KSA GOSI: Mid Year Go-live handling
In the standard KSA Country solution, there are two rules that they will check whether the period is January or the first hire month. They are SA26 (Set Default GOSI Applicable Earnings) and SA38 (Create GOSI Basic Base and Transfer from Previous Period), if the period is unmatched, they will capture /370 and /374 from last RT, the relevant logic is involved in the objects as follows: AMT=L /370 and AMT=L /374. Before you run the payroll of February (the very first payroll of go-live), you could temporarily comment the objects AMT=L /370 and AMT=L /374, after the run for the first month, you need to recover the objects. In the next month, the calculation of GOSI will continue to capture last RT in your system.
In our case, this is a midyear go-live. The period for payroll run is neither January nor the first hire month of employee, but Feb 2014 (for example sake)
1. For the calculation of /374, it depends on the determination of period, if the period is neither January nor the first hire month, the amount of /374 will capture from the last result.
The logic of capture /374 from last result is in the rule SA38 (Create GOSI Basic Base and Transfer from Previous Period).
2. For the calculation of /370, if the period is neither January nor the first hire month, the amount of /370 will capture from the last result.
The logic of capture /370 from last result is in the rule SA26 (Set Default GOSI Applicable Earnings).
For the proposed workaround, I will take the rules in standard solution for example; you could change it according to manage mid-year Go-Live.
1. Firstly, comment “AMT=L /370” in the rule SA26.
2. Secondly, comment “AMT=L /374” in the rule SA38.
3. After running the payroll for first month (i.e. Feb), you must recover the two rules by uncommenting the commented line.
As always, the above proposal is just a workaround and it is always prudent to test extensively prior to adoption.