PY-ID Incorrect Tax Calculation for Rehiring Action

This is another tail story from SAP. A famous ERP system in nowdays.

It is about the incorrect tax calculation (in the same tax year) for rehiring events with using the old previous employee number.

After investigating the issue, then found that in rehiring period, SAP gives an incorrect figure at WT /402 (Projection Factor) , regular function cost (/410) and total tax income ( / 424)

The facts are :

  1. Projection factor (/402) is redefined as a new.
  2. Regular function cost (/410) is becoming negative value
  3. Total Tax Income ( /424), in the first rehiring period is becoming very big.

Projection Factor is something that is used by SAP to annualized the total income in a year. The formulas are like this :

Projection Factor = Total months in one tax calendar / Period-n

Usage : To annualized the income year to date.

Sample usage in Payroll Scheme:

Annual Regular Net = (Regular Net Income + Prev Regular Net Income year to date) * projection factor

OR

/414 = ( /412 + prev /412 ytd) * /402

At this case, in rehiring period, SAP tried to define a new projection factor, treated as the rehire employee as the new one (although using the same employee number), but the other side, SAP is trying to cumulate the total Gross Income from CRT in a fully year, although there is a gap period in between termination and rehiring action. That’s wrong since the cumulation will be multiplied with the new projection factor. The result will become very big and unreasonable. And so is about the regular function cost figure, that is becoming negative figure.

This case will affect also to the annual jamsostek report, refer to OSS Note : 190143 (HR-ID Jamsostek annual report revision). After spending some time for a discussion with SAP development center through OSS Message : 0000873989/2007, it was confirmed by SAP side that for the case Rehiring after Termination with retain the previous employee number, SAP does NOT support it.

SAP suggested to use different employee number (pernr) for the case rehiring action. But by applying this condition in practice, I think, some other areas would be considered also :

1. There will be 2 employee number in our PA master data which is having the same NPWP (Nomor Pokok Wajib Pajak) that is maintained in IT 0241 (Tax Data Indonesia).

It will be appear in form 1721 A1 (Annual Tax Report) as different employees. And the company side has another obligation to inform the related employee to make their own SPT 1721 by cumulating the value from both form. (or in another case, the company has a good will to do it for the employee)

This is quite funny for me, act as the SAP customer. Since SAP process still allow us to do the case, no warning given at all during the processes.

2. In my cases, because of the user has already practiced this in such a time without knowing the implication, therefore the tax calculation figure is quite messy in the system. So my duty is to do a data cleaning or in another word to make Tax Correction features in SAP system . But ….BUT…., unfortunately in SAP Indonesia (Country Specific), SAP does NOT give any Tax Correction feature at all, comparing with SAP US that has PU19 (tax correction) features.

It will then impact to our annual Tax report (1721/A/A1) which will still contain an incorrect calculation cause by the case.

So until this stage, I’m quite confuse in what to do in doing this Tax Correction features in our SAP system.The rush idea is to create another wage type in IT 0015 to store the tax correction amount, which point to WT /110 (Net Payment and Deduction), and which is being calculated manually outside the SAP system. Another wage type is used to store the original tax calculation ( /424), before cumulating with the Tax Correction amount itself. Then at the final stage, creating another PCR in payroll schema, to adopt the tax correction. This will be doing once a year. in case there’re some cases that need to have tax correction. Pfff..what a job that cause by a messy SAP. Salute for SAP.

Any other ideas and/or thought are welcome?

 

 

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: