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                                                                               Sodexho Exemption

                                                                                                                                  Indian Payroll

Dear Gurus,

 Would like to share one scenario which I have come across in recent times. The entire phenomenon is included in the document. This document explains the process of the exemption of Sodexho Coupons amount pertaining Indian Payroll.

 Step1: Create One Wage Type for the Sodexho Coupon Payment.

  T.Code:PU30

Model Wage Type:MB10

Step2: Define the Wage Type Characteristics as Add to Total Wage 

 

Country Grouping


 

Wage Type


 

End Date


 

Start Date


 

Operation indicator


 

Unit of time/meas.


 

Input combination


 

Minimum amount


 

Maximum amount


 

Add to total amount


 

Indirect eval.module


 

Rounding type


 

Rounding divisor


 

WT for basic hours


 

Reduction method


 

Ability to overwrite


 

Module variant


 

Minimum number


 

Maximum number


 

Wage Type Long Text



 

40


 

9SXE


 

12/31/9999


 

1/1/1998


 

 

012


 

1


 

0


 

0


 

true


 

INVAL


 

 

0


 

 

 

 

C


 

0.00


 

 

Sodexho Coupons


Step3: Provide the Wage Type permissibility for the Primary Wage Type

 

Country Grouping


 

Wage Type


 

End Date


 

Start Date


 

EE Subgroup grouping


 

Personnel subarea


 

Wage Type Long Text


 

40


 

9SXE


 

12/31/9999


 

1/1/1998


 

111111


 

111


 

Sodexho Coupons


Step4: Provide the info type permissibility for the Info type.

Table: VV_52D7_B_0014_AL0

 

Country Grouping


 

Wage type group


 

Wage Type


 

Wage type group text


 

Wage Type Long Text


 

40


 

0014


 

9SXE


 

Recurring paymts/deducts


 

Sodexho Coupons


Step5: Creation of the Custom Tax Code.

Table: V_T7INT7

In this step we have to create one Tax Code in order to assign to the Wage Type. We have created one Custom Tax Code as ZSOD.

 

Country Grouping

 

 

Tax code


 

Tax code desc


 

40


 

ZSOD


 

Sodexo Tax Excemption


Step6: Assigning of the Exemption Amount and the Tax Code against the Wage Type.

Table: V_T7INT9

In this Step We assign the Tax Code and the monthly exemption amount 1250 to the Wage Type 9SXE.

 

Country Grouping


 

Wage Type


 

End Date


 

Start Date


 

Taxation type


 

Exemption frequency


 

Tax exemption limit


 

Tax code


 

Currency


 

40


 

9SXE


 

12/31/9999


 

1/1/1999


 

Limit Based


 

Monthly


 

1250.00


 

ZSOD


 

INR


Step7: Assignment of the Wage Type to the Reimgursements, Allowance and Perks.

Table: V_T7INA9

 

Wage Type


 

Basic Slab


 

Eligibility Check


 

RAP Amount


 

RAP NO


 

Wage Type Flag


 

Round Off


 

RAP Indicator


 

Currency


 

From


 

To


 

9SXE


 

 

 

 

 

Amount


 

 

Allowance


 

INR


 

01.01.1900


 

31.12.9999


Step8: Editing the Schema.

T.Code:PE01

Copy the Main Schema IN00 to ZN00

Copy the Sub-Schema INN1 to ZNN1

 

Line

 

 

Function


 

Par1


 

Par2


 

Par3


 

Par4


 

D


 

Text


 

40


 

INCTX


 

ZSOD


 

MCAX


 

A


 

MCMX


 

 

Sodexo Coupon Excemption


Function: INCTX

    Payroll function:   INCTX

  Use

    This is a generic payroll function for Allowance/Reimbursement taxation

    Treatment. This payroll function can be used by customers for computing

    Annual tax exemption amount of any allowance or reimbursement. The tax

    Exemption amount computed is minimum of the following three:

To effect the tax exemption of the allowance the payroll function INCTX is used in their schema as follows:

 INCTX   SEXM      MCAX    A     MCMX

         ZSOD: The tax code specified in table T7INT9 for Office wear

 Allowance

         MCAX: The annual tax exemption wage type

         A:    The monthly exemptions are projected for the completed

 Financial year to arrive at the annual exemptions.

         MCMX: The monthly tax exemption wage type

Step9: Maintain the Sodexo Coupon amount in 0014.

Step11: Maitain the Exemption Amount in the 0582 Info Type.

Here we have maintained the amount against the Tax Code as ZSOD.

Step10: Process the Payroll. The Exemption amount is calculated as follows.

The tax exemption amount computed is minimum of the following three:

O   Allowance or reimbursement.

The payment detail is typically maintained in info type for payments

(IT0015) or recurring payments and deductions (IT0014) or basic pay

(IT0008). Here We have mentioned the amount as  2000

O   Exemptions claimed.

The exemption is maintained in customer subtype of info type IT0582 for

Exemptions. This info type is only read till the last date of the period

for which the payroll is being run. Future is not read. Here We have mentioned the amount as 1500

O   Annual tax exemption limit.

The tax exemption limit is maintained in the view for taxability of

Wage types (V_T7INT9). Here We have mentioned the amount as 1250

Hence the amount is calculated as 1250 which is the minimum among the three.

Regards

Govardhan Reddy

SAP HCM Consultant

_________________________________________________________________________________________________________________________________________________

Disclaimer: This document does not contain the copyrighted content or material own by others. The coding or technical names used in the configuration screen shots are purely set as just examples and doesn’t belongs to the real time systems or material own by others. Any resemblance with the real time system or material own by others is s just a coincidence. The numbering, wording, coding are provided in screen shots are to give better understandings to the forum users. I am fully abided by the rules and regulations of the forum. The prime motive is to serve the forum users better.