Table of Contents
1.
Payroll Area
1.1 Create payroll area
Definition
A payroll area is used to group employees together who have
the same payroll periodicity, for whom the payroll runs at the same time, who
have the same payment date, and to whom the same earliest possible retroactive
accounting period applies.
Use
Payroll Area is used to group employees for whom Payroll
should be run together. In Customizing, Payroll area is a two character
alphanumeric code. Example: TV
a. Access
the activity using one of the following navigation options:
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Personnel Management®
Personnel Administration ® Organizational
Data ® Organizational Assignment®
Create payroll area
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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1.2 Check Default Payroll Area
Use
This feature enables you to maintain the default value for
the payroll area for employees. When master data is being maintained, the
payroll area is proposed as a default in the infotype Organizational assignment
(0001).
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Personnel Management®
Personnel Administration ® Organizational
Data ® Organizational Assignment®
Check Default Payroll Area
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Transaction Code
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PE03
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Client dependency:
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Client Specific
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Feature ABKRS:
Default Value of Payroll Area
All Employee Subgroups are defaulted with Payroll Area TV.
2. Payroll Data
2. Basic Pay
Use:
The employee subgroup grouping for the personnel calculation
rule is
required in Payroll Accounting. The collective agreement
provisions
grouping is required for indirect valuation of wage types in
the Basic
Pay infotype (0008).
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Personnel Management®
Personnel Administration ® Payroll Data®
Basic Pay® Define EE Subgroup Grouping for PCR and
Coll.Agrmt.Prov.
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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All Employee Groups have been assigned the same grouping for
ESG for PCR and ESG for CAP.
2.1.2
Check Pay Scale Type
Definition
The pay scale type defines the area of economic activity for
which a collective agreement is valid. The area in which it is valid may be
determined at company or trade union level and often applies to a whole
industry.
The pay scale
types are described by a four-character alphanumeric identifier per country
grouping and are defined in customizing .Within a pay scale type, you define
the pay scale groups and levels for each pay scale area and employee subgroup
grouping for collective agreement provisions.|
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Personnel Management®
Personnel Administration ® Payroll Data®
Basic Pay® Check Pay Scale Type
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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2.1.3
Pay Scale Area
Definition
The pay scale area defines the geographical area in
which a collective agreement is valid. The geographical validity area is
determined by the size of the pay scale area.
The pay
scale areas are described by a four character alphanumeric identifier per
country grouping and are defined in Customizing for Personnel Administration.Within a pay scale area, you define the pay scale groups and levels for each pay scale type and employee subgroup grouping for collective agreement provisions.
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Personnel Management®
Personnel Administration ® Payroll Data®
Basic Pay® Check Pay Scale Area
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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Note: Payroll Process is performed only for TV –
Tiruvottiyur Branch.
2.1.4
Check Assignment of Pay Scale Structure to Enterprise
The Pay Scale Structure is assigned to the Enterprise
Structure
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Personnel Management®
Personnel Administration ® Payroll Data®
Basic Pay® Check Assignment of Pay Scale Structure to
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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2.1.5
Revise Pay Scale Groups and Levels
Pay scale
groups and pay scale levels are the criteria used to classify data for job
evaluations and indirect valuations. Pay scale levels are subdivisions of pay
scale groups.Pay scale groups and levels are defined as per country grouping. Pay scale type, pay scale area and employee subgrouping grouping for the collective agreement provision is Customized in Personnel Administration. Pay scale groups are defined using an alphanumeric identifier with a maximum of eight characters and pay scale levels using a two-character alphanumeric identifier.
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Personnel Management®
Personnel Administration ® Payroll Data®
Basic Pay® Revise Pay Scale Groups and Levels
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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For each Pay scale
group, the amounts for HRA, Washing Allowance is defaulted.
Similarly the following Pay scale groups are defined for all
wage types that are to be valuated indirectly.
