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How to configure National Pension Scheme

Dear Experts,

May I know how to configure the NPS ? How to maintain Info types 0587 & 0585 For Employee Contribution wise.

System package levels:

SAP_HR 604 0062 SAPKE60462 Human Resources

I checked the note no-1942663,I downloaded this note but it is showing cannot be implemented. So please guide me to resolve this issue.

Experts plz help Regards,

Naresh.

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9 Answers

  • avatar image
    Former Member
    Oct 29, 2015 at 08:35 AM

    Hi Naresh, Please note we use 0585 infotype - Contribution to pension scheme of Central Government - As per Union Finance Bill 2015 there has been an amendment to Section 80CCD. The amendment says that Sub-section (1A) has been omitted and a new sub-section (1B) has been introduced. SAP note (2168787) has all the details of the note. The SAP note has pre-requisite for the support patch level which needs to be SAPK-600B1INSAPHRCIN, than we can implement the SAP note in the system. Kindly check the pre-requisite and arrange to implement the note and the calculation will happen. Regards, Bhabagrahi

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  • Oct 29, 2015 at 04:39 PM

    Hi Bhabagrahi Sahu,

    I am very Thankful to Your valuable sharing,

    I checked that note it is already implemented in system, I and maintain Info Type 585-Contribution to pension scheme of Central Government -as 50,000 in April 2015 and I run the payroll,In the log INTAX function Output I didn't find any /3I7 & /3I9.

    Could you guide me how to resolve this ASAP.

    Regards,

    Naresh

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    • Hi Naresh,

      Kindly check below points:-

      1. For providing the deduction under 80CCD(1), 10% of annual NPS Basis acts as one of the factors
      2. You need to ensure that Cumulation class ‘43’ & ‘44’ are checked / ticked for all relevant wage types which         forms the monthly basis for NPS
        3. Ensure that there is forced retro for employees from Month of April  to have correct value of annual NPS               basis
         4. There will not be any extra/separate line item in Infotype 0585 for 80CCD(1B) contribution. You can                      continue to maintain the contribution towards NPS in IT 0585 under line item “Contribution to pension                  scheme of Central Government”
         5. Payroll will generate the following exemption Wage types:

               /3I7 : 80CCD(1)

              /3I9 : 80CCD(1B)

              /3I5 : Combined Employee 80CCD Exemption ( /3I7 + /3I9 )

      Please check the following of the above wage types are getting formed in your payroll RT.

      Regards,

      Venkat Polisetty

  • avatar image
    Former Member
    Oct 30, 2015 at 04:56 AM

    Hi, If you don't update any other investment in 0586,and if there is no PF which again is under sec 80C then the investment will not be considered. Please check if you have done that. Thanks, Bhabagrahi

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  • Oct 30, 2015 at 10:09 AM

    Hi Sahu & Venkat,


    Thanks for your Inputs,

    What I tested in my system 2168787 note was implemented n manual corrections was done but in program side corrections not updated,I checked these things along with abaper, he asked me we need to implement earlier note also.

    And how to maintain Info type 0587

    So kindly guide me which note i need to implement and is there any effect for other calculations please let me know.


    Fast responses are highly appreciates.

    Regards,

    Naresh.

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  • Oct 30, 2015 at 11:38 AM

    Hi Venkat,

    Actually I checked 1942663 It showing as cannot be implement ,1731727 is for rounding of employers contribution and 1661843 for NPS: Contribution To Central Govt Fund By Employee & Employer in this we don't have any corrections, So kindly share some more information regarding to resolve this,

    Please give quick inputs.

    Regards,

    Naresh.

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    • Former Member

      Hello Naresh,

      NPS is having two options in IT587

      1. Employee Contribution

      2. Employer Contribution.

      Which one is applicable you can tick the check box  and then maintain NPS amount or NPS percentage details

      NPS percentage - NPS will be deducted based on the given percentage from  NPS basis.

      NPS Amount -  Direct deduction from salary / contribution by employer

      Kindly ensure the below wage types should be generated by system for successful Result.

      For Employer Contribution For  Employee  Contribution /144 -
        Employer NPS contribution Basis /143 - Employee NPS
        contribution Basis /3FS -
        Er NPS Contrib Amount /3FU -  EE
        NPS Contrib Amount /3FT -
        Annual NPS Contrib Amount /3FV -  EE
        Annual NPS Contrib Amt

      Regards,

      S. Alexander Julius


      NPS.JPG (23.8 kB)
  • Oct 30, 2015 at 12:38 PM

    Your system Support package level is low ask your Basis guy to increse SP level for implmentting Note

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  • Oct 30, 2015 at 01:12 PM

    Hi Srinivas,

    Very thankful to your response,

    The Basis people asking me,what patches are you required give me the list

    So kindly suggest me list of packages I need to given to him according to my system level.

    SAP_HR6040062SAPKE60462Human Resources-This is my system details.

    Regards,

    Naresh.

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  • Oct 30, 2015 at 01:36 PM

    Hi Alexander Julius,

    Please check below screen as per my system

    So Could you suggest me which note & which package level I need to be Update to my system.

    Regards ,

    Naresh.


    NPS1.jpg (27.4 kB)
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  • Nov 03, 2015 at 12:29 PM

    Hi Alexander Julius,


    Thanks for your inputs,


    I will check and get back to you.



    Regards,

    Naresh.

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