Housing Perk calculation on Arrears of previous financial Year
There is a query from so many associates that whether standard SAP system will calculate Housing Perk on “Arrears from Previous FY” amount.
And the answer is yes, but where?
Actually system will calculate Housing Perk on previous FY arrears and will accumulate in /616 wage type only. And the amount will get added in taxable income.
I will explain it with a query raised by client that ” Arrears from previous FY” is not correct. Actually user calculated whole previous FY amount and found that it is not what it should be !
Plz find the below calculation_
in this screen user calculated arrears amount as below_
according to user there is difference of 18479.02 rs. in calculated amount and /616
But actually when you calculate ( In this ex. exclude washing allowance)_
Arrears from Previous FY = 248037
Housing perk basis = 248037-1650 = 246387
housing perk (7.5% ) = 18479.02
And this is exactly the same amount of difference.
Conclusion: Actually system calculated the Housing Perk and added again in /616 wage type. So you will get accumulated amount of Arrears and Housing Perk in /616 wage type
Will you please list out the items on which housing perk (7.5%) will not be calculated.