SAP ABAP IMG Activity PAY_AR_IND_015 (Compensation payment in installments)
Hierarchy
☛ SAP_HRCAR (Software Component) Sub component SAP_HRCAR of SAP_HR
   ⤷ PY-AR (Application Component) Argentina
     ⤷ P29C (Package) HR Customizing: Argentina
IMG Activity
ID PAY_AR_IND_015 Compensation payment in installments  
Transaction Code S_L7D_24000142   (empty) 
Created on 20060124    
Customizing Attributes PAY_AR_IND_015   Compensation payment in installments 
Customizing Activity    
Document
Document Class SIMG   Hypertext: Object Class - Class to which a document belongs.
Document Name PAY_AR_IND_015    

Use

According to ruling 1964/2005, when compensations for work contract termination are paid in installments, the following actions must be carried out:

  1. If all the installments are paid in the tax period in which contract termination has occured, the tax deduction is calculated in the moment of contract termination and then divided by the number of installments to be paid. The amount of the corresponding tax is deducted from each installment when the installment is paid.
  2. If the installments are paid in more than one tax period, the relevant taxes are calculated for each compensation installment and the final tax settlement is calculated in the moment when the last installment is paid.

Activities

To set up compensation payment in installments, the following actions must be carried out:

  1. Perform work contract termination:
    1. Use a termination action.
    2. Create a record in the Recurring Payments/Deductions infotype (0014). To do this:
      3. - Specify wage type M4A0 or its copy. This wage type must have the value "F" in the processing class 65.
      - In the field "Number" enter the number of installments of the amount to be paid as compensation.
      - Enter the corresponding data in the fields "Payment dates"
      - Bear in mind the following:

    The end date of the record (ENDDA) must be the same as the date in which the last instalment is paid.

    The record validity period and the payment frequency must coincide with the specified number of installments.

    Example:

    Record validity: from 01.01.2006 to 11.31.2006

    Payment frequency: monthly

    Number of installments: 12

    In this case, the last installment will not be paid.

  1. In the field "Settle to" of the Payroll Status (0003) infotype specify the end date of the validity period for the record of the Recurring Payments/Deductions (0014) infotype that has been previously created.
  2. Execute the termination process using the corresponding workbench.

  1. The relevant employees must be included in all the normal payroll runs from the moment of work contract termination until the moment of payment of the last compensation installment. This must be done in order to ensure that the relevant wage types are transferred.

    Example: An employee is dismissed in March. The first compensation installment for this employee is paid in July and the last installment is paid in October. The employee must then be included in regular payrolls from March until October.

If the installments are paid in more than one tax period, the amount payable in each installment is stored in wage type /4A3.
In such cases, also wage types /4A1 and /4A2 are generated.

If the installments are paid in the same tax period, the amount payable in each installment is stored in wage type /4A6 and the tax for each installment is stored in wage type /4A9.
In this case also wage types /4A4, /4A5, /4A7, /4A8 and /4B7 are generated.

Business Attributes
ASAP Roadmap ID 204   Establish Functions and Processes 
Mandatory / Optional 2   Optional activity 
Critical / Non-Critical 2   Non-critical 
Country-Dependency I   Valid for countries specified 
Customizing Attributes Country Key Country Name
PAY_AR_IND_015 AR Argentina
Assigned Application Components
Documentation Object Class Documentation Object Name Current line number Application Component Application Component Name
SIMG PAY_AR_IND_015 0 AHR0000586 Notice period of work relationship 
Maintenance Objects
Maintenance object type    
History
Last changed by/on SAP  20060124 
SAP Release Created in