Background/Scenario
Normally if there is any cross financial year retro run happen and that caused any changes in taxable income ( Increment or decrement ) system will generate relief wage type /451 .
The companies can decide whether to compute relief automatically or not, you can do this at the time of implementation through maintaining value for constant S89SW in T511K table. If you maintained the value of the constant as "1" system will calculate relief automatically in case you don't want automatic calculation then the value should be "0".This is a a one time activity once you decidedsystem have to calculate and later it should not it is not possible in system.
While system perform any cross financial year retro wage types /616 (Add Gross Salary wage type), /622 (CF Empmnt tax Prof Tax wage type ), /6I2 (CF Section 88 Investment wage type) and /650 (Add Tax payable and surch wage type) will create depending up on the changes that happen in the system.
Please refer documentation on Section 89(1) Relief provided by SAP
To tackle this scenario SAP provided PCR IN89 ( SAP provided model adjustment wage types you can use the same or you can use copies of the same ). To proceed with this have to find out the values of wagetypes /616, /622,/6I2 and /650 formed for individual employees and to make an entry in IT0015 with a reverse symbol ( in case /616 is 1000 the entry inIT0015 should be -1000) .
PCR to restrict Relief
In the above mentioned method manual interventions are more so here i am giving a permanent solution through a PCR. If you use this method there is no need of IT0015 entries , no need of query wage types /616, /622,/6I2 and /650 from RT.
For this first of all it is required to create a constant to check the financial year ( here I have given a condition the rule only will process from financial year 2013-2014 ). Let say a constant ZS89 defined in T511K table .
Here value maintained as "1" from 01.04.2013 and before it is "0".
PCR ZN89
While processing the rule it will check the constant ZS89 and the value of the constant is 1 ( After March 2013 ) , then it will process wage types /616, /622, /650,or /6I2.
Any of the wage types exist then in the rule it will take the value of the wage type then multiply it with -1 and add to the wage type and cumulated tax table SCRT and to RT.
Here in this PCR only /616 and /622 is mentioned please add /6I2 and /650 in the same way
Include this PCR in schema INN1 below PCR IN89 using function PDT
Examples
In case of incremental income with out the PCR
In case of incremental income with the PCR
In case of decrease in income with out the PCR
In case of decrease in income with the PCR
Have a Great Day
Jaguar
Disclaimer
This complete documention is not any kind repoduction and the examples which mentioned is not kind of real data.
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