Would like to share one scenario which I have come across in recent times. The entire phenomenon is included in the document. This document explains the process of the exemption of Sodexho Coupons amount pertaining Indian Payroll.
Step1: Create One Wage Type for the Sodexho Coupon Payment.
Model Wage Type:MB10
Step2: Define the Wage Type Characteristics as Add to Total Wage
|Country Grouping||Wage Type||End Date||Start Date||Operation indicator||Unit of time/meas.||Input combination||Minimum amount||Maximum amount||Add to total amount||Indirect eval.module||Rounding type||Rounding divisor||WT for basic hours||Reduction method||Ability to overwrite||Module variant||Minimum number||Maximum number||Wage Type Long Text|
Step3: Provide the Wage Type permissibility for the Primary Wage Type
|Country Grouping||Wage Type||End Date||Start Date||EE Subgroup grouping||Personnel subarea||Wage Type Long Text|
Step4: Provide the info type permissibility for the Info type.
|Country Grouping||Wage type group||Wage Type||Wage type group text||Wage Type Long Text|
|40||0014||9SXE||Recurring paymts/deducts||Sodexho Coupons|
Step5: Creation of the Custom Tax Code.
In this step we have to create one Tax Code in order to assign to the Wage Type. We have created one Custom Tax Code as ZSOD.
|Country Grouping||Tax code||Tax code desc|
|40||ZSOD||Sodexo Tax Excemption|
Step6: Assigning of the Exemption Amount and the Tax Code against the Wage Type.
In this Step We assign the Tax Code and the monthly exemption amount 1250 to the Wage Type 9SXE.
|Country Grouping||Wage Type||End Date||Start Date||Taxation type||Exemption frequency||Tax exemption limit||Tax code||Currency|
Step7: Assignment of the Wage Type to the Reimgursements, Allowance and Perks.
|Wage Type||Basic Slab||Eligibility Check||RAP Amount||RAP NO||Wage Type Flag||Round Off||RAP Indicator||Currency||From||To|
Step8: Editing the Schema.
Copy the Main Schema IN00 to ZN00
Copy the Sub-Schema INN1 to ZNN1
|40||INCTX||ZSOD||MCAX||A||MCMX||Sodexo Coupon Excemption|
Payroll function: INCTX
This is a generic payroll function for Allowance/Reimbursement taxation
Treatment. This payroll function can be used by customers for computing
Annual tax exemption amount of any allowance or reimbursement. The tax
Exemption amount computed is minimum of the following three:
To effect the tax exemption of the allowance the payroll function INCTX is used in their schema as follows:
INCTX SEXM MCAX A MCMX
ZSOD: The tax code specified in table T7INT9 for Office wear
MCAX: The annual tax exemption wage type
A: The monthly exemptions are projected for the completed
Financial year to arrive at the annual exemptions.
MCMX: The monthly tax exemption wage type
Step9: Maintain the Sodexo Coupon amount in 0014.
Step11: Maitain the Exemption Amount in the 0582 Info Type.
Here we have maintained the amount against the Tax Code as ZSOD.
Step10: Process the Payroll. The Exemption amount is calculated as follows.
The tax exemption amount computed is minimum of the following three:
O Allowance or reimbursement.
The payment detail is typically maintained in info type for payments
(IT0015) or recurring payments and deductions (IT0014) or basic pay
(IT0008). Here We have mentioned the amount as 2000
O Exemptions claimed.
The exemption is maintained in customer subtype of info type IT0582 for
Exemptions. This info type is only read till the last date of the period
for which the payroll is being run. Future is not read. Here We have mentioned the amount as 1500
O Annual tax exemption limit.
The tax exemption limit is maintained in the view for taxability of
Wage types (V_T7INT9). Here We have mentioned the amount as 1250
Hence the amount is calculated as 1250 which is the minimum among the three.
SAP HCM Consultant
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