Human Resources, HCM, SAP HR, Payroll

SAP HR-PY-Gratuity Configuration

Gratuity Configuration

Step-1:- SPRO-SAP Reference IMG-Payroll India- Retirement Benefit- Gratuity- Maintain Gratuity Trust ID-V_T7ING3

In this activity, you define the different Gratuity trusts maintained by your company.

Activities

  1. Enter a four digit alphanumeric code for each Gratuity trust in the GRA ID field.
  2. Enter a decrption for the trust in the Text field.
  3. Save your entries.

Human Resources, HCM, SAP HR, Payroll

Step-2:- SPRO-SAP Reference IMG-Payroll India- Retirement Benefit- Gratuity- Maintain Gratuity Contrib. Freq. and Related Wage Types- V_T7ING5

In this activity, you define

whether the contribution to the gratuity trust is to be made annually or monthly

whether the annual contribution is to be made at the end of the financial year or calender year

the wage type for gratuity contributions made on a monthly basis

the wage type for gratuity contributions made on an annual basis

The wage type used to calculate the provisional monthly gratuity contributions, in case the contribution to the trust is made annually. This wage type needs to be defined only if provisional wage types per month need to be calculated and posted to a provisional account.

Requirements

You must have defined the different gratuity trusts maintained by your company.

Activities

  1. Select Edit -> New entries.
  2. Enter the gratuity trust code defined by you earlier in the GRA ID field
  3. Enter whether the contribution to the gratuity trust is to be made annually or monthly in the Frequency contribution field.
  4. Enter whether the annual contribution is to be made at the end of the financial year or calender year in the Monthly contribution field.
  5. Enter the wage type for gratuity contributions made on a monthly basis in the Monthly WT field.
  6. Enter the wage type for gratuity contributions made on an annual basis in the Annual WT field
  7. Enter the wage type used to calculate the provisional monthly gratuity contributions, in case the contribution to the trust is made annually, in the Prov. WT field.
  8. Select Table view -> Save.

Human Resources, HCM, SAP HR, Payroll

Step-3:- SPRO-SAP Reference IMG-Payroll India- Retirement Benefit- Gratuity-Define Contribution Rates for Gratuity- V_T7ING1

In this activity, you define the contribution rates used to calculate the gratuity contributions made by the employer.

These company-specific rules are linked to gratuity funds and enable the system to calculate and store gratuity amounts during the payroll run.

Requirements

You must have created pay scale groupings for allowances in the activities under the step Pay scale Groupings.

Activities

To set up the company rules for gratuity, you

  1. Select the appropriate grouping for allowance in the All. group field.
  2. Enter gratuity trust identification number of the trust in the Gra ID field.
  3. Enter the employer’s percentage of contribution for gratuity in the GA contrib field.
  4. Enter the start and end dates for the period.
  5. Save your entries.

Human Resources, HCM, SAP HR, Payroll

Step-4:- SPRO-SAP Reference IMG-Payroll India- Retirement Benefit- Gratuity-Maintain the Eligibility Years for Gratuity-T511- VV_511_K_B_GRTYR_ALO

In this step, you maintain the ‘GRTYR’ constant for contribution to gratuity. The minimum number of years of service after which the employer begins to contribute towards gratuity is specified here.

Activities

The SAP constant ‘GRTYR’ is associated with a date range.

Enter the minimum number of years of employment to be eligible for this benefit in the Value field.

Human Resources, HCM, SAP HR, Payroll

Step-5:- SPRO-SAP Reference IMG-Payroll India- Retirement Benefit- Gratuity- Check for Gratuity Contribution-TCODE-PE02-INGR

In this activity, you modify the personnel calculation rule for Payroll Accounting to identify whether gratuity contribution took place.

This rule is used in conjunction with a IF statement. It passes a TRUE or FALSE value based on which the IF loop is processed.

In the retro scenario certain processing need to happen based on whether the employee has contributed to gratuity or not.

This rule first reads the amount of the gratuity monthly contribution wage type /3G1 from IT and passes False if amount is greater than zero, otherwise it reads the amount of the gratuity provisional contribution wage type /3G3 from IT and passes False if amount is greater than zero and True if otherwise.

Requirements

The wage types used in the rule /3G1 and /3G3 are entries in table T7ING5. Thus if this table changes, then the rule also will have to be changed.

If entries are added in table T7ING5, then the corresponding wage types for monthly and provisional contribution should also be added in the Rule.

Further notes

See Also

PC Rule IN50

PC Rule INPF

Human Resources, HCM, SAP HR, Payroll

Human Resources, HCM, SAP HR, Payroll

Step-6:- SPRO-SAP Reference IMG-Payroll India- Retirement Benefit- Gratuity- Maintain Wagetypes to be Passed During Retro Runs-TCODE-PE02-IN51

This rule is processed only during a retro scenario for employees who had contributed towards gratuity before and need not contribute as of the retro month.

Thus the contribution which has already happened is brought forward to the period being processed so that the FI/CO posting is not affected.

The relevant wage types for gratuity contribution are pushed into IT from ORT.

Further notes

See Also

PC Rule IN48

PC Rule INES

Human Resources, HCM, SAP HR, Payroll

Human Resources, HCM, SAP HR, Payroll

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