Payroll Configuration In

1

Table of Contents

11.Enterprise Structure in Payroll

11.1.Create Personnel Area/Subarea

11.2Create Employee Group/Subgroup

21.3Assignment of Personnel Area to Company Code

21.4Assignment of Employee Subgroup to Employee Group

32Personnel Management

32.1Basic Settings

32.1.1Maintain User Parameter

32.1.2Create Number range for Personnel Numbers

32.1.3Determine defaults for number ranges

42.2Employee Master Maintenance

42.2.1Master maintenance menu

42.2.2Infotype Menu for Personal Data

52.3Personnel Actions

52.3.1Define infogroups for Personnel Actions

62.3.2Set up personnel actions

62.3.3Create reasons for personnel actions

62.3.4Change action menu

72.4Define EE Subgroup Grouping for PCR and Coll.Agmt.Prov.

82.5Create Payscale Area/Type

82.6Check Assignment of Payscale Structure to Enterprise Structure.

82.7Personnel Subarea grouping for Primary wage types

92.8Employee Subgroup Grouping for primary wage types

93Time Management

93.1Work Schedule Configurations

93.1.1Personnel Subarea grouping for work schedule

103.1.2Group Personnel Subareas for the Daily Work Schedule

103.1.3Define Daily Work Schedules

113.1.4Define Period Work Schedules

113.1.5Define Employee Subgroup Groupings for Work Schedule

123.1.6Define Groupings for the Public Holiday Calendar

123.1.7Set Work Schedule Rules and Work Schedules

133.1.8Generate Work Schedules Manually

143.2Time Data Administration

143.2.1Group Personnel Subareas for Attendances and Absences

143.2.2Define Absence Types

153.2.3Define Counting Classes for the Period Work Schedule

153.2.4Group Employee Subgroups for Time Quotas

163.2.5Group Personnel Subareas for Time Quotas

163.2.6Define Counting Rules

163.2.7Define Absence Quota Types

173.2.8Define Time Quota Compensation Methods

173.2.9Permit Attendances/Absences to be Recorded Without Clock Times

173.3Leave Maintenance

173.3.1Group Personnel Subareas for Leave Types

183.3.2Define Leave Types

183.3.3Set Default Values for Leave Control

204Payroll Configurations

204.1Basic Payroll Settings

204.1.1Define Period Parameters

204.1.2Define Date Modifier

214.1.3Create Payroll Accounting Area

214.1.4Create Control Record

224.1.5Generate Payroll Periods

234.2Wage Type Maintenance

234.2.1Create Wage types

234.2.2Check wage type characteristics

244.3Maintenance of Allowance Grouping

244.3.1Define Pay scale groupings for Allowance.

254.3.2Maintain Pay scale groups and Levels

264.3.3Maintain default wage types for basic pay

274.3.4Setting in Feature LGMST

284.3.5Assign wage type model for Pay scale grouping for Allowances

294.3.6Maintain valuation of Base wage types

294.3.7Assign Basic Wage Types to Grouping for Allowance

294.3.8Assign Basic Wage Types to Grouping for Allowance

304.3.9Settings required under the table view V_503_ALL.

304.4Reimbursements, Allowance and Perks

304.4.1Calculate Eligibility for RAPs

314.4.2Maintain Extra Eligibility Criteria for RAPs

314.5Basic Salary for India

314.5.1Define Basic Codes

324.5.2Assign Basic Codes for Allowance Groups

334.5.3Assign Basic Slabs to Pay Scale Groupings for Allowance

334.5.4Maintain Appraisal Criteria for Basic Salary

334.5.5Maintain Increment Criteria for Basic Salary

344.6Dearness Allowance Processing

344.6.1Define Consumer Price Indices

344.6.2Assign Current and Reference Values for Consumer Price Indices

354.6.3Maintain Basic Slab Details for Dearness Allowance

354.6.4Maintain Dearness Allowance Rules for Allowance Groupings

354.6.5Maintain Dearness Allowance Consumer Price Index Slab Details

364.7Housing wage processing

364.7.1Define Accommodation Types

364.7.2Maintain the Processing Options for CLA

364.8Leave Travel Processing

364.8.1Maintain Minimum Eligibility Period for Leave Travel Allowance

374.9Car and Conveyance Processing

374.9.1Define Vehicle Details

374.9.2Define Conveyance Types

374.9.3Define Amounts and Numbers for Car Schemes

374.9.4Assign Type and Age of Car for Car Schemes

374.9.5Assign Eligibility Criteria for Conveyance Allowance

384.10One Day Salary Deduction

384.10.1Maintain Details for One Day Salary Deduction

384.11Retirement Benefits

394.11.1Gratuity

394.11.1.1Maintain Gratuity Trust ID

394.11.1.2Maintain Gratuity Contrib. Freq. and Related Wage Types

394.11.1.3Define Contribution Rates for Gratuity

404.11.1.4Maintain the Eligibility Years for Gratuity

404.11.1.5Check for Gratuity Contribution

414.11.1.6Maintain Wage types to be Passed During Retro Runs

414.11.2Superannuation

414.11.2.1Maintain Superannuation Trust ID

414.11.2.2Maintain Superannuation Contrib. Freq and Rel. Wage Types

424.11.2.3Define Contribution Rates for Superannuation

424.11.2.4Maintain Eligibility Details for Superannuation

434.11.2.5Check for Superannuation Contributions

434.11.2.6Maintain Wagetypes to be passed During Retro Runs

434.12Statutory Social Contribution

434.12.1Provident Fund

434.12.1.1Define Trust Details for Provident Fund

444.12.1.2Assign Company Rates for Provident Fund

444.12.1.3Define PF Trust Validity Period

454.12.1.4Maintain Contribution Details for Provident Fund

454.12.1.5Define Contribution type for Statutory rates for Provident Fund

464.12.2Employees State Insurance

464.12.2.1Maintain ESI Eligibility Limit

464.12.2.2Maintain Number of Working Days in a Month

474.12.2.3Define Personnel Area and Subarea Groupings for ESI

474.12.2.4Assign ESI Groupings for Personnel Area and Subarea

474.12.2.5Maintain Contribution Rates for ESI

484.12.3Labour Welfare Fund

484.12.3.1Define Personnel Area and Subarea Groupings for LWF

484.12.3.2Assign LWF Groupings for Personnel Area and Subarea

494.12.3.3Maintain Contribution Rates for Labour Welfare Fund

494.13Professional Tax

494.13.1Define Professional Tax Grouping Details

504.13.2Assign PTax Groupings for Personnel Areas and Subareas

504.13.3Assign Amounts for Professional Tax Deduction

514.13.4Maintain Method and Form Layout for PTax Groupings

514.13.5Maintain Cumulation Rules for Professional Tax

52ax Calculations

524.13.6Basic Settings

524.13.6.1Define Personnel Area and Subarea Groupings for Tax

524.13.6.2Assign Tax Groupings for Personnel Areas and Subareas

524.13.7Maintain Tax Rules as per Customer Specification

534.13.8Maintain Rule for Voluntary Tax Deduction

534.13.9Third Party Deductions

534.13.9.1Configure Wagetypes for Section 80

534.13.9.2Configure Wagetypes for Section 88

544.13.9.3Define Membership/Deduction Types

544.13.9.4Check entry permissibility for Membership Fees Infotype (0057)

544.13.10Tax Liability on Reimbursements, Allowances and Perks

544.13.10.1Define Tax Codes

544.13.10.2Assign Tax Code Limits to Wage Types

554.13.11Section 89(1) Relief

554.13.11.1Maintain Sec89 (1) Switch at Implementation Level

554.13.11.2Rule to Maintain Legacy Data for Section 89(1) Relief Calculation

564.13.11.3Rule to Capture Section 89(1) Relief Computed Outside SAP Payroll

564.13.12Tax on Arrears

564.13.12.1Maintain Tax Limit and Tax Rate for Arrears Payment

574.13.12.2Maintain Schema for Tax on Arrears

574.14Recovery of Rounded Off Amounts

574.14.1Maintain Details for Recovery of Rounded Amounts

574.15Retro Active Payroll Runs

574.15.1Maintain Rule to form Differences from Previous Results

584.15.2Maintain Rule to form Differences with Actual Amounts

584.15.3Maintain Rule to Bring Forward Difference Amounts

584.16Special Payments

584.16.1Create Wage Type Catalog

594.17Off-Cycle Activities

594.17.1Check entry permissibility for Infotype (0267)

