Proration in payroll

Hi all,
When there is a mid-month change in work schedule rule (WPBP split), the porition before the change is only prorated. The second part is taken as full month pay. Hence the Basic pay becomes more than what is supposed to be. But if it is a change in Basic pay, it prorates in both portions properly.
Another proration issue, if there is an organizational change, recurring pay (IT14), takes only one portion of the split and skip the other portion. Hence only a portion of the amount is coming in the pay.
Please advise on this two cases to rectify.
Regards

Please refer this link ,it may help you
Proration of IT 0014 when basic pay split in the middle of the month
Search SDN for this there are numbers of links regarding the mentioned
Courtesy: SAP SDN

Similar Messages

How to handle mid month proration in a calendar to month payroll

Appreciate if some 1 can help in handling the mid month proration in a calendar to month payroll.
i.e if an employee desides to quit his job by giving a 24 hours notice say in the middle of the month, then how can one handle such cases in monthly payroll calculations?
Plz help me......!
regards

1. Create a Proration Event Group grouping all the events (here date track update on assignment_status_id of per_all_assignments_f). Attach the event group to elements that you want to prorate.
2. Write a Proration Formula (Formula Type Payroll Run Proration) sth like this.
inputs are pay_value,
proration_start(date),
proration_end(date)
l_days = days_between(prorate_end,prorate_start) + 1
pay_value = pay_value * l_days / 31 /* instead of hardcoding 31 u can get the days_between period start and period end db items */
return pay_value.
3. Attach the above proration formula to the elements that you want to prorate ( element screen > proration tab)
Hope this helps.
Regards,
sharath

Proration of ER Pension Contribution - GB Payroll

Hi Experts,
My client requirement is that the ER pension contribution (based on full pay) should be calculated till the EE gets Statutory payment ie if an EE goes on maternity leave the ER Pension contribution should be calculated till the EE gets SMP Pay.
So i passed on the Pension elements to a notional Wage type (9000), and wrote a PCR on proration and assigned it to the notional WT. The ER contribution gets calculated till the EE goes on maternity leave. The calculation get stopped from the first month the EE goes on maternity leave.
I checked the Schema, i can see my notional WT in IT table and OT Table of GPEN, but the calculation is not happening.
kindly suggest me how should i proceed on this.

Did you check the specification of the Evaluation Class 02 for the wagetype under concern (used for pension type) in table V_512W_D? This controls the printing on the rem statement.

Payroll : Mid Month joining

Dear Experts,
Generally Payroll will be generated based on Payroll area ( Example D1 ) for group of employees.
But one Person ( Ex : Person No - 1000 ) joined in one company in mid of the month and he belongs to same Payroll area ( D1)
how can we run Payroll the payroll for that employee ( Person No - 1000 )?
Thanks in advance.
Regards.
Sudheer

Hi ,
Run payroll as usually as you have done previously, the new joining employee will be picked up automatically by the payroll driver. He will be paid from the date of joining (on prorate basis).
for ex employee total sal for full month is 1000 if he joins on 15 of the month after running payroll he will get 500.
Thx
jinnu

PF Contribution - Proration

This is related to India Payroll PF Calculation.
Here PF Basis = Basic Pay & Eligible Pay = Rs 6500/-.
Eligible pay or PF basis, whichever is less, standard system
considers that as the PF contribution.
For Ex:
If Basic Pay <= Rs 6500, PF wud be 12% of actual Basic
If Basic Pay > Rs 6500, PF wud be 12% Rs 6500
This is working fine in the standard system.
Current Requirement is:
When there is a loss of pay for an emp, the Basic is prorated
accordingly. But the twist in the story is The Eligible Pay also
needs to be prorated. And then, the lesser of the prorated basic
& prorated eligible pay is to be considered for the PF
calculation.
For Ex:
An emp with basic pay of Rs8000, has 3 day's loss of pay in a
month. The prorated basic becomes Rs7200 for that month
deducting 8000*3/30 as loss of pay from basic pay, which is
still higher than the eligible pay. In such a scenario, the
system should not calulate PF based on the eligible pay of
Rs6500. Instead it has to prorate the eligible pay accordingly
and then consider the lesser of prorated basic and prorated
eligible pay for PF calc. i.e;
Prorated eligible pay = Rs5850 [deducting 6500*3/30 as loss of
pay from eligible pay]
How to prorate this Eligible Pay ?

