PY-ID Retro-active processing across tax years

There is a case that the standard SAP script (HIDCTAX1) for Indonesia annual tax report (form 1721/A/A1) is given in incorrect figure. This is due to retro-active processing across tax years.

a Retro-active is a kind of standard SAP feature, that is to accommodate any backdated data adjustment such as basic pay changes, any allowances and deduction changes, and most is coming from the absence/attendance/overtime data. Commonly, in the user processes, they differentiate the Time and Payroll period in between. Since the user will not have enough time to finalize the time data if the make it in the same as payroll period. the scenario sometime is like this :

16                  15

+—————-+ (Time period : Abscence/Attendance/Overtime/etc)

+—————+ (Payroll period)

1                   31

By using this kind of scenario thus the user will have enough time to finalize the time data which will be paid in the related payroll period.

By reading this above sample scenario, which is I believe also used by many companies in practice, therefore, the retro-active is a much possible to have. This is a normal and/or common processes that supported by SAP, but unfortunately, for the case retro-active which is happen across the year, let say doing the backdated adjustment in period January 2008 for period December 2007, SAP DOES NOT SUPPORT for the case in Indonesia Annual Tax Report.

The incorrect thing, or the inconsistencies if may say, is about : Wrong figure at tag Penghasilan Bruto in row 1 : Gaji/pensiun/THT

Scenarios : There is basic pay increasing about IDR 2,000,000 affect to the period December 2007 which is applied in January 2008 in backdated processing. Normally, any salary adjustment will trigger the SAP to recalculate the tax, to be specifically. The total adjustment will then be brought and to be paid into period January 2008.

Case 1 : Tax reporting for year 2007

The total gross Income (Gaji/pensiun/THT) is already considering the retro amount while the other column are not. The total tax (row 19 : PPh pasal 21 Atas Penghasilan Kena Pajak Setahun/Disetahunkan) is not considering the retro amount as it is already changed.

Case 2 : Tax Reporting for year 2008

The total gross Income (Gaji/pensiun/THT) is also already considering the retro amount in period December 2007, but also the other column are not.

These 2 case are incorrect or inconsistent if I may say. So I started to do debugging the Tax Report and check the related CRT tables. Found that the cause,funny if I may thought. In December 2007 CRT, the retro period, only wage type /101 (gross income) is updated by Retro amount while others are not. That is answered the question why the tax report (HIDCTAX1) retrieving the data incorrectly. It is in fact cause by SAP logic to store the retro amount in CRT tables for across year case. And that must be done through the payroll schema. For a sure, I run my payroll by using SAP standard schema, that is ID00. Still remain the same, still incorrect figure.

So even though it looks like Tax report inconsistency, but behind the scene, it is SAP standard payroll schema that is not accommodate the case retro-active processing across tax years.

SAP Note 683357 can be used for references. And after spend such a hardly debating with SAP development center thorough OSS message : 0000915413/2007.

With these below facts :

1. Doing any backdated salary adjustment, including across the year, is a common practice, used by Indonesian company.

2. It is not about a tax report, but more to standard SAP logic in payroll scheme (ID00). To calculate and storing the case in CRT tables.

3. The retro across year might affect not only in payroll report but also affect to the incorrect of Jamsostek Report also.

4. By considering that above facts, then SAP standard report for Annual tax and Jamsostek might not be able to be used in practice (read : useless) .

Then, I’m starting to persuade the SAP side to accommodate the case in their next enhancement. The procedures are actually take some time and might be rejected if we don’t have any reasonable proposal. The rejected is may coming from SAP Indonesia side and then SAP development center in German.

First, we have to make a Development Request. I’ve gone through it via, but unfortunately, I don’t have enough authorization to make it. Then also the site mentioned that the one who want to propose a development request must be apart of : SAP User Groups, Customers with certified Customer Competence Centers or with Global Alliance Account status as well as SAP’s Development and Consulting Partners.

Found that there is SIUG to accommodate Indonesia user group. But seems that site is not maintained anymore, I tried to contact the PIC and the admin of the site, but it’s all bounced back to my email address. Lucky me.

Fortunately, I still have some colleagues which is now still working at SAP indonesia, Jakarta. Until I got the PIC relate that I can propose and deal with this case of development request.

Now, this morning … after I wrote it in this blog just as a note for my sticky-brain, I’m starting to a new journey with SAP side…and I bet that would become as a long journey. And it will may ended in the consulting areas which is chargeable. Hope not. Let’s see the generosity of SAP on this….be a beggar for this and keep smiling.

Posted in My SAP. 2 Comments »

2 Responses to “PY-ID Retro-active processing across tax years”

  1. SAP PY-ID:Off-Cycle Payroll in the beginning of Tax year « Harry Poernomo Says:

    […] calculation cross the year, it may lead to the incorrect tax (PPh21)  calculation (see related posting) . Another issue that has been raised is that having Off-cycle pay run before Regular Pay Run take […]

  2. Diocio Says:

    Hallo Mas Harry, salam kenal.

    kalo boleh saya mau tanya. begini.
    saya ada masalah di process payroll, total text nya nilainya tidak benar.
    1) ada employee Januari-Februari PT. A,
    2) yang kemudian Mutasi to other company masih satu group ( dengan Resignation dan Rehire ). February – November.
    3) November Employee Resign.
    4) Bulan Desember ada pengembalian pajak.

    pada saat process point 4 total tax nya salah karena yang saya lihat ada wage type /4P1, /4P3 yang tadinya di bulan November ada, tapi di bulan Desember tidak ada.

    saya sudah coba ubah schema pada rules ZDN0.
    dengan isi:

    X –>( Current period is inactive, karena bln desember sudah tidak aktiv)
    saya tambahkan code dibawah ini :
    ADDWTI/401 IT Input table
    ZERO=&HELP VVVV Set zero
    ADDWT&HELP VAR Variable table
    ZERO= R AmtNumRteTime = 0
    AMT= PRNET Set
    ADDWTI/4P1 IT Input table
    AMT= PINET Set
    ADDWTI/4P2 IT Input table
    AMT= PRTAX Set
    ADDWTI/4P3 IT Input table
    AMT= PITAX Set
    ADDWTI/4P4 IT Input table

    Namun Hasilnya wage type /4P1,/4P2,/4P3,/4P4 tetap tidak tercreate di result.

    Terima kasih sebelumnya sudah mau mambeca masalah saya.

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