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LTA & Medical Eligibility Amounts (Payroll India)


I need to configure LTA and Medical payments with eligibility for one of our Indian clients. We have already configured dummy WTs 9LTA & 9MED for indirectly valuating annual values based on Basic Pay (9MED is constant INR 15000 p.a. and 9LTA = one month Basic = 9BAS/12 = 1BAS).

We have created payment WTs for LTA and MED (1LTA & 1MED). Now, let us consider the case of an employee joining in mid-year (say 1st October 2013) with Annual Basic (9BAS) = INR 12,00,000. His Basic Pay p.m. (1BAS ) = 9BAS/12 = INR 1,00,000. 9LTA = 1 month Basic Pay = INR 1,00,000.

  1. But because 9LTA = 1 Lakh for the calendar year 2013 (i.e. period 01.01.2013-31.12.2013); eligibility should be prorated for the 3 remaining months.
  2. Secondly, if there is salary increment/change in December 2013 (say), the system should be able to take care of the new annual eligibility to calculate the real eligibility for October, November & separately for December 2013.
  3. Besides this, how can we stop the system from paying more than the actual eligibility.

I am planning to write a PCR to resolve these issues. I intend to calculate monthly value of annual LTA eligibility (9LTA) within my PCR during each payroll run by dividing 9LTA by 12 and accumulating the same in another actual eligibility WT 9LTR (say). Am I on the right track? Please provide your opinion. I feel this can be resolved using PCRs and no ABAP development is required.



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  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on Jan 02, 2014 at 12:17 PM


    you are talking about India payroll and in your example given from Jan to Dec (non Indian financial year)

    check those wage types with processing class 1 and assign value 1 / 3 (as per your requirement) in the table v_512w_d


    praneeth kumar

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  • Posted on May 31, 2014 at 04:14 AM

    problem solved using standard functionality.

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    • Hi Pradip,

      Please use PC00_M40_REMP/S/T/C transactions. To use them, please configure T7INAA with your LTA/Medical Wage Types. Please use tax codes SLTA and SMED (T7INA9). Also, configure these wage types with cumulation type C in T54C3.

      Define your annual eligibility in IT0589 (Individual Reimbursements). Make sure first record has the BEGDA of 1st January. Also make sure there is a valid IT0008 record for the employee on the date when you are creating IT0589 record. Dates are very important.

      Use REMS to check the claim status. Use REMP to disburse regular/off-cycle claims. To disburse balance claim and close the annual payment, use REMT. If you wish to pay the balance in March of next year, use REMT but put the payment date as 31st December of the year gone by. This will trigger a retro from December last year to March this year (calendar year).

      Whenever the 12 month eligibility changes for LTA/Medical; please create a new record in IT0589 with BEGDA as the date of change in eligibility.

      That's how I have done it and is working perfectly.Please do acknowledge if your issue is resolved.



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