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A Custom Wage Type should act as Std. PF

Former Member
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Dear All,

Our client is State Govt. where there is a component called GPF, the functionality of this is that, the user will declare his own PF deduction for Ex:5000 and it should project as same as PF does. almost similar to PF.

Can we have such functionalities  in SAP HCM can we configure this??

Kindly if you have experienced such type of configuration kindly let me know.

Thanks in Advance,

Vikram A V

Accepted Solutions (0)

Answers (1)

Answers (1)

Former Member
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Hi Vikram,

This PF Deduction (5000) is monthly or yearly...Do you want to use this custom wage type in future...& ignore Std. PF!!!!!!!!!!!!!!!!!!

Is it So!!!!!

Regards,

Veeram

Former Member
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Hi Veeram,

This is monthly deduction, and want to use the Standard IT587 as they have the GPF number to be entered. So i need to map this in Standard.

Please if you have any idea kindly share so that i can achieve this.

Thanks for the Reply.

Regards,

Vikram A V

Former Member
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Hi Vikram,

In IT0587.. there is an option of VPF amount you can use it ... As employee decides PF amount in this case....

As you know PF is based on Basic Salary.... (eg.... If basic is 10000/- then PF would be 1200/- as per standard ...but if an employee wants 5000/-  to be deducted you can add 3800/- in VPF...)

This should solve your requirement...

Regards,

Veeram

Former Member
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Has your query got solved!!!

Former Member
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Hi Veeram Reddy,

Thanks for the Reply..

I am checking the scenarios, once done i will get back to you.

Regards,

Vikram A V

Former Member
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Hi Veeram Reddy,

I have done the same as per your instructions and solves one of the issues.

But there is General Provident Fund - GPF where an employee can declare his own amount for GPF deduction like Rs.3000 per month and should be exempted from Tax and projected for 12 months as Normal Provident Fund Does.

Is there any suggestions or configurations steps to achieve this type of scenario.

Thanks and Best Regards,

Vikram A V

Former Member
0 Kudos

Hi Vikram,

You can create a wage type call "GPF"... in IT0014 & add that particular amount....

If the exemption is 100% for this particular wage type then choose standard wage type "M400"

Maintain maintain Wage type characteristics, Processing Class & Cumulation class  for the same...

In cumulation class wage type  check Net Payment deduction,

EPF & PTax basis (as per  your need)

Exemption U/S 10

Monthly exemptions...

Finally in Pe51 .... under windows & Cummulation ID's include this wage type....

Regards,

Veeram

Former Member
0 Kudos

Dear Veeram,

Thanks for the Reply,....

The GPF Projection should be included in Aggrg Chapter VI as Standard PF is Considered, not under the Exemption U/S 10.

Kindly suggest on this.

Best Regards,

Vikram A V