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Former Member

India Salary Structure

Hello,

I am currently working for a Indian client and would like to know how the below data to be displayed/maintained in SAP HCM. Payroll is outsourced, so just want to maintain the below salary structure in SAP

CTC – Rs. 6,00,000
Monthly Gross Salary – Rs. 50,000
Basic – 40% of Basic (Rs. 20,000)
HRA – 50% of Basic (Rs. 10,000)
Conveyance – Rs. 800 fixed
Executive Allowance – Gross Salary – (Basic + HRA + Conveyance + Other Benefits)
                                                Ex: (50,000 – (20,000 + 10,000 + 800 + 1,250 + 200 + 500 + 1,667 + 2,400) = Rs. 13,183

Other Benefits: (will be paid end of year as taxable or non taxable if bills submitted)

Medical – 1250 p.m. fixed
Children Education Allowance – 200 fixed
Vehicle Allowance – 500 fixed
LTA – Monthly Basic / 12 (20,000/12 = Rs. 1,667)
PF – 12% of Monthly Basic  (Rs. 2,400)
Gratuity – (Can you please tell how Gratuity is calculated in SAP)

I have gone through the post (http://scn.sap.com/thread/3152822) and have done required steps and displayed Gross Salary, Basic, HRA, Conv., Medical, CEA, Veh. Allowance in IT0008.

But would like to get inputs from experts on below questions

1.       What is the best practice in India for displaying above Salary structure in SAP? Is this data displayed in IT0008? What steps needs to be configured to fulfill the same?

2.       How LTA configuration is done (Monthly Basic /12)?

Thanks in advance!

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2 Answers

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    Former Member
    Sep 12, 2012 at 10:20 AM

    Hi

    Regarding LTA exemption you have to enter 0582 and give the LTA details with Ticket number S and E dates etc..and you can make the payment in It0015

    Tax code SLTA needs to be assign to your customer wage types.

    LTA provisions either you can maintain dummy wage type entered at IT0008 and maintain 8,4% on basic in the V_T539J valulation table and you can get the basic /12 value of LTA a provision and  post both side of P&L and B/S in posting.

    Incase if you want to generate LTA provision without maintaining at master data then you can write the PCR that Basic /12 will be your monthly LTA amount.

    Best Regards

    Venkata Manikanth

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    • Hi Sudhir,

      In case of LTA 1/12 th of the basic pay , if you are going through INVAL B,  8.4% of basic it will not give the accurate amount.

      If you want the exact 1/12 th of basic in IT0008 then you have to go either for user exit or you have to make use of feature 40ECS and there you have to attach a program which will divide the Basic pay amount by 12 and pass the value for LTA.

      You also can make use of a custom indirect evaluation module which will do the exact division

      In case you don't want the amount to see in IT0008 you can achieve the same through a PCR what mentioned by @Venkata Manikanth

      Sujith

      Message was edited by: Sujith Nambiar

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    Former Member
    Sep 13, 2012 at 06:22 AM

    Thanks! I'll try these steps. Since, we want only the data to be displayed and no payroll processing or posting is done in SAP, can you please tell me what is the standard practice generally followed? Are all these wage types are showed in IT0008?

    If they are not, then I can create a action to update IT0015(additional payments) with respective wage types (LTA, Vehicle Allow, Medical e.t.c) as and when needed. But the challenge here would be calculating Executive Allow.

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