Adjustment Entry Wage Type - HCM

[sridhar_nagu]

Hi Experts,

My Client has requested for a new wage type with the following conditions...

The amount entered in this wage type should not be included in /559 - Bank Transfer.

It has to be included in the Total Gross income for the computation of Income Tax.

I have tried excluding all the Cummulation Classes in V_512W_D, include only CC 1 and exclude rest, but i have not got the desired results.

The reason for this new wage type is because, the payment is being made through cheque and it is just included as a adjustment purpose for income tax calculation.

Appreciate if you could help with a solution on this...

Regards,

Sri

[BalaAP · Accepted solution]

Hi,

Remi is absolutely right. (In Indian payroll there may not be such a model WT like US or Canada Payroll).

Another approach is (like a work-around):

1) Tick cumulation class 1 (/101), 25 (/125 - considering this is irregular income) for this wage type.

2) Enter this Wage type as taxable amount in IT15.

3) Run a payroll simulation for this employee and expand the log and find the rule X047 and understand how /560 is derived(and other wage types involved in deriving final payment amount).

4) you may have to write a small PCR to deduct this amount from /101 (or from /560) before this PCR (X047). It needs careful understanding of various PCR's involved. I don't have payroll system right now (But I wrote PCR's similar to this earlier). I can only throw some idea.

regards,

Bala.

[sridhar_nagu · Accepted solution]

Thanks for your immediate clarification / suggestion...

I had achieved this by changing the Processing classes and Cummulation Classes.

[sikindar_a]

How about the postings then will you post this amount or not ?

[BalaAP]

Sikindar Sir,

Sorry to write here.I am not supposed to write here (The author of this question may have to write).

But my view is that, this amount already paid by cheque in FI module and posting part might be taken care in FI posting.

But your view is right. We may have to consider all the factors before offering any solution. But I consider this as a sake of discussion.

regards,

Bala.

[sikindar_a]

no problem bala

[sridhar_nagu]

Thanks for your immediate clarification / suggestion...

I had achieved this by changing the Processing classes and Cummulation Classes.

[former_member193210]

When I look into table view V_512W_D for Country Code 40 (India), I can't find a Model WT for "Taxable Benefit" or something like it. The closest was WT MTBP "Taxable balance payment".

[sridhar_nagu]

Thanks for your suggestion...

I had achieved this by changing the Processing classes and Cummulation Classes.