SAP ABAP IMG Activity PAY_AR_SS_037 (Activate limit adjustment)
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_SS_037 Activate limit adjustment  
Transaction Code S_L6B_69000674   (empty) 
Created on 20030813    
Customizing Attributes PAY_AR_SS_037   Activate limit adjustment 
Customizing Activity PAY_AR_SS_037   Activate limit adjustment 
Document
Document Class SIMG   Hypertext: Object Class - Class to which a document belongs.
Document Name PAY_AR_SS_037    

Use

This activity allows you to activate compensation between the limits for Social Insurance contributions.

Activities

Compensation is activated in the system standard settings, according to the Argentinean law.

If you wish to keep this setting you should keep the constant Social Insurance limit compensation (SESAD) as 1. No activity is necessary.

Compensation is only possible within the same Social Insurance type, i.e.:

  • A limit, which is not completely used for a calculation the basis for contributions to the Welfare fund can only be compensated with the limit of another calculation basis for contributions to the Welfare fund.
  • A limit which is not completely used in a calculation basis for contributions to SIJP can only be compensated with the limit of another calculation basis for contributions to SIJP.

If you wish to deactivate the compensation, you have to change the value of SESAD constant into 0.

Example

The contribution calculation to the welfare fund is carried out as follows:

  • A monthly employee earns 4,400. USD
  • The employee takes leave from April 16th to April 30th with the following leave remuneration:
    4,400 USD / 30 * 15 * 1.2 (leave bonus) = 2,640 USD
  • The employee works from April 1st to April 15th with the following remuneration:
    4,400 USD / 30 * 15 = 2,200 USD
  • Limit for the 15 days of leave: 2,400 USD.
  • Limit for the 15 days of work: 2,400 USD.
  • The leave payment is greater than the limit for leave. The basis for the calculation of leave remuneration contributions is limited to 2,400 USD.
  • The salary does not reach the limit for salary. The basis for the calculation of salary contributions is activated at 2,200 USD.
  • This way, the employee earns 4,840 USD gross in April and his/her contributions are calculated based on 4,600 USD.

If, the compensation is activated (standard setting), 200 USD of the vacation leave are transferred, according to this example. This results in the following modification:

  • Leave allowance exceeds the limit for leave. The calculation basis for leave contribution is limited to 2,400 USD.
  • The allowance does not reach the limit for salary. The calculation basis for salary contributions is activated at 2,200 USD. The unused 200 USD are added to the calculation basis for leave contributions.
  • This results in a new calculation basis for leave contributions of 2,600 USD.
  • This way, the employee earns 4,840 USD gross in April and his/her contributions are calculated based on 4,800 USD. The limit for April is completely used up.

Recommendation

We recommend that you consider the following situations:

  • The compensation should only be made between the calculation bases for
    • salary
    • vacations
    • and ART leaves
  • The calculations basis compensation should only be made in the following payrolls:
    • Last normal payroll of the month
    • Payroll due to dismissal/resignation of employee
    • Correction run made to correct a payroll due to dismissal/resignation of employee.
  • If an absence begins in one month and finishes in another, each month is calculated separately. Corrections may occur in each of the months in which the absence was for at least one day.
  • In our previous example, Social Insurance contributions will appear in the monthly payroll for an absence that has already been paid by an off-cycle payroll.

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_SS_037 AR Argentina
Assigned Application Components
Documentation Object Class Documentation Object Name Current line number Application Component Application Component Name
SIMG PAY_AR_SS_037 0 AHR0000107 Social Insurance 
Maintenance Objects
Maintenance object type C   Customizing Object 
Assigned objects
Customizing Object Object Type Transaction Code Sub-object Do not Summarize Skip Subset Dialog Box Description for multiple selections
VV_511K_B_SESAD V - View SM30  
History
Last changed by/on SAP  20100310 
SAP Release Created in 470