594.17.2Set Up Off-Cycle Reasons

594.17.3Set Up Report Variants for Off-Cycle Activities

604.17.4Define Default Values for Payments in Advance

604.17.5Specify default values for wage types

604.17.6Specify Default Values for Payroll Results

604.17.7Specify Default Values for Payment Methods

614.18Deductions Processing

614.18.1Arrears and Priorities

614.18.2Minimum Net Pay

614.19Company Loans

614.19.1Master Data

614.19.1.1Define Value Dates for Payroll Area

624.19.1.2Create a Loan Type

624.19.1.3Assign Repayment Type

624.19.1.4Create Loan Conditions

634.19.1.5Control Allocation of Loans

634.19.1.6Adjust Screen Control

634.19.1.7Maintain Loans Grouping

644.19.1.8Maintain Salary Components

654.19.1.9Maintain Maximum Number of Loans Allowed

654.19.1.10Maintain Maximum amount for loans outstanding

654.19.1.11Maintain Loans Eligibility Checks and Limits

664.19.1.12Maintain Deduction Details Under Section 24

664.19.2Calculation

664.20Remuneration Statement Maintenance

664.20.1Form Editor

685Payroll Posting Configurations

685.1Activities in the HR System

685.1.1Employee Grouping and Symbolic Accounts

685.1.1.1Define Employee Grouping Account Determination

685.1.1.2Define Symbolic Accounts

695.1.2Maintaining Wage Types

695.1.2.1Define Posting Characteristics of Wage Types

695.1.3Maintain Posting Date for Payroll Periods

705.1.4Create Posting Variants

715.2Activities in the AC System

715.2.1Assigning Accounts

715.2.1.1Assign Balance Sheet Accounts

715.2.1.2Assign Expense Accounts

715.2.1.3Assign Technical Accounts

725.2.1.4Assign Vendor Accounts

725.3Check Customizing for Account Determination

1. Enterprise Structure in Payroll1.1. Create Personnel Area/Subarea

Table

T500P

Transaction Code

SPRO

Menu Path

IMG -> Enterprise Structure -> Definition -> Human Resource Management -> PersonnelArea/Subarea

Details of Configurations

Personnel Area STBG is created as follows.

For STBG, different personnel Subarea for different locations can be created as follows.

1.2 Create Employee Group/Subgroup

Table

T501/T503K

Transaction Code

SPRO

Menu Path

IMG -> Enterprise Structure -> Definition -> Human Resource Management -> Employee Group/Subgroup

Details of Configuration

Create employee groups (A,E,R,S,T)

Create different employee category(OF,SU,WM,TR,CS) as Employee Subgroups.

1.3 Assignment of Personnel Area to Company Code

Table

V_T500P

Transaction Code

SPRO

Menu Path

IMG -> Enterprise Structure -> Assignment -> Human Resource Management -> Assignment of Personnel Area to Company Code


Assign the Personnel Area STBG to company code STBG belongs to country code 40

Prior to this, the company code for the country code 40 has to be set in Finance Module.

1.4 Assignment of Employee Subgroup to Employee Group

Table

V_T503Z

Transaction Code

SPRO

Menu Path

IMG -> Enterprise Structure -> Assignment -> Human Resource Management -> Assignment of Employee Subgroup to Employee Group


Assign the Employee Subgroup to the right employee group as follows.

Then, select each record, double click. It will take you to the following screen where you could set the country code it belongs to.

2 Personnel Management

In this section, Personnel management configurations with respect to Payroll have been explained in detail.

2.1 Basic Settings2.1.1 Maintain User Parameter

Table/View

None

Transaction Code

SPRO / SU52

Menu Path

IMG -> Personnel Management -> Personnel Administration -> Basic Settings

-> Maintain user parameter

Details of the Configuration

Select country INDIA, Click on Enter, select Parameters tab page, then make entry against parameters MOL and UGR = 40.

2.1.2 Create Number range for Personnel Numbers

Table/View

Structure Name: INRDP

Transaction Code

SPRO

Menu Path


-> Maintain Number range intervals for personnel numbers


Set the From & To number for internal & external ranges as follows.

01 - Internal Number range

02 External Number rage

2.1.3 Determine defaults for number ranges

Table/View

FEATURE : NUMKR

Transaction Code

SPRO / PE03

Menu Path


-> Determine defaults for number ranges


Using this feature, the default number range whether Internal (01) or External (02) can be set as follows.

2.2 Employee Master Maintenance2.2.1 Master maintenance menu

Table/View

V_T588C

Transaction Code

SPRO

Menu Path

IMG( Personnel Management(Personnel administration(Customization procedures(Infotype menus


In this step, Employee master maintenance( transaction PA30) screen can be configured. Create tab page headings as follows using the activity, User group dependency on infotype menus

2.2.2 Infotype Menu for Personal Data

Table/View

V_T588B

Transaction Code

SPRO

Menu Path

IMG( Personnel Management(Personnel administration(Customization procedures(Infotype menus -> Infotype Menu


After completing the first activity ( as mentioned in step 2.2.1), double click on Infotype Menu to create each tab page menu T1(Personal Data) as follows. Similarly, other tab pages T2, T3, T4 & T5 can be configured.

2.3 Personnel Actions2.3.1 Define infogroups for Personnel Actions

Table/View

V_T588C

Transaction Code

SPRO

Menu Path

IMG( Personnel Management(Personnel administration(Customization procedures( Actions -> Define Infogroups


Define the name of Infogroup as mentioned below and then for each infogroup, add the necessary infotypes. For example, check the following snapshot for the infogroup 14 (Hiring) and the infotypes attached to it. Similarly, other infogroups can be configured.

2.3.2 Set up personnel actions

Table/View

T529A

Transaction Code

SPRO

Menu Path

IMG( Personnel Management(Personnel administration(Customization procedures( Set up personnel actions


In this step, the infogroups defined in the earlier step can be attached to different personnel actions. For example, personnel action 01 is linked to Infogroup(IG) 15 in the following screen. Along with this, Customer Status, Employment status, special payment indicator can be set.

2.3.3 Create reasons for personnel actions

Table/View

V_T530

Transaction Code

SPRO

Menu Path

IMG( Personnel Management(Personnel administration(Customization procedures( Create reasons for personnel actions


Maintain the SAP Standard entries. In addition to that different personnel reasons can be created for different personnel action.

2.3.4 Change action menu

Table/View

V_588B_M

Transaction Code

SPRO

Menu Path


-> Change action menu


The action menu(01-Actions) configured can be seen below. Using this step, new personnel actions can be added against country grouping 40.

2.4 Define EE Subgroup Grouping for PCR and Coll.Agmt.Prov.

Table

V_503_B / V_503_ALL

Transaction Code

SPRO

Menu Path

IMG -> Personnel Management -> Personnel Administration -> Payroll Data -> Basic Pay -> Define EE Subgroup Grouping for PCR and Coll.Agmt.Prov


For the already defined Employee Group and Subgroup, set the ESG for PCR/CAP as 3 (for Salaried Employee) except that ESG for PCR as 2 for CS & OF. This classification will be helpful in case of Encashment Processing.

2.5 Create Payscale Area/Type

Table

V_T510A, V_T510G

Transaction Code

SPRO

Menu Path

IMG -> Personnel Management -> Personnel Administration -> Payroll Data -> Basic Pay -> Check Pay Scale Type/Area


Payscale type is fixed as 01 Monthly Earner

Payscale area is defined for each location as follows.

