Gratuity Configuration
In this activity, you define the different Gratuity trusts maintained by your company.
Activities
In this activity, you define
whether the contribution to the gratuity trust is to be made annually or monthly
whether the annual contribution is to be made at the end of the financial year or calender year
the wage type for gratuity contributions made on a monthly basis
the wage type for gratuity contributions made on an annual basis
The wage type used to calculate the provisional monthly gratuity contributions, in case the contribution to the trust is made annually. This wage type needs to be defined only if provisional wage types per month need to be calculated and posted to a provisional account.
Requirements
You must have defined the different gratuity trusts maintained by your company.
Activities
In this activity, you define the contribution rates used to calculate the gratuity contributions made by the employer.
These company-specific rules are linked to gratuity funds and enable the system to calculate and store gratuity amounts during the payroll run.
Requirements
You must have created pay scale groupings for allowances in the activities under the step Pay scale Groupings.
Activities
To set up the company rules for gratuity, you
In this step, you maintain the 'GRTYR' constant for contribution to gratuity. The minimum number of years of service after which the employer begins to contribute towards gratuity is specified here.
Activities
The SAP constant 'GRTYR' is associated with a date range.
Enter the minimum number of years of employment to be eligible for this benefit in the Value field.
In this activity, you modify the personnel calculation rule for Payroll Accounting to identify whether gratuity contribution took place.
This rule is used in conjunction with a IF statement. It passes a TRUE or FALSE value based on which the IF loop is processed.
In the retro scenario certain processing need to happen based on whether the employee has contributed to gratuity or not.
This rule first reads the amount of the gratuity monthly contribution wage type /3G1 from IT and passes False if amount is greater than zero, otherwise it reads the amount of the gratuity provisional contribution wage type /3G3 from IT and passes False if amount is greater than zero and True if otherwise.
Requirements
The wage types used in the rule /3G1 and /3G3 are entries in table T7ING5. Thus if this table changes, then the rule also will have to be changed.
If entries are added in table T7ING5, then the corresponding wage types for monthly and provisional contribution should also be added in the Rule.
Further notes
See Also
This rule is processed only during a retro scenario for employees who had contributed towards gratuity before and need not contribute as of the retro month.
Thus the contribution which has already happened is brought forward to the period being processed so that the FI/CO posting is not affected.
The relevant wage types for gratuity contribution are pushed into IT from ORT.
Further notes
See Also
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