While most of the Mid Year Go live projects there are some common mistakes happening and because of that Income tax calculation will go wrong.
I would like to go through some of the major mistakes that is happening at the time of mid year go live and how to avoid these kind of errors
Statutory infotypes: The beginning date of statutory infotypes such as IT0587 must be First of april or the Date of hiring which ever is the earlier. Most of the cases people may for get this simple step to make sure the start date and because of this will cause problem in case of reporting as well the annual exemption/ taxation.
Like the same in case of HRA IT0581 the beginning date must be First of april or the Date of hiring which ever is the earlier otherwise the HRA exemption will go wrong.
The above mentioned should be follow in case of Basic pay IT0008, here you have to make sure you are recording the different payment changes with dates. If there is two times salary is changed in the financial year before go live that is to be recorded.
While doing the Legacy payroll component updates month by month do not miss any of the wage types statutory as well custom.Some where people will miss some of the wage type. To prevent this missing it is always keep the maximum number of wage type to all PERNR's , if some thing is not applicable for an employee please map zero against that wage type. Keep a track of total number of wage type against all PERNR's.
Especially in case of HRA it is to make sure that you are entering the correct wage tpye as per your city category.Other wise the HRA calculation will go wrong.
Other areas where data will be missed are Child education allowance exemption as well Professional tax, make sure you uploading these details in the legacy upload for whom it is applicable, rest of the people upload it as zero.
It is the best thing to do, every time compare the total number of PERNR details uploaded against with the Legacy. Compare the total number of employees and total number of wage types in legacy as well in T558B and T558C.
Please make sure even in a month one PERNR is in full month LOP/LWP upload all set wage types with amount as "zero"
Please Refer these SAP Notes