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Pay Scale Group Code
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Pay Scale Group Desc.
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MRA
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Grade
- MRa
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MRB
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Grade
- MRb
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MRC
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Grade
- MRc
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Grade
- MRd
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MR1
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Grade
- MR1
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MR2
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Grade
- MR2
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MR3
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Grade
- MR3
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MR4
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Grade
- MR4
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MR5
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Grade
- MR5
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MR6
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Grade
- MR6
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MR7
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Grade
- MR7
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MR8
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Grade
- MR8
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MR9
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Grade
- MR9
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MR10
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Grade
- MR10
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CMR1
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Grade
- CMR1
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CMR2
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Grade
- CMR2
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CMR3
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Grade
- CMR3
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CMR4
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Grade
- CMR4
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CMR5
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Grade
- CMR5
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CMR6
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Grade
- CMR6
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CMR7
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Grade
- CMR7
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CMR8
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Grade
- CMR8
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CMR9
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Grade
- CMR9
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WW1
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Grade
- WW1
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WW2
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Grade
- WW2
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WW3
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Grade
- WW3
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WW4
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Grade
- WW4
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WW5
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Grade
- WW5
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BOAT
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BOAT
Apprentice
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TRADEAPP
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Trade
Apprentice
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OTHER
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Other
(Company Apprentice)
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FTCA
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FTC
- Admin
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FTC
- General
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TRAINEE
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Trainee
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2.1.6 Wage Types
Wage types are defined using a four character numeric
identifier. Wage types for Basic Pay Infotype(0008) are maintained here.
2.1.6.1
Basic Pay
A. Check wage type
group 'Basic Pay'
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Personnel Management®
Personnel Administration ® Payroll Data®
Basic Pay® Check wage type group 'Basic Pay'
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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The following are the Wage Types that will be maintained for
Basic Pay Infotype.
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Wage Type
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Wage Type Text
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1000
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Basic
Pay - Workmen
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1040
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Fixed
Dearness Allowance
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1050
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Variable
Dearness Allowance
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1060
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Personal
Pay
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1070
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House
Rent Allowance
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1080
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Re
- Engineering Allowance
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1090
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Multi
Skill Allowance
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1100
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Continuous
Improvement Incentive
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1110
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Washing
Allowance
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1010
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Stipend
- Apprentice
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1020
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Stipend
- FTC
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1030
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Stipend
- Trainee
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1120
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Stipend
- OTHERS
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B. Check
wage type text
Use
The Text for the Wage Type is
maintained as follows.
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Personnel Management®
Personnel Administration ® Payroll Data®
Basic Pay® Check wage type text
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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C.
Check entry permissibility per infotype
Use
The dates on which the wage type
must be entered is customized here.
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Personnel Management®
Personnel Administration ® Payroll Data®
Basic Pay® Check entry permissibility per infotype
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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D.
Define Wage Type Permissibility for each PS and ESG
Use
The Wage types can be made
permissible for particular Personnel Sub areas and Employee Subgroups.
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Personnel Management®
Personnel Administration ® Payroll Data®
Basic Pay® Define Wage Type Permissibility for each
PS and ESG
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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The Detailed View for Permissibility of Basic (1000) Wage
Type is given below. The Wage Type is made permissible for Employee Subgroup 3
(Active & Probationers) and 7 (Suspension Pending Enquiry). Also the wage
type is made permissible for Personnel Subarea TVT1.
Similarly all wage types are made permissible for particular
ESG and Personnel Subarea.
E. Check
wage type characteristics
Use
The characteristics of Wage type
are maintained and this describes their behavior during Payroll process.
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Personnel Management®
Personnel Administration ® Payroll Data®
Basic Pay® Check wage type characteristics
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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The Detail View of Basic wage type is shown below. This
component is marked as addition to the gross total. The amount field is made
mandatory, and the number field is optional. This component is valuated by
using INVAL (Indirect Evaluation Module Variant for India ). The module variant A
calculates the value of the wage type as a fixed amount.
