cancel
Showing results for 
Search instead for 
Did you mean: 

Provident Fund Trust Mapping

Former Member
0 Kudos

Hello SAP Gurus,

The client is having its own trust to manage the Provident fund contributions. Every month the amount both employee and employer contributions will be transferred to the trust. The trust will invest these funds in various instruments like fixed deposits as per the guide lines given to the trust for investment. The interest/earnings on investments will be credited to the fund at the end of the year and these earnings will be distributed to each employee account as per their monthly balances

Procedure for employees leaving during the year: At the beginning of each financial year some provisional rate for PF will be declared based on the earlier year earnings. The final settlement will be made to the employee leaving during the year according to this provisional rate. At the end of the year they will recalculate the actual earnings of all the employees including the employees left during the year and adjust the excess/less paid amounts with the pension payable to employees.

Could you please explain how can we map in SAP the following:

1. Distribution of the income earned on the fund to each employee based on their monthly balances. The approximate number of employees are around 3500

2. The adjustment to pension. (i.e the difference between the actual earnings and the provisional amount paid to employees left during the year)

Kindly send the suitable solution for the above scenario asap. Liberal points will be assigned.

Regards,

K.Sanjai

Accepted Solutions (0)

Answers (1)

Answers (1)

Former Member
0 Kudos

PF trust need to be a separate legal entity as they need to produce the financal statements in SAP.

If in the main compnay code HT is implemented, the write a Z program to Identify the PF contributions on a monthly basis and also Loan against the PF.

Consider usage of Special GLs in the new compnay code. You also need to automate the postings from HR of teh Originating compay code to teh PF trust by another Z program or by the same program that you created earlier.

Caution: In case of loans and repayment of loans the automatic mechanism of clearing them by usage of F.13.

Once the balnaces are posted to SAP, then take out the base for distribution of Income.

You again need to write a Z programe for arriving at the distributions.

Even at the time of retirements also you need to consider the above logic and give specifiactions for teh ABAPEr.

There are no standard programs in SAP for this need,

Reward if useful

sarma

Former Member
0 Kudos

Thanks a lot for your swift response. Iam trying to implement with your solution.

Regards,

K.Sanjai Babu

SAP FICO +91 9940130331