2.6 Check Assignment of Payscale Structure to Enterprise Structure.

Table

V_001P_C

Transaction Code

SPRO

Menu Path

IMG -> Personnel Management -> Personnel Administration -> Payroll Data -> Basic Pay -> Check Assignment of Payscale Structure to Enterprise Structure


For the already defined Personnel Area and Subarea, default payscale Area and Type can be set as follows,

2.7 Personnel Subarea grouping for Primary wage types

Table

V_001P_K

Transaction Code

SPRO

Menu Path

IMG -> Personnel Management -> Personnel Administration -> Payroll Data -> Basic Pay -> Wage Types -> Personnel Subarea grouping for Primary wage types


Personnel Subarea Grouping has to be done to assign any specific wage type to any particular group as follows.

2.8 Employee Subgroup Grouping for primary wage types

Table

V_503_G

Transaction Code

SPRO

Menu Path

IMG -> Personnel Management -> Personnel Administration -> Payroll Data -> Basic Pay -> Wage Types -> Employee Subgroup Grouping for primary wage types


Employee Subgroup Grouping has to be done to assign any specific wage type to any particular group as follows.

3 Time Management3.1 Work Schedule Configurations3.1.1 Personnel Subarea grouping for work schedule

Table/View

V_001P_N

Transaction Code

SPRO

Menu Path

IMG( Personnel Time Management(work schedules(personnel subarea grouping( Group Personnel Subareas for the Work Schedule


Enter the PSG for work schedule as follows for different locations. Since we have single work schedule, its marked as 40 for all the locations.

3.1.2 Group Personnel Subareas for the Daily Work Schedule

Table/View

T508Z

Transaction Code

SPRO

Menu Path

IMG( Personnel Time Management(work schedules(personnel subarea grouping( Group Personnel Subareas for the Daily Work Schedule


Maintain SAP Standard entries.

3.1.3 Define Daily Work Schedules

Table/View

V_T550A

Transaction Code

SPRO

Menu Path

IMG( Personnel Time Management(work schedules(Daily Work Schedule ( Define Daily Work Schedules


Maintain the SAP Standard entries. Select the daily work schedule FREE/FLEX, click on detail button to change the Planned working time as follows.

3.1.4 Define Period Work Schedules

Table/View

V_T551A

Transaction Code

SPRO

Menu Path

IMG( Personnel Time Management(work schedules( Period Work Schedules ( Define Period Work Schedules


Create an entry for period work schedule TEIL with DWS(FLEX or FREE) for each day in a week as follows.

3.1.5 Define Employee Subgroup Groupings for Work Schedule

Table/View

V_503_D

Transaction Code

SPRO

Menu Path

IMG( Personnel Time Management(work schedules( Work Schedule Rules and Work Schedules ( Define Employee Subgroup Groupings


Define the groupings for Employee group & Subgroup as follows. If work schedule differs based on Employee group & Subgroup which can be separately grouped with different numbers.

3.1.6 Define Groupings for the Public Holiday Calendar

Table/View

V_001P_M

Transaction Code

SPRO

Menu Path

IMG( Personnel Time Management(work schedules( Work Schedule Rules and Work Schedules ( Define Groupings for the Public Holiday Calendar


Define additional Holiday calendar TE under IMG -> General Settings -> Maintain Calendar. Then assign TE to all the personnel Subarea in STBG.

3.1.7 Set Work Schedule Rules and Work Schedules

Table/View

T508T, V_T508A

Transaction Code

SPRO

Menu Path

IMG( Personnel Time Management(work schedules( Work Schedule Rules and Work Schedules ( Set Work Schedule Rules and Work Schedules


Define the work schedule rules for TEIL as follows. Number of Work hrs per day, per week, per month & per year. Capture the number of work days per week.

3.1.8 Generate Work Schedules Manually

Table/View

Transaction Code

PT01

Menu Path

IMG( Personnel Time Management(work schedules( Work Schedule Rules and Work Schedules ( Generate Work Schedules Manually


Generate the work schedule for the parameters mentioned below by clicking Create button on the tool bar.

3.2 Time Data Administration3.2.1 Group Personnel Subareas for Attendances and Absences

Table/View

V_001P_D

Transaction Code

SPRO

Menu Path

IMG( Personnel Time Management( Time data recording and administration--> Absences --> Absence Catalog--> Group personnel subareas for attendances and absences


Link the Personnel Area & Subarea to a single group 40 as follows.

3.2.2 Define Absence Types

Table/View

V_T554S

Transaction Code

SPRO

Menu Path

IMG( Personnel Time Management( Time data recording and administration--> Absences --> Absence Catalog--> Define Absence Types


Define different absence types & input checks as follows. Select the absence type CL, click on detail to see the input checks.

3.2.3 Define Counting Classes for the Period Work Schedule

Table/View

V_T551C

Transaction Code

SPRO

Menu Path

IMG( Personnel Time Management( Time data recording and administration--> Absences --> Absence Catalog--> Absence Counting -> Define Counting Classes for the Period Work Schedule


Enter the counting class as 1 for the period work schedule TEIL as follows.

3.2.4 Group Employee Subgroups for Time Quotas

Table/View

V_503_E

Transaction Code

SPRO

Menu Path

IMG( Personnel Time Management( Time data recording and administration--> Absences --> Absence Catalog--> Absence Counting -> Rules for Absence Counting (New) -> Group Employee Subgroups for Time Quotas


Enter the grouping as 1 for all employee subgroups as follows.

3.2.5 Group Personnel Subareas for Time Quotas

Table/View

V_001P_I

Transaction Code

SPRO

Menu Path

IMG( Personnel Time Management( Time data recording and administration--> Absences --> Absence Catalog--> Absence Counting -> Rules for Absence Counting (New) -> Group Personnel Subareas for Time Quotas


Enter the grouping as 40 for all the personnel subarea as follows.

3.2.6 Define Counting Rules

Table/View

T556C, V_556R_B

Transaction Code

SPRO

Menu Path

IMG( Personnel Time Management( Time data recording and administration--> Absences --> Absence Catalog--> Absence Counting -> Rules for Absence Counting (New) -> Define Counting Rules


In this step, you define rules for counting absences. They can be used in Payroll to valuate the absence. Define the counting rule for paid & unpaid absence types and then each absence type is linked to the corresponding absence quota type.

3.2.7 Define Absence Quota Types

Table/View

V_T556A

Transaction Code

SPRO

Menu Path

IMG( Personnel Time Management( Time data recording and administration--> Managing Time Accounts Using Attendance/Absence Quotas --> Time Quota Types -> Define Absence Quota Types


In this step, define different absence quota types and its characteristics as follows.

3.2.8 Define Time Quota Compensation Methods

Table/View

V_T556U

Transaction Code

SPRO

Menu Path

IMG( Personnel Time Management( Time data recording and administration--> Managing Time Accounts Using Attendance/Absence Quotas --> Processing Absence Quotas in Payroll -> Time Quota Compensation -> Define Time Quota Compensation Methods


In this step, define time quota compensation method for the country grouping 40 as follows.

3.2.9 Permit Attendances/Absences to be Recorded Without Clock Times

Table/View

Feature HRSIF can be checked from TR : PE03

Transaction Code

SPRO

Menu Path

IMG( Personnel Time Management( Time data recording and administration--> -> Permit Attendances/Absences to be Recorded Without Clock Times


Enter the value under the FEATURE HRSIF as 1. This will enable us to enter the Time data in Hrs without clock time.

3.3 Leave Maintenance3.3.1 Group Personnel Subareas for Leave Types

Table/View

V_001P_B

Transaction Code

SPRO

Menu Path

IMG( Personnel Time Management( Time data recording and administration--> Managing Time Accounts Using Attendance/Absence Quotas --> Managing Leave Using Leave Entitlement Infotype (0005) -> Leave Quota -> Group Personnel Subareas for Leave Types


In this step, assign group 40 to all the personnel subarea as mentioned below.

