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Former Member
Nov 25, 2011 at 07:04 PM

dedcution priority

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Hi PY experts ,

i have a doubt regarding the statutory deductions and dedcution priority

Case 1 : Payroll run for NOV

Assume ther is no retro or previous month amount

When the employee is having the total deduction is more than total earnigns then the system will go for deduction priority

Earnings

Basic 10000

DA 5000

TE 15000

Deduction

statutory ded 6000

Other dedcution 12000

TD 18000

In this case, the system will go for deduction priority

Case 2. Payroll run for NOV

Assume ther is a retro amount or previous month amount (change in basic pay from April)

Earnings

Basic 10000

DA 5000

*Retro amt 10000

Tot. Earngs 25000

Deduction

statutory ded 6000

Other dedcution 12000

*Retro 2000

TD 20000

In this case, the net pay should be 5000 but the system is paying 8000 . where in the 5000 wouldbe the dsiff from TE - TD

and 3000 would be from /561(the diff without retro i.e., 15000 - 18000 )

The system is not considering the deduction priority in this case.

Also, the extra 3000 is recovering in the next month py run (/563).

Please let me know why in this case the deduction priority is not taken care by the system. is there any config needs to be changed.

Thanks Rajini