event of the separation of the employee from your organisation. Prev prof.This wage type stores the amount entered as the exemptions under section 10.This wage type stores the amount entered as the medical exemption claimed by the employee. Prev Tax Deductedwage type (/4V5) .This wage type stores the amount entered as the sum of all leave encashment exemptions availed. The value of this wage type gets deducted from the maximum exemption limit for gratuity exemption amount. tax paidwage type (/4V3) . VRS Exemption wage type (/4V9) gets processed only on the event of the separation of the employee from your organisation.This wage type stores the amount entered as the Professional Tax. The amount in Prev prof. Leave Encashment Exemtwage type (/4V7) . The value of this wage type gets deducted from the maximum exemption limit for leave encashment exemption.70 Profts wrt sal u/s 17(3) wage type (/4VK) . No tax exemption is given. The amount in Profts wrt sal u/s 17(3) wage type (/4VK) is added to the current Gross Salary wage type (/416). The amount in Prev PF contributed wage type (/4V4) is added to the Annual Provident Fund contribution wage type (/3F6).

Professional Tax functionality in the SAP system. Professional tax is a statutory tax that state governments levy on professions. callings. then the system includes the same for professional tax basis calculations. fixes the limit on professional tax that the State Governments can charge. based on the following factors: Professional tax basis – Comprises those salary components on which a professional tax is applicable. while calculating professional tax. The different components are:        Basic pay Dearness allowance Medical reimbursement perquisite Housing Profits in lieu of salary Other remuneration that an employee receives regularly Bonus Medical Reimbursement– The system includes the medical reimbursement amount which exceeds the amount exempt from Income Tax (as fixed under the Income Tax Act). The salary components to be included for calculating the professional tax basis depend on the state.71 Professional Tax Purpose This component provides functions and processes that compute the professional tax deductions of an employee. and employment. Features The system determines the professional tax payable by an employee. then. the system includes this amount for calculating the professional tax basis. only covers the Professional Tax applicable on employee salaries. under the Constitution of India. Basis type – This is the type of basis considered while computing professional tax. The Central Government. Basis type can be:  Nominal basis – The system considers the salary of an employee.If the employment is in a state that specifies bonus as a component of the professional tax basis. Integration Income Tax – The system estimates the annual professional tax of an employee and deducts it from salary as per Section 16(ii) of the Income Tax Act. Housing Allowance – In case of a company leased or a company owned accommodation. trades. the system checks the difference in housing allowance and the rent. If you pay an employee the positive difference between housing allowance and rent. Individual State Governments decide the rules applicable for computing the professional tax in their state. . as a part of the professional tax basis. Bonus . It does not take into account the actual number of days that the employee attended work within the given payroll period.

The two methods are:   Gross Carry Forward – The system recalculates the professional tax basis for the past periods. Computation frequency – This is the frequency with which the system computes professional tax basis for an employee. the frequency may be:    Monthly – Where the professional tax basis computation occurs every month. and then sums it up for the current processing period. and the state specifies the frequency. the deduction frequency may be:     Monthly – Professional tax is deducted every month. It carries forward the difference in the professional tax basis for each retrospective calculation period into the current processing period. You can configure this for individual states. The computation frequency may span across one or more payroll periods. Deduction Carry Forward – The system recalculates the professional tax amount for the past periods. Most states specify Due basis for professional tax calculations. For example. the following categories of employees are exempt from professional tax:   Blind. The computation frequency may span across one or more payroll periods. and the computation spans six payroll periods. It carries forward the difference in the professional tax amount for every retrospective period into the current processing period. in Karnataka. Annual – Where the professional tax basis computation occurs only once in a year and the computation spans the twelve payroll periods. Annual – Professional tax is deducted once in a year. . For example. The system computes the retrospective professional tax in two ways. Quarterly – Professional tax is deducted once in a quarter and spans three payroll periods. Exemptions – Some states exempt certain categories of employees from paying professional tax. For example. and the computation spans the twelve payroll periods. Half-yearly – Professional tax is deducted twice a year. The system calculates the professional tax amount accordingly. the system determines the professional tax amount to be paid for previous periods by performing retrospective calculation. and is state specific. and the amount of professional tax to be paid depends on the salary range to which the employee belongs. deaf or dumb employees Employees who are 65 years of age Professional tax slabs – Employee salaries fall within different salary ranges or slabs.72  Due basis – The system considers the actual amount that an employee receives as the basis amount for professional tax calculations. and each computation spans six payroll periods. Deduction frequency – This is the frequency with which the system deducts the professional tax of an employee. and the method it uses depends on the state. Arrears or the retrospective professional tax – When arrears are paid to an employee. Every state specifies its own salary slabs and the professional tax rate that is applicable for a salary range. Half yearly – Where the professional tax basis computation occurs twice in a year. and sums it up into the current processing period.

and computes the professional tax basis for the different states.  A retrospective payroll run. The system identifies the state depending on the Personnel Area and Personnel Subarea information of an employee. in Karnataka. the system always uses the deduction carry forward method for retrospective professional tax computations. An employee might have worked in more than one state within a payroll period.  The applicability of professional tax in the state or region. an employee might have worked in more than one state. Subtype (0003) Professional Tax Computation Purpose This process describes how the system computes professional tax. While processing professional tax. but submit the returns at the local municipality or corporation level. Reports – The system generates professional tax statements in a format prescribed by the concerned state authorities. Some states exempt some employee categories from paying professional tax. blind. In this case. the system divides the professional tax period into smaller split periods. you need to pay tax as per the state act. during a payroll run. See also: Professional Tax Computation Defining Professional Tax Professional Tax Report (HINCPTX0) Other Statutory Deductions Infotype (0588). The system processes professional tax as part of the payroll run. the system splits the payroll state wise. deaf or dumb employees are exempt from professional tax. All calculations for a split period are as per the rules of the state to which the employee belongs in the split period. As the professional tax calculation rules vary from one state to another. The system generates the professional tax statements accordingly. or a change in the professional tax liability of an employee.73 When there is a retrospective change of state. payable by employees. Within a payroll period.  The state or region to which an employee belongs in the current payroll period. . In some states. it considers the following factors:  The type of payroll that is being processed:    An original payroll run – This in turn can be either a regular payroll run or an off-cycle payroll run. For example.

the system: .Through Cumulation of PTax basis rule (INPB) 3. Basis type can be either nominal or due. 2. The system uses the country specific indicators to distinguish the Professional Tax basis wage types (/3P2) from one another. They include:  Retrospective professional tax processing wage type (/ZPT)  Medical perquisite wage type (/3M3). and it is state specific. The frequency of professional tax deduction varies from one state to another.. Some states exempt certain sections of employees from professional tax. Determines whether professional tax needs to be deducted in the current payroll run.Through Cumulation of PTax basis rule (INPT)  Housing perquisite wage type (/3RH) . One wage type for Gujarat and the other for Karnataka. Computes the Professional Tax basis. the system then uses one of the above wage types. 5. the system calculates professional tax basis as per the rules of Karnataka.. the system creates this wage type for every split.B101 and B202) .74 Process Flow While processing professional tax in a payroll run. Determines whether professional tax needs to be deducted for an employee. For example. This results in two split periods and the creation of two Professional Tax Basis wage types (/3P2). It stores the value in the /3P2 wage type for Gujarat. . If there are split periods. an employee worked in the state of Gujarat from the 1 st to the 15th of June and in Karnataka from the 16th to the 30th of June. You can view and maintain the basis type for a state through the IMG under Payroll India  Professional Tax  Maintain Method and Form Layout for PTax Grouping.Through Cumulation of PTax basis rule (INPT)  Bonus (Model wage types . 1. 16th June to 30th June. Determines the Professional Tax amount for the current period. The system first creates the following cumulated professional tax basis wage types:  Due basiswage type (/118)  Nominal basis wage type (/119) Depending on the state. 4. For the period. The system calculates the professional tax basis for 1st June to the 15th June as per the professional tax rules in Gujarat. and stores the value in the professional tax basis wage type (/3P2). Identifies the basis type. This wage type stores the cumulated professional tax basis obtained from all the pay components you have configured for the professional tax basis. It stores the value in the /3P2 wage type for Karnataka.

You can view and maintain the same in the IMG under Payroll India: Professional Tax  Assign amounts for Professional Tax Deduction. It saves the same in the Annual Professional Tax wage type (/422). The system determines the professional tax amount for the period and saves it in the Professional Tax – split period wage type (/3P1). Determines the projected professional tax amount payable in the current financial year. 7. Professional Tax calculation varies from one state to another. Determines the tax for the current payroll period. In the system you organize your employee information within Personnel Areas and Personnel Subareas. The professional tax report displays the information in the format specified by the state. the system identifies the salary ranges for professional tax and the professional tax amount. It saves the professional tax amount for the full period in the Professional Tax – Full Period wage type (/3P3). it determines the professional tax amount for every split and saves the same in the multiple Professional Tax – split period wage types (/3P1) created for the split periods. and the professional tax amount already paid by the employee. The salary ranges and the tax applicable on a salary range is state specific. The system deducts the professional tax amount based on the salary range that an employee falls into. 6.75 Based on the Professional Tax basis calculated for the employee. The projected professional tax amount is used by the Income Tax functionality. If there are splits in the professional tax period. It is depending on the combination of the Personnel Area. See also: Professional Tax Retroactive Professional Tax Calculation Defining Professional Tax Purpose This process describes the events involved in setting up the Professional Tax functionality in the SAP system. Result You can display and print a professional tax report. . the employees also need to be grouped into different professional tax groups. This identifies the state of employment. The system sums up the professional tax amounts calculated for the split periods to arrive at the professional tax amount for the full period. Within a state. that the system identifies factors such as the: Components of the professional tax basis. The system also assigns indicators to these wage types to distinguish them from one another. Salary range for the employee. Personnel Subarea and the professional tax grouping of the employee. and you must define the Professional Tax calculation rules applicable to the employees depending on the state in which they are working. Method and the frequency of calculating and deducting professional tax.

The salary ranges and the professional tax amount for a salary range is state specific. If you are following a method other than the standard to calculate Professional Tax. Assign the Professional Tax calculation method for a region. you can do so through a user exit provided in the. and type of report to be generated by the system. Implement the Business Add-in (BAdI) HR_IN_CALC_PTX_BASIS to calculate the deduction amount for Professional Tax. execute the following steps: Implement the Business Add-in (BAdI) HR_IN_CALC_PTX_BASIS to determine the basis of an employee. To do so. in the IMG activity Payroll India: Professional Tax  Maintain Method and Form Layout for PTax Groupings(V_T7INP3). you further group your employees into professional tax groups. Assign the Professional Tax Groups to a combination of Personnel Areas and Personnel Subareas. the frequency. You assign the Professional Tax amount through the IMG under Payroll India: Professional Tax  Assign amounts for Professional Tax Deduction.. In the standard SAP system. The system deducts the Professional Tax of an employee based on the salary code of the employee. You can define the different tax groups within a state by taking into account the different reporting needs of that state. go to the IMG under Payroll India: Professional Tax Assign PTax Groupings for Personnel Areas and SubAreas.76 Format for the professional tax reports Process Flow . IMG under Payroll India: Statutory Social Contribution  Labour Welfare fund User Exit: Determine Personnel Subarea grp for PTax. You can implement this BAdI in the IMG under Payroll India: Professional Tax  BAdI: Calculate Professional Tax Deduction Amount. go to the IMG under Payroll India: Professional Tax  Professional Tax Grouping Details. Depending on the state.. the basis type. You assign the same in the IMGunder Payroll India: Professional Tax Maintain Method and Form Layout for PTax Grouping. Define Professional Tax groups based on the different regions or states in which your company is located. You can implement this BAdI in the IMG under Payroll India: Professional Tax  BAdI: Determine Basis for Professional Tax. If you are implementing the above BAdIs. the Personnel Area and Personnel Subarea of the employee determines the state in which the employee is working. leave the following fields blank: Method Form layout Maintain Cumulation of PTax basis rules INPT and INPB. for cumulating the basis components. LWF. To define the Professional Tax groups. including components such as bonus and gratuity. Enter the amount of Professional Tax to be deducted for the different salary ranges. You can maintain the same . If you want to create your own professional tax groups that go beyond the state boundaries. and ESI.

Pension. process the following for your employees:     PF Pension Fund EDLI VPF Integration The Income Tax functionality refers to the wage types of the PF component (annual values) while processing rebates under Section 88. The system will not compute EDLI. In the SAP system.In this case. and consists of two parts: Provident Fund (PF) . you can categorize these trusts as belonging to one of the following Trust Types:   Excluded Trust .Both. The minimum percentage contributed is as specified by the authorities. Provident Fund is a statutory contribution. maintain.The employer contributes a fixed percentage of the PF basis towards the Pension Fund of an employee. Features Trusts and Trust Types You maintain the PF and the Pension funds of the employee(s) in PF and Pension Fund trusts. Regional Provident Fund Commissioner (RPFC) .In this case the system will process the entire PF contribution of the employer and employee towards the trust. the employee and the employer. In addition to contributing towards PF and Pension Funds of the employee. an employer also contributes to the Employee's Deposit Linked Insurance (EDLI). Pension Fund . The minimum percentage contributed is as specified by the authorities. See also: Professional Tax Provident Fund Purpose This component helps you create and maintain information on employee Provident Fund. EDLI) towards a Government trust. EDLI Administration charges. or Pension Fund contribution. . the system will process all the contributions (PF. contribute a fixed percentage of the PF basis towards a Provident Fund. An employee may choose to contribute a certain percentage towards a Voluntary Provident Fund (VPF) Using the Provident Fund component you can create.77 in the IMG under Payroll India: Professional Tax  Maintain Cumulation Rules for Professional Tax.

Reports (HINCEPF0) generate the following monthly PF forms: Form 5 . The PF contribution will however.This report provides consolidated contribution statement for the financial year. EDLI Administration charges and Pension Fund contribution towards a Government trust. Use the PF Report (HINCEPF1) to generate the following annual PF forms: Form 3A .Use this report to obtain a statement on the PF contributions made towards Un-exempted establishments. Pension Fund The PF reports( for exempted trust ) Report (HINCEPN0) to generates the following monthly Pension Fund forms: .You can generate this report for employees leaving the service. Form 12A . You can maintain details such as the: Basis for Employee contribution Basis for Employer Contribution Trust ID of the PF and Pension Fund trusts. Provident Fund Use the Employees' Provident Fund .You can generate this for employee(s) who qualify for the PF. Provident Fund Contribution infotype (0587) You can maintain the PF details for an employee using this infotype.In this case. This is an annual report. Form 10 . go to the IMG under Payroll India  Statutory Social Contributions  Provident Fund. in the current payroll period. the system will process the EDLI.This report is a monthly report on the wages paid and recoveries made in the current payroll period.78  Exempted Trust . or leaving the PF trust for which you are generating the report. as the Employee and Employer's contribution. in which your company maintains employee PF VPF amount Employee Identification Number in the PF and Pension Fund Trusts Reports You can generate annual and monthly reports for both PF and Pension Fund contributions. be processed towards a trust other than the RPFC To configure the different types of trusts and the contribution percentages towards the different PF components. Form 6A . Pension Fund and EDLI membership for the first time.