2.1.6.2 Recurring Payments and Deductions
Wage types for Recurring Payments and Deductions Infotype(0014)
are maintained here.
Check
wage type group 'Recurring Payments and Deductions'
Use
Payment and Deduction wage types
recurring every month are customized here.
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Personnel Management®
Personnel Administration ® Payroll Data®
Recurring Payments and Deductions® Check wage
type group 'Recurring Payments and Deductions'
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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Suggestion Scheme Incentive
(Payment wage type), Canteen and Sick Benefit (Deduction Wage type) is
maintained here.
Check
wage type characteristics
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Personnel Management®
Personnel Administration ® Payroll Data®
Recurring Payments and Deductions® Check wage
type characteristics
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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Suggestion Scheme Incentive Wage type will have the
following characteristics. The number field is made mandatory as only the
number of suggestions will be maintained. The unit of measurement is maintained
as Points and the evaluation module is maintained as UNITS.
Similarly Canteen Wage type will have the following
characteristics. This component is marked for Deduction from the total. The
amount field is made mandatory.
2.1.6.3 Additional Payments
A. Check
wage type group 'Additional Payments'
Use
Additional
Payments made are customized.
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Personnel Management®
Personnel Administration ® Payroll Data®
Additional Payments® Check wage
type group 'Additional Payments'
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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The following are the wage types that will be maintained in
Additional Payment Infotype (0015)
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Wage Type
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Wage
Type Text
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2010
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Scanlon
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2040
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Medical
Ass.
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2050
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Canteen
Refund
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2070
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L
T A
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2080
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Sugg.
Inc. Annual
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2090
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Scanlon
Qtly Scheme
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2110
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V
P P
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2120
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Sep
Advance
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3110
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Bonus
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3120
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Gratuity
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3130
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Goodwill
Payment
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3140
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Casual
Leave Encashment
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3150
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Sick
Benefit Leave Encash
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3160
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Annual
Leave Encashment
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2.1.6.4
Additional Payments: Off-Cycle
Check
wage type group 'One Time Payments Off-Cycle'
Use
Wage
types (Bonus) are customized to be maintained in Additional Payments Off –
Cycle Infotype(0267)
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Personnel Management®
Personnel Administration ® Payroll Data®
Additional Payments® Check wage
type group 'Additional Payments'
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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2.1.7 Membership Fees
2.1.7.1 Define types
Use
Membership Type is defined. Each
membership type is represented by a subtype in Infotype Membership Fees (0057)
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Personnel Management®
Personnel Administration ® Payroll Data®
Membership Fees® Define
types
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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Check
wage type group 'Membership Fees'
Use
Third Party Deduction Wage types
are grouped under Membership Fees Infotype(0057)
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Personnel Management®
Personnel Administration ® Payroll Data®
Membership Fees® Define
types
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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The following are the deduction wage types that is
maintained in Membership fees Infotype
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Wage Type
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Wage
Type Text
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5050
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L
I C 1
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5060
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L
I C 2
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5070
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L
I C 3
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5080
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L
I C 4
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5090
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L
I C 5
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5100
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L
I C 6
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5110
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L
I C 7
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5120
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L
I C 8
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5130
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L
I C 9
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5140
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L
I C 10
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5150
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Co-operative
Stores
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5160
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Court
Attachment
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5180
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Society
Recovery
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2.1.7.2
Determine payee
Use
Details of the Payee is
customized.
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Personnel Management®
Personnel Administration ® Payroll Data®
Membership Fees® Determine
payee
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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Detailed view of Payee key is given below.
3. Payroll: India
3.
Basic Settings
3.1.1 Payroll Organization
A. Period
parameter
Definition
Key that uniquely
identifies payroll periodicity in the system.
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Payroll:
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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B.
