Penalty as a deduction

Hi friends,
when I want to create contract for service in SAP my customer wants me to add some deduction(e.g. penalties) items to other items. these deduction items help them to deduct vendor's price in Service Entry Sheet (ML81N) if vendor does not do his job well. otherwise they don't calculate the penalty.
How can I add or consider these kinds of items in ME31K?
is it possible?
thx in advance

Generally these penalties are called Liquidity Damages.
You need to define Header Text for penalties, Your Client will be knowing at the time of SES only,
whether LD ( Liquidity damages ) will apply or Not.
If LD is to apply, then you need to raise Credit memo

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Vendor Interest calculation with penalty calculation

Dear All,
We have some requiremnt from my client.
We receive Deposit from our Loan Creditor for a specified period and refund/payback the amount along with interest after completion of the tenure of the deposit.
Meanwhile,if the depositor wants to withdraw the principle amount then the following are the scenarios,
In case the deposit is withdrawn after 6 months but before 18 months, then the rate applicable for ONE year shall be taken and 1% penalty should be deducted and interest shall be recalculated for the period for which the deposit is run and excess interest paid (if any) is to be deducted from the interest/principal.
In case the deposit is withdrawn after 18 months but before 30 months, then the rate applicable for TWO year shall be taken and 1% penalty should be deducted and interest shall be recalculated for the period for which the deposit is run and excess interest paid (if any) is to be deducted from the interest/principal.
In case the deposit is withdrawn after 30 months but before 36 months, then the rate applicable for THREE year shall be taken and 1% penalty should be deducted and interest shall be recalculated for the period for which the deposit is run and excess interest paid (if any) is to be deducted from the interest/principal.
Also we want the applicable tax should be deducted on interest and the net interset amount should be credited to depositoru2019s account once we are execute the (period specific) interest calculation run in SAP.
The entry must be
Interest on Fixed Deposits Dr
Interest Payable on Fixed Deposits (Net of TDS, if applicable) Cr
TDS on Interest Payable CR
Do suggest,how this can been config in SAP system.
Appreciate your time and patience.
Regards,

Dear All,
Stil;l expected some inputs on our req.
Do comment
Regards

Vendor Interest calculation

Dear All,
We have some requiremnt from my client.
We receive Deposit from our Loan Creditor for a specified period and refund/payback the amount along with interest after completion of the tenure of the deposit.
Meanwhile,if the depositor wants to withdraw the principle amount then the following are the scenarios,
In case the deposit is withdrawn after 6 months but before 18 months, then the rate applicable for ONE year shall be taken and 1% penalty should be deducted and interest shall be recalculated for the period for which the deposit is run and excess interest paid (if any) is to be deducted from the interest/principal.
In case the deposit is withdrawn after 18 months but before 30 months, then the rate applicable for TWO year shall be taken and 1% penalty should be deducted and interest shall be recalculated for the period for which the deposit is run and excess interest paid (if any) is to be deducted from the interest/principal.
In case the deposit is withdrawn after 30 months but before 36 months, then the rate applicable for THREE year shall be taken and 1% penalty should be deducted and interest shall be recalculated for the period for which the deposit is run and excess interest paid (if any) is to be deducted from the interest/principal.
Also we want the applicable tax should be deducted on interest and the net interset amount should be credited to depositoru2019s account once we are execute the (period specific) interest calculation run in SAP.
The entry must be
Interest on Fixed Deposits Dr
Interest Payable on Fixed Deposits (Net of TDS, if applicable) Cr
TDS on Interest Payable CR
Do suggest,how this can been config in SAP system.
Appreciate your time and patience.
Regards,

Hi
asset accounting is not the right place for this inquiry, as asset accounting does not vendor interes calculation.
Blaz

SAP IS Banking- Time Deposits

Dear Experts,
I am configuring a Time Deposit Product in SBS 7.0. As per the requirement, there is an early withdrawl penalty to be calculated if the deposit is withdrawn before the maturity date. The calculation is possible in SBS 7.0. However, the system is not posting this penalty to the Time deposit. The requirement is that, the penalty must be deducted from the Time deposit Amount and the net amount must be posted.
Can anyone help me with this.
Regards
Vasavi

Hello ,
Refer,
TDS Certificate
tds cycle mapping and testing
br,
Pushkar
Edited by: Pushkar Patil on Jul 22, 2010 11:39 AM

How to deduct my Penalty amount in Sales order (Customer Service)