To generate the Monthly reports on Employee PF and Employee Pension Fund contribution from the SAP Easy Access. choose Payroll India  Statutory Social Contribution  Provident Fund  Override Employer Pension Basis. User Exits When an employee joins mid-month or if there was a loss of pay for an employee. the system by default will prorate the Employer Pension Basis.Use this report to obtain information on the contribution made by the employer.This report provides consolidated information on the contribution made by employees towards the Pension Fund.This report provides consolidated information on the contribution made by employees towards the Family Pension Fund. for which you are generating the report. To access the same in the IMG.This report provides details of employee(s) joining the Pension Fund trust during the current payroll period.79 Form 4 . You can override this prorating of the employer Pension Basis by maintaining the EXIT_HINCALC0_002 User Exit in Enhancement HRINCEPF. in the current payroll period. To generate the Annual reports on Employee PF and Employee Pension Fund contribution from the SAP Easy Access. If you want the system to perform the retroactive PF computations by the Gross Carry Forward method. The standard SAP system follows a Deduction Carry Forward method for retroactive PF processing. choose Human Resources  Payroll  Asia/Pacific  India  Subsequent Activities  Annual  Legal Reports. Form 7 (FPF) . choose Human Resources  Payroll  Asia/Pacific  India  Subsequent Activities  Per Payroll Period  Legal Reports.Use this report to obtain information on the employee(s) who qualified for membership to the Family Pension Fund. you can do using the EXIT_HINCALC0_007 User Exit in the Enchancement HRINCGCF.You can generate this report for employees leaving the service. in the current payroll period.Use this report to obtain information on the employee(s) who qualified for membership to the Employee Pension Fund. . Form 5. Form 6 . Form 8 (FPF) . or leaving the Pension Fund trust. Use the Pension Reports (HINCEPN1) to generate the following annual Pension Fund forms: Form 7 (PS) . Form 8 (PS) .

.. use the HR_IN_PF_REP_MARCH Business Add-in GET_MARCH_DATA Method. choose Payroll India  StatutorySocial Contribution  Provident Fund  User Exit: Computation of PF by Gross Carry Forward Method.000 model wage type /3F7) EDLI administrative charges (EDLI adm chrgs * 1.00..00. use the HR_IN_PF_REP_MARCH Business Add-in GET_MARCH_DATA_PEN Method. choose Payroll India  Statutory Social Contribution  Provident Fund  Add-In: March Data Upload for Annual PF/ Pension Report Defining Provident Fund Purpose This process describes the events involved in setting up the Provident Fund functionality in the system.00. for storing the:        PF contribution by the employee (Ee PF contribution model wage type / 3F1) VPF contribution by the employee (Ee VPF contribution model wage type / 3F2) PF contribution by the employer (Er PF contribution model wage type /3F3) Pension fund contribution by the employer (Er Pension contribution model wage type /3F4) EDLI contribution (EDLI contri * 1. trust wise.000 model wage type /F39) .  To upload legacy data for the Annual PF Report (HINCEPF1). Define the different PF trusts that your company is registered with.80 To access the same in the IMG. The Annual PF Report (HINCEPF1) and Annual Pension Report (HINCEPN1) display data from March of the previous financial year to February of the current financial year..  To upload legacy data for the Annual Pension Report (HINCEPN1). your company went live with the SAP system in April. To access them in the IMG. If however. you will need to upload the PF and Pension Fund data for March.000 model wage type /3F8) Administrative charges for PF (PF adm chrgs * 1. Process Flow . You also need to configure the wage types. and specify the Trust Type.. 1.

Specify whether an EDLI payment is valid for the trust(s) that you have configured in the table view Trust Master (V_T7INF1). Assign the following components to the different trusts that you have configured:  Contribution type  PF Reference number Pension Reference Number Based on this configuration. Maintain the rates at which your company contributes to the employee PF. To do so. The contribution types are determined by the Determining Cont type. 5. Employee PF. EDLI contribution and EDLI Administration charges. Employer Pension contribution. . 3.  You can assign the components using the Determining Cont type. 4. To specify the contribution percentages for a Contribution Type.PF Ref no and Pen Ref no feature (40EPF). go to the IMG under Payroll India  Statutory Social Contribution  Provident Fund  Maintain Contribution Details towards PF. the system determines the contribution percentages of the employer and the employee towards the different PF components such as Pension. for a particular Contribution Type. The PF contribution of an employer can vary depending on the employee Pay Scale Grouping for Allowances. and EDLI contribution. then the statutory rate is applicable. You can specify the validity of the EDLI payment in the IMG under Payroll India Statutory Social Contribution  Provident Fund Define PF Trust Validity Period. Maintain the PF contribution rates of your company in the IMG through Payroll India  Statutory Social ContributionProvident Fund  Assign Company Rates for Provident Fund. If the rate is less than the statuory rate. the contribution percentage for the different PF components such as the Employer PF. 2.81 You can configure these details through the IMG under Payroll India  Statutory Social Contribution  Provident Fund  Define Trust Details for PF (V_T7INF1). PF.PF Ref no and Pen Ref no feature (40EPF). while computing the Provident Fund (PF) for the employees. go to the IMG under Payroll India  Statutory Social Contribution  Provident Fund  Define Contribution type for Statutory rates for Provident Fund. Specify. See also: Provident Fund Provident Fund Calculation Purpose This process describes the calculations performed by the SAP R/3 System.

It reads the provident fund tables. for information such as Trust ID. Process Flow .. The Provident Fund contributions function (P0587) reads the Provident Fund Contribution infotype (0587) for information on employee PF. Pension Fund. PF Ref no and Pen Ref no feature (40EPF) to determine the set of values constituting the Contribution Percentage. In the event of trust changes. Trust Type.  You have set the PF configurations in the IMG under Payroll India  Statutory Social Contribution  Provident Fund. See also: Provident Fund . Pension Fund Contribution Rates and EDLI administration charges. VPF. 1. 2. You can view and maintain the information stored in these tables using the table views:         Trust Master (V_T7INF1) Statutory rates for Provident fund (V_T7INF3) Company rates for Provident Fund (V_T7INF5) Trust details (V_T7INF7) The Provident Fund contributions function (P0587) stores the information thus collected in the internal table EPF. PF.. and EDLI charges. The Calculate Provident Fund Contributions payroll function (INEPF) makes use of the internal table EPF and calculates the following:   Employee EPF Basis. Employee VPF Basis.82 Prerequisites  You have maintained PF details for your employees in the Provident Fund Contribution infotype (0587). Employer EPF Basis. The function makes use of the Determining Cont type. the system provides for split information of the deducted trust wise PF contributions. Employer PF Basis and Employer Pension Basis PF and VPF contributions of the employee (annual and monthly contributions)  PF and Pension contributions of the employer  PF administration and EDLI charges Calculate Provident Fund Contributions payroll function (INEPF) generates wage types for storing the results of the calculations for the different PF components such as PF.

This function: Reads the following wage types: . ESI Basis is the sum of basic salary. Eligibility An employee is eligible for ESI only if:   Other Statutory Deductions infotype (0588) subtype ESI (0001) record exists for the employee. ESI contribution percentages . Average wage per day for an employee is ESI Basis Nominal wage type (/113) divided by the value in the No.83 Employee State Insurance Purpose This component calculates the Employee State Insurance (ESI) contribution: To be deducted from the salary of the employee. Overtime is excluded from ESI Basis for the calculation of ESI eligibility but is included for the computation of ESI contribution.75% of the ESI Basis. ESI Grouping of the employee . ESI Basis of the employee is less than or equal to the amount stored in the ESI Eligibility Limit constant (ESILT) of the table view Payroll Constants (V_T511P). dearness allowance. If the average wage per day of the employee is less than or equal to the amount stored in the Min. all allowances and overtime.Wage per day constant (ESIMN) of the table view Payroll Constants (V_T511P). then the employee is eligible for all the subsequent months in that contribution period.Reads the table view Employees' State Insurance Contribution Rates (V_T7INE3). the system calculates only an employer ESI contribution of 4. Employees' State Insurance Contributionspayroll function (INESI) reads the Input Table and ESI. If the employee is eligible for ESI in any one month of the ESI contribution period. To be made by the employer. This amount is set by the government.Reads the table view Personnel area/subarea Grouping for Employees' State Insurance (V_7IN0P_ESI).Avg. and updates the Input Table.Reads the Other Statutory Deductions infotype (0588) subtype ESI (001). Employees' State Insurance Contribution – India payroll function (P0588) determines the following: Number of ESI days . Integration Employees' State Insurance Contribution –India payroll function (P0588) reads the Input Table P0588 and updates the Input Table ESI.of days in month for calc constant (DYSMN) of table view Payroll Constants (V_T511K).

there may be a refund of ESI contribution made by the employee. If there is retrospective deletion of Other Statutory Deductions infotype (0588) subtype ESI (0001) record during a retrospective payroll run. on which the ESI contributions are calculated.This is the employer ESI contribution calculated on Actual ESI Basis wage type (/3EA). The value of this wage type is brought forward to the current payroll period for a refund.This is the actual ESI basis.  Ee ESI Refund-Monthly wage type (/AER) .  BF ESI basis wage type (/ZEA) . This wage type is calculated by the Gross input and storage rule (X023). /3EA = (Amount in /112) multiplied by (Number of ESI days) divided by (Number of Calendar days). Eligibility for ESI is calculated on the amount in this wage type.This wage type does not take into account loss of pay or overtime.This is the cumulated values of all the Ee ESI Refund-Monthly wage types (/AER) generated during a retrospective payroll run. This wage type is generated during an original payroll run.This is the employee ESI contribution calculated on Actual ESI Basis wage type (/3EA). This wage type is calculated by the Nominal Cumulations rule (IN72). In case of a retroactive payroll run  CF ESI basis wage type (/AEA) .84   ESI Basis wage type (/112) . . The system reads the Number of ESI days from the Other Statutory Deductions infotype (0588) subtype ESI (0001). Actual ESI Basis wage type (/3EA) will be same as ESI Basis wage type (/112).This is the difference in the values of Actual ESI Basis wage type (/3EA) for the retrospective run and previous payroll run.This is the cumulation of the values of all the CF ESI basis wage types (/AEA) generated during a retrospective payroll run. ESI Basis Nominalwage type (/113) . Based on the specification of Processing Class 20 and if the Cumulation Class 12 of the wage type is selected.This is the refund amount for the retrospective period. Generates the following wage types:  In case of an original payroll run  Actual ESI Basis wage type (/3EA) . If the number of days for which an employee is eligible for ESI is same as the number of calendar days in a period. Based on the specification of Processing Class 72.  Ee ESI contribution wage type (/3E1) .This is the effective ESI basis.  Ee ESI Refund-Total wage type (/ZER) . the Nominal Cumulations rule (IN72) includes the value of the wage type in the ESI Basis Nominal wage type (/113). the Gross input and storage rule (X023) includes the value of the wage type in the ESI Basis wage type (/112). This includes loss of pay and overtime.  Er ESI contribution wage type (/3E2) .

75% of the ESI Basis. An employee is eligible for ESI contribution.You can maintain this amount through the IMG under Payroll India  Statutory Social Contribution  Employees' State Insurance  Maintain ESIEligibility Limit. 3. Employer makes a contribution of 4. You must change the amounts of the above constants only in case of a legal change.September 30 January 1 .June 30 October 1 . Select Maintain Average Wage Per Day Limit. if the average wage per day of the employee is less than or equal to a particular amount.75% of the ESI Basis.. By default. You can configure this user exit in the IMG under Payroll India  Statutory Social Contribution  Employees' State Insurance User Exit: Determine Personnel Subarea Grp for ESI and LWF.. only if the ESI basis of the employee exceeds a particular amount. . You have been provided with a user exit EXIT_HINCALC0_001. Only the employer makes an ESI contribution of 4. . See also: Employee State Insurance Set Up Retroactive Employee State Insurance Calculation Form 6 and 7 for Employees' State Insurance report (HINCESI0) Other Statutory Deductions infotype (0588) subtype ESI (0001) Employee State Insurance Set Up Purpose This process defines the set up for Employee State Insurance (ESI) required in the SAP system. Process Flow . You can maintain this number of working days through the IMG under Payroll India  Statutory Social Contribution  Employees' State Insurance Maintain Number of Working Days in a Month.December 31 Employee makes a contribution of 1. 1.75% of the ESI Basis.. in the enhancement HRINCLWF. the value of this constant has been set to 26. Select Maintain ESI Basis Limit. You can maintain this amount through the IMG under Payroll India  Statutory Social Contribution  Employees' State Insurance  Maintain ESIEligibility Limit. Average wage per day for an employee is ESI Basis Nominal wage type (/113) divided by the number of working days in a month. if you want to change the ESI Grouping for an employee.85 Features The ESI contribution periods with their respective benefit periods Contribution Period Benefit Period April 1 ..March 31 July 1 . 2.