3.3.2 Define Leave Types

Table/View

V_T533

Transaction Code

SPRO

Menu Path

IMG( Personnel Time Management( Time data recording and administration--> Managing Time Accounts Using Attendance/Absence Quotas --> Managing Leave Using Leave Entitlement Infotype (0005) -> Leave Quota -> Define Leave Types


Define different leave types as mentioned below.

3.3.3 Set Default Values for Leave Control

Table/View

None (It is a Feature, can be checked directly using Transaction : PE03)

Transaction Code

SPRO

Menu Path

IMG( Personnel Time Management( Time data recording and administration--> Managing Time Accounts Using Attendance/Absence Quotas --> Managing Leave Using Leave Entitlement Infotype (0005) -> Leave Quota -> Set Default Values for Leave Control


Chose the ticked activities as shown below and then make the settings as mentioned in the subsequent diagrams. Using this configuration, we can assign the possible leave types to a specific employee subgroup.

4 Payroll Configurations4.1 Basic Payroll Settings4.1.1 Define Period Parameters

Table

V_T549R

Transaction Code

SPRO

Menu Path

IMG -> Payroll:India -> Basic Settings -> Payroll Organization -> Define Period Parameters.


Create the Period Parameter 99 as follows with start data as 01.01.1965. So that we can hire an employee from this date on-wards.

4.1.2 Define Date Modifier

Table

V_T549L

Transaction Code

SPRO

Menu Path

IMG -> Payroll:India -> Basic Settings -> Payroll Organization -> Define Date Modifiers.


Maintain the SAP Standard entries.

4.1.3 Create Payroll Accounting Area

Table

V_T549A

Transaction Code

SPRO

Menu Path

IMG -> Payroll:India -> Basic Settings -> Payroll Organization -> Check Payroll Accounting Area.


Here, the standard date modifier 01 is assigned to payroll Area MP. The Payday and the Payroll Posting date(to Finance) for the date modifier 01 can be seen in the following screen. Run Payroll Flag can be used to control the triggering of Retro run. Just before the first payroll run in SAP, this flag should be enabled.

4.1.4 Create Control Record

Table/View

Structure : PV000, TR : PU03

Transaction Code

SPRO

Menu Path

IMG -> Payroll:India -> Basic Settings -> Payroll Organization -> Check Payroll Accounting Area.


Create the control record for the above created payroll area (MP) in Step 4.1.3. Enter the Payroll period & Earliest retro acctg period as follows.

4.1.5 Generate Payroll Periods

Table/View

V_T549Q, V_T549S_B, V_T549S

Transaction Code

SPRO

Menu Path

IMG -> Payroll:India -> Basic Settings -> Payroll Organization -> Generate Payroll Periods.


Using the following parameters, generate the payroll period. After making sure of entries generated, enable the tick mark on carry out table change and then click on Execute to effect the changes in the tables. Sample entries generated were shown below.

4.2 Wage Type Maintenance4.2.1 Create Wage types

Table

None

Transaction Code

SPRO

Menu Path

IMG -> Payroll:India -> Basic Settings -> Environment of wage type Maintenance -> Create wage type catalog (COPY)


Create new wage types based on respective Model wage types as follows. The number rage must be customer range (9999)

Eg: 1000 (Basic )

Initially, Test Run flag should be set to check the result. Then, copy again with Test Run flag off.

4.2.2 Check wage type characteristics

Table

V_T511

Transaction Code

SPRO

Menu Path

IMG -> Payroll:India -> Basic Settings -> Environment of wage type Maintenance -> Check wage type Characteristics


Wage type characteristics can be changed as per the way that its been valuated. For example,

Select the wage ( 1000 ) as shown below. Then, double click that record which will take you to the next screen, where you can set

Indirect eval. Module and Moduel variant as per the requirements. The possible entries are,

INVAL A : A fixed amount for a group of employees

INVAL B : A fixed amount plus percentage of some base components like BASIC, VDA. Fixed amount can be zero.

INVAL C : Percentage of some base components like BASIC, VDA or a combination of all this and subject to a maximum amount.

INVAL D : Any of the above based on salary slabs that ones Basic Pay is falling in.

The overwrite indicator decides whether it can be overwritten in Infotype 0008 or not.

4.3 Maintenance of Allowance Grouping4.3.1 Define Pay scale groupings for Allowance.

Table

V_T7INA1

Transaction Code

SPRO

Menu Path

IMG -> Payroll:India -> Pay scale Groupings -> Define Pay scale Groupings for Allowance


For the country grouping, we can define as many Allowance groupings based on Category and Grade of employees. This grouping determines the eligibility and amounts for various allowances, reimbursements and perks for an employee as per the company specified rules.

The following screen shows one allowance group for each category.

Similarly, different allowance groups can be defined for the same category and different grades under that category.

4.3.2 Maintain Pay scale groups and Levels

Table

V_T510

Transaction Code

SPRO

Menu Path

IMG -> Payroll:India -> Reimbursements, Allowances and Perks -> Maintain Pay scale Groups and Levels


The wage types belong to a particular payscale area and type, ESG for CAP(Collective Agreement Provision) should have a record in this screen. Only then, they will be selected in Infotype 0008 while creating basic records for an employee.

The default amount that should appear in infotype 0008 can be set in this screen as follows.

4.3.3 Maintain default wage types for basic pay

Table

V_T539A

Transaction Code

SPRO

Menu Path

IMG -> Payroll:India -> Reimbursements, Allowance and Perks -> Assign wage type model for Pay scale grouping for Allowances


Wage type models are a set of Wage types used by SAP, these can be an earning or deduction. It must be prefixed with 20/ to indicate that, a maximum of 20 wage types can be stored in a particular WT model.

In this activity, you can create records for each wage type belongs to a particular wage type model as shown below.

4.3.4 Setting in Feature LGMST

Table

V_T539A

Transaction Code

SPRO

Menu Path



The planned remuneration specification feature (LGMST) determines default wage types depending on various values(for example, country, employee group and subgroup) for the basic pay infotype 0008.

The second part of the issued return value (for example, ----1DU- ) forms the name for the wage type model which is read from the above screen.

Press the button Feature(LGMST) shown in the above screen.

Choose subobject : Decision Tree

Press Change button

1. Create an entry for Molga country grouping = 40(India)

2. Create entry for different employee group

3. For each employee group, create entry for different employee subgroup

4. For each employee subgroup, create the return value as shown below.

4.3.5 Assign wage type model for Pay scale grouping for Allowances

Table

V_T7INA5

Transaction Code

SPRO

Menu Path



In this activity, you can assign wage type model to each pay scale grouping for allowance as shown in the screen.

Wage type models are a set of Wage types used by SAP, these can be an earning or deduction. It must be prefixed with 20/ to indicate that, a maximum of 20 wage types can be stored in a particular WT model.

4.3.6 Maintain valuation of Base wage types

Table

V_T539J

Transaction Code

SPRO

Menu Path

IMG -> Payroll:India -> Reimbursements, Allowance and Perks -> Maintain valuation of Base wage types


You may have defined indirect valuation(INVAL) with module variant B for certain wage types. Those wage types must have a record in this screen.

For example, house rent allowance (wage type : 1001 which is INVAL B). It is 40% of basic wage type (1000). For this, a record is created in this screen as follows.

4.3.7 Assign Basic Wage Types to Grouping for Allowance

Table

V_T7INB1

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Basic Salary for India -> Assign Basic Wage Types to Grouping for Allowances


Assign the newly created Basic wage types to the Allowance groups as follows.

4.3.8 Assign Basic Wage Types to Grouping for Allowance

Table

V_T7INA7

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Reimbursements, Allowances and Perks -> Maintain Allowance Rules based on Slabs


Any wage type based on Basic slab or Grade has to be configured here. For example Supervisors HRA & Officers HRA based on Location can be configured as follows.