Rajesh did u checked with the PF office
does the acts say same
please let us know generally it shd get Prorated
The proration as mentioned by you happens only when the employee joined/left in the middle of the month. However, in case of LOP, PF is calculated on the earned basic (reduced) and eligible pay, whichever is less. Please check with your legal counsel for getting legal opinion on the matter.
However, if you still need to prorate the eligible pay based on LOP days, then write a rule which will check the value of /111 and limit it to eligible pay (prorated in case of LOP) before function INEPF is called in the schema. This way the value passed on to INEPF in WT /111 will be the prorated value and your requirement will be met.
But, I would still ask you to get legal opinion on the same as it may lead to statutory default in case the standard calculation is correct. It is always better and legally safe to deduct and contribute more PF.
inputs given by VK (Vivek)
Edited by: Sikindar on Jun 18, 2009 4:42 PM

How to prorate mid month emp termination

hey all,
i have some employees that are being terminated as of 15th Jan 2009 some as of 20th Jan 2009. How can one handle such situations in the basic salary calculation formulas in payroll.
all your comments are welcomed!

There was no proration logic.
So i went thru the R12 Help and i came across a sample formula that has given me some idea now this formula is working only when the employees join in the mid-month and it doesn't work for mid-month termination.
Please note the salary is not hourly its daily computation but payroll is callander month.
We have International HRMS (i.e. XX_LEGISLATION)
Following is the formula:
ALias ASG_GRADE as Emp_Grade
ALIAS BASIC_PAY_IN_USD_AMOUNT_IN_USD_ENTRY_VALUE AS BASIC_US
ALIAS EXCHANGE_RATE_USD_PAY_VALUE_ENTRY_VALUE AS EXCHANGE_RATE1
default for BASIC_US IS 0
default for Emp_Grade is 'A'
default for actual_salary is 0.0
default for EXCHANGE_RATE1 is 0
default for prorate_end is '01-JAN-1900' (date)
default for prorate_start is '01-JAN-1900' (date)
default for PAY_PROC_PERIOD_END_DATE IS '01-JAN-1950' (date)
default for PAY_PROC_PERIOD_START_DATE IS '01-JAN-1950' (date)
inputs are Pay_amt(number),Pay_amt_TZS(number),Pay_amt_USD(number),prorate_start (date), prorate_end (date), actual_salary (number),day_in_Month(number)
if (Emp_Grade='S1' OR Emp_Grade='S2' OR Emp_Grade='S3' OR Emp_Grade='S4' OR Emp_Grade='SA' OR Emp_Grade='SB' OR
Emp_Grade='SC' OR Emp_Grade='SD' OR Emp_Grade='SE' OR Emp_Grade='SS') then
if not(BASIC_US was defaulted) then
actual_salary =(BASIC_US)
l_amount = (BASIC_US)
message = 'Proration Start Date ' || TO_CHAR(prorate_start, 'DD-MON-YYYY')
IF (prorate_start was defaulted) then
prorate_start date is defaulted when no pro ration occurs. Therefore we
should just return Salary.
l_amount = l_amount
     Pay_amt=(l_amount)
     Pay_amt_USD=(l_amount)
     Pay_amt_TZS=(l_amount*EXCHANGE_RATE1)
else
l_days = days_between(prorate_end , prorate_start)+1
day_in_Month=days_between(PAY_PROC_PERIOD_END_DATE,PAY_PROC_PERIOD_START_DATE)+1
l_amount = (l_amount * l_days) / day_in_Month
     Pay_amt=(l_amount)
     Pay_amt_USD=(l_amount)
     Pay_amt_TZS=(l_amount*EXCHANGE_RATE1)
return l_amount, message,Pay_amt,Pay_amt_TZS,Pay_amt_USD
Appreciate all your responses/help/assistance!

