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Apr 18, 2014 at 04:33 AM

Change in Reimbursement process

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Dear Team,

Client is using off cycle reimbursement allowance, some allowance are annual such as LTA & some allowance are monthly such as telephone. Monthly allowance are carried forward each month if the employees are not / partially taken then balance amount carry forward to next month through t-code –(PC00_M40_REMC - Claims Balance Carry Forward ).

Now the company wants to change the pay reimbursement on below way:-

Eligibility amount: - 15000

Applied amount: - 10000

Balance amount: - 15000-10000=5000

Applied amount (10000) paid through off-cycle. These amounts are nontaxable, while given the bills.

Now the balance amount: = 15000-10000=5000 paid through regular payroll & should be taxable.

Kindly suggest!

Thank you in advance,

Regards,

Rakesh