The client is having its own trust to manage the Provident fund contributions. Every month the amount both employee and employer contributions will be transferred to the trust. The trust will invest these funds in various instruments like fixed deposits as per the guide lines given to the trust for investment. The interest/earnings on investments will be credited to the fund at the end of the year and these earnings will be distributed to each employee account as per their monthly balances
Procedure for employees leaving during the year: At the beginning of each financial year some provisional rate for PF will be declared based on the earlier year earnings. The final settlement will be made to the employee leaving during the year according to this provisional rate. At the end of the year they will recalculate the actual earnings of all the employees including the employees left during the year and adjust the excess/less paid amounts with the pension payable to employees.
Could you please explain how can we map in SAP the following:
1. Distribution of the income earned on the fund to each employee based on their monthly balances. The approximate number of employees are around 3500
2. The adjustment to pension. (i.e the difference between the actual earnings and the provisional amount paid to employees left during the year)