38 Replies Latest reply: Aug 10, 2011 1:43 PM by Prasad Lad RSS

Non-payable wagetype needs to go in Exemption...

Prasad Lad
Currently Being Moderated

Hi All,

 

I have created a New wage type which is non-payable to the employee but will be shown in the system as a Master data.

It was done coz the users have updated LTA amt directly by FB60 in FI but there was no HR data was maintained for that entries.

 

Now when i created the new wage type everything is working fine & posting is also proper. However, its an LTA wagetype it needs to be shown in LTA exemption also. I have tried doing by T7INT9 but it was not working. in that table already the actual wagetype is maintained which is used for LTA exemption & my new wagetype aslo.

 

Please let me know wht I can do to have the non-payable wagetype in exemption.

 

Regards,

Prasad Lad

  • Re: Non-payable wagetype needs to go in Exemption...
    Consultant SAP-HR
    Currently Being Moderated

    Are you following two wage types & two tax codes to get LTA exemption? If this is scenario, only one wage type will be allowed to get LTA exemption.

     

    If you still required for both the wage type, read the doc. function INCTX, thru this it would be solved.

     

    Regds,

    • Re: Non-payable wagetype needs to go in Exemption...
      Prasad Lad
      Currently Being Moderated

      Hi,

       

      Thanks for the udpate.

       

      I tried checking with that fuction but was not able to get any result. Can you explain in details wht should i do for getting a non-payable wagetype in exemption u/s 10.

       

      Regards,

      Prasad Lad

      • Re: Non-payable wagetype needs to go in Exemption...
        Consultant SAP-HR
        Currently Being Moderated

        Your problem is you are using two wage type for LTA payemetn with same tax code that is not possible to get exemption,

        Function INCTX computes tax exemption as per customer requirement.

        Create a tax code in table in table v_T7INT7, create a payment wage type and asgin in table V_T7INT9. Enter in allowance grpng V_T591A  ,  After that you need to create a subtype you use in IT0582, table T591A create a sub type , your sub type shoudl be same as tax code.

        If the exemption is annual basis, table V_T7INT9, tax exemption should be limit based and frequence annual. Para 4 would not be assign if it is annual exemption

        For annual exemption, use model wage type MCAX

        • Re: Non-payable wagetype needs to go in Exemption...
          Prasad Lad
          Currently Being Moderated

          Hi,

           

          I saw the properties of MCAX - Cust. Sp. Annual Exmp. wage type in the system, but i havce already created one non-payable wage type for this purpose. And MCAX is also the same type in whcih the amount is not adding the gross total..but the processing calsses are different..

           

          What all things you have said, can I work with my wagetype which i have created already??

           

          Creating a New Tax code is fine, assigning it in Taxability is also fine but when it comes to IT - 0582 can I use the existing subtype LTA (Leave travel allowance) ???

          This is because the sub type & tax code should be same, that's y I need to create a new subtype..?

           

          Regards,

          Prasad Lad

          • Re: Non-payable wagetype needs to go in Exemption...
            Consultant SAP-HR
            Currently Being Moderated

            Please elaborate in brief about your requirement so that I can help you out.

             

            Regds:

            • Re: Non-payable wagetype needs to go in Exemption...
              Prasad Lad
              Currently Being Moderated

              Hi,

               

              They have paid the LTA amt by posting the amt in FI by BF60, but the same was not done HR master data.

               

              So we created a non-payable wagetype which is used to be taxable & the amt will be taxed to the emp but not paid, as it was already paid.

               

              But LTA needs to be exempted in the system, in my wage type the LTA is not getting exempted in the system. So need to make the non-payable wagetype to be exempted for the emp.

               

              What you have said to create a new Tax code, assign in V_T7INT9 the wage type & create a Subtype in IT-0582 for that...but my doubt is can i use the existing LTA subtyp which is there in IT - 0582 which is also used by the original LTA wagetype for exemption?? Or the new Tax code & subtype should be the same for some purpose...??

               

              Regards,

              Prasad Lad

              • Re: Non-payable wagetype needs to go in Exemption...
                Consultant SAP-HR
                Currently Being Moderated

                Ok, fine you meant you only want to show your wage type in exemption u/s 10 (/130)

                write an pcr and test

                 

                *

                your wage type

                elimi *

                addwt your wage type

                addwt /130

                 

                 

                Regds,

                • Re: Non-payable wagetype needs to go in Exemption...
                  Prasad Lad
                  Currently Being Moderated

                  Hi,

                   

                  Even if I write this PCR the exemption wagetype /3L1 LTA reimbursement needs to be get created. So for that i need to do some config rather then the PCR.