Hi All,
We have a Service contract to bill the customer monthly based on the usage of our Equipment. It has three components.
1. Usage no. of units produced during the month of Billing @ Rs.100 / unit
2. Bonus amount on stoppage hours due to Customers (lack of input or power)@ Rs.300 / Hr
3. Penalty amount on stoppage due to Service provider (lack of spares or Service Engineers) @ Rs.200 / Hr
We created a Service contract with three Service materials (line items) with agreed rate as Condition value.
Daily we recording the reading above 3 parameters using Measuring point of the Equipment. We have a report to get monthly total of Productivity, Stoppage due to Customer, Stoppage due to Supplier.
We are thinking to create a Sales order every month (will copy the rate from contract) and enter the readings (manually) in the Quantiy field.
If I enter the Condition value -200 for third parameter (Penalty), system accepts and reflected in Sales order too.
Request to verify my flow and correct me If I am wrong.
Other solutions are also welcome.
Thanks in Advance,
Babu

Any thoughts?...
Babu

Penalty to vendor

Dear QM Experts,
Can any one help me for below scenario.
My client wants to make payment to vendor based on the value observed by quality inspection. For Ex one Mateial say rock salt,we need the rock salt form vendor xyz be 50%. , when PO made. amd when Vendor send the material and analaysis perfomred by QM then found the % in Cr is 45%.
So while making payment to vendor by FI, they want Penalty paymeny of 5% to vendor.
please suggest how to mapped the scenario.
Your valuable comments are highly appreciable.
regards,
Ufarooq

Hello Farooq,
If your need is to inform the FI & MM guy regarding the Quality of issue of the non conformance of 5% then you can create an UD attached a Follow up action attached to it for sending the mail.
Please look into the answer provided by Mr. Shyamal regarding the same in the below link provided
Link: [Deduction during procurement;
also go thru this link also
Link: [Q. M PROCUREMENT-PAYMENT TO VENDOR BASED ON INPSPECTION RESULTS]
Regards
Gajesh

TDS Deducted not deposited

Dear Experts,
By mistake one of our user has deducted TDS on 14.08.08 with posting date 27.07.08.(After TDS is deposited on 07.08.08). As such it remained as open. We are now tracking it. By the time MMPV for Jul & Aug is done.
Now to avoid penalty intrest for delayed deposit of TDS we want to reverse the document by opening the period. But since it is MIRO document it is not allowing, it can be reversed with date 01.09.08 onwards,
How to dela with this situation, please advise.
Reagrds,
Alok Parida

Dear Rama,
It is a MM document. As such we can not use FB08 a FI T-Code to reverse.
Even if we reverse using MR8M with closed period the tax liability will be continue to exists as on 07.08.08. Since it is not paid by 07.08.08 we have to pay delayed interest to IT dept.
Regards,
Alok

A/P Credit Memo (Item Type) not to deduct quantity in inventory

Hi,
1. I purchased an item > supplier gave me invoice> I key in A/P Invoice (Item Type)
2. Found out item was overpriced
3. Supplier gave me Credit Note to adjust the price
How do I key in this credit note via A/P Credit Memo? To my understanding if I key in the a/p credit memo (item type), my inventory quantity will be deducted as well.

Because the item is over priced, it means that my inventory gl is over stated. When I get the supplier's CN, I will have to reduce the inventory gl. When I create a Service Type A/P Credit Memo I must choose inventory gl. But this will create another problem - Inventory Audit Report balance will not tally with Inventory gl balance (because i didn't reduce the item price in the first place). To solve this is to do a Inventory Revaluation.
Hi Lay Chin, what you suggested is the best option so far.
Thank you everyone for the reply.

Why is it so difficult to CANCEL a subscription to AOLs cyber newspaper, "THE DAILY". It appears to have been made very possible as a scam, so once you give them the automatic, weekly deduction to your credit card or bank account, it's non cancelable!