4.3.9 Settings required under the table view V_503_ALL.

Table

V_503_ALL

Transaction Code

SM31

Menu Path

NA


This view can be used to see the value assigned for different Employee Subgroup Grouping. Using this single view, we can maintain the different groupings like ESG/PCR, ESG/CAP, PrimeWageTypeGrouping, TimeQuotaGroupings, etc.

4.4 Reimbursements, Allowance and Perks4.4.1 Calculate Eligibility for RAPs

Table

V_T7INA9

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Reimbursements, Allowances and Perks -> Calculate Eligibility for RAPs


For each allowance group, this screen needs to be saved for any change in allowance groupings. For example, Allowance group OF01, just save after opening this screen.

4.4.2 Maintain Extra Eligibility Criteria for RAPs

Table

FEATURE, can be viewed from TR : PE03

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Reimbursements, Allowances and Perks -> Maintain Extra Eligibility Criteria for RAPs


This feature 40ECS is useful for wages type, for which the amount is decided, based on the date of joining. The structure as shown below has to be defined for each allowance group of Employee subgroup category WM & SU.

4.5 Basic Salary for India4.5.1 Define Basic Codes

Table

V_T7INB4

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Basic Salary for India -> Define Basic Codes


This needs to be configured for those employee subgroups for which there is a definite basic slab structure. For example, SU, WM, define the basic code as follows.

4.5.2 Assign Basic Codes for Allowance Groups

Table

V_T7INB5

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Basic Salary for India -> Assign Basic Codes for Allowance Groups


Link the Allowance group to a basic slab code as follows.

4.5.3 Assign Basic Slabs to Pay Scale Groupings for Allowance

Table

V_T7INB7

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Basic Salary for India -> Assign Basic Slabs to Pay Scale Groupings for Allowance


For each basic code, the slab is attached as follows. This slab will be used at the time of increment processing.

4.5.4 Maintain Appraisal Criteria for Basic Salary

Table

V_T7INB8

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Basic Salary for India -> Maintain Appraisal Criteria for Basic Salary


Retain the SAP Standard entries. Specific appraisal criteria can be attached to different allowance groups. This appraisal criteria will be used at the time promotion processing.

4.5.5 Maintain Increment Criteria for Basic Salary

Table

V_T7INB9

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Basic Salary for India -> Maintain Increment Criteria for Basic Salary


Specific increment criteria can be set for different allowance groups as follows.

4.6 Dearness Allowance Processing4.6.1 Define Consumer Price Indices

Table

V_T7IND1

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Dearness Allowance -> Define Consumer Price Indices


Define the index code SM60 as follows,

4.6.2 Assign Current and Reference Values for Consumer Price Indices

Table

V_T7IND3

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Dearness Allowance -> Assign Current and Reference Values for Consumer Price Indices


For the index code SM60, enter the reference & current values of CPI Index as follows,

4.6.3 Maintain Basic Slab Details for Dearness Allowance

Table

V_T7IND5

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Dearness Allowance -> Maintain Basic Slab Details for Dearness Allowance


Maintain the SAP Standard entries, this can be further configured when the dearness allowance is based on the basic slab.

4.6.4 Maintain Dearness Allowance Rules for Allowance Groupings

Table

V_T7IND7

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Dearness Allowance -> Maintain Dearness Allowance Rules for Allowance Groupings


Dearness allowance calculation rules can be set as follows for each allowance group.

4.6.5 Maintain Dearness Allowance Consumer Price Index Slab Details

Table

V_T7IND9

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Dearness Allowance -> Maintain Dearness Allowance Consumer Price Index Slab Details


The rate of CPI Index point can be set as follows. The CPI Slab code SM01 is linked to SM60 in step 4.6.2.

4.7 Housing wage processing4.7.1 Define Accommodation Types

Table

V_T7INR7

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Housing -> Define Accommodation Types


Maintain the SAP Standard accommodation types.

4.7.2 Maintain the Processing Options for CLA

Table

V_511K_B

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Housing -> Maintain the Processing Options for CLA


Processing of company leased accommodation is as per the constant CADTR values 1 means Add to the salary and deduct from the housing perk.

4.8 Leave Travel Processing4.8.1 Maintain Minimum Eligibility Period for Leave Travel Allowance

Table

V_T7INL1

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Leave Travel -> Maintain Minimum Eligibility Period for Leave Travel Allowance


Specific Conditions for processing LTA can be set here for each allowance grouping. For example, Minimum no of leave days & counting methods whether calendar/Payroll/Absence days

4.9 Car and Conveyance Processing4.9.1 Define Vehicle Details

Table

V_T7INC1

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Car and Conveyance -> Define Vehicle Details


Maintain the SAP Standard entries for different car types.

4.9.2 Define Conveyance Types

Table

V_T7INCA

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Car and Conveyance -> Define Conveyance Types


Maintain the SAP Standard entries for different conveyance types.

4.9.3 Define Amounts and Numbers for Car Schemes

Table

V_T7INC7

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Car and Conveyance -> Define Amounts and Numbers for Car Schemes


Maintain the SAP Standard entries for different car schemes for different allowance groupings.

4.9.4 Assign Type and Age of Car for Car Schemes

Table

V_T7INC3

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Car and Conveyance -> Assign Type and Age of Car for Car Schemes


Maintain the SAP Standard entries for different car schemes & age of the car.

4.9.5 Assign Eligibility Criteria for Conveyance Allowance

Table

V_T7INC9

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Car and Conveyance -> Assign Eligibility Criteria for Conveyance Allowance


For each allowance group, specify the conveyance wage type which will be picked up for the tax calculation/exemption.

4.10 One Day Salary Deduction4.10.1 Maintain Details for One Day Salary Deduction

Table

V_T7INO1

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> One Day Salary Deduction -> Maintain Details for One Day Salary Deduction


Maintain the SAP Standard entries. Whenever one day salary to be deducted, the following settings need to be done,

1. Select the appropriate grouping for allowance in the AlGrp field and the associated year of validity in the Year field.

2. Enter the month effected in the Period field. For example, if the calander followed is the fiscal year beginning April and if the payroll is run monthly, then April is denoted by the period '01' and May is denoted with the period '02' and so on.

3. Enter the method of calculation in the Calculation Indicator field and the number of days for which the salary is deducted in the Factor field.

4. Specify if the employer also contributes and save your entries.

4.11 Retirement Benefits4.11.1 Gratuity4.11.1.1 Maintain Gratuity Trust ID

Table

V_T7ING3

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Retirement Benefits -> Gratuity -> Maintain Gratuity Trust ID


Maintain the Gratuity Trust TEIL as follows,

4.11.1.2 Maintain Gratuity Contrib. Freq. and Related Wage Types

Table

V_T7ING5

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Retirement Benefits -> Gratuity -> Maintain Gratuity Contrib. Freq. and Related Wage Types


Maintain Gratuity Contrib. Freq. and Related Wage Types for the Trust TEIL as follows,

4.11.1.3 Define Contribution Rates for Gratuity

Table

V_T7ING1

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Retirement Benefits -> Gratuity -> Define Contribution Rates for Gratuity


For each allowance group, Maintain the Gratuity contribution rates as follows,

4.11.1.4 Maintain the Eligibility Years for Gratuity

Table

V_511K_B

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Retirement Benefits -> Gratuity -> Maintain the Eligibility Years for Gratuity


Maintain the constant, GRTYR Eligibility Years for Gratuity as follows,

4.11.1.5 Check for Gratuity Contribution

Table

Rule INGR can be viewed using TR: PE02

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Retirement Benefits -> Gratuity -> Check for Gratuity Contribution


Maintain the SAP Standard Rule to check whether a person is eligible for Gratuity.

4.11.1.6 Maintain Wage types to be Passed During Retro Runs

Table

Rule IN51 can be viewed using TR: PE02

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Retirement Benefits -> Gratuity -> Maintain Wage types to be Passed During Retro Runs


Maintain the SAP Standard Rule to pass gratuity wage types during Retro Run.

