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Indian Payrol Config PDF
Indian Payrol Config PDF
Indian Payrol Config PDF
Menu path:
Personnel Management > Personnel Administration > Organizational Data > Organizational Assignment >
Create Payroll Area
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Configuration design:
In this menu, the payroll areas are defined according to the organization needs. The payroll
areas are defined based on similar payroll processing characteristics e.g. frequency of processing,
payment date etc.
The Payroll area is a Numeric field with a maximum length of 2. If, for a particular area, payroll is
to be processed, then the check box is flagged. In the other cases, it is left blank.
Required fields:
Configuration Design Document Version No: 1.0
Configuration pre-requisites:
Nil
Two Payroll areas have been created, because there is separate payroll processing for both the
categories.
Configuration Design Document Version No: 1.0
Menu path:
Personnel Management > Personnel Administration > Organizational Data > Organizational Assignment >
Check Default Payroll Area
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Configuration design:
By maintaining the feature ABKRS, the payroll area in Infotype 0001 for Organization Assignment
is defaulted.
Required fields:
Maintain the feature depending upon the various decision fields in the structure.
Configuration pre-requisites:
Payroll Areas need to be created.
Configuration Design Document Version No: 1.0
Menu path:
Payroll > Payroll: India > Basic Settings > Payroll Organization > Define Period Parameters
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Configuration design:
In this step, period parameters - frequency of payroll processing - are defined. The different
period parameters are assigned against a time unit.
For e.g., Period Parameter 00 is defined as monthly payroll processing for country India.
Required fields:
All
Configuration pre-requisites:
NA
Menu path:
Payroll > Payroll: India > Basic Settings > Payroll Organization > Check Payroll Accounting Area
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Configuration design:
In this step, the frequency of payroll processing is assigned to the payroll areas. Against the
relevant payroll areas, period parameters are listed. If the payroll area is relevant for payroll, flag
the check box to account.
Since, the pay date is assumed to be the same, Date modifier is retained as standard.
Required fields:
Payroll Area, Period Parameter
Configuration pre-requisites:
Period parameters should be created.
Menu path:
Payroll > Payroll: India > Basic Settings > Payroll Organization > Generate Payroll Periods
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Configuration design:
Configuration Design Document Version No: 1.0
In this step, the date specifications for the payroll periods are generated. This is done by using
payday rule and defining the number of days. Upon execution, periods are generated between
the specified start and end dates.
Required fields:
Configuration pre-requisites:
Definition of period parameter.
Menu path:
Payroll > Payroll: India > Basic Settings > Payroll Organization > Generate Calendar for Cumulations
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Configuration design:
Configuration Design Document Version No: 1.0
Certain wage types are cumulated over several periods during payroll in order to form monthly,
quarterly or annual totals. Before the wage types can be cumulated, it is important to determine
the month, quarter, half-year or year to which the payroll period belongs. This activity is
performed in this step.
The calendar is to be generated for each period parameter and date modifier combination
assigned to a payroll area.
Required fields:
Period Parameter, Initial year, Final year, Start of Tax year
Configuration pre-requisites:
Period parameters should be defined.
Configuration Design Document Version No: 1.0
Menu path:
Personnel Management > Personnel Administration > Payroll Data > Basic Pay > Define EE subgroup grouping
for PCR and Collective Agreement Provision
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Configuration Design Document Version No: 1.0
Configuration Design Document Version No: 1.0
Configuration design:
In this step, the employees are grouped for Personnel Calculation Rules (PCR). The PCRs are
used to treat one wage type in more than one ways. These PCRs are used in the schemas.
Required fields:
NA
Configuration pre-requisites:
Assignment of Employee sub-groups to Employee groups.
Menu path:
Personnel Management > Personnel Administration > Payroll Data > Basic Pay > Check Pay Scale Type
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Configuration design:
In this activity, depending upon the prevalent collective agreement provisions, equal number of
pay scale types is created.
Required fields:
NA
Configuration pre-requisites:
NA
Menu path:
Personnel Management > Personnel Administration > Payroll Data > Basic Pay > Check Pay Scale Area
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Configuration design:
The different geographical areas or business entities where the collective agreement provision is
applicable are defined in this activity.
Required fields:
NA
Configuration pre-requisites:
NA
Menu path:
Personnel Management > Personnel Administration > Payroll Data > Basic Pay > Check Assignment of Pay
Scale Structure to Enterprise Structure
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Configuration design:
In this activity, linkage is established between the enterprise structure and the pay scale
structure. This is done by forming unique combination of personnel sub area with the pay scale
type and pay scale area.
Configuration Design Document Version No: 1.0
Required fields:
Pay scale type, Pay scale area
Configuration pre-requisites:
Assignment of Personnel Subareas to the Personnel Areas.