. in the CF ESI basis wage type (/AEA). 7.  Retroactive change in salary of the employee  Retroactive creation/change in Other Statutory Deductions infotype (0588) subtype ESI (0001) record. Process Flow . If the value of BF ESI basis wage type (/ZEA) is negative . You must define the different ESIGroupings through the IMGunder Payroll India  Statutory Social Contribution  Employees' State Insurance  Define Personnel Area and Subarea Groupings for ESI. 6. If the value of BF ESI basis wage type (/ZEA) is positive . you must set the Processing Class 20 and select the Cumulation Class 12 of the wage type. The system calculates ESI retroactively in the following cases: ..The amount in BF ESI basis wage type (/ZEA) is added to the current period Actual ESI Basis wage type (/3EA).. If you want the value of a particular wage type to be incuded in ESI Basis wage type (/113)... The amounts in all the CF ESI basis wage types (/AEA) are cumulated in BF ESI basis wage type (/ZEA) and brought forward to the current period. b. the system calculates employee and employer contributions on the total amount. 1. 8. If you want the value of a particular wage type to be incuded in ESI Basis wage type (/112). You must assign ESI Groupings to a combination of Personnel Area and Personnel Subarea through the IMG under Payroll India  Statutory Social Contribution  Employees' State Insurance  Assign ESI Groupings for Personnel Area and Subarea. If the employee is eligible for ESI in the current period. Retroactive change in salary of the employee In the retroactive payroll runs. the system stores the differences in values of Actual ESI Basis wage type (/3EA) for the retroactive runs and the previous payroll runs. 9.  Retroactive deletion of Other Statutory Deductions infotype (0588) subtype ESI (0001) record. You must maintain the employee and employer contribution rates for an ESI Grouping through the IMG under Payroll India  Statutory Social Contribution  Employees' State Insurance  Maintain Contribution Rates for ESI.. You must have maintained the Other Statutory Deductions infotype (0588) subtype ESI(0001) for the employee. See also: Employee State Insurance Retroactive Employee State Insurance Calculation Purpose This process describes how the SAP system computes Employee State Insurance (ESI) during a retroactive payroll run.The amount in BF ESI basis wage type (/ZEA) is not added to the current period Actual ESI . . 5. a.86 4. you must set the Processing Class 72 of the wage type.

If the current payroll period does not exceed the last_retro_period The system brings forward all arrears to the current payroll period.The system does not refund the ESI contributions to the employee. For the contribution period October to March. See also: Employee State Insurance . a.. For example. you can configure the Business Add-In (Add-In) HR_IN_ESI_REFUND to return the value N.    The system treats the positive and negative arrears in the same way as arrears arising due to a salary change. last_retro_period is the following June.  For the contribution period April to September. In this case. By default i. ii. If For Period is between YYYY07 and YYYY12. Retroactive creation/change in Other Statutory Deductions infotype (0588) subtype ESI (0001) record . If the retroactive period does not fall in the contribution period in which the current payroll period falls . To configure the Add-In.. the values of all Ee ESI Refund . the ESI contributions made by the employee in the retroactive periods. the system calculates employee and employer contributions only on current period ESI basis. a.The system brings forward only the arrears of the periods which fall in the same contribution period in which the current payroll period falls.. If the current payroll period exceeds the last_retro_period . Retroactive deletion of Other Statutory Deductions infotype (0588) subtype ESI (0001) record .The system refunds to the employee in the current period. If the employee is eligible for ESI in the current period.87 Basis wage type (/3EA). The cumulated amount is refunded to the employee in Period 6.Monthly wage type (/AER) for the reactive periods. last_retro_period is (YYYY+1)03. the Other Statutory Deductions infotype (0588) subtype ESI (0001) record is deleted in Period 6 with effect from Period 1. In Period 6.. last_retro_period is the following December. go to the IMG under Payroll India  Statutory Social Contribution  Employees' State Insurance  Add-In: Ignore ESI Refund during Retroactive Payroll Run. last_retro_period is YYYY09. If the retroactive period falls in the contribution period in which the current payroll period falls . If you do not want to refund the ESI contributions made in the retroactive periods. ESI employee contributions made in Periods 1 .Total wage type (/ZER). in the retroactive payroll runs. to the current period. If the For Period is between YYYY01 and YYYY06. b. 2. b. 3.5 are stored in Ee ESI Refund .Monthly wage types (/AER) are cumulated into Ee ESI Refund .

March 31 4.September 30. Activities . 1. Select the option for Unpaid absence days Cal/Work indicator. the system will calculate the number of unpaid absences in the month as calendar days or working days. Prerequisites  Other Statutory Deductions infotype (0588) subtype ESI (0001) records must exist for the selected employees.88 Form 6 and 7 for Employees' State Insurance Report (HINCESI0) Use This function prints the following statutory forms for Employee State Insurance:  Form 6  Form 7 Integration This report reads the Results Table and the Other Statutory Deductions infotype (0588) subtype ESI (0001) for details to be printed on the forms. for the selected contribution period. choose Human Resources  Payroll  Asia/Pacific  India  Subsequent Activities  Other periods  Legal Reports  Employee State Insurance  ESI .. Features  These forms are printed at the end of each contribution period. 5. From SAP Easy Access menu. Enter the employee selection criteria 3. The system subtracts the number of unpaid absences from the number of ESI working days in the month to determine the number of days for which wages are paid to the employee. You must enter one of the following contribution periods for a financial year: a. Select the option for Days wages paid Cal/Work indicator. ESI details of the selected employees are printed on the forms. The Form 6 and 7 for Employees State Insurance report screen appears 2. the system will calulate the number of ESI working days in the month as calendar days or working days.  ESI wage types must exist for the selected employees in the Results Table. or b.. .Form6 and Form7. April 1 . October 1 . Depending on your selection.  Both the forms are employer based. Enter the contribution period. Depending on your selection.  Form 6 is submitted to the ESI authorities and Form 7 is kept with the employer.

. 8. Select Print Address of Personnel Area indicator if you want the system to print. The ESI Report output screen appears. Select the report you want to print. ESI Number and ESI dispensary for the employee. only if a record for this subtype exists for the employee. 9. 10. 7.  Enter the Temporary Certificate Number. An employee is eligible for ESI. Integration Payroll function P0588 reads this infotype record to determine the ESI eligibility and the Number of ESI days. Select Print Form. under the Name and Address of the Factory or Establishment section of the forms. See also: Employee State Insurance Employee State Insurance Set Up Retroactive Employee State Insurance Calculation Other Statutory Deductions infotype (0588) subtype ESI (0001) Other Statutory Deductions Infotype (0588) Subtype ESI (0001) Definition This infotype is used to store the Employee State Insurance (ESI) details of an employee. if you want to print the report in the layout that you have created. Choose Program  Execute. Use The Employees' State Insurance Contribution -India payroll function (P0588) reads this infotype for the ESI eligibility period of the employee. Form 6 and Form 7 for Employees State Insurance report (HINCESI0) reads the following other details for printing on Form 6 and Form 7:  Temporary Certificate Number  ESI Number  ESI dispensary Structure  Enter the dates during which the employee is entitled for ESI contribution. the name and address that corresponds to the Personnel Area to which the employee belongs. Select Customer Layout.89 6.

Labour Welfare Fund legal reports (HINCLWFI) Using this report you can generate the LWF form for submission to the authorities. PTX Subtype (0003) Labour Welfare Fund Purpose This component computes the contribution towards Labour Welfare Fund (LWF). The individual states also specify the method of computing LWF contributions. LWF computation rates and the Validity date. LWF is a statutory contribution. The state authorities determine the rate of contribution and frequency of contribution towards LWF. if an employee in Kerala leaves the organization before 30 th June. LWF (Labour Welfare Fund) subtype 0002 does not result in retroactive LWF calculations. you select the eligibility of an employee towards LWF such as the LWF frequency. Retrospective LWF calculations A retrospective change in Other Statutory Deductions infotype (0588). the system will not compute the LWF contribution for the employee.90 See also: Employee State Insurance Other Statutory Deductions Infotype (0588). The SAP system generates the LWF statements in the format prescribed by the concerned state authority. the LWF contribution frequency in Tamil Nadu is annual and it takes place in the ninth period. The third period has the validity date as 30th June. The validity date for Tamil Nadu is 31st December. in case of a termination. User Exit . the system will compute the LWF contribution even if the employee leaves before the 31st December. For example. LWF (Labour Welfare Fund) subtype (0002) In this infotype. For example. and it takes place in the third period and the ninth period. Termination The method of computing LWF in case of a termination differs from one state to another. In the case of Tamil Nadu however. In Kerala. LWF Subtype (0002) Other Statutory Deductions Infotype (0588). LWF Computations The states specify their individual rates for LWF computation. the frequency of LWF contribution and Validity Date for LWF contributions. You can configure details through the IMGunder Payroll India  Statutory Social Contribution  Labour Welfare Fund. Features Other Statutory Deductions infotype (0588). the deduction frequency is bi-annual.

an employee has to nominate some person(s) for the transfer of benefits. in the eventuality of the death of the employee.   You must enter the name of the nominee and the percentage of the benefit that goes to the nominee.  The sum of the percentage share must be equal to 100. For more information.91 In the Standard SAP system. see the IMGunder Payroll India  Statutory Social Contribution  Labour Welfare Fund  User Exit: Determine Personnel SubArea Grp for ESI and LWF.  . If you wish to override the default LWF Personnel Subarea grouping. you can do so through a customer exit. you can define the Labour Welfare Groups for the employees based on their default Personnel Area and Personnel Subarea. These nomination details are maintained in this infotype.  As and when the employee is covered under one of the above benefits. The nomination details have to be maintained:  When the employee joins the organization. Structure  You are provided with the following subtypes to store the nomination details for the different benefits:            ESI Benefit (BNES) Gratuity Benefit (BNGR) Maternity Act Benefit (BNMB) PF Benefit (BNPF) Pension Benefit (BNPN) For a subtype.  When the employee wants to change the nomination details. Nominations Infotype (0591) Definition This infotype stores the nomination details of employees for the following benefits:  Employee State Insurance  Gratuity  Maternity Act  Provident Fund  Pension Use According to the company rules and legal laws.

Implementation Considerations The deductions.  You must configure the Minimum Net Pay . HR_IN_MINIMUM_NET .Percentage constant (MNPPR) of table view Payroll Constants (V_T511K). See also: Arrears Processing for Deductions . If you maintain both of the above mentioned constants. you want to configure the minimum wage as a percentage of a particular wage component. Features  The minimum wage for an employee can be configured in two ways:   As a percentage of a particular wage component . For example. You can use this Add-In to calculate the minimum wage of an employee according to your own requirements. which need to be considered for minimum net processing.  You have been provided with a Business Add-In (Add-In).You can maintain this fixed amount in the Minimum net pay . you can set the particular wage component through this Add-In. HR_IN_MINIMUM_NET. that differ from the standards. By default the particular wage component is taken as the Total gross amount wage type (/101).Fixed Amount constant (MNPAM) in the IMG under Payroll India  Deductions  Minimum Net Pay  Maintain Value for Determination of Minimum Wage. the amount in the Minimum net pay . You can do this in the IMG under Payroll India  Deductions  Arrears and Priorities .92 Minimum Net Pay Purpose This component sets a minimum wage for the employees.  As a fixed amount . In this case.Fixed Amount constant (MNPAM) of table view Payroll Constants (V_T511P). Minimum net processing supports only non-statutory deductions.Percentage constant (MNPPR) and/or the Minimum net pay .Fixed Amount constant (MNPAM) is taken as the minimum wage. should be configured for Priorities and Arrears. while processing payroll. through the IMG under Payroll India  Deductions  Minimum Net Pay  Add-In: Minimum Net Pay Value. You must configure the Business Add-In.You can maintain the percentage in the Minimum Net Pay .

93 Arrears Processing for Deductions Use Arrears processing refers to the Voluntary Deductions that are deducted from the net remuneration. Integration You make the settings for arrears processing in Customizing for Payroll under Deductions  Arrears and Priorities.  Arrears-characteristics . the difference between total net remuneration and the sum of all deductions becomes an outstanding debt owed to the employee. Your employee takes part in a savings plan which means that a fixed amount is withheld from the net remuneration in each payroll period. Unpaid absences. You assign the following characteristics to deduction wage types for arrears processing:  Priority The priority specifies the sequence in which the deduction wage types are processed. The system compares the deduction amount with the remaining net amount and. Arrears processing is responsible for determining how payroll is performed if the deductions exceed the net remuneration. When making this comparison the system takes a calculated country-specific minimum net amount into account. you should assign the garnishment wage type with the highest priority. regular amounts are deducted from the net remuneration and are paid to different institutions or towards company insurance. If the sum of all the deductions is greater than the net amount. can lead to unexpectedly low net remuneration. Features Arrears processing is controlled using deduction wage type characteristics. for example. You enter these voluntary deductions using deduction wage types in the Recurring Payments/Deductions (0014) and Additional Payment (0015) infotypes. then the system sorts them according to name. Moreover. makes the deduction. then all the deductions that were entered in the master data cannot be made during the payroll process. and in country specific infotypes for employer benefits. If you use the Garnishment component. If deduction wage types exist with the same priority in payroll. If all deductions are taken in full. if possible.

The system generates this wage type during every payroll run including an off-cycle payroll run.  Rounding off adjustment wage type (/ROA) .94 You must also specify in Customizing the way in which deduction wage types should be processed if the net amount does not provide sufficient cover. Features  The Rounding off & recovery of rounded amt payroll function (INROR) generates the following wage types:  Recovery of round off amt wage type (/ROR) . stored in the Cumulative Results Table. You have been provided with four types of recovery options:    Monthly The system generates the Rounding off adjustment wage type (/ROA) during each of the regular payroll runs.This wage type stores the rounded off amounts of Net Pay wage type (/560) for a payroll period.   Indefinite The system does not generate any Rounding off adjustment wage type (/ROA).   Calendar Year The system generates the Rounding off adjustment wage type (/ROA) in the first regular payroll run of the subsequent calendar year. The possibilities available for arrears characteristics are described in detail in Customizing for Payroll under Deductions Arrears and PrioritiesDefine Priority for Deduction Recovery of Rounded Off Amounts Purpose This component:  Rounds off the Net Pay wage type (/560) to a suitable denomination as configured by you. depends on the cumulation settings in table view Cumulation of Wage Types (V_T54C3).  Recovers the rounded off amounts from the Net Pay wage type (/560).   Annual The system generates the Rounding off adjustment wage type (/ROA) in the first regular payroll run of the subsequent financial year.   No recovery The system does not round off the Net Pay wage type (/560). . The cumulated values for this wage type.This wage type stores the recovery of the rounded off amounts.