BEWARE: if you subscribe to AOL'S cyber newspaper (for 99¢ per week),you will have to give them authorization to charge your account weekly vain iTunes/apple account or credit card or bank account. Once you do that you have a better chance having a long phone chat with Oboma about all the people now on welfare, than getting someone to at AOL or APPLE to cancel your subscription. You will get routed all around and put on hold and finally referred to a forum where this has been REPEATEDLY asking ...and, per APPLE, answered. In fact, when you follow the APPLE given link (a live person at APPLE sends you the link by email but can not tell you what to do on the phone) ... And you go to the link, you will find ...as I did and others commented they did too...that the link suggestions do not work to allow younto cancel The Daily!   At this point younwill have over an hour, perhaps 2 (as in my case) invested and STILL NOT HAVE IT CANCELLED.
What incompetence by AOL and APPLE!   Or wait; do you really think this is made so complex, not by incompetence, but by design?
You mean you think AOL ...once the got your account debit authorization working, the want to make it nearly impossible for you to stop them from continuing to "milk the cow"?   They do have a dubious, to put it politely, record onmcustomer care (reason theynlost literally millions of paying "AOL Members" starting about mid 1990's ...and then making AOL free before ALL their "members left".)
Ok, so it is not hard to see AOL doing something like this. I admit. However, with ITunes participating in the billing for "the Daily. Onto your Aplle Account credit card or bank account, do you think the generally ethically run APPLE would participate in the AOL scam too? Why can't or doesn't,t APPLEgive you a straight answer or take care of stopping the itunesnbilling for "The Daily"? Thismismbad enoughmthat a forum has started on the question and APPLE refers youmto that NOT VERY HELPFUL, short, old forum discussion.
Is there a conspiracy here ... A scam?   Or, is there some logical and reasonable explanation?   Absent a such a good explanation, this is class action lawsuit material ...to recover all the amounts deducted from customers who wanted to cancel but did not have the time and endurance to figure out how to cancel.

Yoor post is very confusing. AOL's iPad magazine is called "Editions" and it's free. "The Daily" is put out by TheDailyHolding and is owned by Rupert Murdoch. You've already posted in another thread where the solution was given. Other people seem to have manged to get unsubscribed.
Best of luck.

PF not getting deducted for the mid month joinees.

Hi,
The problem is coming in the PF deduction of the employees who have joined in the mid of the month.
For ex if an employee's basic salary is 7000 and the emp joined in the mid of the month , the system is taking PF from RS 3500 , where PF deduction is not applicable. Now the result is PF is not getting deducted for that month which should not happen.
So kindly guide me how to apply a check in the system so that it deducts the PF of those employees who are joining in the mid of the month and their basic salary is above Rs6500.

check
INPA4
INPA3
INPA2
INPA1
tables V_INPA1 check the configuration once
if u dont want f

Quota deduction when EE has been inactive for more than 180 days / Advance quota days when employee does not have enough balance

Dear experts,
We have two requirements regarding to the "Anual leave" quota.
1. Quota reduction when employee is inactive for more than 180 days
2. Advance quota days when employeee does not have enough balance
We have in place an "Anual Leave" quota related to a calendar year period, that gets generated dialy in time evaluation. This quota gets the employee entitlement from a set of rules that stored the corresponding balance in a period time type, that is the one that we defined in the customizing. This is working fine. The problems start when we try to incorporate the other two requirements.
Regarding the first requirement, if the employee has been inactive for more than 180 days in a calendar year due to unpaid leave, we need to start quota reduction as follow,
First, we need to clear the balance that was calculated above in the schema.
Then, we need to calculate one leave day for every 20 days worked till the end of the year, considering as such, everyday the employee is expected to work, except days on which the employee has been absent on unpaid leave.
For the second requirement we created a manual quota call "Advance Anual Leave". So, if the employee, wishes to take 20 working days holiday, but in his/her Anual Leave quota has only 10 days available, we have to create an "Advance Anual Leave" quota manualy for 10 days. When the quota for next year gets generated, we need to deduct these advanced 10 days from it. This deduction should stop the year after.
The problem we are finding with these two requirements is that, due to the Anual Leave quota gets generated dialy, we can't get the balance right.
Thanks in advance!
Kind regards,
Alex

Hello binbingogoABC,
Shopping on BestBuy.com should be easy and fun and not fraught with the kind of trouble that you describe. I regret very much that this has been your experience.
Using the information you provided when you signed up for Best Buy Unboxed I was able to locate your cancelled orders. I have requested more information from my back-office partners. As soon as I have additional details about your situation, I will reply again to this message. In the interim, I'm sorry that I must impose upon your patience.
I'm very grateful that you wrote to us with your concerns.
Sincerely,