Definition of Pay scale type and pay scale areas.
Menu path:
Personnel Management > Personnel Administration > Payroll Data > Basic Pay > determine default for pay
scale data
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Configuration design:
Configuration Design Document Version No: 1.0
In this step, the default pay scale data for info type Basic Pay (0008) is determined.
Required fields:
Period Parameter
Configuration pre-requisites:
Pay scale type, pay scale area, period parameter
Configuration Design Document Version No: 1.0
Menu path:
Personnel Management > Personnel Administration > Payroll Data > Basic Pay > Revise Pay Scale Groups and
Levels
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Configuration Design Document Version No: 1.0
Configuration design:
The pay scale type and area are divided further into pay scale groups and levels. Each unique
combination of pay scale group and level is linked to wage types. These wage types are the ones
that appear in Infotype Basic Pay (0008) and that which need to be evaluated indirectly are
entered here.
Required fields:
Start date, End date
Configuration pre-requisites:
Pay scale type, pay scale areas, wage types
Configuration Design Document Version No: 1.0
Menu path:
Payroll > Payroll: India > Pay Scale Groupings > Define Pay Scale Grouping for Allowances
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Configuration design:
Configuration Design Document Version No: 1.0
In this step, you define the pay scale groupings for allowances to differentiate between employee
groups. These groupings determine which company policies are applicable to a particular group
of employees.
Required fields:
NA
Configuration pre-requisites:
NA
Menu path:
Payroll > Payroll: India > Pay Scale Groupings > Assign Pay Scale Grouping for Allowances
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Configuration design:
Configuration Design Document Version No: 1.0
Required fields:
Allowance Grouping
Configuration pre-requisites:
Pay scale structure (type, area, group, level)
Employee subgroup grouping for PCR and CAP.
Menu path:
Personnel Management > Personnel Administration > Payroll Data > Basic Pay > Wage Types > Create Wage
Type Catalog
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Configuration Design Document Version No: 1.0
Configuration Design Document Version No: 1.0
Configuration Design Document Version No: 1.0
Configuration Design Document Version No: 1.0
Configuration design:
In this step, the different wage types prevalent in the organization are created. Standard wage
types have been provided in the system. These can be copied to create customer wage types.
Different ranges have been created for the wage types to avoid cluttering.
Basic Pay
All the wage types shall be in the range 1000 1110 in increments of 10. To arrive at the
corresponding arrear wage type, 5 have been added to the base wage type.
To arrive at the corresponding payment arrear wage type, 5 have been added to the base wage
type.
To arrive at the corresponding payment arrear wage type, 5 have been added to the base wage
type.
Required fields:
NA
Configuration pre-requisites:
NA
Menu path:
Personnel Management > Personnel Administration > Payroll Data > Basic Pay > Wage Types > Check Wage
Type Catalog > Check Wage Type Characteristics
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Configuration design:
Configuration Design Document Version No: 1.0
In this step, one can view the characteristics of the wage types that were created in the previous
step. The wage types are grouped as either allowances or deductions by using appropriate flags.
Also, the relevant indirect evaluation module is chosen based on the wage type characteristic.
If flexibility is to be provided to overwrite the system proposed amount, the overwrite indicator is
to be flagged.
Required fields:
NA
Configuration pre-requisites:
Wage type should have been created.
Menu path:
Personnel Management > Personnel Administration > Payroll Data > Basic Pay > Wage Types > Employee
Subgroups for Primary Wage Type
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Configuration Design Document Version No: 1.0
Configuration design:
Configuration Design Document Version No: 1.0
In this step, employee subgroups are grouped together so that wage types applicable to different
groups can be segregated.
Required fields:
NA
Configuration pre-requisites:
Assignment of Employee subgroups to Employee groups.
Menu path:
Personnel Management > Personnel Administration > Payroll Data > Basic Pay > Wage Types > Personnel
Subareas for Primary Wage Type
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Configuration Design Document Version No: 1.0
Configuration design:
If there are certain wage types that are applicable only to some personnel sub areas and not to
others, this can be taken care of in this activity.
Required fields:
NA
Configuration pre-requisites:
Creation of Personnel Sub areas
Menu path:
Personnel Management > Personnel Administration > Payroll Data > Basic Pay > Wage Types > Define
Valuation of Base Wage Types
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Configuration design:
Configuration Design Document Version No: 1.0
In this activity, the wage types that are to be evaluated indirectly are maintained along with the
base wage type and the percentage. The necessary amount is computed and defaulted.
Required fields:
NA
Configuration pre-requisites:
Base wage types should have been created.