Define Date Modifiers
Definition
Distinguishing
criterion enabling you to define various date
specifications for the payment days with the
same periodicity (for
example, monthly).
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Payroll:
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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C.
Check Payroll Accounting Area
Check payroll areas
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Payroll:
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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Generate
Payroll Periods
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Payroll:
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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Generate payroll periods
The Payroll periods are generated
as given below.
Check dates of periods
The Payroll period
dates are maintained as given below
Generate
Calendar for Cumulations
Definition
Assignment of payroll periods, to
time intervals for
cumulations and deductions (for
example, monthly, quarterly, half-yearly
or yearly).
3.2 Time Quota Compensation
Use
Customization of wage types to
be generated from absence quotas to be compensated.
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Payroll:
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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3.3 Pay Scale Groupings
3.3.1
Define Pay Scale Groupings for Allowances
Use
Pay scale groupings for
allowances are used to select employees based on their eligible compensation
benefits.
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Payroll:
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Transaction Code
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SPRO
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Client dependency:
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Client Specific
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The following are the Allowance groups that are customized
in the system.
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Allw
grp
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Allownace
Group Description
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APPZ
|
BOAT / TRADE Apprentice Allowance Group
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CM1Z
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CMR1 to CMR5 Allowance Group
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CM6Z
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CMR6
to CMR9 Allowance Group
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FTCZ
|
FTC
- Allowance Group
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MR1Z
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MR1 to MR5 Allowance Group
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MR6Z
|
MR6
to MR10 Allowance Group
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MRAZ
|
MRA
- Allowance Group
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MRBZ
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MRB
- Allowance Group
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MRCZ
|
MRC-
Allowance Group
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MRDZ
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OAPZ
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OTHERS
(Company Apprentice)Allowance Gro
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TRAZ
|
Trainee
- Allowance Group
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WW1Z
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WW1
- Allowance Group
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WW2Z
|
WW2-
Allowance Group
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WW4Z
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WW4-
Allowance Group
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WW5Z
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WW5-
Allowance Group
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3.3.2
Assign Pay Scale Groupings for Allowances
Use
Pay scale Groups are assigned to
respective Allowance Groups
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Payroll:
|
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Transaction Code
|
SPRO
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Client dependency:
|
Client Specific
|
The following are the Pay scale groups that are assigned to
respective Allowance groups
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Pay Scale Type Code