Process Flow For a Pay Scale Grouping for Allowances.  Recovery of the rounded off amounts from Net Pay wage type (/560).  During a retrospective payroll run. See also: Recovery of Rounded Off Amounts Setup Recovery of Rounded Off Amounts Setup Purpose This process describes the configurations required for the:  Rounding off of the Net Pay wage type (/560) to a suitable denomination. That is. . The system generates this wage type in an offcycle payroll run only when the recovery option in the table view Recovery of rounding off amounts (V_T7INY1) is changed since the previous payroll run. you can set the following configurations in the IMG under Payroll India  Recovery of Rounded Off Amounts  Maintain Details for Recovery of Rounded Amounts (V_T7INY1):  Round to You must enter the nearest denomination in rupees to which you want the system to round off the value of the Net Pay wage type (/560). the Recovery of rounded amount rule (INRR) brings forward the Rounding off adjustment wage type (/ROA) and the Recovery of round off amt wage type (/ROR) to the current period Results Table.95 The system does not generate the Rounding off adjustment wage type (/ROA) during an off-cycle payroll run.  Rnd. to generate the Recovery of round off amt wage type (/ROR).  The system subtracts the value of the Rounding off adjustment wage type (/ROA) from the Net Pay wage type (/560). off You must select the option (Upper.  Option You must select the option for the period in which you want the system to recover the rounded off amount. Lower or Nearest) depending on how you want the system to round off the value of the Net Pay wage type (/560). Net Pay wage type (/560) = Net Pay wage type (/560) – Rounding off adjustment wage type (/ROA) The system then rounds off the Net Pay wage type (/560) to a suitable denomination as configured by you.

The system then rounds off the Net Pay wage type (/560) to a suitable denomination as configured by you.) April 2002 – March 2003 10 Annual Lower 2.10512. Example An employee belongs to the Pay Scale Grouping for Allowances MN01.India Purpose This component explains the additional Company Loans features for Payroll India.73 April 2002 100 Monthly Upper -87.21 April 2003 26.21 January 2003 26. Result Rounding off & recovery of rounded amt payroll function (INROR) will generate the Recovery of round off amt wage type (/ROR) and Rounding off adjustment wage type (/ROA) according the configurations that you have set.79 Will not get generated Will not get generated No recovery The system subtracts the value of Rounding off adjustment wage type (/ROA) from the value of Net Pay wage type (/560) in the recovery period.) Month in which /ROA is generated and rounded off amount is recovered Value of /ROA (Rs. The value of Net Pay wage type (/560) for the employee in payroll periods under consideration is Rs.52 10538.73 February 2002 – December 2004 10 Indefinite Upper -7. Loans Enhancement . Some of the configurations that you can set in table view Recovery of rounding off amounts (V_T7INY1) with values of corresponding wage types are: Configurations with values of corresponding wage types Payroll periods under consideration Round To Recovery Option Round Off Value of /ROR generated in every payroll period under consideration (Rs. .96  You can enter the dates between which these configurations are valid for a Pay Scale Grouping for Allowances.52 10538.) Value of /560 after recovery of rounded off amount (Rs.79 May 2002 -87.21. to generate the Recovery of round off amt wage type (/ROR).79 10424.42 January 2002 – December 2002 10 Calendar Year Nearest 2.

go to the IMG under Payroll India  Company Loans  Master Data  Create Loan Conditions. go to the IMG under Payroll India  Company Loans  Calculation  Interest Rate Advantage Taxation. Rate adv Taxed wage type (/3J1). on all loan types for the employees for whom you are processing the payroll. If you have configured the system to calculate the Interest Rate Advantage. Rt adv notTaxed wage type (/3J2). . you can configure Loan Conditions such as:  The Debit and Reference Interest Rates Whether the system should calculate the Interest Rate Advantage To configure this. Loan-Int. if you want the Interest Rate Advantage to be taxed. Interest Rate Advantage on Company Loans as Perk payroll function (INLON) calculates this Interest Rate Advantage. Rate adv Taxed wage type (/3J1) is then cumulated in Annual Perk wage type (/127).  For a loan type. The value of Loan-Int. To configure this rule. if you do not want the Interest Rate Advantage to be taxed. You can configure the Taxation of interest rate advantage rule (INJ2) for this Interest Rate Advantage to cumulate in:  Loan-Int. if applicable.97 Features Modifications to the Loans infotype (0045) The following options have been added as conditions of the Loans infotype (0045) for India:   Tranche Penal Interest Simulation Reports   Loans Summary report (HINCLON1) Batch Program for Penal Interest (Loans) report (HINILON0) Business Add-Ins (Add-In)  HR_IN_LOANS_VALIDATE HR_IN_PENAL_INTEREST Calculate Interest Rate Advantage as Perquisite Interest Rate Advantage on Company Loans as Perkpayroll function (INLON) calculates Interest Rate Advantage.

for example. This component also computes the employer contribution for the same amount as that contributed by the employee. Building loan with installment repayment.   Loan repayment. we distinguish between various loan types.  To simplify awarding and evaluating the loan. .  At least one loan condition is assigned to a loan type. One day salary deduction is required in situations such as. Loan types distinguish between loans using the purpose and the loan category. The loan accounting data is saved together with the payroll results. administer and perform payroll for company loans in the SAP system.98 Loans Purpose You can use this component to enter. repayment and interest payment by the employee. Charitable Cause. interest calculation. withheld from the employee’s salary. can simply be processed using Payroll. for example. such as installment loans and annuity loans. Features  In principal. according to your entries. The employee’s salary provides your enterprise with security. payment of the loan. if applicable. imputed income are automatically processed in Payroll and. You can grant an employee company loans for a specific purpose. You set up loan types and loan conditions in the Loans unit in Payroll Customizing. and. One Day Salary Deduction Purpose This component allows voluntary salary deduction for an employee for one or more days. you can choose between various loan categories in the SAP system. This means that the employee is granted an interest rate lower than the market’s usual reference interest rate. to build a house or buy a car. contribution to Prime Minister's Relief Fund. You can execute different loan evaluations. with different repayment types. The amount of administration is kept low as the processing of formalities.

This wage type is calculated by the Gross input and storage rule (X023) of Monthly factoring and storage (cumul.of gross amount) schema (INAL). If the Cumulation Class 37 of any wage type is selected. For the Processing Class 77 of any wage type. or not You can maintain all this through the IMG under Payroll India  One Day Salary Deduction  Maintain Details for One Day Salary Deduction.of gross amount) schema (INAL). which could be any one of the following:  Nominal Salary/Calendar Days  Nominal Salary/Working Days  Actual Salary/Calendar Days  Actual Salary/Working Days 1DSD Basis Actual wage type (/137) . . This wage type does not take into account loss of pay or overtime. the Nominal Cumulation for 1 day salary deduction rule (IN77) cumulates the value of the wage type in 1DSD Basis Nominal wage type (/136). The ASOLL and KSOLL fields of the WPBP Internal Table determine. This includes loss of pay and overtime. which is the number of days of salary that has to be deducted.  Factor. for an employee. the Gross input and storage rule (X023) cumulates the value of the wage type in 1DSD Basis Actual wage type (/137). if the Specification is set to 1.This is the actual salary for One Day Salary Deduction.  Whether the employer contributes the same amount as that contributed by the employee. This factor can be one.This is the nominal salary for One Day Salary Deduction. the number of working days and calendar days respectively. 1DSD Basis Nominal wage type (/136) . This wage type is calculated by the Nominal Cumulation for 1 day salary deduction rule (IN77) of Monthly factoring and storage (cumul. you can maintain the following details for one day salary deduction:  Year and Period in which to calculate the salary deduction  Calculation Indicator.99 Features For a Pay Scale Grouping for Allowances. this process also calculates employer contribution for the same amount as that contributed by the employee. less than one or more than one. See also: One Day Salary Deduction Calculation One Day Salary Deduction Calculation Purpose This process calculates voluntary salary deduction of an employee for one or more days. If configured to do so.

The value of this wage type is the same as the value of Employee 1 day salary deduction wage type (/3OE). 2. these wage types are brought forward to the Results Table. /3OE = (/136 or /137) divided by the value of (KSOLL or ASOLL fields in WPBP Internal Table) multiplied by the value of Factor field in table view One day salary deduction (V_T7INO1). wage type (/3OF). Generates the Employer 1 day salary contrib.   Reads the following wage types:   1DSD Basis Nominal wage type (/136) 1DSD Basis Actual wage type (/137) 3. 5.. 1. Process Flow One day salary deduction payroll function (INDSD) . Reads the table view One day salary deduction (V_T7INO1) and associates the Pay Scale Grouping for Allowance of the employee with the following details:  Year and Period in which to calculate the salary deduction  Calculation Indicator  Factor  Whether the employer contributes the same amount or not 4. to generate the Employee 1 day salary deduction wage type (/3OE). wage type (/3OF) exists in the Old Results Table. wage type (/3OF) are not recalculated by the One day salary deduction payroll function (INDSD). the values of the Employee 1 day salary deduction wage type (/3OE) and/or Employer 1 day salary contrib. That is. if the employer has been maintained in table view One day salary deduction (V_T7INO1). the Passing wage types from ORT to IT for 1DSD Retro rule (IN49) checks whether Employee 1 day salary deduction wage type (/3OE) and/or Employer 1 day salary contrib. If it does. In case of a retroactive payroll run.100 Prerequisites You must have maintained the table view One day salary deduction (V_T7INO1) in the IMG under Payroll India  One Day Salary Deduction  Maintain Details for One Day Salary Deduction. One day salary deduction payroll function (INDSD) multiplies this amount by the Factor maintained in the same table view. Calculates the one day salary according to the Calculation Indicator maintained in table view One day salary deduction (V_T7INO1). Result Cumulation of net amount rule (IN30) of Cumulate net amount and form payment amount (International) schema (INA9) . During a retroactive payroll run.. Reads the table view Associating pay parameters to pay scale grouping (V_T7INA3) for the Pay Scale Grouping for Allowances of the employee.

Cont.Actual Salary/Calendar Days  Factor . KSOLL. who belongs to Pay Scale Grouping for Allowances MN01.  Let Actual Salary of the employee for April 2002 be Rs.2002  Period .01  Calculation Indicator . When you implement SAP Payroll India in the middle of a financial year.Employer also contributes You run the payroll for an employee. wage type (/3OF). for April is equal to 30. in April 2002. if it exists.  Calendar days. Mid Year Go-Live functionality is useful if you are implementing SAP Payroll India in the middle of a financial year. One day salary deduction payroll function (INDSD) reads the table view One day salary deduction (V_T7INO1) for Pay Scale Grouping for Allowances MN01. (3000/30) * 2 = Rs.3000.2  Emp. wage type (/3OF). the income tax assessment year is from the 1st April to the 31st March and you calculate all applicable taxes on employee salary for this period. . 200  Employer 1 day salary contrib. In India. to Wage/salary + Employer shares wage type (/700) Example You have maintained the following details in table view One day salary deduction (V_T7INO1) for Pay Scale Grouping for Allowances MN01:  Year . and generates the following wage types:  Employee 1 day salary deduction wage type (/3OE) = Rs.101  Subtracts the value of Employee 1 day salary deduction wage type (/3OE) from Statutory net pay wage type (/550)  Adds the value of Employer 1 day salary contrib. you also need to transfer payroll results for those periods of the financial year that lie before the period. . in which you are implementing the SAP Payroll India. which is also equal to Rs 200 See also: One Day Salary Deduction Mid Year Go Live Purpose This component helps in transferring legacy payroll results data to the SAP system and in creating payroll results from the transferred legacy data.

manually capture any adjustments for the past periods in specific wage types. containing templates that drive the data load programs. in which you are processing the first productive payroll run..  For transferring your legacy data and uploading the same into the SAP system. for converting the legacy data. into SAP Payroll Period results and stores the results in relevant payroll cluster tables. arrears and the contributions of the employer. It discusses the various processes involved in uploading the payroll results into the SAP system. for which payroll results are available in the legacy system and need to be transferred to SAP system. See also: Transferring Legacy Payroll Results Transferring Legacy Payroll Results Purpose This process describes the method of transferring your legacy payroll results into the SAP system. you can upload the final payroll results from your legacy data systems into the SAP system. Features  Using the Mid Year Go Live functionality.  Standard executableschema (INLK) that formats the uploaded legacy data.102 Pre-go-live: This term refers to the periods. and in converting the data into SAP payroll results. Go-live: This term refers to the period. and uploads it into the Payroll Account Transfer: Payroll Periods table (T558B) and Payroll Account Transfer: Old . non-statutory deductions (including third party deductions). Data transfer INLK Payroll Tables T558B and T558C Upload program (HINUULK0).Payroll. The following are the main stages in the process of transferring the legacy payroll results: . in which you process the first productive payroll run. you are provided with the:    HR Template . wherein you enter the legacy payroll results.  Constraints For retrospective calculation of payments and deductions.  Data load program(HINUULK0 ) that facilitates the transfer of data into the SAP system. It loads the data saved in the spreadsheet into the Payroll Account Transfer: Payroll Periods table (T558B) and Payroll Account Transfer: Old Wage Types table (T558C) in the SAP system. which reads the payroll results information from the spreadsheet template. They must include statutory. The final payroll results are the actual payments and deductions of an employee salary.xls (Microsoft Excel) file.xls file. the earliest date that you can set is the start date of the period..Payroll. These are the data conversion tables for the Mid Year Go Live functionality. HR Template . You can however.

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Wage Types table (T558C). The system reads these tables for the purpose of payroll
conversion.
Transfer of payroll account from Table 5558B,C - India schema (INLK), which when run as a
part of the payroll program, HINCALCO,
...

Reads the payroll conversion tables Payroll Account Transfer: Payroll Periods (T558B)
and Payroll Account Transfer: Old Wage Types (T558C)
Converts the payroll results stored in these tables into SAP payroll clusters.

Prerequisites
...

You have completed the entire configuration, with respect to Payroll India. The Payroll
Periods are set up from the earliest hire date to the present.
Valid employee records exist for the following infotypes:


















Actions infotype (0000)
Organizational Assignment infotype (0001)
Personal Data infotype (0002)
Planned Working Timeinfotype (0007)
Basic Pay infotype (0008)
Bank Details infotype (0009)
Family/ Related Personinfotype (0021)
Previous Employment Tax Details infotype (0580)
Housing (HRA/CLA/COA) infotype (0581)
Exemptions infotype (0582)
Car & Conveyanceinfotype (0583)
Income from Other Sources infotype (0584)
Section 80 Deductionsinfotype (0585)
Investment Details (Sec 88) infotype (0586)
Provident Fund Contribution infotype (0587)
Other Statutory Deductions infotype (0588)
Individual Reimbursements infotype (0589)
Long Term Reimbursements infotype (0590)
These records must exist from the begin date of the first pay period that you are
loading into the SAP system. The legacy upload process refers to these infotype
records for validation. These validations are date driven and applicable for all the
pay periods that you are converting. You must check all of the above mentioned
infotype records for data validity periods. All data must be valid from the first pay
period of the employee with the exception of Actions infotype (0000),
Organizational Assignment infotype (0001)and Personal Data infotype (0002).
In these three infotypes, the date is as per the Hiring action.

The Payroll Control Records are set for retro-calculation only from the go-live date.