4.11.2 Superannuation4.11.2.1 Maintain Superannuation Trust ID

Table

V_T7INS3

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Retirement Benefits -> Superannuation -> Maintain Superannuation Trust ID


Maintain the Superannuation ID TEIL as follows,

4.11.2.2 Maintain Superannuation Contrib. Freq and Rel. Wage Types

Table

V_T7INS5

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Retirement Benefits -> Superannuation -> Maintain Superannuation Contrib. Freq and Rel. Wage Types


Maintain the Superannuation Contrib. Freq and Rel. Wage Types for the trust TEIL as follows,

4.11.2.3 Define Contribution Rates for Superannuation

Table

V_T7INS1

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Retirement Benefits -> Superannuation -> Define Contribution Rates for Superannuation


Maintain the Superannuation contribution rates for different allowance groupings as follows, (Only Officers are eligible for superannuation )

4.11.2.4 Maintain Eligibility Details for Superannuation

Table

Feature 40SAN can be viewed under TR : PE03

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Retirement Benefits -> Superannuation -> Maintain Eligibility Details for Superannuation


Maintain the SAP Standard entry in feature 40SAN as follows,

4.11.2.5 Check for Superannuation Contributions

Table

Rule INSN can be viewed under TR : PE02

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Retirement Benefits -> Superannuation -> Check for Superannuation Contributions


Maintain the SAP Standard Rule to check whether a person is eligible for Superannuation.

4.11.2.6 Maintain Wagetypes to be passed During Retro Runs

Table

Maintain Rule IN52 can be viewed under TR : PE02

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Retirement Benefits -> Superannuation -> Maintain Wagetypes to be passed During Retro Runs


Maintain the SAP Standard Rule to pass gratuity wage types during Retro Run.

4.12 Statutory Social Contribution4.12.1 Provident Fund4.12.1.1 Define Trust Details for Provident Fund

Table

V_T7INF1

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Statutory Social Contribution -> Provident Fund -> Define Trust Details for Provident Fund


Maintain different PF Trusts (5236, TEWD, TEWK ) as follows,

4.12.1.2 Assign Company Rates for Provident Fund

Table

V_T7INF5

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Statutory Social Contribution -> Provident Fund -> Assign Company Rates for Provident Fund


For each allowance group, Maintain the company rates for PF as follows,

4.12.1.3 Define PF Trust Validity Period

Table

V_T7INF7

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Statutory Social Contribution -> Provident Fund -> Define PF Trust Validity Period


Define the PF Trust validity & interest rate etc as follows,

4.12.1.4 Maintain Contribution Details for Provident Fund

Table

Feature 40EPF can be maintained from Tr : PE03

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Statutory Social Contribution -> Provident Fund -> Maintain Contribution Details for Provident Fund


Maintain the contribution type, PF Ref No & Pen Ref No as follows for the company code STBG,

4.12.1.5 Define Contribution type for Statutory rates for Provident Fund

Table

V_T7INF3

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Statutory Social Contribution -> Provident Fund -> Define Contribution type for Statutory rates for Provident Fund


Maintain the contribution type for Statutory rates for Provident Fund as follows,

4.12.2 Employees State Insurance4.12.2.1 Maintain ESI Eligibility Limit

Table

V_511P_B

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Statutory Social Contribution -> Employees State Insurance -> Maintain ESI Eligibility Limit


Maintain the following constants for ESI Eligibility limit as follows,

4.12.2.2 Maintain Number of Working Days in a Month

Table

V_511P_B

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Statutory Social Contribution -> Employees State Insurance -> Maintain Number of Working Days in a Month


Maintain this SAP Standard entry as follows. In case of any change to the number of days which can be modified for that period.

4.12.2.3 Define Personnel Area and Subarea Groupings for ESI

Table

V_T7INE1

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Statutory Social Contribution -> Employees State Insurance -> Define Personnel Area and Subarea Groupings for ESI


Maintain the SAP Standard entry as follows,

4.12.2.4 Assign ESI Groupings for Personnel Area and Subarea

Table

V_7IN0P_ESI

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Statutory Social Contribution -> Employees State Insurance -> Assign ESI Groupings for Personnel Area and Subarea


Assign ESI Groupings(as in step 4.12.2.4) for Personnel Area and Subarea ( Bangalore & Mysore ) as follows,

4.12.2.5 Maintain Contribution Rates for ESI

Table

V_T7INE3

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Statutory Social Contribution -> Employees State Insurance -> Maintain Contribution Rates for ESI


Maintain Contribution Rates for ESI as follows,

4.12.3 Labour Welfare Fund4.12.3.1 Define Personnel Area and Subarea Groupings for LWF

Table

V_T7INW1

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Statutory Social Contribution -> Labour Welfare Fund -> Define Personnel Area and Subarea Groupings for LWF


Maintain the SAP Standard entries as follows,

4.12.3.2 Assign LWF Groupings for Personnel Area and Subarea

Table

V_7IN0P_LWF

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Statutory Social Contribution -> Labour Welfare Fund -> Assign LWF Groupings for Personnel Area and Subarea


Assign LWF Groupings(defined in Step 4.12.3.1) for Personnel Area and Subarea as follows,

4.12.3.3 Maintain Contribution Rates for Labour Welfare Fund

Table

V_T7INW3

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Statutory Social Contribution -> Labour Welfare Fund -> Maintain Contribution Rates for Labour Welfare Fund


Maintain Contribution Rates for Labour Welfare Fund as follows,

4.13 Professional Tax4.13.1 Define Professional Tax Grouping Details

Table

V_T7INP1

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Professional Tax -> Define Professional Tax Grouping Details


Maintain the SAP Standard Professional Tax Grouping Details as follows,

4.13.2 Assign PTax Groupings for Personnel Areas and Subareas

Table

V_7IN0P_PTX

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Professional Tax -> Assign PTax Groupings for Personnel Areas and Subareas


Assign PTax Groupings for Personnel Areas and Subareas as follows. In case of New Delhi & Allahabad, no professional tax.

4.13.3 Assign Amounts for Professional Tax Deduction

Table

V_T7INP4

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Professional Tax -> Assign Amounts for Professional Tax Deduction


Maintain professional tax slabs for different state as follows. These entries are maintained by SAP. Still, slab amount can be modified as per the change in PT rule of state.

4.13.4 Maintain Method and Form Layout for PTax Groupings

Table

V_T7INP3

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Professional Tax -> Maintain Method and Form Layout for PTax Groupings



4.13.5 Maintain Cumulation Rules for Professional Tax

Table

Rule INPT can be viewed under TR : PE02

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Professional Tax -> Maintain Cumulation Rules for Professional Tax


Maintain Cumulation Rules(for wage types /3M3, /3RH) for Professional Tax as follows,

ax Calculations4.13.6 Basic Settings4.13.6.1 Define Personnel Area and Subarea Groupings for Tax

Table

V_T7INT5

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Tax -> Basic Settings -> Define Personnel Area and Subarea Groupings for Tax



4.13.6.2 Assign Tax Groupings for Personnel Areas and Subareas

Table

V_7IN0P_TAX

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Tax -> Basic settings -> Assign Tax Groupings for Personnel Areas and Subareas



4.13.7 Maintain Tax Rules as per Customer Specification

Table

Rule IN71 can be viewed under TR : PE02

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Tax -> Maintain Tax Rules as per Customer Specification


Maintain SAP Standard rule for tat calculations.

4.13.8 Maintain Rule for Voluntary Tax Deduction

Table

Rule INVT can be viewed under TR : PE02

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Tax -> Maintain Rule for Voluntary Tax Deduction


Maintain SAP Standard rule for Voluntary Tax Deduction.

