Enhancement to Gross-Up Functionality

Earlier Working:
1. All SAP provided Standard Gross-Up wage types (M350 and M351) are Free of Pension i.e., the pension contribution incurred on the gross up amount is borne by the employer. 2. The Free of Tax or Free of NI can be controlled by maintaining T or N in the Special routine field for the respective wage type in view V_T541N. (as seen in the screen shot below).

3. Please note there is no effect of maintaining P in the Special Routine field. 4. So if the value in the field Special routine is : a. TN or TNP: This implies the wage type is Free of Tax, NI and Pension i.e., the Tax, NI and Pension contribution incurred on the gross up amount is borne by the employer. b. T or TP: This implies the wage type is Free of Tax and Pension i.e., the Tax and Pension contribution incurred on the gross up amount is borne by the employer. 5. It is not possible to have a wagetype Not free of Pensions in standard. 6. The Gross-Up Net Amount made by these wagetypes is recorded in wagetype /F01 and Gross-Up Deductions is recorded in wagetype /F02. This depends on the how the Gross-Up wagetypes are mapped in the view V_T541N, as seen in the screen shot below.

7. The split up of the deductions depends on the Type of GNA they are mapped to, as seen in the screen shot below.

8. The details of the Type of GNA are available in the View V_T541A. This can be seen in the screen shot below.

9. Hence the over all working can be depicted as follows:

M350 - Gross Up Tax, Ni, Pen M351 - Gross Up Tax, Pen

/F01 - Gross Up Net Amount /F02 - Gross Up Deductions

/F51 - Deduction because of Tax Contribution /F52 - Deduction because of NI Contribution /F53 - Deduction because of Pensions Contributions /F54 - Deduction because of Voluntary Pension Contributions

10. Description of the above flow diagram: a. 1st Block: Wagetypes through which the payment is made. b. 2nd Block: Technical wagetypes in which the net payment and deduction is recorded. c. 3rd Block: Split up of the deduction stored.

Current Requirements:
1. Provide Standard Gross-Up wage types which are Not Free of Pensions i.e., the pension contribution incurred because of the Gross Up net amount is not borne by the employer. The need is to provide standard technical wagetypes, which are gross-up item, but not pensionable. 2. The Net amount and Deduction for customer specific wagetype and split up of the deduction should be different, to facilitate reporting.

Solution:
For Requirement 1 (Current behaviour): 1. There are 2 new Model wagetypes(M352 and M353) to make payments to the employee. 2. The Free of Pension cannot be controlled by entering P in the Special routine field for the respective wage type in view V_T541N. 3. Hence, we have provided 2 new technical wagetypes /F03 for Net amount and /F04 for deduction, for these the cumulation class 11(Pensionable Pay) is removed. 4. Now the flow can be depicted as follows:

M350 - Gross Up Tax, Ni, Pen M351 - Gross Up Tax, Pen

M352 - Gross Up Tax, Ni M353 - Gross Up Tax

/F01 - Gross Up Net Amount /F02 - Gross Up Deductions

/F03 - Gross Up Net Amount /F04 - Gross Up Deductions

/F51 - Deduction because of Tax Contribution /F52 - Deduction because of NI Contribution /F53 - Deduction because of Pensions Contributions /F54 - Deduction because of Voluntary Pension Contributions

For Requirement 2: This can be achieved by customizing. The steps are as follows: 1. Copy the required SAP model wagetype. For example, copy wage type M350 to wage type 9350. 2. Copy the required set for Net Amount and Deduction wagetype ((/F01 and /F02) OR (/F03 and /F04)) depending on whether you want to make your wagetype Free of Pension OR NOT Free of Pension respectively. For example, you may copy as below. /F01 /F02 9F01 9F02

3. Copy the SAP standard wagetypes /F51, /F52, /F53, /F54. For example, you may copy as below. /F51 /F52 /F53 /F54 9F51 9F52 9F53 9F54

4. Create customer specific Type of GNA (for example- 90) in view V_T541A and map the newly created wagetypes. Then you will have the newly formed GNA as in the screen shot below.

5. Associate this newly created Type of GNA (for example - 90) and required set of Net Amount and Deduction , to your new wagetype 9350 in the view V_T541N. After this the new wagetype 9350 will be as seen in the screen shot below.

6. The over all working for your new wagetype(9350) can be depicted as follows:

9350 - Gross Up Tax, Ni, Pen

9F01 - Gross Up Net Amount 9F02 - Gross Up Deductions

9F51 - Deduction because of Tax Contribution 9F52 - Deduction because of NI Contribution 9F53 - Deduction because of Pensions Contributions 9F54 - Deduction because of Voluntary Pension Contributions