Sodexho Exemption-Indian Payroll

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.

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

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

Table: VV_52D7_B_0014_AL0

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.

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.

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

Table: V_T7INA9

Step8: Editing the Schema.

1. T.Code:PE01

Copy the Main Schema IN00 to ZN00Copy the Sub-Schema INN1 to ZNN1

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

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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.