Menu path:
Payroll > Payroll: India > Reimbursements, Allowances, and Perks > Assign Wage Type Model
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Configuration Design Document Version No: 1.0
Menu path:
Payroll > Payroll: India > Reimbursements, Allowances, and Perks > Maintain Default Wage Types for Basic
Pay
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Configuration design:
Configuration Design Document Version No: 1.0
In this step, Wage type Models are assigned to each Pay Scale Grouping for Allowances that
has been created. The Wage type Model indicates which benefits apply to, or what amounts are
to be deducted from a particular Pay Scale Grouping for Allowances
Required fields:
NA
Configuration pre-requisites:
Pay Scale Grouping for Allowances
Menu path:
Personnel Management > Personnel Administration > Payroll Data > Recurring Payments and Deductions >
Wage Types > Check Wage Type Catalog > Check Entry Permissibility per Infotype
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Configuration design:
Configuration Design Document Version No: 1.0
In this step, for the different wage types entry specifications are laid down.
Required fields:
NA
Configuration pre-requisites:
Creation of wage types.
Menu path:
Personnel Management > Personnel Administration > Payroll Data > Additional Payments and Deductions >
Wage Types > Check Wage Type Catalog > Check Entry Permissibility per Infotype
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Configuration design:
Configuration Design Document Version No: 1.0
In this step, for the different wage types entry specifications are laid down.
Required fields:
NA
Configuration pre-requisites:
Wage type creation.
Menu path:
Personnel Management > Personnel Administration > Payroll Data > Basic Pay > Wage Types > Define Wage
Type Permissibility for each PS and ESG
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Configuration design:
Configuration Design Document Version No: 1.0
In this step, the wage types created are assigned to the employee subgroup and the personnel
sub area grouping already created. Once this is done, the wage types are segregated based on
the applicability.
Required fields:
NA
Configuration pre-requisites:
Wage types, Employee grouping for wage types and personnel sub area grouping for wage
types.
Menu path:
Payroll > Payroll: India > Reimbursements, Allowances, and Perks > Maintain allowance rules based on the
slabs
Configuration Design Document Version No: 1.0
Menu path:
Payroll > Payroll: India > Reimbursements, Allowances, and Perks > Calculate Eligibility for RAPs
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Configuration Design Document Version No: 1.0
Configuration Design Document Version No: 1.0
Indirect Valuation: Indirect valuation has been set as per UISL requirement
Configuration design:
In this particular activity, eligibility details are set up to calculate the Reimbursements,
Allowances or Perks (RAPs). The eligibility criterion is associated with a wage type and type of
allowance. These wage types are then processed appropriately in Basic Pay infotype.
Required fields:
NA
Configuration pre-requisites:
Wage type creation.
Menu path:
Payroll > Payroll: India > Retirement Benefits > Gratuity
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Configuration Design Document Version No: 1.0
Menu path:
Payroll > Payroll: India > Retirement Benefits > Gratuity > Define Contribution Rates for Gratuity
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Menu path:
Payroll > Payroll: India > Retirement Benefits > Gratuity > Maintain Gratuity Contrib. Frq. And related
Wagetypes
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Configuration Design Document Version No: 1.0
Menu path:
Payroll > Payroll: India > Retirement Benefits > Gratuity > Maintain eligibility years for Gratuity
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Configuration Design Document Version No: 1.0
Menu path:
Payroll > Payroll: India >Superannuation > Maintain Superannuation Id
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Configuration Design Document Version No: 1.0
Menu path:
Payroll > Payroll: India >Superannuation > Maintain Superannuation Contrib. Frq. And related Wagetypes
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Configuration Design Document Version No: 1.0
Menu path:
Payroll > Payroll: India > Retirement Benefits > Superannuation > Define contribution Rates for
Superannuation
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Configuration Design Document Version No: 1.0
34. Termination
Sub-system: Termination Transaction code: SPRO
(Retirement)
Menu path:
Payroll > Payroll: India > Termination > Define Info groups
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Configuration Design Document Version No: 1.0
Menu path:
Payroll > Payroll: India > Statutory Social Contribution > Provident Fund > Define Trust Details for Provident
Fund
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Configuration Design Document Version No: 1.0
Menu path:
Payroll > Payroll: India > Statutory Social Contribution > Provident Fund > Assign Company rates for Provident
Fund
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Menu path:
Payroll > Payroll: India > Statutory Social Contribution > Provident Fund > Define PF Trust Validity Period
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Configuration Design Document Version No: 1.0
Menu path:
Payroll > Payroll: India > Statutory Social Contribution > Provident Fund > Maintain Contribution Details for
Provident Fund
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Configuration Design Document Version No: 1.0
Menu path:
Payroll > Payroll: India > Statutory Social Contribution > Provident Fund > Define Contribution type for
Statutory rates for Provident Fund
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Configuration design:
In this step, the different trusts to which the employee and employer contribute are defined. In
addition, wage types are set to calculate the contributions made to the trusts and its associated
administrative charges.