Hiring of an employee in the SAP system creates the Payroll Status infotype (0003)
for that employee. The system updates the Earliest MD Change field of this infotype

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with the start date of the Actions infotype (0000) record of the employee. If you try to
calculate retrospectively, the system attempts a retrospective calculation on the
payroll results uploaded from legacy systems, leading to an error in computation.
You have generated the payroll periods for all payroll areas, and payroll control records exist
for these areas.

Process Flow
...

HR Template - Payroll.xls file - In this file you enter payroll results for the pay periods that you
want to upload into the SAP system. This spreadsheet template file consists of two
worksheets:

Worksheet 558b, where you define the payroll periods for which you are
transferring the payroll results. You must define these payroll periods for
individual employees. In this sheet you also specify the payroll periods that are
for a regular payroll run and those that are for an off cycle payroll run. In this
sheet, you indicate the chronological sequence of payroll runs to be loaded for the
employee.
It is recommended that you load one payroll area at a time into the payroll
conversion tables. Dividing the data into smaller groups can help reduce the
processing time, and avoid data entry errors.

Worksheet 558c, where you define the wage types for which you are transferring
payroll results. For every payroll period that you define in the 558B, you must
create corresponding wage type entries in 558C.
The system validates the wage types against the Wage Type Valuation table
(T512W). Therefore, ensure that these wage types exist in the system before
starting your legacy payroll results transfer.

When you save your entries, the in built macro in the HR Template - Payroll.xls
file saves the two worksheets into separate tab-delimited text files (T558B.txt and
T558C.txt). Ensure that you save the file using the Save for transfer option
available in the worksheet 558B.

When saving text files to your local hard drive, the total path name must
not be longer than 128 characters, or the data conversion INLK Payroll
Tables T558B and T558C Upload program (HINUULKO), will not be
able to read the full path or filename.
When you select the Save for transfer option, any data existing earlier in
the same file is replaced with the new data that you have inserted. You
will not get any message or warning.
Data Load Program (HINUULK0) - This program reads the data saved in the two text (.txt)
files T558B.txt and T558C.txt, and uploads them into the SAPconversion tables. It saves
the data from the T558B.txt file into the Payroll Account Transfer: Payroll Periods table
(T558B) and data from T558C.txt file into the Payroll Account Transfer: Old Wage Types
table (T558C).

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Transfer of payroll account from Table 5558B,C – India schema (INLK) - When you run the
Payroll Driver HINCALCO with the special results Transfer of payroll account from Table
5558B,C – India Schema (INLK), the schema reads the conversion tables for pay period
and wage type information, and generates payroll result clusters.
The Transfer of payroll account from Table 5558B,C – India schema (INLK) utilizes a
function TRANS, during the conversion process. This function reads the wage type and
payroll period information from the conversion tables, and stores them in the internal
tables. The schema then further processes the information to form the payroll results. While
creating wage types in the internal tables, the function TRANS, assigns relevant country
specific split indicators to the wage types. You, thus, have the flexibility of capturing
configurations for Provident Fund, Professional Tax, Employee State Insurance and Labour
Welfare Fund, thereby enabling report generation.

The rules of the Transfer of payroll account from Table 5558B,C – India schema
(INLK) are applicable on the standard wage types of the SAP system. You must
copy and modify the same for your equivalent wage types.

Once the Transfer of payroll account from Table 5558B,C – India schema (INLK)
completes the conversion program, it is recommended that you verify the data for
accuracy. You can examine data for individual employees using the Cluster Display IN
(Payroll Results, India) program (HINCLSTR).
If the data is accurate, you may delete the data in the conversion tables, and load the
payroll results for the remaining legacy payroll periods. If there are errors in conversion
delete the payroll results and re-execute the data load process.
For more information, refer to the IMG under Payroll India  Legacy Data Transfer.
SAP recommends that you do not use the Transfer of payroll account from Table
5558B,C – India schema (INLK), after you have processed a regular payroll run in
the SAP system.
Post conversion processing

For all employees for whom you have uploaded the payroll results, you must set the
following to the Go-Live Date:
Earliest Retro Recalculation date
Earliest Master Data Change date
Earliest Master Data Change Bonus date

Termination Workbench

Purpose
This component helps in terminating an employee from the payroll.
The Termination Workbench computes the various types of payments due to, or payable by the
employee at the time of termination. For example, Gratuity, Superannuation, Leave Encashment
or any pending Reimbursable allowances.
The termination of employment may be due to the:
Resignation of an employee

Superannuation and Leave Encashment. the batch session delimits the infotypes configured for delimiting. Batch Input Monitoring transaction (SM35) – Using this transaction. Actions infotype (0000) – When an employee is terminated using the Termination Workbench. This transaction also creates a batch session for delimiting the infotype records. For more information on configuring the infogroup. When you execute the transaction. Personal IDsinfotype (0185) – Termination Workbench obtains the Gratuity and Superannuation Trust details for the employee from the infotype. Superannuation. Payroll – when you execute the payroll for the period in which the employee was terminated. Upon execution. refer to the IMG under Payroll India  Termination Workbench  Define Infogroups. Superannuation. Termination Workbench updates the payment records in the Additional Payments infotype (0015). the Termination Workbench delimits the employee in the Actions infotype (0000). Additional Paymentsinfotype (0015) – After the transaction is complete. the payroll processes the amounts payable at the time of termination.106 Retirement of an employee Voluntary retirement or premature retirement by an employee For information on setting up the Termination Workbench functionality in the SAP system. Termination Workbench determines the notice period for termination using this infotype. For example. you can execute the batch session created by the Termination transaction (PC00_M40_TERM). You can do this in the IMG under Payroll India  Termination  Create reasons for Personnel Actions. See also: Termination Workbench Definition . The payroll also calculates the applicable exemptions. Notice Pay. refer to the IMG under Payroll India  Termination Workbench.Using this transaction you can specify the details of employee Gratuity. Termination Workbench computes the relief on Voluntary Retirement Service benefit for the employee using the data maintained in this infotype. Date Specificationsinfotype (0041) – Where you maintain the date of Normal Retirement of the employee. Integration Contract Elements infotype (0016) – Where you maintain the details of the employment contract. Voluntary Retirement Services and Reimbursable Allowances. You can modify these amounts using the transaction. Gratuity. it updates the relevant wage types in the Additional Payments infotype (0015). You can set the Return Action Type for Termination Workbench feature (40TRM) for the Action Type to be defaulted in Actions infotype (0000) when the infotype record gets delimited. The updated amounts are disbursed to the employee through the payroll run. along with other components of the salary. amounts payable as Gratuity. The batch session also delimits the employee in the Actions infotype (0000). Notice Pay and Leave Encashment. Leave Encashment. Features The Termination Workbench comprises of the following processes: Termination transaction (PC00_M40_TERM). The transaction reads the relevant infotypes and determines the amounts payable to the employee. in the infogroup. between the company and the employee. For example.

You can select the method of payment in the Gratuity Payment as per POGA field. For example. including the Period of Notice. and then computes the total Notice Pay amount.107 Termination Workbench Computations Termination Workbench Definition Purpose This process describes the Termination Workbench configurations. Prerequisites You have maintained the details of the employment contract in the Contract Elements infotype (0016). Termination Workbench prorates the Notice Pay amount for the remaining days in the notice period based on the number of days in the month of leaving. 4.. Set the RAP Indicator in the table view Reimbursement allowances perks ... You can do so in the IMG under Payroll India  Reimbursements. Gratuity . and the Gratuity Trust to which the employee belongs. Allowances and Perks  Maintain Pay Scale Groups and Levels 3. Allowances and Perks  Maintain Wage Type Characteristics. configurations for calculation of Gratuity. Termination Workbench computes the Gratuity depending on the following: Whether Gratuity is payable according to the Gratuity Act or not. Superannuation or Notice Pay by the Termination Workbench. Maintain the Personal IDs infotype (185) and Gratuity for India subtype (03) You must maintain the Gratuity ID Number of the employee.. Set the Pay Scale Grouping for Allowances to Indirect Evaluation A for the Notice Pay wage type (MN00). You can do so in the IMG under Payroll India  Reimbursements. 1. Process Flow Notice Pay . 2. Allowances and Perks  Calculate Eligibility for RAP. under the . Termination Workbench calculates the Notice Pay for the employee using one of the following methods: Termination Workbench separately computes the prorated Notice Pay amount for every month remaining in the Notice Period. Specify the method of Notice Pay computation in the IMG under Payroll India  Termination Workbench  Calculation Method for Notice Pay. Termination Workbench uses this wage type as the basis for calculation of Notice Pay. 1.eligibility and calculation (V_T7INA9) to Notice Pay. Set the components for the Notice Pay basis salary in the IMG under Payroll India  Reimbursements.

Allowances and Perks  Assign Tax Code Limits to Wage Types. Termination Workbench computes the Superannuation payable to the employee at the time of termination. You can do so in the IMG under Payroll India  Reimbursements. Superannuation . set the tax code to SNGA. Set the RAP Indicator in the Reimbursement allowances perks . Configure the tax codes for Gratuity in the IMG under Payroll India  Tax  Tax Liability on Reimbursements. You can do so in the IMG under Payroll India  Reimbursements. Set the tax code to SAGA if the gratuity calculations are as per the Gratuity Act. You can configure the factor for computation of Superannuation in the IMG under Payroll India  Termination  Maintain Calculation Factor for Retiral Benefits. and the Superannuation Trust.eligibility and calculation table view (V_T7INA9) to Superannuation. 2. depending on the calculation factor for Superannuation. 5. Set the components of the basis salary for Gratuity in the IMG under Payroll India  Reimbursements. 1. Allowances and Perks  Maintain Valuation of Base Wage Types 4. Allowances and Perks  Maintain Wage Type Characteristics. You can do so in the IMG under Payroll India  Reimbursements. Set the Pay Scale Grouping for Allowances to Indirect Evaluation B for the Superannuation wage type. 3. Superannuation for India subtype (01) You must maintain the Superannuation ID Number of the employee. 3. else. Set the components of the basis salary for Superannuation in the IMG under Payroll India  Reimbursements. Allowances and Perks  Calculate Eligibility for RAP.108 Termination Payment Details screen of the Termination transaction (PC00_M40_TERM).. Allowances and Perks  Maintain Wage Type Characteristics. Allowances and Perks  Calculate Eligibility for RAP. Set the Pay Scale Grouping for Allowances to Indirect Evaluation B for the Gratuity wage types (MPG0) and (MPG1). . Termination Workbench uses this wage type as the basis for calculation of Gratuity.eligibility and calculation table view (V_T7INA9) to Gratuity. Termination Workbench uses this wage type as the basis for calculation of Superannuation. You can configure the factor for computation of Gratuity in the IMG under Payroll India  Termination  Maintain Calculation Factor for Retiral Benefits. Set the RAP Indicator in the Reimbursement allowances perks . Calculation factor for Gratuity. Maintain the Personal IDs infotype (185). You can do so in the IMG under Payroll India  Reimbursements. Allowances and Perks  Maintain Valuation of Base Wage Types 4. 2..

For example. 6. 5.. 1. Set the tax code for VRS to SVRS in the IMG under Payroll India  Tax  Tax Liability on Reimbursements. Medical Reimbursement is M211 and for Medical Insurance. Reimbursements . Set the Pay Scale Grouping for Allowances to Indirect Evaluation A for the Voluntary Retirement Services wage type (MVR0) . You can do so in the IMG under Payroll India  Reimbursements. . Set the components for the Leave Encashment basis salary in the IMG under Payroll India  Reimbursements. Allowances and Perks  Maintain Wage Type Characteristics. 4.eligibility and calculation table view (V_T7INA9) to Cessation Payment. Set the Pay Scale Grouping for Allowances to Indirect Evaluation A for the Leave Encashment wage type (MLE0) . Termination Workbench uses this wage type as the basis for Leave Encashment calculations. You can do so in the IMG under Payroll India  Reimbursements. Set the components for the VRS basis salary in the IMG under Payroll India  Reimbursements. Set the tax code for Leave Encashment to (SLEA) in the IMG under Payroll India  Tax  Tax Liability on Reimbursements. Allowances and Perks  Assign Tax Code Limits to Wage Types.. Allowances and Perks  Maintain Pay Scale Groups and Levels.. Set the Pay Scale Grouping for Allowances to Indirect Evaluation A for the Reimbursement wage types. You can do so in the IMG under Payroll India  Reimbursements. Maintain the retirement date for the employee in the Date Specifications infotype (0041).109 Leave Encashment . Termination Workbench uses this wage type as the basis for VRS calculations. 1. Set the RAP Indicator in the Reimbursement allowances perks . Voluntary Retirement Services (VRS) . 2. it is M212. 3.. 3.. Set the default amount for VRS in the IMG under the table view Pay Scale Groups (V_T510). Allowances and Perks  Maintain Wage Type Characteristics. Allowances and Perks  Calculate Eligibility for RAP. Set the RAP Indicator in the Reimbursement allowances perks . 1..eligibility and calculation table view (V_T7INA9) to Cessation Payment. Allowances and Perks  Assign Tax Code Limits to Wage Types. You can do so in the IMG under Payroll India  Reimbursements. 4. Allowances and Perks  Maintain Pay Scale Groups and Levels. Allowances and Perks  Calculate Eligibility for RAP. the model wage type for Leave Travel Allowance is M210. 2. Termination Workbench uses the retirement date for calculating the VRS tax exemption.

Set the tax codes for Reimbursable Allowances in the IMG under Payroll India  Tax  Tax Liability on Reimbursements.eligibility and calculation table view (V_T7INA9) to Reimbursement. Allowances and Perks  Calculate Eligibility for RAP. Termination Workbench uses this wage type as the basis for VRS calculations. and Medical Insurance is SMIN. Allowances and Perks  Maintain Pay Scale Groups and Levels. You can do so in the IMG under Payroll India  Reimbursements. including the Period of Notice. . For example. Allowances and Perks  Assign Tax Code Limits to Wage Types. 3. Set the components for the basis salary reimbursable allowances in the IMG under Payroll India  Reimbursements. Allowances and Perks  Maintain Wage Type Characteristics. Set the RAP Indicator in the Reimbursement allowances perks .  You have maintained the details of the employment contract in the Contract Elements infotype (0016).110 You can set the configurations in the IMG under Payroll India  Reimbursements. the tax code for Leave Travel Allowance is SLTA. See also: Termination Workbench Termination Transaction (PC00_M40_TERM) Termination Workbench Computations Termination Workbench Computations Purpose This process describes the computations performed by the Termination transaction (PC00_M40_TERM) while determining the amounts payable by or to the employee during termination. Prerequisites  You have set the configurations required for the Termination transaction PC00_M40_TERM. 4. Medical Reimbursement is SMED. Result The Termination transaction (PC00_M40_TERM) performs all computations based on the configurations that you have set. 2.

