Sodexho Exemption-Indian Payroll

[Former Member]

Sodexho Exemption

Indian Payroll

Dear Gurus,

Would like to share one scenario we 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 Type.

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

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.

1. T.Code:PE01

Copy the Main Schema IN00 to ZN00Copy 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:   INCTXUse    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 wearAllowance         MCAX: The annual tax exemption wage type         A: The monthly exemptions are projected for the completedFinancial 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).      2000O   Exemptions claimed.The exemption is maintained in customer subtype of info type IT0582 for

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

for which the payroll is being run. Future is not read. 1500

O   Annual tax exemption limit.

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

Wage types (V_T7INT9).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.