How to set Deduction Priority of deduction wage types to handle Negative Salary Case
After reading this document you will get to know the meaning of deduction priority and how to set configuration of it. Before starting about configuration we should know about deduction priority.
In normal case employee can have earning as well as deduction wage types. A wage type may be defined as deduction wage type and the value entered for such a wage type in master data ( say IT0015 ) is automatically reversed ( multiply by -1 )when the payroll is run. Although in Infotype values are shown without reversal and with a deduction indicator.
In special case an employee may not have enough salary for all the deductions. No in this situation we need to decide deduction priority to be specified for deduction wage types.
SPRO path: Payroll->Payroll: India->Deductions
Follow the Path or use Table: VV_52D7_B_7001_AL0
In our case we have taken a deduction wage type 5DED and put it in tables for to set Deduction Priority
Choose the options accordingly
Change the Processing class 20 and put 1, see the below screen shot
Note: As we have changed Processing class 20 from 8 to 1 for all deduction Wage types
So we have to handle it in PCR (X023)
Copy the Standard PCR( X023) to User defind PCR( Y023) Tcode: PE02
Now to the same change for 1 and 3 also as shown in the below screen shot:
Now we have to put this PCR in schema YNAL (Copy of Std schema INAL)
Note: What we have done in this schema-> IF it is an original run of payroll schema will read PCR(X023) otherwise will read PCR( Y023) and treat processing class 20 (1) as 20(8)
Check in the system, if we have given deduction more than earning and we have given 3 in (Table: V_51P6_B)
System will generate zero salary and deduct the remaining amount from next salary
Check the below screen shots for April and May month salary slips:
Ex: In the month of May we have given 50000 in some deduction WT but earning is only 50100 and system has to deduct other deductions also like Income Tax and PF etc. so system will deduct only 34842 amount from that WT
Now the the month of MAY system will recover rest of the amount (15158)
Hope you enjoyed the document..