Ireland Payroll - Issue in Tax Refund for Leavers

Hello Payroll Experts,
Greetings!
We are having problems for 2 of our Ireland Based Employees.
The Below is the step wise details of the issue:
=> Employee has left the Organisation in the month of 21st October'08.
=> The Seperation Action for the employee only has been made only after
the completion of October Month's Payroll, hence the employee has been
paid until 31st October '08.
=> While running the November Month Payroll, this employee has been
picked by the payroll again & the system is calculating the Retro and
have given the wrongly calculated days back (21st Oct - 31st Oct'08).
=> Even the Pension refund has been given.
=> But the TAX is not getting RECALCULATED (Tax Refund).
Could you please help us to find out why this issue is happening.
Thank you in Advance
Best Regards
Vijay

Hi,
I am facing a problem in professional tax. some employees transferred from non-tax area to tax area, for them the tax is not deducting. where to check?
Please help me.
Chandra
Hi Chandra,
Please check the following tables:
V_7IN0P_PTX
v_t7inp1
v_t7inp3
v_t7inp4
Important : Also check whether when the employee is moving from non ptax region to ptax region then the prorated amount of the ptax region is soming under ptax limit or the amount is under nil limit.
Along with the above also check, IT0588 subtype 0003 for PTax.
Regards,
ARNAV...
Edited by: ARNAV... on Mar 6, 2010 8:11 AM

Proration of Basic salay which change in the mid of the period problem?

Dear all
This my first proration , i have an employee that take 1500 US and in the middle of the month i decide to increase him to 2000 US.
I make the following steps:
1. I introduced and employee on 1 jan 2011 and gave him basic salary 1500 US.
2- I change his basic salary in 15 jan 2011 to 2000 US
3- I create simple formula to the basic salary :
Default For EMP_HIRE_DATE is '0001/01/01 00:00:00'(date)
Default For EMP_Term_DATE is '0001/01/01 00:00:00'(date)
Default For PAY_PROC_PERIOD_START_DATE is '0001/01/01 00:00:00'(date)
Default For PAY_PROC_PERIOD_END_DATE is '0001/01/01 00:00:00'(date)
Default For Asg_salary is 0
Default For Days is 0
Alias PAY_PROC_PERIOD_END_DATE as Period_ED
Alias PAY_PROC_PERIOD_START_DATE as Period_SD
Alias EMP_HIRE_DATE as HD
Alias EMP_TERM_DATE as TD
Inputs are Amount
If HD >= Period_SD and HD <= Period_ED
Then
Days =DAYS_BETWEEN(HD,Period_ED)
Pay_value= (Amount/30)*Days
else pay_value =Amount
Return Pay_value 4- I Create an Event Group of Type Proration and Period as Payroll Period.
5. Include the following events in the above Proration Group.
a. PAY_ELEMENT_ENTRIES_F - > ELEMENT_ENTRY_ID
b. PAY_ELEMENT_ENTRIES_F -> EFFECTIVE_START_DATE
c. PAY_ELEMENT_ENTRIES_F -> EFFECTIVE_END_DATE
d. PAY_ELEMENT_ENTRY_VALUES_F -> SCREEN_ENTRY_VALUE
e. PAY_ELEMENT_ENTRY_VALUES_F -> EFFECTIVE_START_DATE
f. PAY_ELEMENT_ENTRY_VALUES_F -> EFFECTIVE_END_DATE6. Attach the above Event Group to the Element against the column Proration Group and choose the Allocation----Generated
7- I Create a Formula of Type Payroll Run Proration of this type.
INPUTS ARE PAY_VALUE,
PRORATE_START(DATE),
PRORATE_END(DATE)
l_period_start(DATE) = PAY_PROC_PERIOD_START_DATE
l_period_end(DATE) = PAY_PROC_PERIOD_END_DATE
l_total_days = DAYS_BETWEEN(l_period_end,l_period_start) +1
l_worked_days = DAYS_BETWEEN(PRORATE_END,PRORATE_START) +1
PAY_VALUE = PAY_VALUE * l_worked_days / l_total_days
RETURN PAY_VALUE 8. I Attached the above Formula to the element against the field Proration Formula.
when i make Quick pay it gives me
error ORA-06550:Line2 ,Column 18
PLS-00302:COMPONENT 'GET_TIME_DEF_FOR_ENTRY' MUST BE DECLAREDPlease help me because this is my first proration.
Regards

827916 wrote:
Hi,
I am facing some problem in Proration..
even though i have done the set up proration is not happening. I dont know watz the reason..
I am not getting any errors but salary is calculating based on the latest salary it is not considering changes inbetween..
how you can find out my trigger is enabled or not?
Can you please share with me how to enable it..
>You can enable Dynamic Triggers from 2 Forms:
First: Other Definitions > Dynamic Triggers
after this go to
Other Definitions >Functional Maintenance
and attach the existed triggers to all off business group
Regards
Mohamed Salah

