/TPA Concept

[Former Member]

Hi Experts,

I have a following requirement.

CTC=Fixed(FC) + Variable(VC)

Basic 30% of FC

HRA 50% of Basic

Transport Allowance 25% of Basic

Statutory Bonus 20% of Bonus if basic is < or equal to 10000

Special Allowance ->Remaining amount

i.e Special Allowance = FC - Basic - HRA - Transport Allow - Statutory Bonus - Employer PF

Example:

If CTC is 4 lacs for Grade E1 Variable Component is 2.5% i.e 400000 – 10000 = 390000 (Variable Component varies from Grade to Grade)

Basic –117000

HRA – 58500

Transport Allowance – 29250

Special Allowance – 157810

Bonus – 23400

Employer PF - 14040

Special Allowance = FC - Basic - HRA - Transport Allow - Statutory Bonus - Employer PF

Special Allowance consists of Medical and LTA. Medical is 15K/Year and remaining amount is LTA.

In payslip our client is not showing Medical and LTA separately but they are showing only Special Allowance which consists of Medical and LTA in their legacy.

How we can map this requirement in SAP.

Regards,

Sai

[venkateshorusu]

Go through below link it helps you to resolve the issue.

Regards

Venkatesh

[Former Member]

Hi Venkatesh

Thanks for the reply.

But our client requirement is,  In 0008 infotype we have Special allowance component.

Special allowance component consists of LTA and Medical.

Our client is not paying LTA and Medical separately.They r paying only special allowance which includes LTA and Medical.

Whenever employee produces bill for medical maximum 15000 is exempted for tax.and remaining amount can be used for LTA exemption if employee produces bill.

But we are not paying LTA and Medical separately, then how exemption will be calculated.

example: employee gets special allowance 20000 per month, yearly 240000.

Medical employee produces bill of 15000 and produces LTA bill of  45000. Then 60000 is exempted from the tax and Remaining 180000 is taxable.

how to map this.

Regards

Sai

[venkateshorusu]

Have a Look on Processing class 71 it may help you to sort out the issue.

Regards

Venkatesh

[Former Member]

Hi Venkatesh

Thxs for the reply, Can you plz explain in detail how we can map our above requirement with the PC 71.

our client requirement is,  In 0008 infotype we have Special allowance component.

Special allowance component consists of LTA and Medical.

Our client is not paying LTA and Medical separately.They r paying only special allowance which includes LTA and Medical.

Whenever employee produces bill for medical maximum 15000 is exempted for tax.and remaining amount can be used for LTA exemption if employee produces bill.

But we are not paying LTA and Medical separately, then how exemption will be calculated.

example: employee gets special allowance 20000 per month, yearly 240000.

Medical employee produces bill of 15000 and produces LTA bill of  45000. Then 60000 is exempted from the tax and Remaining 180000 is taxable.

plz advice