 Indirectly Evaluates the Basis amount for Gratuity.  Indirect Determines the Factor for Superannuation. For more information on configurations for Indirect Evaluations. the Termination Workbench:  Checks for the Number of Years of service entry on the Termination Payment Details screen. You can maintain the factor for Superannuation using the IMG under Payroll India  Termination  Maintain Factor for retiral benefits. refer to the Computations section. The payment of Gratuity can be as per the Gratuity Act or not as per the Gratuity Act. The method of computing the Basis for gratuity depends on the wage type you have configured in for the Gratuity tax codes. Gratuity While computing Gratuity.  Indirectly evaluates the Basis amount for Superannuation. maintained in the Personal IDs infotype (0185).  Checks for the Trust ID of the employee. the Termination Workbench:  Checks for the Continuous Years of Service entry on the Termination Payment Details screen. . Computations Termination transaction (PC00_M40_TERM) computes Superannuation using the formula: Superannuation = Basis amount obtained through Indirect Evaluation Multiplied by Factor that is maintained in the table view Factor for retiral benefits (V_T7INZ1) Multiplied by Continuous Years of Service maintained in Termination Payment Details screen Termination Workbench performs a similar set of computations for Superannuation and Gratuity. under Gratuity. refer to Evaluation.  Trust ID for the employee in the Personal IDs infotype (0185). For an illustration of the computations.111 Process Flow Superannuation While computing Superannuation. of the Termination transaction (PC00_M40_TERM).

You can configure the tax codes for Gratuity in the IMG under Payroll India Tax  Tax Liability on Reimbursements. you can set the:   Indirect valuation variant for gratuity wage type as B and the percentage for this wage type as 57. assign the Taxation as per gratuity act tax code (SAGA) to the Gratuity wage type (MPG0). You must set the fixed amount to zero in table view Reimbursement allowances perks . . Assign the Taxation as per non gratuity act tax code (SNGA) to the Gratuity wage type (MPG1). For configuring the calculation factor for Gratuity. gratuity is computed as: Gratuity = 15 days of gratuity per month (taken as 26 working days) Multiplied by Current basis salary Multiplied by Number of Years of service As the Termination Workbench computes Gratuity using a combination of the Indirect Evaluation configurations for the basis wage type and the Gratuity Factor. You can configure the components of the basis salary for Leave Encashment in the IMG under Payroll India  Reimbursements. Allowances and Perks  Assign Tax Code Limits to Wage Types. The computed amount is displayed against the Leave Encashment wage type (MLE0) in the Payments / Deductions section. in your company. based on the months that you specify in the Earned Leave Entitlement and Earned Leave Availed fields. in the table view Base Wage Type Valuation (V_T539J).69 (15/26). Allowances & Perks  Maintain Pay Scale Groups and Levels.  Factor to 100 in the table view Factor for retiral benefits (V_T7INZ1). Computations The Termination transaction (PC00_M40_TERM) computes Gratuity using the formula: Gratuity = Basis amount obtained through Indirect Evaluation Multiplied by Factor that is maintained in the table view Factor for retiral benefits (V_T7INZ1) Multiplied by Continuous Years of Service maintained in Termination Payment Details screen For example.  Determines the Factor for Gratuity. refer to the IMG under Payroll India  Termination  Maintain Calculation Factor for Retiral Benefits.  Leave Encashment The Termination transaction (PC00_M40_TERM) computes the amount payable to the employee as Leave Encashment.112 For example.eligibility and calculation (V_T7INA9).

The Notice Period is three months. For configuration details. Compute the prorated Notice Pay amount separately for every month remaining in the Notice Period and then compute the total Notice Pay amount. refer to the IMG under Payroll India  Reimbursements.113 Notice Pay There are two methods for computing the Notice Pay amount: . 1. Method 1 – Notice Pay = (Basic * Number of days of notice period not served in July / Number of days in July) + (Basic * Number of days of notice period not served in August / Number of days in August) = (16.. For example. Prorate the Notice Pay amount for the remaining days in the Notice Period. Voluntary Retirement Service (VRS) If you have specified the Reason for leaving as Voluntary Retirement in the Initial Entry screen. under the Payments / Deductions section. an employee resigns on 31st May. Allowances and Perks. 2. however.Notice pay = Basic * (Number of days notice period not served) / (No. Employee eligibility for reimbursable allowances is as per the settings Pay Scale Grouping for Allowances.000 * 16/31)+ (16. See also: . The system Indirectly Evaluates the VRS amount based on the default VRS amount. Reimbursable Allowances Termination Workbench determines the amount payable to the employee as a reimbursable allowance. based on the number of days in the month of leaving. Of days in month of leaving) = 16000 * 47/31 = 24258. based on:     Employee eligibility Amount already claimed by the employee The Termination transaction (PC00_M40_TERM) displays the reimbursement wage types in the Terminal Details screen.. You can store a default VRS amount through the IMG under Payroll India  Reimbursements. According to company policy only the Basic Salary is used for computing the Notice Pay. Allowances and Perks  Maintain Pay Scale Groups and Levels. the employee decides to leave on 15th July.258.000 * 1) = 24. the Payments / Deductions section will display the VRS amount against the VRS wage type.06 Method 2 .06 You configure the method to be used in the IMG under Payroll India Termination Workbench  Calculation Method for Notice Pay. Termination Workbench computes Notice Pay for the employee and displays the computed amount in the Termination Payment Details screen only when you select the Reason as Resignation in the Initial Entry screen.

. In the SAP system.81 percentage of the monthly basis salary of the employee. to which you are contributing for employee gratuity. Gratuity is generally applicable to employees who have been in service for a minimum stipulated period. Integration  Payroll Process – Employee gratuity is computed by the system as a part of the regular payroll process. and the name of the trust.  Income Tax – As gratuity is taxable partially. Personal IDs infotype (0185).. The employer regularly contributes towards a gratuity trust. you maintain the employee Identification Number for Gratuity.114 Termination Workbench Gratuity Purpose This component is used to process employee gratuity. 2. Gratuity received by an employee is taxable partially.. 1972 – Where the minimum amount that you need to contribute towards gratuity is 4. Gratuity is a statutory benefit provided by an employer on cessation of employee services. 1. to provide for payment at the time of cessation of services. you can configure the payment of Gratuity as per one of the following methods:  Payment of Gratuity Act. Gratuity for India subtype (03) In this subtype. See also: Gratuity Definition Gratuity Process Gratuity Definition Purpose This process describes the configurations necessary for the Gratuity functionality. Gratuity Listing report (HINCGRY0) Using this report you can generate a Gratuity list.  Termination Workbench – This functionality computes the gratuity payable to an employee at the time of cessation of employment. Features . This list details an employee wise contribution towards a gratuity trust.  Company policy – When the company policy provides gratuity benefits that are better than the benefits provided as per the Gratuity Act.

You can do so by copying the following default wage types:       /3G1 – Stores the monthly gratuity contribution /3G2 – Stores the annual gratuity contribution /3G3 – Stores the sum of splits in the gratuity period 3. 2. the system checks the min. displays options as per the Trust IDs that you have configured in this IMG activity. 4. Specify the minimum number of years that the employee must work in the company. .. go to the IMG under Payroll India  Retirement Benefits  Maintain Gratuity Trust ID The Personal IDs infotype (0185) Gratuity for India subtype (03). of years constant (GRTYR). If the rate of gratuity provided by the company is higher. Specify the percentage of gratuity basis that the system must use for gratuity computations. The Gratuity Basis wage type (/116) stores the basis for gratuity. To specify the percentage. compute gratuity as per the company rules. go to the IMG under Payroll India  Retirement Benefits  Define Contribution Rates for Gratuity. Add the customer specific wage types to the To check whether Gratuity contributions took place rule (INGR).. refer to the IMG under Payroll India  Retirement Benefits  Maintain Gratuity Contrib. You must define the name of the trust.115 Prerequisites  You have configured the Pay Scale Grouping for Allowances for the employees. For more information. the system will instead. Cumulations. Process Flow . you have the option of creating customer specific wage types for gratuity. Freq. to become eligible for gratuity.. then you must: . Configurations for Retrospective Calculation If you have created customer specific wage types. go to the IMG under Payroll India  Retirement Benefits  Maintain the Eligibility Years for Gratuity. Contributions to gratuity can be on a monthly or on an annual frequency. no. for eligibility. This configuration is required for the system to identify employee eligibility for gratuity. and Evaluation Classes (V_512W_D). While processing payroll. Define the types of gratuity contribution and the wage types associated with the different types of gratuity contributions. which you maintain using this IMG activity. Define the trust(s) in which your company maintains employee gratuity amount.  You have configured the wage types that form the Gratuity basis through the table view Processing Classes. 1. and the Trust ID To do so.. In the IMG activity. 1. and Related Wage Types. To specify the minimum number of years of service criteria. The system calculates gratuity as per the Gratuity Act.

Cumulations. Add the customer specific wage types to the Passing wage types from ORT to IT for Gratuity Retro rule (IN51)..116 During retrospective calculations. 2. based on this rule. To add the wage types to the To check whether Gratuity contributions took place rule (INGR). during the retrospective payroll run. The Gratuity Basis wage type (/116) stores the gratuity basis amount. You might have already contributed towards gratuity in the previous payroll run for the period. 1. You can maintain the value in the constant through the IMG under Payroll India  Retirement Benefits  Maintain the eligibility years for Gratuity. Eligibility of the employee towards gratuity is as per the Pay Scale Groupings for Allowances.. go to the IMG under Payroll India  Retirement Benefits  Check for Gratuity Contribution. go to the IMG under Payroll India  Retirement Benefits  Maintain Wagetypes to be passed during Retro Runs. you can set a rule that the employer need not contribute again. the SAP system: . to become eligible for gratuity.  You have maintained employee records in the Personal IDs infotype and Gratuity for India subtype (003). or on an annual basis. and the system makes use of the Determine Gratuity eligibility rule (ING0) to read this constant. To add the wage types to the Passing wage types from ORT to IT for Gratuity Retro rule (IN51). Gratuity Process Purpose This process describes the gratuity calculations performed by the system during a payroll process. Process Flow While processing gratuity contributions during a payroll run. The system also performs a check on the minimum number of years of service that the employee should have put in. and Evaluation Classes (V_512W_D). You can set the annual contribution towards gratuity to either a financial year or a calendar year. . The Number of Gratuity years constant (GRTYR) in the table view Payroll Constants (V_T511K). Checks the eligibility of the employee towards gratuity. 2. stores the value for the minimum number of years. In this case. Checks the Type of Contribution (Yearly or monthly) The company may contribute towards Gratuity on a monthly basis.  You have configured the wage types that form the basis for gratuity contributions in the table view Processing Classes. the system either imports or does not import the gratuity wage types from the previous results. Prerequisites  You have set the configurations necessary for the functioning of Gratuity in the SAP system: You can configure the functionality using the IMG under Payroll India  Retirement Benefits  Gratuity.

Computes the gratuity amount. Define the trust(s) in which your company maintains employee gratuity amount. the system will compute 4. 1. Computation of the basis for gratuity depends on the Type of Contribution. This configuration is required for the system to identify employee eligibility for gratuity. as the employer contribution towards gratuity. but will take the amount into consideration only at the end of the gratuity period. . and the Trust ID To do so. 3.  You have configured the wage types that form the Gratuity basis through the table view Processing Classes. The system can compute the gratuity every month. Process Flow . For example. During computations. the system checks the table view Gratuity Details Maintenance (V_T7ING1) for the value configured. displays options as per the Trust IDs that you have configured in this IMG activity. The Grat Contrib ...81 percentage of the gratuity basis. and computes gratuity accordingly. use the IMG activity under Payroll India  Retirement Benefits  Maintain Gratuity Frequency of Contribution and Related Wage Types. you have maintained the gratuity contribution amount as 4. You must define the name of the trust. and store the amount in the Grat Contrib -monthly wage type (/3G1). for every split and then store the sum of all the splits in the Grat Prov – sum of split wage type (/3G3). If there are splits in the gratuity period.  Annual – The system will compute gratuity only at the end of the gratuity period. The Gratuity Basis wage type (/116) stores the basis for gratuity. If the contribution type is:   Monthly – The system will compute gratuity every month.annual Wage Type (/3G2) stores the annual gratuity contributions.81 percentage of the gratuity basis.117 To set the Type of Contribution. Prerequisites  You have configured the Pay Scale Grouping for Allowances for the employees.  See also: Gratuity Gratuity Configuration Exemptions on Gratuity Gratuity Definition Purpose This process describes the configurations necessary for the Gratuity functionality. go to the IMG under Payroll India  Retirement Benefits  Maintain Gratuity Trust ID The Personal IDs infotype (0185) Gratuity for India subtype (03). the system will create a provisional Grat Prov-split period Wage Type (/3G0). if in the table. and Evaluation Classes (V_512W_D). Cumulations.

the system will instead. Add the customer specific wage types to the Passing wage types from ORT to IT for Gratuity Retro rule (IN51). During retrospective calculations. In this case. compute gratuity as per the company rules. Freq. To add the wage types to the Passing wage types from ORT to IT for Gratuity Retro rule (IN51). go to the IMG under Payroll India  Retirement Benefits  Define Contribution Rates for Gratuity.. For more information. To specify the minimum number of years of service criteria.118 The system calculates gratuity as per the Gratuity Act. to become eligible for gratuity. 1. no. 4. 2. go to the IMG under Payroll India  Retirement Benefits  Maintain Wagetypes to be passed during Retro Runs. you have the option of creating customer specific wage types for gratuity. go to the IMG under Payroll India  Retirement Benefits  Maintain the Eligibility Years for Gratuity. which you maintain using this IMG activity. 2. . Specify the minimum number of years that the employee must work in the company. the system either imports or does not import the gratuity wage types from the previous results. Define the types of gratuity contribution and the wage types associated with the different types of gratuity contributions. In the IMG activity. during the retrospective payroll run. If the rate of gratuity provided by the company is higher.. You can do so by copying the following default wage types:       /3G1 – Stores the monthly gratuity contribution /3G2 – Stores the annual gratuity contribution /3G3 – Stores the sum of splits in the gratuity period 3. To add the wage types to the To check whether Gratuity contributions took place rule (INGR). and Related Wage Types. based on this rule. Add the customer specific wage types to the To check whether Gratuity contributions took place rule (INGR). the system checks the min. of years constant (GRTYR). You might have already contributed towards gratuity in the previous payroll run for the period. To specify the percentage. you can set a rule that the employer need not contribute again. for eligibility. Contributions to gratuity can be on a monthly or on an annual frequency. refer to the IMG under Payroll India  Retirement Benefits  Maintain Gratuity Contrib. Specify the percentage of gratuity basis that the system must use for gratuity computations. Configurations for Retrospective Calculation If you have created customer specific wage types. go to the IMG under Payroll India  Retirement Benefits  Check for Gratuity Contribution. then you must: . While processing payroll.