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Pay Scale Area Code
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Pay Scale Group Code
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Pay Scale Group Desc.
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Pay Scale Level Code
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ALGRP
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TV
|
TV
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MRA
|
Grade
- MRa
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0
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MRAZ
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TV
|
TV
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MRB
|
Grade
- MRb
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0
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MRBZ
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TV
|
TV
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MRC
|
Grade
- MRc
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0
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MRCZ
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TV
|
TV
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Grade
- MRd
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0
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MRDZ
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TV
|
TV
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MR1
|
Grade
- MR1
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0
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MR1Z
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TV
|
TV
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MR2
|
Grade
- MR2
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0
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MR1Z
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TV
|
TV
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MR3
|
Grade
- MR3
|
0
|
MR1Z
|
|
TV
|
TV
|
MR4
|
Grade
- MR4
|
0
|
MR1Z
|
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TV
|
TV
|
MR5
|
Grade
- MR5
|
0
|
MR1Z
|
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TV
|
TV
|
MR6
|
Grade
- MR6
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0
|
MR6Z
|
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TV
|
TV
|
MR7
|
Grade
- MR7
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0
|
MR6Z
|
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TV
|
TV
|
MR8
|
Grade
- MR8
|
0
|
MR6Z
|
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TV
|
TV
|
MR9
|
Grade
- MR9
|
0
|
MR6Z
|
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TV
|
TV
|
MR10
|
Grade
- MR10
|
0
|
MR6Z
|
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TV
|
TV
|
CMR1
|
Grade
- CMR1
|
0
|
CM1Z
|
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TV
|
TV
|
CMR2
|
Grade
- CMR2
|
0
|
CM1Z
|
|
TV
|
TV
|
CMR3
|
Grade
- CMR3
|
0
|
CM1Z
|
|
TV
|
TV
|
CMR4
|
Grade
- CMR4
|
0
|
CM1Z
|
|
TV
|
TV
|
CMR5
|
Grade
- CMR5
|
0
|
CM1Z
|
|
TV
|
TV
|
CMR6
|
Grade
- CMR6
|
0
|
CM6Z
|
|
TV
|
TV
|
CMR7
|
Grade
- CMR7
|
0
|
CM6Z
|
|
TV
|
TV
|
CMR8
|
Grade
- CMR8
|
0
|
CM6Z
|
|
TV
|
TV
|
CMR9
|
Grade
- CMR9
|
0
|
CM6Z
|
|
TV
|
TV
|
WW1
|
Grade
- WW1
|
0
|
WW1Z
|
|
TV
|
TV
|
WW2
|
Grade
- WW2
|
0
|
WW2Z
|
|
TV
|
TV
|
WW3
|
Grade
- WW3
|
0
|
WW2Z
|
|
TV
|
TV
|
WW4
|
Grade
- WW4
|
0
|
WW4Z
|
|
TV
|
TV
|
WW5
|
Grade
- WW5
|
0
|
WW5Z
|
|
TV
|
TV
|
BOAT
|
BOAT
Apprentice
|
0
|
APPZ
|
|
TV
|
TV
|
TRADEAPP
|
Trade
Apprentice
|
0
|
APPZ
|
|
TV
|
TV
|
OTHER
|
Other
(Company Apprentice)
|
0
|
OAPZ
|
|
TV
|
TV
|
FTCA
|
FTC
- Admin
|
0
|
FTCZ
|
|
TV
|
TV
|
|
FTC
- General
|
0
|
FTCZ
|
|
TV
|
TV
|
TRAINEE
|
Trainee
|
0
|
TRAZ
|
4. Basic Salary for India
4.1.1
Assign Basic Wage Types to Grouping for Allowances
Use
The Basic wage type and a Personal
Pay wage type are assigned to each pay scale grouping for allowances. These
wage types are assigned to the pay scale groupings for the purpose of payment
of the base component of salary referred to as basic. Basic pay, in some cases
along with the dearness allowance component is used to calculate other allowances.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
Allowance Grouping is assigned
to Basic Pay (1000) wage type
4.1.2
Define Basic Codes
Use
Basic Code for each Allowance
Group is defined.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
4.1.3
Assign Basic Codes for Allowance Groups
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
4.1.4