                  • Re: Non-payable wagetype needs to go in Exemption...
                    Consultant SAP-HR
                    Currently Being Moderated

                    Your purpose is only to get the exemption as you have already made the payment. If you want to show in /3l1 you can also do

                     

                    *

                    wage type

                    addwt wage type

                    addwt /130

                    addwt /lta

                     

                    Check, if you only want to get the exemption.

                    • Re: Non-payable wagetype needs to go in Exemption...
                      Prasad Lad
                      Currently Being Moderated

                      Hi,

                       

                      I tried writting a PCR & also did with putting the value in Tax code & all. But still it is not coming for exemption.

                       

                      Please let me know if i am missing some step or what..?

                       

                      Regards,

                      Prasad Lad

                      • Re: Non-payable wagetype needs to go in Exemption...
                        Consultant SAP-HR
                        Currently Being Moderated

                        NO, dont do like that way, no need to assign tax code and all.

                        write a simple rule

                        *

                        wage type

                        add wage type (your wage type)

                        addwt /130

                        addwt /3lta

                         

                        insert the same in INN1 and check

                        • Re: Non-payable wagetype needs to go in Exemption...
                          Prasad Lad
                          Currently Being Moderated

                          Hi,

                           

                          Thanks for the update.

                           

                          I insered the PCR in INN1, but i found that my non-payable wage type is not in INN1 schema.

                           

                          Due to which it is not getting processed in the PCR. EvenI tried with PTLR in which the wagetype is cumulated, but that also dn't worked.

                           

                          I doubt that we can push the non-payable wagetype in exemption...

                           

                          Regards,

                          Prasad Lad

                          • Re: Non-payable wagetype needs to go in Exemption...
                            Praveen Tiwari
                            Currently Being Moderated

                            Prasad,

                             

                            There might be 2 cases  -

                            1st -

                            If for every employee in your organization the process of LTA is same then probably you can try to change the properties of LTA payment wage type to make it non payable and exempted.

                             

                            2nd -

                            If it is a exceptional case which occurs only in few scenarios then there are 2 possible ways -

                            1st option is create a new subtype in IT 582 and try to process this as customer specific exemption. BUt it will not generate wage type /3L1 directly, for that you need to write a PCR. Advantage of this option is it will process the exemption in the same way as normal LTA happen that is calculate the 3 things and take minimum of it.... (For reference you can check documentation of INCTX and INLTA).

                            2nd option is write a PCR and directly push the customer specific wage type to /3L1, rest of work that is exemption calculation will be done by the system automatically.

                            Note -  Assignment to /3L1 only will not work here for you... but you also need to cumulate it into /4E5.

                             

                            Now the latest problem you are facing is you are not able to get the wage type in IT inside INN1 subschema and you want it to be non payable but exempted. Try this-

                            a. Set processing class 20 as 1 and don't tick any cumulation class. <- From this you will acheive non-payable req and also will get the wage typ in input table inside subschema INN1.

                            b. Now if you want to push this into /3L1 then you need a PCR as mentioned by Consultant.

                            c. To include it into /130- if you are pushing it into /3L1 then push it into /4E5 (LTA Annual Exemption). Once you will done this, you don't need to be concerned about the /130 as it will automatically go into /130 via PCR IN76.

                            d. But if you are not pushing teh wage type into /3L1 and /4E5 but want it into /130. Then you need to set Processing class 76 as 1 and tick the cumulation class 30. For this you don't need to do the cumulation via a custom PCR.

                             

                            Just try this , in case any confusion, let us know.

                             

                            Edited by: Praveen Tiwari on Jul 6, 2011 12:01 PM

                            • Re: Non-payable wagetype needs to go in Exemption...
                              Prasad Lad
                              Currently Being Moderated

                              Hi Praveen,

                               

                              Thanks for the update whcih you have provided.

                               

                              I have done what you have told me & the exemption is coming in system, it is also reflecting in form 16.

                               

                              I have added the PCR in ZNN1 below INLTA - Leave travel allowance & changed the processing class 20 as 1 which was 3 earlier;

                               

                              The PCR is as below;

                               

                              ZLTA Non-payable LTA wagetype to exemption

                                   

                                    9LTA LTA (Non Payable)

                                      ADDWT 9LTA OT   Output table

                                      ADDWT /3L1 OT   Output table

                                      ADDWT /4E5 OT   Output table

                               

                              Will test all the necessary scenario for this wagetype.

                               

                              I think this has solved my problem. Thanks for your help Praveen & Consultant SAP HR.

