/6I2 Sec 80C Carry Forward in FY 2013-2014 due to Cross FY Retro

[Former Member]

Hello Gurus,

I am facing very important issue which is related to my year end closing activities.

The current scenario is, in March 2014 when they processed the salary there was cross financial retro triggered from the March 2013  and /6I2 CF sec 88 Investment of FY 2012-2013 has been carry forwarded to March 2014. At the time of checking through payslip we weren't aware of this. so we posted and even ran the salary for April 2014 and Posted to Accounts.

When we were checking the FORM 16 for all the employees then we came across this issue as it was effecting the Employee's Provident Fund Contribution. Later i cross checked the March 2014 RT and found the /6I2 had Carry Forwarded.

I am not able understand why this issue has come up?

The solution i have found by creating the Custom Wage Type in IT0015 and enterd the CF amonunt in Minus so that it may Nullify the Carry forwarded amount.and inserted Wage Type in ZN89 and it actually worked.

But I am getting stuck up at 1 Point that in Production We cant't reverse the posted doc and Rerun the Salary for March and April 2014 it will be very dangerous to take risk.

I am asking you all to help  and give me any idea how to solve this, so i can close my year end Closing Activities by nullifying that /6I2.

Thanks and Regards,

Vikram A V

[Former Member · Accepted solution]

Hi Vikram,

To correct the same, those values needs to be adjusted with the M89G, M89P, M89I, M89T wagetypes through rule IN89.Please note that once the results have certain inconsistent section 89 details,they need to be adjusted once at least. Once this adjustment is done, kindly run payroll for current period.

This time results would be consistent. Please note that these wagetypes are corresponding to /6* wage types as mentioned below:

M89G corresponds to /616

M89P corresponds to /622

M89I corresponds to /6I2

M89T corresponds to /650

Please refer to the documentation of rule IN89 for further details. So, all /6* wagetypes which are inconsistent needs to be adjusted with the corresponding M* wagetypes. A contra entry needs to be passed through M* wagetypes so that value of /6* wagetypes becomes zero in RT.

Regards

Ratan

[Former Member · Accepted solution]

Hi Ratan,

Thanks for the reply....

I have already done the above configuration and the solution is ready with me but the main point is that the salary for March, April and May 2014  has already run and it is too risky to rerun everything.

Even i cross checked IT0003 as there was no Master Data Changes, Still the system has triggered the retro, i am finding the reason why this happened.Kindly let me know if you have any other information related this type of issue.

Best Regards,

Vikram A V

[venkateshorusu]

Hi,

why do not you change the PCR IN42 and IN43 since legally investment arrears should not be carry forwarded to the current year i.e cross financial year arrears but it is happening because of /6I2 wage type.

comment /3I2 wage type, Arrears will not be carry forwarded when retro happens B/W cross financial years.

Regards

Venkatesh

[Former Member]

Dear,

For you query i think you have to update below wage type in info types 0015

and run payroll in live mode please

M89I    S89:AddS88Invlegacy /6I2    01.01.1998    31.12.9999

Regards

Subhedar

9158881202

[Former Member]

Hi Vikram,

You can't reverse the amount once live posting done, tell your FI to adjust this one manually.

By your new wt you can only resolve the issue in future if come.

All the best,

Kedhar Nath.

[Former Member]

Hi Kedhar,

Thanks for the reply..

Client is demanding for the Form 16 and is there any alternative solution, other than the mentioned one..

Best Regards,

Vikram A V