ESI deduction prob

Hi Experts,
When employees are hired in mid of month or end of month with gross salary of 10000 to 15000, and they are eligible for ESI contribution, even then when running a that month payroll, the system is not deducting ESI for above said employees,
IT 588 has been maintained for them properly.
Gross Salary : 10000
DOJ : 22.08.2011
/112 ESI Basis: 3,225.81
/113 ESI Basis nominal : 5,296.61
Why these two wage types have different calculation? I know that /113 does not take into account loss of pay or overtime. pls let me know why it is considering the /113 amount when the deduction happens for ESI? I am unable to understand the calculation of /113 in case of loss of pay. In our system Min.Avg.Wage per day is defualt 26. Please help me to understand the calculation process of /113 and /112. pls guide me in this.
Thanks,
Shree NP

1. Maintain ESI basis Limit in the table VV_511P_B_ESILT_AL0 as it is INR 15,000 from 01.05.2010
2. V_7IN0P_ESI -personal area nd sub areas groupings
3. Maintain the tables V_T7INE1 and V_T7INE3
The process:
Cumulation class 12 for ESI basis, all WT under this will be sotered in WT /112 (on this ESI will be calculated as per % maintained in the table V_T7INE3)
Cumulating class 13 OR Processing class 72 (any one but not both) , all WT under this will be sotered to WT /113 which will check the limit in the table VV_511P_B_ESILT_AL0
If Limit is <= 15,000 (Compared /113 amount with table entiry) and then ESI will be calculated based on the amount in WT /112.
ESI WT's are /3E1- Ee ESI contribution and /3E2- ER ESI contribution
For example: /113 = 14,000,
                      /112 = 10,000, Here the limit is below INR 15, 000 so the calculation is as below:
Then /3E1 = 1.75 % on 10,000 = INR 175
         /3E2 = 4.75 % on 10,000 = INR 475
Please check and let me know.
Thanks
Cheera
Edited by: sreecheera on Sep 2, 2011 11:56 AM

ESI deduction for mid joining employees

Hi Friends
For an employee joined in 05th Feb, master data salary is Rs.14768.77 (sum of wagetypes considered for ESI calculation) and the actual salary calculated is Rs.12941.43.
For the purpose of ESI deduction the calculated salary is projected for the full month and arrived at Rs.15098.34 which is higher than ESI limit Rs. 15000.
Is there any provision to avoid this calculation, since ESI not getting deducted for the first month and from Mar-14 onwards, ESI getting deducted normally.
regards
Raghu.

Hi Raghu,
Rs.14768.77-- is this ESI Basis(/112) for Feb 2014?
Rs.12941.43-- what is this amount/wage type?
Rs.15098.34-- what is this amount/wage type?
Regards
Dixit

Income tax deduction

Hi,
We are facing the following issue:
When employee is locked say in the month of November and then in the
month of december when the locked is release and the payroll is
processed normally, the net tax payable by the employee is deducted
fully and does not get pro-rated.
For eg: if the net tax payable by the employee is 16043, then when the
payroll is processed in the month of December, the income tax should be
16043/4=4010.75, but it is deducting the full 16043 as income tax.
cheers,
Ayyaps

Hi,
In your thread you have mentioned that the payroll was blocked for the month of Nov and was run on Dec which triggered Retro run.
Kindly note that if the payroll was blocked for Feb and was run in Mar then the tax effect will be the same as you mentioned.
Also please mention the values of below wage types for the month of November and December
/450 Tax payable and surcharge
/456 Tax deducted so far
/458 Net tax payable
/460 Income Tax
Thanks and Regards
Kiran

Income Tax Exemption on Professional Tax Deducted for Tamilnadu Employees

Hi Experts,
I am working on India Payroll and configured Professional Tax for Tamilnadu employees. Professional Tax is deducted correctly for the employee in the month of August and then in month of January.
However while calcuating income tax exemption system is considering only amount deducted in the month of August for the exemption upto December month and in the month of January its cosidering PTax deducted in the month of August and January both. In case of Maharashtra employees form first month its considering annual projected Professional Tax amount for Exemption.
Can anyone guide me what changes i have to do for considering projected PTax amount for exemption in case of Tamilnadu employees.
Thanks in advance.
OMKAR

As per standrad the for chennai professional tax is projected for every six months right
so it is takeing like that say the entire amount will be upto to Projection period so it is takeing for that period
We have similar issue at one of the client place that is instead of deducting the PTAX for every six months it has to be deducted
for mothly so we have changed the frequnecy of deduction from six months to monthly so than it has shown the entire project amout yearly
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Penalty as a deduction

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