                               

                              Regards,

                              Prasad Lad

                            • Re: Non-payable wagetype needs to go in Exemption...
                              Prasad Lad
                              Currently Being Moderated

                              Hi,

                               

                              I have created the LTA exmptn & LTA Taxable wage types which were shown in Form 16 & other reports too.

                               

                              But, when i run payroll of the next month that wage type disappeards from from 16. This is due to T54C3 table in which the wage type was not maintained with key value "Y"

                               

                              Now, the user asked me to have that wagetype added in gross total also, but when i add this to gross it will be paid to the employee again. As that amount was paid to the emp by FB60 directly & no HR master data was maintained.

                               

                              Is there any option by which I can show the LTA amt value add in Gross total nd not paid to the emp ??

                               

                              Regards,

                              Prasad Lad

                              • Re: Non-payable wagetype needs to go in Exemption...
                                Praveen Tiwari
                                Currently Being Moderated

                                If you want to add it into groll income then cumulate it into cumulation class 24 or 25 but don't cumulate into cumulation class 1 or 10. By this it will be part /4** wage type which are used exclusively for the tax computation purpose and it will not be cumulated into /5** wage type hence no payment wil happen.

                                • Re: Non-payable wagetype needs to go in Exemption...
                                  Prasad Lad
                                  Currently Being Moderated

                                  Hi Praveen,

                                   

                                  Thanks for the quick response.

                                   

                                  I have created 2 wage types 9LT1 - LTA (Non Payable) Taxable & 9LTA - LTA (Non Payable) Exemption

                                   

                                  Currently cumulation class 1 & 10 is un-checked & cumulation class u2013 25 is checked for 9LT1  which needs to be taxable. And without running payroll brought tht values in CRT (RPUCRT00)

                                   

                                  Now in the Emolument paid section it shows the LTA total amount of both the wage types, but when I revert the above changes then it does not show in Emoluments paid section.

                                   

                                  As you said I can use cummulation class 24 or 25 however if I use that then one of my wage type needs to get into Section 10

                                  exemptn. & itu2019s not taxable.  For which I have written a PCR for cumulating forcefully as below;

                                   

                                  ZLTA Non-payable LTA wagetype to exemption

                                    |__  *

                                        |__ 9LTA LTA (Non Payable)

                                                   |__ ADDWT 9LTA OT   Output table

                                                   |__ ADDWT /3L1 OT   Output table

                                                   |__ ADDWT /416 OT   Output table

                                                   |__ ADDWT /4E5 OT   Output table

                                   

                                  But after that also it was not seen in CRT may be due to which the amount does not display in Form 16.

                                   

                                  Regards,

                                  Prasad Lad

                                  • Re: Non-payable wagetype needs to go in Exemption...
                                    Consultant SAP-HR
                                    Currently Being Moderated

                                    You want  your wage type should exemption u/s10 and value should be stored in CRT

                                     

                                    ZLTA Non-payable LTA wagetype to exemption

                                    |__ *

                                    |__ 9LTA LTA (Non Payable)

                                    |__ ADDWT 9LTA OT Output table

                                    |__ ADDWT /3L1 OT Output table

                                    |__ ADDWT /416 OT Output table

                                    |__ ADDWT /4E5 OT Output table

                                         addwt /130

                                     

                                    For Cumulation, check the PClass 30 of the wage type (9lta, assign the variable key for cumulation and do check

                                    • Re: Non-payable wagetype needs to go in Exemption...
                                      Prasad Lad
                                      Currently Being Moderated

                                      Hi,

                                       

                                      That will come in theoutput, however when we run payroll for the next month there is a difference whcih is shown in Gross salary & Actual paid amt. (Checking through Z-report for Tax projection).

                                       

                                      But when I check for the current month in which the amount is paid, that time it is coming correctly. Only goes for a toss when payroll is executed for the nxt month.

                                       

                                      Regards,

                                      Prasad Lad

                                    • Re: Non-payable wagetype needs to go in Exemption...
                                      Praveen Tiwari
                                      Currently Being Moderated

                                      IF a wage type is non taxable and you are storing the exemption only in that, then use processing class 76 and tick cumulation class 30 but then don't process this wage type with processing class 20 (thats why i said if this is only exemption wage type and not using for the payment). In that case you will not required to use the PCR for the cumulating the wage type into /130.

                                       

                                      Also set processing class 6 so that it can be push from Last result table to IT of current month.

  • Re: Non-payable wagetype needs to go in Exemption...
    Prasad Lad
    Currently Being Moderated

    Changed as there was some more things which needs to be seen while doing this.

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