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