on 06-23-2014 11:46 AM
Hello All
Last payroll period we have paid employee with full pay.
But now came to know that EE is no longer with company wef 16.05.2014
When we change the IT000 and run payroll it is showing –ve value in the RT as overpayment amount of 420. Also tax is coming in negative 40-
Is there any way to create a new wage type to tackle the overpayment and other all / wage types which are coming in negative?
PFA of sample screen shot.
Requirement is just one wage type which can nullify all –ve values and takes care of all Cumulation class returns
Regards
K
You can create WTs that can be used on IT0015 to adjust just about any other WT, but in a situation like yours, we let the system calculate the "overpayment" and the deduction reimbursements, generating a "Claim".
We also have a "Net Advance" wt that can be used to cancell out the Claim.
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Hello All
My doubt is i have below in payslip and RT
Payment
Basic Pay 549.45-
Deduction part
Tax paid 109.60-
Professional Tax 18.87-
Overpayment
/561 Over Paymen 420.98
Now I am creating a wage type for IT0015. But please clarify me below.
1. Payment or deduction wage type i need o create for IT0015?
2. Do i need to enter Amount of Over payment or -ve Gross payment in that new wage type?
3. What about already paid Tax and statutory contributions from employee?
(In this case 109.60 as Tax and 18.87 as professional tax in India)
4. For maintaining WT in It0015 what is the Cumulation class I need to maintain ?
Totally how to cancell out the claim and make the FI posting?
Regards
K
The system will keep WT /561 in it's database until the overpayment has been reimbursed by the employee or cleared as "non reclaimable", so there is no rush to do something now.
Should the employee be re-hired, that amount will automatically be deducted from his/her pay.
If you want to clear that claim from your books, then you need to use an IT0015 WT that works as a "Net Payment" but that is accounted distinctly to FI/CO. By making a "Net Payment" of 420.98 to the employee, the system will cancell out the OverPayment (/561) and generate a ZeroNetPay.
I'm not sure of what you mean by a "counter wage type", but I was proposing to use a WT that gives the employee a net payment, such as a "Cash Advance" WT.
That net payment would eliminate the claim in Payroll, but you would have to advise the Finance Department so that they would know what Ledger Entry should be done (either to Accounts Receivable or to Bad Debt).
Do a Payroll Simulation for an employee who is leaving the Company and will have a Claim generated in his/her last pay, making sure that you check the "Display log" box.
Drill down into that log to find if there is a Flag (Information WT or Temporary Variable) generated to indicate that the employee is leaving the Company in this Payroll Period, and how the Claim WT gets generated.
Create a "Claims cancellation WT" that acts as a "Cash Advance WT", and in your Payroll Schema, before where the Claims WT is generated, insert a PCR that will go through the same process (Gross - Net = Claim) but that will generate the Claims Cancellation WT.
Hello All
Not only During Employee resignation, any condition when we have a claim value it need to be countered to run payroll and do posting.
I am not getting about Temporary variable scenario.
Also let me know how can I proceed with a rule in this.
Someone implemented automatic cancellation and adjustment of claim please let me know the scenario.
Regards
K
As mentioned before, do a Payroll Simulation (with the "Display log" box checked) for an employee who gets a claim in the current pay.
In the current example
the claim gets generated in the "Retroactive accounting" section of the schema, and it should be possible to add a PCR just before X060 to automatically replace WT /560 by a "Cash Advance WT".
Study your log, identify where the claims (WT /560) gets generated according to various scenarios, study how PCRs are created and how they process the data, and make a try. Post your attempt and someone will comment on it.
Hi,
You are getting this while running June Payroll?
How you would be adjusted since it's already been paid to employee.
1.You can do like this make a payment entry through IT15 on the May payroll (If you have not recived any payment from employee: and made the adjustment.
2. If you have received the payment from employee then do the same procedure of 1.
Book It15 wage type as settlement adjustment G/L for clarification.
Check and let me know.
SD
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Hello Sankarsan/All
Problem is when we use different wage types for differnt employees during last may2014 payment
and now due to termination action, we are having differnt employees haveing many Custom and /wage types with -VE sign.
Because of this i am not able to counter this with single wage type.
My requirment is i need to counter all -ve values to make it 0 in June payroll
Client is not ready for any other adjustment or FICO entries.
Also in this case how can i repay income tax and statutory values to employee?
If someone is handling this scenario and mastered in this, please advise us in this
Regards
K
Hi SK,
If you want to make it zero then what i said to you do that way. Check your /551 wage type value and pass that amount in IT15 as a additional payment of May 2014.
Automaticallly it will adjust. Tax which is deducted and it's already been paid to tax department then employee itself will claim that to Income tax depart for return.
Check and let me know.
Regards,
Sankarsan
Please attach screen shot.
As per my understanding he left on 16th May 14 but without separation action payroll has been run for full month..?Now you are getting -ve amounts for which payroll period.?
please explain.
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Hello All
Yes, I am trying to recover the amount from employee
Also Tax need to be adjusted in this case
Please of below screen shot. Employee was paid 1500 initially but after separation action amount of 549- is coming as basic and other deductions (statutory deduction with negative value)
Now we need to use a single wage type which can tackle overpayment/payments and deductions (statutory/non statutory).
Please advise us
Hi SK,
Can you able to recover the amount of employee?. I think no then how you will be adjust.
Please clarify me.
Regards,
Sankarsan
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