Termination/retirement period is before the Gratuity payment period but the Gratuity payment is made in a financial year. Gratuity contribution taxationpayroll function (INGTX) computes the exemption on gratuity as a minimum of the following three factors: . Also. Section 89(1) Relief on the Gratuity is given to the employee. Exemption on gratuity is available in cases of: Termination Retirement In both termination and retirement. the employee was terminated in February 2003. In this case. while computing exemptions on Gratuity. in which the actual payment is made. In this case. computes the exemptions on the gratuity.119 Exemptions on Gratuity Purpose This section describes the process followed by the SAP system... Gratuity payments received Tax limit Number of months of salary for every completed year of service Gratuity payments received Gratuity contribution taxationpayroll function (INGTX) checks the internal table for the Gratuity wage types and obtains the Gratuity amount. which is after the termination/retirement year. instead the employee gets Section 89(1) Relief on the Gratuity payment. Process Flow Gratuity contribution taxationpayroll function (INGTX). the employee does not get Gratuity exemption. The Termination Workbench computes the Gratuity amount and stores the wage type for Gratuity in the Additional Payments infotype (0015). For example. Exemption on Gratuity is not given in the following cases: Gratuity payment period is before the Termination/retirement period. received by an employee at the time of termination or retirement. Gratuity payment is made to the employee in June 2004 with effect from March 2003. the payment is made with effect from a period (falling in a year before the financial year). This wage type stores information . exemption is given on Gratuity in the following cases: Termination/retirement period is the same as the Gratuity payment period Termination/retirement period is before the Gratuity payment period in the same financial year or another financial year. All payments made after termination/retirement are exempted from tax subject to the Gratuity exemption limit.

You can also directly enter the Gratuity amount in the Additional Payments infotype (0015). It also determines the eligibility for gratuity through Pay Scale Grouping for Allowances from the table view Reimbursement Allowances Perks .120 on the amount (in the amount field BETRG) and the number of months of gratuity paid (in the number field ANZHL). the Processing request for additional payments function (P0015) reads the Additional Payments infotype (0015) and stores the wage type for Gratuity in the internal table (IT). Gratuity is an option under the Reimbursement/ allowance/perk indicator field. For more information. Tax limit Gratuity contribution taxation payroll function (INGTX) checks for the maximum amount of gratuity that can be exempt from tax. After identifying the wage type. see Gratuity. .  As per company policy When the gratuity paid by the company is higher than the limits set by the Payment of Gratuity Act. associated with the tax code SNGA or SAGA. received an exemption on the gratuity amount. Gratuity payments can be of two types:  As per the gratuity act In this case. the Gratuity contribution taxation payroll function (INGTX) checks for these wage types in the internal table. The maximum limit is as specified by the authorities. You can view the tax limit for the tax code SAGA using the table view Taxability of wage types (V_T7INT9). Ensure that you have configured the eligibility wage types (MPG0 and MPG1) as Gratuity. the Gratuity contribution taxation payroll function (INGTX) will reduce the maximum limit on exemption by the amount already availed. If the employee. Gratuity contribution taxation payroll function (INGTX) checks the internal table for the gratuity wage type that is associated with the tax code SAGA.eligibility and calculation (V_T7INA9). in any previous employment. Gratuity contribution taxation payroll function (INGTX) checks for the gratuity wage type associated with the tax code SNGA. To identify the tax codes for gratuity and the gratuity wage types associated with the two tax codes.eligibility and calculation (V_T7INA9). Gratuity received wage type (MPG1) is the model wage type for the gratuity paid as per company policy. the Gratuity contribution taxation payroll function (INGTX) checks the table view Taxability of wage types (V_T7INT9). During payroll processing. in the table view Reimbursement Allowances Perks . Gratuity recieved wage type (MPG0) is the model wage type for gratuity payments as per the gratuity act. In this case.

121 You can maintain the Gratuity exemption. The value of this factor can be as per the company policy. This factor is as defined by the Gratuity Act. Payment as per Company Policy If the payment of gratuity is as per company policy. and it makes use of the Last nominal basis rule (INLN) to obtain this value. the system computes gratuity as the product of:  No. The Current nominal basis wage type (/129) stores the monthly basis salary for Gratuity. which is equal to K2. divided by ten. you can enter the same through the Additional Payments infotype (0015). K2 is the constant (GRYTX) in the table view Payroll Constants (V_T511K). The No. Latest Nominal Basis Gratuity contribution taxation payroll function (INGTX) takes the last nominal basis as the current nominal basis. preceding the period of termination or retirement. of years of service The system computes this in a manner similar to that for the Payment as per Gratuity Act.  Multiplication Factor for gratuity. The value is as specified by the authorities. stored in the table view Payroll Constants (V_T511K). gratuity is computed as the product of:    No. claimed in a previous employment using the Previous Employment Tax Details infotype (0580). Number of months of salary for every completed year of service Payment as per Gratuity Act In this case. The Gratuity Exemption wage type (/4V8) stores the previous exemption amount. Ensure that you pass the wage type for average salary as the first parameter (param 1). of years of continuous service – The termination workbench calculates the number of years of service based on the employment Start Date and End Date. to the Gratuity contribution taxation payroll function (INGTX). In the Termination Workbench. you have the option of overwriting the value computed by the Termination Workbench. salary constant (GRAVS) of table view Payroll Constants (V_T511K) stores the pre-defined number of months for computing the Average Monthly Salary. of months for avg. Multiplication Factor for gratuity. You can . which is equal to (K1 * 12) / 1000 K1 is the 1000*Stat Gratuity contrb perc constant (GRYCO). Average Monthly Salary The system computes the Average Monthly Salary as the average of the basis salary for a pre-defined number of months. If basis salary data for the required number of months is not available in the SAP system.

To give this benefit to an employee. the employer contributes to a Superannuation trust on a monthly or yearly basis. After selecting the minimum of the three exemption factors. Gratuity contribution taxation payroll function (INGTX) generates the Gratuity Cont. The Processing the last results table payroll function (PLRT) makes use of the B/F Termination related exemptions for Payroll after termination rule (INTT) to import the results. the system computes the Superannuation and stores the results in provisional wage types. in which you are contributing for Superannuation.  Superannuation report (HINCSAN0) . Superannuation Purpose This component is used to process Superannuation for an employee.122 use the model wage type Avg sal pre-instln wage type (MLIN) to create the wage type for average salary. There is no similar contribution from employee. you maintain the Identification Number of the employee and the name of the trust. During a regular payroll run. Result When you process the payroll for the employee in a period after termination/retirement. The system does not make any changes in the imported results. The rule checks the Last Results Table (LRT) for the gratuity wage types and imports them into the current period. the system will import the Gratuity exemption results. Exemption wage type (/4E8). Integration  Payroll Process Superannuation contributions are computed by the system as a part of the regular payroll process  Termination Workbench The Termination Workbench computes the Superannuation payable to an employee at the time of termination of employment. Superannuation is a benefit provided to an employee on cessation of employee services. from the termination/retirement period into the period under consideration. in which it stores the current exemption on Gratuity. This component does not form a part of the monthly pay slip and is not taxable. Features The Superannuation component comprises:  Personal IDs infotype (0185) Superannuation for India subtype (01) In the subtype.

To specify the percentage. go to the IMG under Payroll India  Retirement Benefits  Maintain Superannuation Trust ID. for a specified period. The Superannuation Basis wage type (/117) stores the basis amount for superannuation. Cumulations.  You have configured the wage types that form the basis for Superannuation. go to the IMG under Payroll India  Retirement Benefits  Define Contribution Rates for Superannuation. in the table view Processing Classes. For more information. and the Trust ID To do so. . Process Flow 1. This list gives an employee wise contribution towards a Superannuation trust.annual (/3S2) – Stores the annual superannuation contribution  San Prov . you have the option of creating customer specific wage types for Superannuation. The Superannuation ID field of Personal IDs infotype (0185) Superannuation for India subtype (01). You can do so by copying the following default wage types:    3.123 Using this report you can generate a Superannauation List. In the IMG activity. Freq. and Related Wage Types. San Contrib -monthly (/3S1) . and Evaluation Classes (V_512W_D). See also: Superannuation Configuration Superannuation Configuration Purpose This process describes the configurations for Superannuation.sum of split (/3S3) – Stores the sum of splits in the superannuation period  Specify the percentage of the Superannuation basis that the system must use for superannuation computations. Prerequisites  You have configured the Pay Scale Grouping for Allowances for the employees. You must define the name of the trust. Define the trust(s) in which your company maintains the Superannuation amount. and the wage types associated with the different types of contribution. displays options as per the Trust IDs that you have configured in this IMG activity. 2.Stores the monthly superannuation contribution  San Contrib . This configuration is required for the system to identify employee eligibility towards Superannuation. Define the types of contribution for Superannuation. Contributions to Superannuation can be on a monthly or on an annual frequency. refer to the IMG under Payroll India  Retirement Benefits  Maintain Superannuation Contrib.

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4.

Specify the criteria under which an employee becomes eligible for Superannuation.
The processing of Superannuation depends on processing of Bonus also. If an employee
has received a bonus, you can specify whether the system must calculate superannuation
for the employee in the same payroll period.
Using the Superannuation processing feature (40SAN), you can configure the criteria
under which an employee becomes eligible for superannuation, in case of a bonus
payment. You can configure the feature using the IMG under Payroll India  Retirement
Benefits  Maintain Eligibility Details for Superannuation.

Configurations for Retrospective Calculation

If you have configured customer specific wage types in the table view SuperannuationWagetype Details (V_T7INS5), then you must:
...

1. Include the customer specific wage types to the To check whether Superannuation
contributions took place rule (INSN).
During a retrospective calculation, based on this rule, the system either imports or does not
import the superannuation wage types from the previous results.
To include the wage types to the rule, go to the IMG under Payroll India  Retirement
Benefits  Check for Superannuation Contributions.
2. Include customer specific wage types to the Passing wage types from ORT to IT for
Superannuation Retro rule (IN52).
You might have already contributed towards superannuation in the previous payroll run for
the period. In this case, you can set the rule such that the employer need not contribute
again, during the retrospective payroll run.
To include customer specific wage types to the rule, go to the IMG under Payroll India 
Retirement Benefits  Maintain Wagetypes to be passed during Retro Runs.

See also:
Superannuation

Print Program for Form 24

Use
This function enables you to print, for the selected employees, the following parts of
Form 24 and Form 24Q:
...

Details of Salary Paid and Tax Deducted thereon from the Employee
This part displays the income, deductions and tax details of the selected employees for the
financial year.
Annexure
The annexure displays the particulars of perquisites and amount of accretion to Employee's
Provident Fund Account for the financial year.

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Form 27A (only for Form 24)
This is a coversheet for the e-filing of Form 24. This has to be submitted to the tax office in
a physical form.
An electronic copy of Form 24 has to be submitted by the employer to the tax office before May
31 for the preceding financial year, example, before May 31, 2004 for the financial year
2003 - 2004.
If you have implemented the SAP Payroll across a group of companies, and you have
employees who have worked in more than one of these companies within a financial year
or a quarter, you can list their details for the period of his/her employment in Form 24 or
Form 24Q of each of these companies. This happens only when you enable Multiple Form
16.
If an employee has been with a Group for discontinuous periods, in the same financial year
or a quarter, the employee will be listed in Form 24 or Form 24Q of the Group for each
continuous employment with the Group. For example, an employee has been with:



Group 1 of ABC between April 1, 2001 - July 31, 2001
Group 2 of ABC between August 1, 2001 - December 31, 2001
Group 1 of ABC between January 1, 2002 - March 31, 2002
In this case, the employee will be listed twice in the Form 24 of Group 1 and once in the
Form 24 of Group 2.

Integration
The report reads the:
PAN, TAN and the GIR of the employer through the Feature to return Employer ITax related
data (40ECC). To maintain this feature, go to the IMG under Payroll India  Tax  Basic
Settings  Maintain Feature to Return Employer IncomeTax Related Data.
PAN/GIR Number of the employee from the Personal Ids infotype (0185) 0002 subtype.
Results Table for the income, deductions and tax details of the selected employees, for the
financial year.

Prerequisites
For Form 24, you must have the payroll results for all the periods in the financial year, for
which, the employees have been with your organization.
For Form 24Q, you must have the payroll results for all the periods in the quarter, for
which the employees have been with your organization.

Features
It is mandatory to enter the Company Code of the employee.
If you enter the Personnel Area, Personnel Subarea or Payroll Area, the report reads all
records that exist for that Personnel Area, Personnel Subarea or Payroll Area only.
For Form 24, you have to enter the financial year for which the report is valid. In the printed
report, the Date from which employed during the financial year field displays either the
financial year begin date or the date on which the employee joins the organization,
whichever is later. The Date upto which employed during the financial year fielddisplays
either the financial year end date or the date on which the employee leaves the
organization, whichever is earlier.
For Form 24Q, you have to enter the financial year and the quarter in that financial year for
which the report is valid. In the printed report, the Date from which employed field displays

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either the quarter begin date or the date on which the employee joins the organization,
whichever is later. The Date upto which employed field displays either the quarter end date
or the date on which the employee leaves the organization, whichever is earlier.
Specify whether you want to generate Form 24 or Form 24Q in the Quarter field. If you want to
generate Form 24Q, specify the quarter (1 - 4) for which you want to generate the form. If
you want to generate Form 24, leave this field blank.
In the Personnel No. of Person Resp. field, you must enter the Personnel Number of a person
from your organization. The report reads the master data records of this person for the
required details. This person has to sign on the form.
If the address of the employer has changed since the last time that the employer has filed tax
returns, select the Change in Addr. of Employer indicator.
If the address of the person responsible has changed since the last time that the employer has
filed tax returns, select the Change in Addr. of Person Resp. indicator.
Indicate whether the type of employer filing Form 24 or Form 24Q is a Government
organization or not.
Enter the Employer Branch/Division. The system prints this on Form 24 or Form 24Q, and
Form 27A.
Enter the Report Date and the Report Place. The information that you enter is printed on the
form.
When you run this report, data that is printed under Details of Salary Paid and Tax Deducted
thereon from the Employee section of Form 16 is exported to the TemSe file. Print program
for form 16 report (HINCF160) reads this data from the TemSe file. Every time you run the
Form 24Q report for the same selection, the system updates the existing TemSe file.