Assign Basic Slabs to Pay Scale Groupings for Allowance
Use
The Basic slab amount for each
Allowance group is defined.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
The following Basic Slab amounts are customized in the
system as per the Allowance Group
BASIC WAGES
|
Master Scales :
|
MR (a) : Rs. 2015 - 20 - 4935 - 23 - 4958 -
26- 4984 - 28 - 5096 - 33 – 5195 - 5915
|
|
MR (b) : Rs. 2025 - 20 - 4945 - 23 - 4968 -
26- 4994 - 28 - 5106 - 33 – 5205 – 36 -
5925
|
|
|
MR (c ) and MR (d) : Rs. 2105 - 20 - 4985 -
23 - 5008 - 26- 5034 - 28 - 5146 - 33 – 5245 - 5965
|
|
|
|
|
|
MR1 to MR5 : Rs. 2170 - 20 - 4970 - 23 -
4993 - 26- 5149 - 39 - 5461 - 47 - 5884 - 65 - 6079 - 84 - 6415
|
|
|
MR6 to MR10 : Rs. 2435 - 20 - 4995 - 23 -
5018 - 26- 5174 - 39 - 5486 - 47 - 5909 - 65 - 6104 - 84 - 7532
|
|
|
|
|
|
CMR1 to CMR5 : Rs. 2310 - 20 - 4970 - 23 -
4993 - 26- 5149 - 39 - 5461 - 47 - 5884 - 65 - 6079 - 84 - 6751
|
|
|
CMR6 to CMR9 : Rs. 2510 - 20 - 4990 - 23 - 5013
- 26- 5156 - 39 - 5481 - 47 - 5904 - 65 - 6099 - 84 - 7443
|
|
|
|
|
|
WW1 : Rs. 2065 - 20 - 5025 - 26 - 5545
|
|
|
WW2 & WW3 : Rs. 2125 - 20 - 4945 - 23 -
4968 - 26 - 5150 - 31 - 5646
|
|
|
WW4 : Rs. 2270 - 20 - 4970 - 23 - 4993 - 26
- 5149 - 39 - 5422 - 47 - 5798 - 55 - 5908
|
|
|
WW5 : Rs. 2510 - 20 - 4970 - 23 - 4993 - 26
- 5149 - 39 - 5422 - 47 - 5610 - 55 - 5940
|
5. Dearness Allowance
5.1.1
Define Consumer Price Indices
Use
The consumer price index, acts
as a guide to the cost of living in a state, and is evaluated by the base facts
and figures as declared by the Government. The consumer price indices
applicable for the company are customized.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
5.1.2
Assign Current and Reference Values for Consumer Price Indices
Use
The Current and Reference Value
for Consumer Price Index is defined.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
5.1.3
Maintain Basic Slab Details for Dearness Allowance
Use
The Basic Slab details for Dearness
Allowance (FDA) are customized.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
 |
Similarly the remaining Basic Slab amounts as mentioned in the table below are defaulted.
5.1.4
Maintain Dearness Allowance Rules for Allowance Groupings
Use
The Dearness Allowance (FDA
& VDA is maintained for Allowance Groupings.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
For Allowance grouping CM1Z, FDA is customized to change
only in the month of November and VDA is customized to change in every quarter.
Similarly, all allowance groupings are defined as explained above.
5.1.5
Maintain Dearness Allowance Consumer Price Index Slab Details
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
Value of Consumer Price Index in rupees is maintained.
6. Reimbursements, Allowances and Perks
6.1.1
Assign Wage Type Model for Pay Scale Grouping for Allowances
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
6.1.2
Maintain Default Wage Types for Basic Pay
Use
Wage types for Infotype 0008
(Basic Pay) is defaulted
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
Similarly, wage types for other Allowance groups are
defaulted.
6.1.3
Maintain Valuation of Base Wage Types
Use
Wage types with INVAL Evaluation
module variant B are defined here with the Percentage and the Base wage type.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
6.1.4
Calculate Eligibility for RAPs
Use
The eligibility details to
calculate any employee's Reimbursement, Allowance or Perk (RAP) is customized.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
Similarly, RAP’s is maintained for other Allowance grouping.
6.1.5
Maintain Extra Eligibility Criteria for RAPs
Use
For the calculation of Gratuity and
LTA this feature is used. The Return value of this feature is a development
Program which calculates the amount for Gratuity and LTA and updates the same
in IT 0015.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
7. One Day Salary Deduction
7.1.1
Maintain Details for One Day Salary Deduction
Use
One day deductions from the
employee’s salary for miscellaneous purposes are customized. For this purpose,
a calculation method is specified and the number of days for which the salary
is deducted. This is associated with an allowance group and the month and year
of validity.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
NOTE : The Year and Period for which the
employee’s one day salary need to be deducted should be maintained in the
system only for that particular period before processing of Payroll.