4.13.9 Third Party Deductions4.13.9.1 Configure Wagetypes for Section 80

Table

V_T7INIC

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Tax -> Third Party Deductions -> Configure Wagetypes for Section 80


Maintain SAP Standard entries. Assign wage type 1018 to Donation to PMs Relief fund as shown below. So that this wage type will be picked up for Sec 80 exemption.

4.13.9.2 Configure Wagetypes for Section 88

Table

V_T7INIA

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Tax -> Third Party Deductions -> Configure Wagetypes for Section 88


Maintain SAP Standard rule for tat calculations.

4.13.9.3 Define Membership/Deduction Types

Table

V_T591A

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Tax -> Third Party Deductions -> Define Membership/Deduction Types


Maintain SAP Standard entries. Additional Membership types can be created here.

4.13.9.4 Check entry permissibility for Membership Fees Infotype (0057)

Table

V_T512Z

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Tax -> Third Party Deductions -> Check entry permissibility for Membership Fees Infotype (0057)


This entry will be automatically created at the time of creating new wage types from corresponding model wage types. If not automatically created, then this entry has to be created manually here.

4.13.10 Tax Liability on Reimbursements, Allowances and Perks4.13.10.1 Define Tax Codes

Table

V_T7INT7

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Tax -> Tax Liability on Reimbursements, Allowances and Perks -> Define Tax Codes


Maintain the SAP Standard Tax codes, which would cover for all wage types as per Tax law. Entries starting with 'S' are reserved for a SAP Name range. New entries can be added if required.

4.13.10.2 Assign Tax Code Limits to Wage Types

Table

V_T7INT9

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Tax -> Tax Liability on Reimbursements, Allowances and Perks -> Assign Tax Code Limits to Wage Types


Link the tax code to different wage types & choose the right tax type and frequency (Tax exemption Monthly or Annually) as shown belore,

4.13.11 Section 89(1) Relief4.13.11.1 Maintain Sec89 (1) Switch at Implementation Level

Table

V_511K_B

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Tax -> Section 89(1) Relief -> Maintain Sec89(1) Switch at Implementation Level


Sec 89 (1) relief : If an individual receives any portion of his salary in arrears or in advance or receives profit in lieu of salary, he can claim relief in terms of sec 89(1).

Set value of the constant S89SW to 1 or 0 as shown below,

Set the Value field to 1, if you want to provide for Section 89(1) Relief to your employees.

Set the Value field to 0 or leave the field blank, if you do not want to provide for Section 89(1) Relief to your employees.

4.13.11.2 Rule to Maintain Legacy Data for Section 89(1) Relief Calculation

Table


Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Tax -> Section 89(1) Relief -> Rule to Maintain Legacy Data for Section 89(1) Relief Calculation


In case of sec 89(1) relief for arrears payment for the past years, the different model wage types shown below need to be populated with right value in Infotype 0015. The procedure to maintain these model wage types have been given for the Rule IN89 which can be seen in TR : PE02 (click on Documentation, press Display)

4.13.11.3 Rule to Capture Section 89(1) Relief Computed Outside SAP Payroll

Table


Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Tax -> Section 89(1) Relief -> Rule to Capture Section 89(1) Relief Computed Outside SAP Payroll


This rule is for computing sec 89(1) relief outside SAP R/3 payroll and capture the amount in the model wage type, M89R. Refer the documentation available under this Rule for details.

4.13.12 Tax on Arrears4.13.12.1 Maintain Tax Limit and Tax Rate for Arrears Payment

Table

V_511P_B, V_511K_B

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Tax -> Tax on Arrears -> Maintain Tax Limit and Tax Rate for Arrears Payment


The constants ARLMT, ARTDS need to be maintained as per the requirements before calculating arrears. Refer the documentation in this node.

4.13.12.2 Maintain Schema for Tax on Arrears

Table

Schema : INN1 can be viewed under TR : PE01

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Tax -> Tax on Arrears -> Maintain Schema for Tax on Arrears


Maintain this SAP Standard schema.

4.14 Recovery of Rounded Off Amounts4.14.1 Maintain Details for Recovery of Rounded Amounts

Table

V_T7INY1

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Recovery of Rounded Off Amounts -> Maintain Details for Recovery of Rounded Amounts


For each allowance group, the condition for recovery of round off amount needs to be set as follows,

4.15 Retro Active Payroll Runs4.15.1 Maintain Rule to form Differences from Previous Results

Table

Rule ZN42 can be viewed under TR : PE02

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Retro Active Payroll Runs -> Maintain Rule to form Differences from Previous Results


SAP Standard Rule IN42 is modified to ZN42, to include the customer wage types in the Retro processing. Refer the rule for details.

4.15.2 Maintain Rule to form Differences with Actual Amounts

Table


Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Retro Active Payroll Runs -> Maintain Rule to form Differences with Actual Amounts



4.15.3 Maintain Rule to Bring Forward Difference Amounts

Table


Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Retro Active Payroll Runs -> Maintain Rule to Bring Forward Difference Amounts



4.16 Special Payments 4.16.1 Create Wage Type Catalog

Table

Tables as mentioned in the second snapshot.

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Special Payments -> Wage Types -> Create Wage Type Catalog


Special payment wage type can be created from corresponding SAP Standard model wage types available in the catalog as shown below. Hence the entry required in various tables (as shown in the second snapshot) will be copied automatically. This can be viewed in different nodes available under special payments in IMG.

4.17 Off-Cycle Activities 4.17.1 Check entry permissibility for Infotype (0267)

Table

V_T512Z

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Off-Cycle Activities -> Check entry permissibility for Infotype (0267)


The entry permissibility in infotype (0267) for any wage type is created automatically at the time of creating that wage type from model wage type. In case, if its not created, then this entry can be created manually here.

4.17.2 Set Up Off-Cycle Reasons

Table

V_T52OCR (Cross Client)

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Off-Cycle Activities -> Set Up Off-Cycle Reasons


Apart from SAP Standard entries, additional Off-cycle reasons can be created as follows. This need not be transported as table is cross client.

4.17.3 Set Up Report Variants for Off-Cycle Activities

Table

V_T52OCV

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Off-Cycle Activities -> Set Up Report Variants for Off-Cycle Activities


First the variants (OC_TEST, Z_OFF_REMU) for the payroll run & Remuneration statement have to be created. Then these variants have to be attached as shown below.

4.17.4 Define Default Values for Payments in Advance

Table

V_T52OCAP

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Off-Cycle Activities -> Define Default Values for Payments in Advance


Here, the number of period in advance, the payment can be processed can be set. As per the requirement, this can be changed. For the time being, it is set to 3.

4.17.5 Specify default values for wage types

Table

V_T52OCW

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Off-Cycle Activities -> Specify default values for wage types


Maintain the SAP Standard entries. Default wage type for each off-cycle payroll reason can be set as per the requirement. Anyway, this is not mandatory as the wage types will be picked up automatically as per the entry in IT 0267 for a payroll reason & the date of payment.

4.17.6 Specify Default Values for Payroll Results

Table

V_T52OCP

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Off-Cycle Activities -> Specify Default Values for Payroll Results


Maintain the SAP Standard entries. Default wage type to be displayed for each off-cycle payroll reason can be set as per the requirement. If this entry is not maintained, then the secondary wage types like /101, /557, /558. /559, /560 will be displayed as default.

4.17.7 Specify Default Values for Payment Methods

Table

V_T52OCB

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Off-Cycle Activities -> Specify Default Values for Payment Methods


Maintain the SAP Standard entries. Default Payment Method for each off-cycle payroll reason can be set as per the requirement. This is not mandatory as the payment method will be picked up automatically as per the entry in IT 0009.

4.18 Deductions Processing4.18.1 Arrears and Priorities

Table

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Deductions -> Arrears and Priorities


Maintain the SAP Standard entries under all the nodes under this section.

4.18.2 Minimum Net Pay

Table

V_511P_B

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Deductions -> Minimum Net Pay -> Maintain Value for Determination of Minimum Wage


Click on Maintain the Minimum Wage Amount . Maintain the entries as shown below. Minimum percentage can also be maintained in this node.

