Sodexho Exemption-Indian Payroll

                                                                               Sodexho Exemption

                                                                                                                                  Indian Payroll

Dear Gurus,

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

  40   9SXE   12/31/9999   1/1/1998     012   1   0   0   true   INVAL     0         C   0.00     Sodexho Coupons

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
  40   9SXE   12/31/9999   1/1/1998   111111   111   Sodexho Coupons

Step4: Provide the info type permissibility for the Info type.

Table: VV_52D7_B_0014_AL0

  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.

Table: V_T7INT7

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.

Table: V_T7INT9

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
  40   9SXE   12/31/9999   1/1/1999   Limit Based   Monthly   1250.00   ZSOD   INR

Step7: Assignment of the Wage Type to the Reimgursements, Allowance and Perks.

Table: V_T7INA9

  Wage Type   Basic Slab   Eligibility Check   RAP Amount   RAP NO   Wage Type Flag   Round Off   RAP Indicator   Currency   From   To
  9SXE           Amount     Allowance   INR   01.01.1900   31.12.9999

Step8: Editing the Schema.


Copy the Main Schema IN00 to ZN00

Copy the Sub-Schema INN1 to ZNN1

  Line     Function   Par1   Par2   Par3   Par4   D   Text
  40   INCTX   ZSOD   MCAX   A   MCMX     Sodexo Coupon Excemption

Function: INCTX

    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.


Govardhan Reddy

SAP HCM Consultant


Disclaimer: This document does not contain the copyrighted content or material own by others. The coding or technical names used in the configuration screen shots are purely set as just examples and doesn’t belongs to the real time systems or material own by others. Any resemblance with the real time system or material own by others is s just a coincidence. The numbering, wording, coding are provided in screen shots are to give better understandings to the forum users. I am fully abided by the rules and regulations of the forum. The prime motive is to serve the forum users better.

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