Required fields:
Trust Type
Configuration pre-requisites:
NA
Configuration Design Document Version No: 1.0
36. ESI
Sub-system: Employees State Transaction code: SPRO
Insurance
Menu path:
Payroll > Payroll: India > Statutory Social Contribution > Employees State Insurance > Maintain ESI Eligibility
Limit
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Menu path:
Configuration Design Document Version No: 1.0
Payroll > Payroll: India > Statutory Social Contribution > Employees State Insurance > Define Personnel Area
and Subarea Grouping for ESI
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Menu path:
Payroll > Payroll: India > Statutory Social Contribution > Employees State Insurance > Assign Personnel Sub
Area Groupings for ESI
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Configuration Design Document Version No: 1.0
Menu path:
Payroll > Payroll: India > Statutory Social Contribution > Employees State Insurance > Maintain Contribution
Rates for ESI
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Configuration Design Document Version No: 1.0
38. Reimbursement
Sub-system: Tax Codes Transaction code: SPRO
Menu path:
Payroll > Payroll: India > Tax > Tax Liability on Reimbursements, Allowances and Perks > Define Tax Codes
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Configuration Design Document Version No: 1.0
Configuration design:
In this step, tax codes are defined in accordance with the statutory requirements, which are then
assigned to wage types.
Required fields:
NA
Configuration pre-requisites:
Wage Types, Tax Codes
Configuration Design Document Version No: 1.0
Menu path:
Payroll > Payroll: India > Tax > Tax Liability on Reimbursements, Allowances and Perks > Assign Tax Code
Limits to Wage Types
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Configuration design:
Configuration Design Document Version No: 1.0
In this activity, tax code limits, wage types, and other criteria are attached to a tax code. This
value is, then, taken into account when calculating the employees tax liabilities on certain
benefits.
Required fields:
Tax Code, Validity period
Configuration pre-requisites:
Wage Types, Tax codes.
Configuration Design Document Version No: 1.0
Menu path:
Payroll > Payroll: India > Reimbursements, Allowances and Perks > Claim > Maintain salary year and period
end treatment of RAP
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Configuration design:
Configuration Design Document Version No: 1.0
In this activity period end treatment of reimbursement is defined along with calendar type.
Required fields:
Tax Code, Validity period
Configuration pre-requisites:
Tax codes.
Menu path:
Payroll > Payroll: India > Reporting for Posting Results to Accounting > Employee Grouping and Symbolic
Accounts > Define assignment of EE char to EE group account assignment
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Configuration Design Document Version No: 1.0
Configuration Design Document Version No: 1.0
Configuration design:
Here, employees are grouped together based on certain similar characteristics for the purpose of
account determination.
e.g. If the tax vendor for more than one personnel sub area is the same, then the personnel sub
areas can be grouped together.
Required fields:
NA
Configuration Design Document Version No: 1.0
Configuration pre-requisites:
Personnel sub areas have been used as the basis of grouping employees for account
determination, as the statutory vendors vary with according to the personnel sub area.
Configuration Design Document Version No: 1.0
Menu path:
Payroll > Payroll: India > Reporting for Posting Results to Accounting > Employee Grouping and Symbolic
Accounts > Define Symbolic Accounts
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Configuration Design Document Version No: 1.0
Configuration design:
In this step, the symbolic accounts are defined. Symbolic accounts are used to link the wage
types with the different accounts depending upon the nature of the account. Also, whether a
particular account is dependent on the employee grouping defined in the previous step is
specified here.
Required fields:
Configuration Design Document Version No: 1.0
Configuration pre-requisites:
NA
Menu path:
Payroll > Payroll: India > Reporting for Posting Results to Accounting > Maintaining Wage Types > Define
Posting Characteristics of Wage Types
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Configuration design:
Configuration Design Document Version No: 1.0
In this step, all the wage types that are to be posted should be specified. Also, the wage types
are linked to the symbolic account defined previously, along with details like whether the wage
type is to be debited or credited to the account.
Required fields:
+/- Sign for debit/credit and the symbolic account.
Configuration pre-requisites:
Symbolic accounts should be defined
Menu path:
Payroll > Payroll: India > Reporting for Posting Results to Accounting > Activities in AC System>Assigning
Accounts
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Configuration Design Document Version No: 1.0
Configuration Design Document Version No: 1.0
Configuration Design Document Version No: 1.0
Configuration Design Document Version No: 1.0
Configuration Design Document Version No: 1.0
Configuration Design Document Version No: 1.0
Configuration Design Document Version No: 1.0
Configuration Design Document Version No: 1.0