Select the TemSe File (Test) indicator during the test run of the report. Print
Program for Form 16 report (HINCF160) does not read the TemSe file
records that are generated during a test run.
Do not select TemSe File (Test) indicator during the final run. If you run the
report again after the final run, you will get a warning message that the
TemSe file record of selected employee for the selected period will be
overwritten. You can decide to continue with the run or you can cancel the
run.

The naming convention of the TemSe file that is exported is: HR_INaabb_**********.
Here, aa = last two digits of the year, bb = quarter (01 - 04) and the 10 *s indicate
the system generated sequence number for the TemSe objects. You can see these
objects through transaction SP11.
You can:

In case of Form 24 and Form 24Q for the last quarter, view the following lists in
the ALV format and download them as worksheets:
 Deductee wise details of TDS
 Salary and Income Tax Details
 Perquisite Details
In case of Form 24Q for the first three quarters, view the Deductee wise details
of TDS in the ALV format and download it as worksheet

. You can access this BAdI in the IMG under Payroll India  Other Reports  Form 16 and Form 24  BAdI: Determine Address of Employer Based on Different Parameters. You can total the different sub components of salary or tax to enter the challan details. You can select the appropriate options on the Application tool bar to display the following lists: 3. Perquisite Details of each employee for the last quarter or for the financial year. Salary and Income Tax Details of each employee for the last quarter or for the financial year. Enter the Company Code. You can access this BAdI in the IMG under Payroll India  Other Reports  Form 16 and Form 24  BAdI: Calculate Taxable Income of the Employee for Form 24Q Reporting. . You can select the appropriate options on the Application tool bar to display the Deductee wise details of TDS or Salary and Income Tax Details from this screen. Print Form 27A You are provided with the following Business Add-Ins (BAdI):  HR_IN_ER_ADDRESS – This BAdI can be used to determine the name and the address of the employer. choose Print Form 27A. The details that you enter are printed on Form 24 and Form 24Q.127 1. Choose Challan Details option. which is printed on Form 24 or Form 24Q. The system lists down the Deductee wise details of TDS for each employee in the different payroll periods. The Print Program for Form 24 screen appears. Enter the User Parameters. Download e-file for Form 24 and Form 24Q 2. Enter the details of the tax paid You can use the details displayed on the screen.  HR_IN_F24Q_TXBL_INCM – This BAdI can be used to calculate the monthly Taxable Amount to be printed on Form 24Q. You can download the lists mentioned above in the form of worksheets by selecting the Spreadsheet option from the Application tool bar. based on parameters other than the standard. You can select the appropriate options on the Application tool bar to display the Deductee wise details of TDS or Perquisite Detailsfrom this screen. Activities . Enter the relevant selection criteria. choose Human Resources  Payroll  Asia/Pacific  India  Subsequent Activities  Annual  Legal Reports  Income Tax  Form24. From SAP Easy Access menu. 4.. To print a copy of Form 27A. Save the Challan Details. Choose Program  Execute.

the system downloads Form 24Q Print Program for Form 16 Use This function enables you to print for a financial year. Details of Salary Paid and Any Other Income and Tax Deducted This section displays the income. 16 This report displays.. deductions and tax details of the employee for the financial year.. 12BA This report is a statement showing particulars of:    Perquisites Other fringe benefits or amenities Profits in lieu of salary . Details of Tax Deducted and Deposited into Central Government Account This section displays the:  Tax Deducted at Source (TDS)  Surcharge  Education Cess  Total Tax Deposited  Cheque/DD No. if you have entered:  1. choose Download e-File for Form 24. On the selection screen. (if any)  BSR Code of Bank Branch  Date on Which Tax Deposited  Transfer Voucher/Challan Identification Number The two sections mentioned above form the main part of Form 16.4) as the Quarter. for an employee. The following two reports are also printed along with Form 16: Annexure to Form No. Annual (blank) as the Quarter. the following sections of Form No.128 To download the electronic copy of Form 24 or Form 24Q. the amounts for the different components of:     Emoluments Paid Perks Income from Other Sources declared by the employee and processed in the payroll runs Exemptions u/s 10 Form No. and the Annexure in the form of a text file. 16 and Form No. the system downloads Form 24 One of the quarters (1 . 16AA: .

You must have assigned an employee to a Tax Grouping according to his/her Personnel Area and Personnel Subarea. You must have defined the Tax Groupings. PAN Number. for which. To do this. 16AA is printed for employees for whom both of the following conditions are fulfilled: 1. you should not revert it.000 2.March 31. If an employee has been with the same group for discontinuous periods in the same financial year. 2002. 3. you can issue separate Form 16 to an employee for the period of his or her employment in each of these companies. Do not have any income from other sources to be processed by the SAP payroll 1. go to the IMG under Payroll India  Tax  Basic Settings  Maintain Feature to Return Employer IncomeTax Related Data. 2. Once you have enabled Multiple Form 16. 1. go to the IMG under Payroll India  Tax  Basic Settings  Assign Tax Groupings for Personnel Areas and Subareas. To configure this feature. the employee will get a separate Form 16 for each continuous employment with a Group. 2001 . 2002 . PAN/GIR Number of the employee from the Personal Ids infotype (0185) 0002 subtype. Have an annual income less than INR 150. 1. . 2002. go to the IMG under Payroll India  Tax Basic Settings Define Personnel Area and Subarea Groupings for Tax. 2001 .129 A copy of the Form 16 is given to the employee by the employer at the end of the financial year or on termination of the employee. two from Group 1 and one from Group 2. TAN and the GIR of the employer through the Feature to return Employer ITax related data (40ECC). Form No. For example. you can enable Multiple Form 16 from the beginning of the financial year. 2001 Group 2 of ABC between August 1. Prerequisites 1. To do this. Integration The report reads the: 1. 2001 Group 1 of ABC between January 1. example. from April 1. 16AA contains a Header and a Footer. You must have the payroll results for all the periods in the financial year. In this case. an employee has been with:    Group 1 of ABC between April 1. the employee has been with your organization. If you are already live with the SAP Payroll.December 31. TDS Circle address from the table view Personnel Subarea grouping for Tax (V_T7INT5). and assigned a TDS Circleand Payee Key to a Tax Grouping.July 31. the employee will get three separate Form 16. Multiple Form 16 If you have implemented the SAP Payroll across a group of companies. Form No.

Set the value of this Global Field to the begin date of the financial year. To do this. To capture the tax on non-monetary perquisites. If you want Original Document to be printed on the report. you want to enable Multiple Form 16 in your organization from April 1. based on parameters other than the standard. whichever is earlier. You must have maintained the Employee Address constant (ADDSS) of table view Payroll Constants (V_T511K). The system reads the TemSe file that is generated by the Form 24Q report to print the data in the Details of Tax Deducted and Deposited into Central Government Account section of Form 16. you must set the Global Field Value to 20020401. go to the IMG under Payroll India  Other Reports  Form 16 and Form 24  BAdI: Determine Address of Employer Based on Different Parameters. For example. you must enter the name of a person from your organization. Once you have activated this Global Field value. To implement this BAdI. go to the IMG under Payroll India -> Other Reports -> Form 16 -> Maintain the Addresss to be Printed on Form No. 2. you must have implemented the Business Add-In (BAdI). This person has to sign against his or her name on the form. 5. Features 1. HR_IN_TAX_EMPLOYER. 1. In the Implementation Guide for Customizing (IMG). which is printed on Form 16. 1. To implement this BAdI. The To date displays either the financial year end date or the date on which the employee leaves the organization.. whichever is later. Create the Global Field for the PIN_MUF16 data element. . if the employer pays this tax on behalf of the employee. you must not revert it. Personnel Subarea or Payroll Area. Select Payroll  India in the Application Component Hierarchy. It is mandatory to enter the Company Code of the employee. 16AA. 3. The name of this person will appear at the bottom of the form. If you enter the Personnel Area. you must have implemented the following in all the systems and all the clients: . To determine the name and address of the employer. select the Original Document indicator. the report reads records for all employees that exist for that Personnel Area. In the Person Responsible field. the From date displays either the financial year begin date or the date on which the employee joins the organization. In the printed report. HR_IN_ER_ADDRESS. Personnel Subarea or Payroll Area only.130 2. To enable Multiple Form 16. you must have implemented the Business Add-In (BAdI). go to the IMGunder Payroll India  Other Reports  Form 16 and Form 24  BAdI: Tax on Non Monetary Perk Paid by Employer for Form 16 Reporting. You must have executed the Print program for form 24 report (HINCF240). 3. go to General Settings  Field Display Characteristics  Global Field Display Characteristics  Preallocate global field values. 4.. 2002. This tax amount is printed on Form 16 under point 16b (Tax paid by the employer on non-monetary perquisites u/s 192(1A) on perquisites u/s 17 (2)). You have to enter the financial year for which the report is valid. In this case. from which you want to enable Multiple Form 16. 2.

Enter the Footer Text. in the File Path field. 8. Enter the User Parameters. you can leave the File Path field blank. In this case. You can enter the text to be printed at the footer of the report in the Free text for footer field. enter the path where the file is stored in your local machine. From SAP Easy Access menu. Enter the Company Code. The Print program for Form 16 screen appears. select the Execute the Standard Form indicator.. 9. The TemSe files. Activities . For details see Tax Deducted and Deposited into Central Government Account. may not exist for a quarter. Choose Program  Execute. 16AA for the employee. which are generated by the Print program for form24 report (HINCF240). Enter the relevant selection criteria. Enter the Date of Payment and the Bank where tax is deposited details for the 12 regular payroll runs. Upload the worksheet with the tax data for the relevant quarter. You can create your own layout through transaction SE71. You can execute either of the following so that the details are printed in the Details of Tax Deducted and Deposited into Central Government Account section of Form 16: 1.131 6. If you do not want to print the form in the layout given by SAP. if required. You must not have selected the TemSe File (Test)option on the selection screen of Print program for form24 report (HINCF240) while generating Form 24Q. If you want the system to print the standard Form No. select Customer Layout and enter the name of the layout created by you. The Form 16 report does not read the TemSe files that are generated as test runs. 2. . 7. choose Human Resources  Payroll  Asia/Pacific  India  Subsequent Activities  Annual  Legal Reports  Income Tax  Form16. The data in this worksheet is given preference over the data in the TemSe file. In this case. 16 instead of Form No. Generate Form 24Q again for the the relevant quarter. Enter the Output Format..

in case multiple records exist. if the salary of an employee (who was employed for the complete duration of the reporting period) exceeds the amount maintained in this constant. the salary details of the employee for that period is printed in Form 217 (2A). HR_IN_PERCENT_SHARES. You can configure this Add-In in the IMG under Payroll India  Other Reports  Form 217 (2A)  Add-In: Percentage Share Held by Employee. You can configure these constants through the IMG under Payroll India  Other Reports  Form 217 (2A)  Maintain Minimum Salary of Employees for 217 (2A) Printing. This is a statutory report.132 Form 217 (2A) of the Company’s Act (HINC2170) Use This function displays and prints the salary details of employees whose salary exceeds a specified statutory amount. the entire salary details of the employee is printed in Form 217 (2A). You should have maintained the following fields of the above mentioned infotypes for the corresponding information to be printed on Form 217 (2A): . Contract Elements infotype (0016).      You must configure subtype N5 for the Education infotype (0022). for one or more months during the reporting period. Education infotype (0022) Subtype N5 and Other/Previous Employers infotype (0023). This report is printed in accordance with the Company's Act.During the reporting period. Personal Data infotype (0002). This report also reads the Business Add-In. submitted as an annexure to the Director's Report.  The system reads the latest record of the Other/Previous Employers infotype (0023). Prerequisites   You must have maintained records for the employee in the Organizational Assignment infotype (0001). Integration This report reads the values of the following constants from the table view Payroll Constants (V_T511P):  Annual Salary for sec 217 (2A) constant (SC217) .If the salary of an employee (who was employed for any part of duration in the reporting period) exceeds the amount maintained in this constant.  Monthly limit for Form 217 (2A) constant (FM217) . for the percentage of shares held by the employees.

March).       You can select the following types of employees:  The reporting period can be:    A financial year ((for example. or A calendar year (January .   The total remuneration that is printed on the form is the sum of the values of all wage types with Evaluation Class 11 Specification 1 or 2. the total perquisite value for the reporting period will be the sum of:   Perquisite for January 2002 to March 2002.December). For example. which is the prorated value of the perquisite of the financial year. Features    Full time employees .All employees who are in the payroll only for a part of the reporting period.  Part time employees . In this case. the perquisite values are prorated on the basis of the actual number of days. and .All employees who are in the payroll throughout the reporting period.  Specification 2 should be set for all the wage types that are defined as perquisites in Form 217 (2A).133  Header on Form 217 (2A) infotype Field Nature of Employment Contract Elements infotype (0016) Contract type (CTTYP) Qualification Education infotype (0022) Subtype N5 Education/training (AYSBI) Previous Employment Job Other/Previous Employers infotype (0023) Job (TAETE) Previous Employment Employer Other/Previous Employers infotype (0023) Employer (ARBGB)  You must have maintained Evaluation Class 11 of the wage types used in Form 217 (2A) reporting. or A 15 month period If the reporting period is not a financial year. April . the reporting period is January 2002 to December 2002. of which:  Specification 1 should be set for all the wage types that are defined as salary components in Form 217 (2A). April 2001 to March 2002 (the system reads the perquisite values from the payroll results of March 2002).

1. whichever is earlier). Choose Program  Execute The report generates the salary details of all the eligible full time and part time employees. The Form 217 (2A) report screen appears.134   Perquisite for April 2002 to December 2002. which is the prorated value of the perquisite of the financial year. April 2002 to March 2003 (the system reads the perquisite values from the payroll results of December 2002 or the last payroll result. choose Human Resources  Payroll  Asia/Pacific  India  Subsequent Activities  Annual  Legal Reports  Other Reports  Form 217 (2A) . Enter the employee selection criteria 3... Enter the Company Code 4. . Enter the period for which you want to generate the report 5. 2. Activities . Select Customer layout to print the report in any layout that you may have created 6. From SAP Easy Access menu.