8. Retirement Benefits
8.1 Gratuity
8.1.1
Maintain Gratuity Trust ID
Use
The Gratuity Trust ID is maintained.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
8.1.2
Maintain Gratuity Contrib. Freq. and Related Wage Types
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
8.1.3
Define Contribution Rates for Gratuity
Use
The Contribution rates for
Gratuity for different Allowance Groups is customized
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
9. Statutory Social Contribution
9.1 Provident Fund
9.1.1
Define Trust Details for Provident Fund
Use
The Trust Details for Provident
Fund (Chennai) is customized.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
9.1.2
Assign Company Rates for Provident Fund
Use
The contribution rates for PF
contribution for all Allowance groups are defined.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
9.1.3
Define PF Trust Validity Period
Use
The PF Trust Validity Period is
customized. As per the requirement payment towards EDLI contribution is not
made.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
9.1.4
Maintain Contribution Details for Provident Fund
Use
The Contribution Details of the
employer is maintained as a return value of the feature 40EPF
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
9.1.5
Define Contribution type for statutory rates for Provident Fund
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
9.2 Employees' State Insurance
9.2.1
Maintain ESI
Eligibility Limit
Use
The ESI
Eligibity Limit is maintained as Rs. 10000
|
|
Payroll:
®
Maintain
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
9.2.2
Define Personnel Area and Subarea Groupings for ESI
Use
PS grouping is maintained as 3.
This is used to group ESI according
to different Personnel Subareas.
|
|
Payroll:
®
Define Personnel Area and Subarea Groupings for
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
9.2.3
Assign ESI
Groupings for Personnel Area and Subarea
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
9.2.4 Maintain
Contribution Rates for ESI
Use
The Contribution
Rates are maintained as shown below.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
9.3 Other Statutory and Non-Statutory Deductions
9.3.1
Assign Universal Contribution Groupings for Universal Contribution Types
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
9.3.2 Assign State
Use
Tamilnadu is maintained
for Universal Contribution Grouping for LWF Deduction.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
9.3.3 Assign
Slab Code and Other Parameters for Each State of a Univ. Type
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
9.3.4
Assign Contribution Value for Each Slab
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
10. Professional Tax
10.1
Define Professional Tax Grouping Details
Use
Professional Tax Grouping
Details is maintained for Thirvottriyur
Municipality
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
10.2
Assign PTax Groupings for Personnel Areas and Subareas
Use
P Tax grouping assigned to
Personnel Subarea
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
10.3
Assign Amounts for Professional Tax Deduction
Use
P Tax Slab for Tamilnadu is
maintained.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
10.4
Maintain Method and Form Layout for PTax Groupings
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
11. Tax
11.1 Basic Settings
11.1.1
Define Personnel Area and Subarea Groupings for Tax
Use
The Tax Grouping is defined as 3
and the same is assigned to Personnel area and Subarea
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
11.1.2
Assign Tax Groupings for Personnel Areas and Subareas
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
11.1.3
Maintain Feature to Return Employer IncomeTax Related Data
Use
Income Tax related data (PAN,
TAN, GIR circle no.) of the employer is maintained as return value in Feature
40 ECC
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
11.2 Tax Liability on Reimbursements, Allowances and Perks
11.2.1
Define Tax Codes
Use
The Tax codes are defined as shown
in the screen shot below and the wage types are assigned to the respective Tax
codes. Eg : 1070 HRA is assigned to Tax code SHRA.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
11.2.2
Assign Tax Code Limits to Wage Types
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
12. Recovery of Rounded Off Amounts
12.1
Maintain Details for Recovery of Rounded Off Amounts
Use
The net amount is rounded off to
the nearest rupee.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
13. Off-Cycle Activities
13.1
Check entry permissibility for Infotype (0267)
Use
Permissibility for Wage types to
be paid through Offcycle run is provided.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
13.2.
Set Up Off-Cycle Reasons
Use
Offcylce reasons are defined as
shown in the screen below.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
13.3
Specify default values for wage types
Use
Offcycle reasons are assigned to
Wage types.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
13.4
Specify Default Values for Payroll Results
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
13.5
Specify Default Values for Payment Methods
Use
Payment Methods for Offcycle
activities is defined as shown below.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
14. Deductions
Use
Negative Pay - when the
Deductions is greater than the Payment, 25% of Gross must be paid. The Priority
of deductions is defined here.