Benefits Proration for new hires & no proration for terminated

Hi,
I have a requirement like this:
Whenever an employee enters an organization mid month, his health plans should be prorated. On the other hand if an employee is termianted any time during the month, his health pal amounts shouls not get prorated to the date of his termination, instead they should be processed for the entire month in payroll run.
I have tried with parameter PAR1 in schema(changed to PER and then BEG), but then only one of the cases is working with this change. So can you please help me out? Do you suggest I have a PCR for this? The PCR would look if the employee is hire, then prorate or if he is terminated then do not prorate.
Thanks
Sri

Hi,
There are SAP fixes for this already. Please look in the notes search -
SAP Note 725626 - Savings/ retirement plan not processed in first period
SAP Note 1160806 -PF and Pension contri.for mid-month joining & termin.
There should be something similar for your issue. Please contact SAP Support website and look these up. Its better time spent than re-inventing the wheel again !
-Roopa

Exit/BADI/Enhancement for Payroll driver

Dear Friends,
When we run transaction pc00_m10_calc for US payroll driver for an employee for a period,we can see the renumeration statement in the output screen.
I need to modify the internal table xrt to add the similar wage types in one period before it passes to form , which exit / BADI enhancement should for this purpose.
Pls. advice.
Thanks..
Regards,Prashant

Hi,
    Please check the below.
Enhancement
HRUSRCU0                                Enhancement for Customer Exit for RPCTRCU0.
Business Add-in
PC10_PAY0001                            User exit for base_wages in a gross up calculation
PC10_PAY0002                            Exit to determine if negative taxables should be allowed
PC10_PAY0003                            Exit to determine if distribution calc should be allowed
PC10_PAY0004                            Work Tax Area Override Add-In: Activation
PC10_PAY0005                            Work Tax Area Override Add-In: Default proration of wages
PC10_PAY0006                            User exit for additional ESS W4 (PZ10) fields; before output
PC10_PAY0007                            User exit for PZ10 and IT0210 fields; after input
PC10_PAY0008                            More than 99 exemptions for US payroll withholding tax calc
Regards,
Srini.

ABAP HR: BADI for payroll driver

Hi Experts,
The requirement is to create the badi/user exit in payroll driver. Can any one please list the names of badis and user exits available for RPCALCU0. I am working on ecc 6.0.
Thanks.
Irfan

Hi Irfan,
Business Add - ins
                                                                                PC10_PAY0001 User exit for base_wages in a gross up calculation
PC10_PAY0002   Exit to determine if negative taxables should be allowed
PC10_PAY0003   Exit to determine if distribution calc should be allowed
PC10_PAY0004   Work Tax Area Override Add-In: Activation
PC10_PAY0005 Work Tax Area Override Add-In: Default proration of wages
PC10_PAY0006    User exit for additional ESS W4 (PZ10) fields; before output
PC10_PAY0007   User exit for PZ10 and IT0210 fields; after input
PC10_PAY0008   More than 99 exemptions for US payroll withholding tax calc
Enhancement
HRUSRCU0     Enhancement for Customer Exit for RPCTRCU0.
Regards,
IFF

Time Management Status 7 without Payroll Integration.

Dear All,
when do we go about Time Management Status - 7 - without Payroll Integration.
In this case how the process goes on SAP. what do we do in this status. do we record employees attendances in 2002 IT
actually what happens.
Regards
kvn

Hi KVN,
You are using time management status 7 which means that no integration to payroll.Now as far as ur Quotas are considered then please use RPTQTA00 which is just a program and RPTIME00 or PT60 which will run time evaluation and if u want your Quotas to generate in time evaluation then just change V_556A_B in this table to increase so with time evaluation and no generation for Quotas to be with time evaluation.
The client may ask sometimes for few Quotas to be prorated on a daily basis and so on in that case go with TE Quota generation
else RPTQTA00 is ok.So see ur business and use either of it
Let me know if u have any further Questions.
Thanks
Swati

