ESI Error

[Tarun]

Hi Experts,

I have a scenario like this...

An employee is paid the full month salary for the month of April and ESI is deducted on this amount. Now in the month of May, it was reported that he was absent for the 3days in the month of April i.e. from 26th april to 28th April. I have made the entry in the infotype 2001 for these 3days as Leave without Pay in the month of May.

Now, the issue is that, though the system is deducting the april month arrears in the month of May but the system is not reducing the ESI basis by the -ve amount. Due to this, ESI is not getting reduced in the month of May as it should be.

Plz tell me what could the reason?

regards

TS

[Former Member · Accepted solution]

Hai.

u have entered april's LOP in may and hence salary will be prorated in the month of may and accordingly ESI will be calculated. It has nothing to do with april's salary as far as system is concerned....

[Tarun · Accepted solution]

Hi Ram,

That's where the problem is. System is not prorating the ESI basis in the month of May after entering the leave without pay for the month of April.

Plz help

regards

TS

[Former Member · Accepted solution]

hai..

u created abs in system in april/may??

[Tarun · Accepted solution]

I have created the absence for the month of April i.e from 26th april to 28th april but this entry has been made after running the april month payroll i.e while running the May month payroll.

regards

TS

[Former Member · Accepted solution]

hai..

so after running april payroll and before running may payroll u created the abs record for april's month...

check the processing class of the basic pay wage type in SM 30, V_512W_D and also check if retro is happenening / not during processing of may payroll...

[Tarun · Accepted solution]

Hi Ram,

Retro is happening as the system is deducting the salary for that 3days in the month of may but the system is not reducing that amount from the ESI basis wage type.

regards

TS

[Tarun · Accepted solution]

any help on this plzzzzz

regards

TS

[Former Member · Accepted solution]

hai..

how abt deduction of ESI normally .. is it getting deducted normally?and only in this case its not getting deducted?

[Tarun · Accepted solution]

yes ram, ESI is getting deducted normally in all other case.

Also, i would like to make it clear that ESI is also getting deducted in this case but the issue is that the ESI is not reduced by the amount of -ve arrears.

Eg:

Basic salary for may =8000

Basic salary arrears = -1000

ESI getting deducted = 80001.75% instead of 70001.75%

regards

TS

[Former Member · Accepted solution]

hai..

check if u have missed out any patches... coz most of cases its only patch issue

[Tarun · Accepted solution]

Hi Ram,

Im working in ECC 6 so i dont think any of the earlier patches are missing in this.

plz suggest

regards

TS