CTC payroll calculation

[Former Member]

Hi Experts,

I could understand the basic payroll, but not clear about how CTC based pay roll is managed.Say one company has Basic as 50% of CTC and HRA as 30% of CTC and Conveyance allowance as 10% of CTC.So where and which wage type will be used for CTC?

CTC will also include LTA and other components, in such cases how do we calculate?

Thanks for your guidance.

Jyoti

[Former Member]

Hi,

In every organization your CTC will have all components including basic,hra,conv etc which is always 100% you dont go beyond this CTC amount.In SAP you configure all these wagetypes with their breakup,so you can start working on them and as and when you are stuck up in between you can raise a query in the forum.

Meanwhile search forum for knowing more on this topic.

Salil

[Former Member]

Hi Salil/Sikindar,

Thanks for your prompt response let me elaborate my query with a example:

CTC for employee A:

Basic - 40% of CTC

HRA - 40% of basic

Conveyance allowance - 800

medical reimbursement - 15000/annum

petrol reimbursement - 20000/annum

LTC - 40% of basic

pf - 12% of basic

esi - 8.33% of basic

Now there are following queries:

1. How do i configure basic as 40% of CTC , so primary query is which infotype do i use for capturing CTC amount

2. As sikindar said " You can take notional wage type /TP Assumeing this CTC will be part of display and caluculaiton of WT in Basic Pay only (0008) " can you kindly help me in how to configure the same

As i am getting very confused with the same.

Regards,

J

[Former Member]

Hi,

Copy /TPA WT to your CTC WT and make it 100% in indirect valuation,now valuate basic as 40% of CTC WT,valuate HRA as 40% of basic all this is done in indirect valuation,do so for all your WTs and check.

For configuration check threads in forum related to INDIRECT VALUATION OF WAGETYPES OR CTC OR /TPA etc you will find many to guide you.

Salil

[Former Member]

Hi Salil.

Thanks for your input...i will check and revert.

Regards,

J

[Former Member]

Hi Salil,

Thanks for your valuable input. Just need few more details on the above query.

So as i understand you are suggesting that i create a wage type from base wt /TPA and through indirect valuation calculate values of Basic and other components.

1. So are you suggesting that i ask the client for monthly CTC amount and upload the same in /TPA custom wage type

2. But i do not want /TPA amount to be added to gross

3. In case of changes to employee salary due to leaves will my CTC also get fluctuated

Regards,

J

[sikindar_a]

/TPA is notional WT so there wont be any effect for other wage types kindly check this WT in V_512w_D

[sikindar_a]

Jyoti

As discussed Earlier , You can take notional wage type /TP Assumeing this CTC will be part of display and caluculaiton of WT in Basic Pay only (0008)