14.1 Arrears and Priorities
14.1.1
Check Wage Type Group 'Deductions for Arrears'
Use
The wage types are defined for the
group ‘Deductions for Arrears’
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
14.1.2
Define Priority for Deductions
Use
The Priority of Deductions is
defined as shown in the screen below.
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
14.1.3
Maintain Arrears Deductions for Retroactive Accounting
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
14.1.4
Maintain Recovery of Arrears
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
14.1.4.
A. Maintain processing classes for balances and totals
14.1.4.
B. Maintain link between wage types
14.2 Minimum Net Pay
Use
The Minimum Value for payment is
defined as 25%.
14.2.1
Maintain Value for Determination of Minimum Wage
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
Maintain Minimum Wage Factor
15. Company Loans
15.1. Calculation
15.1.1
Adjust Value Date
|
|
Payroll:
India® Company Loans ®
Calculation
®
Adjust Value Date
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
15.1.2
Maintain Rule for Interest Rate Advantage Taxation
Use
Payment for Loan Wage type is
customized in PCR ZLOZ
|
|
Payroll:
India® Company Loans ®
Calculation
® Maintain
Rule for Interest Rate Advantage Taxation
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
15.2 Master Data
15.2.1
Maintain Loan Types
Use
The Loan Types are defined as
mentioned in the screen below.
|
|
Payroll:
India® Company Loans ®
Master Data
®
Maintain Loan Types
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
15.2.2
Maintain Loans Grouping
Use
The grouping for Loan type for
different Allowance groups is defined in Feature 40LGR
|
|
Payroll:
India® Company Loans ®
Master Data
® Maintain
Loans Grouping
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
15.2.3
Maintain Loans Eligibility Checks and Limits
|
|
Payroll:
India® Company Loans ®
Master Data
® Maintain
Loans Eligibility Checks and Limits
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
16. Reporting for Posting Payroll Results to Accounting
Use
Posting of Payroll results to GL
Accounts is explained below.
16.1 Activities in the HR System
16.1.1 Employee Grouping and Symbolic Accounts
16.1.1.A
Define Employee Grouping Account Determination
|
|
Payroll:
®
Employee Grouping and Symbolic Accounts ®
Define Employee Grouping Account Determination
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
16.
1.1.B Define Symbolic Accounts
|
|
Payroll:
®
Employee Grouping and Symbolic Accounts ® Define
Symbolic Accounts
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
Similarly, symbolic accounts are created for Balance Sheet
and Vendor Accounts.
16.1.2 Maintaining Wage Types
16.1.2.A
Define Posting Characteristics of Wage Types
|
|
Payroll:
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
16.1.3
Maintain Posting Date for Payroll Periods
|
|
Payroll:
® Maintain
Posting Date for Payroll Periods
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
16.2 Activities in the AC System
16.2.1
Assigning Accounts
16.2.1.1
Assign Balance Sheet Accounts
|
|
Payroll:
®
Assigning Accounts ®
Assign Balance Sheet Accounts
|
|
Transaction Code
|
SPRO
|
|
Client dependency:
|
Client Specific
|
16.2.1.2
Assign Expense Accounts
16.1.2.3
Assign Technical Accounts
16.1.2.4
Assign Vendor Accounts
Payroll Schema
Definition
The payroll schema contains
calculation rules to be used by the payroll driver during payroll. SAP has developed country-specific schemas which
are based on schema X000. Indian Payroll Schema IN00 is copied as ZN00 and
necessary rules are written.
|
Transaction Code
|
PE01
|
|
Client dependency:
|
Client Specific
|
The following are the
list of PCR ’s written in Schema
ZN00 relating to Payroll.
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