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Deduction Wage Type and its amount

Hello Expert,

I am FICO consultant, need one help in HCM, as I have one scenario where Flexible Real Estate Management (REFX) Sub module in FICO is used to allot quarters to the employees and the rent for which is deducted from the salary of the employee.

Quarter allotment will be undertaken by REFX module and it will create open item for rent recoverable in FI

In connection with rent recovery form employee salary,

What I understood is, We have to create one Deduction Wage Type, assign one Symbolic Account to the WT, and then Assign one GL account to the Symbolic account.

my queries are,

1. Whether the step mention (in brief) above is right?

2. In REFX posting for rent payable is made to the customer account which is one sub ledger and and one recon. account is assigned to these sub ledgers, will this GL further attached to the symbolic account to pick up the Rent deduction amount.

(Here Personnel No. and Customer for REFX are linked using Business partner concept) ie Posting in REFX is made to the Business Partner

3.As I come to know that Symbolic account is the integration point for posting from HCM (Payroll) to FI, Will this same symbolic account help to post amount from FI to to HCM (ie Rent amount first be posted in REFX and want to take the effect of the same in Payroll)

Please guide me in this regard

Yours

Tushar Awasare

Pune

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    author's profile photo Former Member
    Former Member
    Posted on Jul 12, 2016 at 08:57 AM

    I haven't worked on REFX, but to answer your queries from an HCM perspective:

    1) Yes, you can recover rent by creating a deduction wage type. This will then need to be updated for each employee in Infotype 14 wherein you can specify a period-specific rent deduction.

    2) You are correct, you will link the wage type to a GL account via a symbolic account. I did not understand the rest of your query.

    3) There is no concept of reverse integration from FI to HR. It has to be from HR to FI. For this, payroll should be executed followed by payroll posting to FI.

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    • Hi

      I am not sure about payroll, but the process should cover two steps.

      1. Raising income for the company and debiting a debtor (Tenant) this time BP as correctly identified. Flow types mapped to GL accounts to the conditions in the contract will take care of this.

      2. Payment via payroll and deductions to mirror the rent for the period. Previous answer mentions how it is done using wage types.

      In accounting/process terms you should be able to see receivable rent and collection of that via payroll.

      Regards

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