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LTA calculation in India payroll

Tarun
Product and Topic Expert
Product and Topic Expert
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Hi Experts,

Plz help me. Plz tell me how the LTA is being dealt/ Caculated in the Indian payroll.

As per my requirement, LTA is 100% of the basic salary and paid at the end of one year from the date of joining.

Could you plz explain how the same will be done in SAP.

regards

Kunal

Accepted Solutions (0)

Answers (1)

Answers (1)

Former Member
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Hi Kunal,

Configure the LTA payment wagetype to Inval B and in table V_T539J configure for LTA wagetype 100% of Basic salary

Hope thsi would solve your issue

Regards,

Devojit

Tarun
Product and Topic Expert
Product and Topic Expert
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Hi Devojit,

I have done this but my requirement is little more.

Actually the LTA is paid as 100% of the basic salary. If we have to pay the LTA for last one year say from 1-4-07 to 31-3-08 and between this period the basic salary has been changed two times as under

from 1-4-07 to 31.5.07 = Basic salary =5000

from 1.6.07 to 31.12.07= Basic salary= 6000

from 1.1.08 to 31.3.08= Basic salary = 8000

Now the LTA entitlement for the last year comes to be Rs. 5000/122 + 6000/127 + 8000/12*3 = Total 833+ 3500 + 2000 = 6333

So the actual entitlment is Rs. 6333 not Rs 8000 that is the basic salary as on 31.3.08

I hope the requirement is clear to you now. waiting for your valuable help......

regards

Kunal

Tarun
Product and Topic Expert
Product and Topic Expert
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any help on this plzz...

plz let me know if the question is not clear.

regards

kunal

Former Member
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Hi,

There is not much ways to address it in SAP through direct configuration. You have to go for a development that calculates as per your calculation and you have to post the result in the respective LTA Wagetype.

You need the help of a Technical person to execute this requirement

Regards

Judith

Tarun
Product and Topic Expert
Product and Topic Expert
0 Kudos

HI Judith,

Thanks for the reply.

As per my knowledge this is a very common scenario and the LTA is calculated in the same way in all companies especially in india. So there should be something by which it can be done......

regards

kunal