4.19 Company Loans4.19.1 Master Data4.19.1.1 Define Value Dates for Payroll Area

Table

V_T506S

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Company Loans -> Master Data -> Define Value Dates for Payroll Area


Define the value dates for the payroll area MP as follows. Select value date as In accordance with payment date in T549S.

4.19.1.2 Create a Loan Type

Table

V_T591A

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Company Loans -> Master Data -> Create a Loan Type


Create various loan types as follows.

4.19.1.3 Assign Repayment Type

Table

V_T506A

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Company Loans -> Master Data -> Assign Repayment Type


Assign the repayment type for each loan as follows,

4.19.1.4 Create Loan Conditions

Table

V_T506D

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Company Loans -> Master Data -> Create Loan Conditions


Create loan conditions for each loan. For example, loan type 9101, the condition is set as follows,

4.19.1.5 Control Allocation of Loans

Table

T506C

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Company Loans -> Master Data -> Control Allocation of Loans


The following indicators can be set for each loan type.

4.19.1.6 Adjust Screen Control

Table

None

Transaction Code

Feature P0045 can be viewed/edited using TR : PE03

Menu Path

IMG -> Payroll India -> Company Loans -> Master Data -> Adjust Screen Control


Default subtype (Loan type) can be set in infotype 0045 using this feature P0045

4.19.1.7 Maintain Loans Grouping

Table

None

Transaction Code

Feature 40LGR can be viewed/edited using TR : PE03

Menu Path

IMG -> Payroll India -> Company Loans -> Master Data -> Maintain Loans Grouping


This feature can be used to configure to fix the loan type based on allowance grouping.

4.19.1.8 Maintain Salary Components

Table

None

Transaction Code

Feature 40LSL can be viewed/edited using TR : PE03

Menu Path

IMG -> Payroll India -> Company Loans -> Master Data -> Maintain Salary Components


Loan basis of salary components can be captured here for various loan types as follows,

4.19.1.9 Maintain Maximum Number of Loans Allowed

Table

V_511K_B

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Company Loans -> Master Data -> Maintain Maximum Number of Loans Allowed


Maximum no of loans at a time (LMNL1), Maximum number of loans (LMNL2) can be maintained here.

4.19.1.10 Maintain Maximum amount for loans outstanding

Table

V_511P_B

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Company Loans -> Master Data -> Maintain Maximum amount for loans outstanding


Maximum amount for loans outstanding can be maintained in the table against the constant LMVAL

4.19.1.11 Maintain Loans Eligibility Checks and Limits

Table

V_T7INJ3

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Company Loans -> Master Data -> Maintain Loans Eligibility Checks and Limits


Loan Eligibility checks and limits for loan type 9101 can be maintained as follows.

4.19.1.12 Maintain Deduction Details Under Section 24

Table

V_T7INJ1

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Company Loans -> Master Data -> Maintain Deduction Details Under Section 24


Loan types can be maintained in this view for Sec24 exemptions.

4.19.2 Calculation

Table

Schema

Transaction Code

PE01 : ZNLN

Menu Path

IMG -> Payroll India -> Deductions -> Calculation -> Adjust Calculation


SAP Standard schema(INLN) is modified to suit the requirement as ZNLN. In this schema, the change corresponding to stop the loan deduction for a specific period and the loan balance is carried forward to the next period as such.

4.20 Remuneration Statement Maintenance4.20.1 Form Editor

Table

None

Transaction Code

PE51

Menu Path

IMG -> Payroll India -> Forms -> Remuneration Statement -> Setting Up the Form with the HR Form Editor -> Form Editor


Form Editor is used to design the remuneration statement. The customized pay slip is TE01. This can be maintained using various sub-objects as mentioned below. Under sub-object Window, various windows are maintained such as

W1- EARNING

W2- DEDUCTIONS

W3- PERKS/OTHER INCOME/EXEMPTIONS/REBATES

W4- TAKE HOME PAY

W5- LOAN BALANCE

W6- LEAVE BALANCE

W7- SEC10 EXEMPTION

W9- FORM 16 SUMMARY

New earning or deduction wages can be added/deleted by double clicking the respective window.

5 Payroll Posting Configurations5.1 Activities in the HR System5.1.1 Employee Grouping and Symbolic Accounts5.1.1.1 Define Employee Grouping Account Determination

Table

V_T52EM

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Reporting for Posting Payroll Results to Accounting -> Activities in the HR System -> Employee Grouping and Symbolic Accounts -> Define Employee Grouping Account Determination


Maintain SAP Standard entries. Account assignment can also be done based on various employee subgroup using the feature PPMOD which can be seen under this node.

5.1.1.2 Define Symbolic Accounts

Table

V_T52EK

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Reporting for Posting Payroll Results to Accounting -> Activities in the HR System -> Employee Grouping and Symbolic Accounts -> Define Symbolic Accounts


Define Symbolic accounts for balance sheet and expense accounts. Account assignment type = C for expense and F for Balance sheet accounts.

5.1.2 Maintaining Wage Types5.1.2.1 Define Posting Characteristics of Wage Types

Table

V_T52EZ, V_T52EL

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Reporting for Posting Payroll Results to Accounting -> Activities in the HR System -> Maintaining Wage Types -> Define Posting Characteristics of Wage Types


The posting characteristics of individual wage type can be done here depending upon the requirement. For example, the basic pay wage type 1000 is linked to symbolic account 8888(Salaries & wages) as below. If the model wage type is used for creating a new wage type, then this entry is created automatically.

5.1.3 Maintain Posting Date for Payroll Periods

Table

T549S

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Reporting for Posting Payroll Results to Accounting -> Activities in the HR System -> Maintain Posting Date for Payroll Periods


Posting Date for different payroll periods can be done as follows. The Pay Day is already generated in the earlier step 4.1.5. This Pay Day can be created as Posting date. Otherwise, the difference in days has to be mentioned in the specification screen for different Posting date.

5.1.4 Create Posting Variants

Table

V_T52E2

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Reporting for Posting Payroll Results to Accounting -> Activities in the HR System -> Maintain Posting Date for Payroll Periods


Posting Variants for payroll posting can be created here. This is an optional step.

5.2 Activities in the AC System5.2.1 Assigning Accounts5.2.1.1 Assign Balance Sheet Accounts

Table

T030

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Reporting for Posting Payroll Results to Accounting -> Activities in the AC System -> Assigning Accounts -> Assign Balance Sheet Accounts


This is basically interface between HR & AC system by linking Symbolic accounts to the respective Balance sheet accounts as follow.

5.2.1.2 Assign Expense Accounts

Table

T030

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Reporting for Posting Payroll Results to Accounting -> Activities in the AC System -> Assigning Accounts -> Assign Expense Accounts


This is basically the interface between HR & AC system by linking Symbolic accounts to the respective Expense accounts as follow.

5.2.1.3 Assign Technical Accounts

Table

T030

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Reporting for Posting Payroll Results to Accounting -> Activities in the AC System -> Assigning Accounts -> Assign Technical Accounts


The single entry here is required for accounting key 1001 to salary payable account 230116 for the purpose of automatic account posting.

5.2.1.4 Assign Vendor Accounts

Table

T030

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Reporting for Posting Payroll Results to Accounting -> Activities in the AC System -> Assigning Accounts -> Assign Vendor Accounts


This is basically the interface between HR & AC system by linking Symbolic accounts to the respective Vendor accounts(Account Assignment type K Personal Vendor, KF Fixed Vendor) which was created in Transaction FK01.

5.3 Check Customizing for Account Determination

Table

None

Transaction Code

SPRO

Menu Path

IMG -> Payroll India -> Reporting for Posting Payroll Results to Accounting -> Check Customizing for Account Determination


The account assignment for all the wage types through symbolic account can be displayed here.

Date post:	29-Sep-2015
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