Problem regarding off-cycle payroll

Hi experts,
I have question about of-cycle payroll. This is the first time I want to run off cycle payroll
1.I hired one staff after payroll run this month. If 'mI using infotype 0267 , Do I have to maintain infotype 0008.
For example, this staff should get salary $5k.After prorate, for this month, he will only get $1k.If i'm using infotype 0267, I will
key-in $1k manually. But do I stil have to key-in $5k in infotype 8.
2.I have finished process payroll for this month. So I exit payroll. If I want to run off-cycle payroll, do I have to release back payroll.If I release back payroll,payroll period in PA03 will show 11/2010. Is it ok to run off-cycle for this month? (payrol first, then off-cycle)
3. How about if I want to run off-cycle first before payroll. For example next month, I will release payroll. Payroll period in payroll control will show 11/2010. After finish off-cycle, I have to exit payroll. So how, to run payroll. If I tick release payroll, payroll control will be 12/2010.(off-cycle first, then payroll)
4. If I want to pay advance, can I configure so that I don't have to maintain infotype 8. For example, one staff get paid $5k. If i pay advance in infotype 267, let say $1k. I have to maintain $4k for this staff this month. Is it any config that I can maintain $5k in basic pay. This is because I want to pay advance for 5 thousands staff. After that, I have to change infotype 8 to make sure the basic pay will deduct this advance. I think to change all 5 thousands staff is too messy.
5. To run off-cycle, what is the best infotype to maintain, 15 or 267
6. I want to pay advance for staff. Let say, the staff salary $5.5k. After statutory he will get 5k. I want the advance to deduct statutory. For example, let say advance$1.2k, he will only get$1k after statutory. How about if I want to pay advance without deduct statutory.

Hi Mj,
1) Yes, you need to mainatain IT0008 , since it is reuuired to generate WPBP.
2) No for processing payroll one shoudl not release payroll period. Pre-request is to have last payroll period in EXIT mode.
3) As i sad its not requred to release payroll for offcycle procssing
4) For making advance, some sap standard program are provided. Please try to explosure same.
5) Its always IT0267
6) No Idea Sorry.
Thanks
Yogesh

In SAP, Gross to Net Payroll vs just Net Payroll

Please clarify what the difference is in SAP when you run a Gross to Net Payroll vs just net payroll. I thought when you use master data from SAP and run payroll within SAP this is gross to net. Is that correct? What is the type of payroll for situations where clients outsource parts of their payroll to ADP? Is this net payroll?
Please clear this up for me,,,,,,
Thanks,

Gross:
If SAP sends master data and deduction details, then you *run payroll* in SAP without taxes engine, system will calculate gross based on number of days employee is active or timesheet. The prorate gross, other benefit deductions, and post tax deduction and net without tax is in Payroll Result. Then send these details to ADP, and ADP calculates taxes and net , then does bank transfers/ check printing.
There is one old alternate (Gross Payroll) to ADP calculates taxes and sends back taxes, then you upload taxes in SAP in IT0015 and run payroll again for the second time, then new net will after taxes. Then you do Direct deposit from SAP. Nobody does this currently.
Gross to Net or Net Payroll:
No ADP. You do Gross , Taxes, and Net calculation in SAP.
Third option:
Outsourced Payroll:
You have SAP for master data only. Send all the data to ADP to calculated gross to net. and transmit money to the Employee.

Urgent:How to differentiate retro and payroll run in Fast Formula

I have written one fast formula. This fast formula is attached to “Basic Salary” element.
“Basic Salary” element has retro and proration setup.
We are using Enhanced retro process.
Enhanced retro process is calling this Fast formula to check the difference amount.
Similarly oracle payroll will also call the same fast formula while running payroll.
Now our requirement is:
Few lines in Fast formula should not execute when FF is called by retro, but it should be executed when it is called from Payroll.
So how could we know, whether FF is called by retro process or by payroll?
If I have some way to find this, I can execute this code by using this condition.
Any pointer in this regard will be highly appreciated.

None of the above.. just write one custom PLSQL function which will take the payroll action ID as context parameter & will return the action_type column from PAY_PAYROLL_ACTIONS table.. to the Fast formula. L is for Retro run.
In the fast formula, place your specific code in the if condition.
Attention: Making the formula calculate differently in normal payroll & retro can cause you serious consistency issues in payments/deductions and debugging them might become impossible in the long run.
Edited by: Rajkiran Bingi on Sep 22, 2011 7:00 AM

Proration in payroll

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