As we all may know that WT /402 (Projection Factor) are positioning a very critical in the SAP Indonesia Payroll processing. Especially in calculation of the Income tax (Article 21 – Income Tax). Incorrect understanding about the wage type will lead to the incorrect of overall Income Tax calculation
Definitions
This wage type is actually used for projecting/annualized the total income in yearly basis. The formulas could be found at PCR IDN3 (Setup Projection Factor for Tax Calculation) in sub Pay Schema IDN0. Generally, the PCR can be read as below:
Rate = NAMTY / NAMTD
Where:
NAMTY = Normalized number of active month in current fiscal year
NAMTD = Normalize number of active month until specific date in the current fiscal year
Another definition to make it more simpler can be read as below:
Projection Factor = Total Active Month Period in one Tax Year Calendar /
Period N in On-going Tax Year Calendar
Usage
In some of payroll formulas as to calculate Regular Net Income (/414) and to calculate Regular Tax (/422).
Pls find the formulas below :
/414 = (/412 + prev /412 ytd) * /402
Or
Annual Regular Net = (Regular Net Income + Regular Net Income in CRT table from previous period) * Projection factor
Sample Projection Factor Definition
Foot Note
Projection factor is commonly used in both of Regular Payroll Run and Off-Cycle Payroll Run. They’re using the same defintion as in practice.
Special note given for the termination/resignation action in the mid of the year, for the case, the projection factor will always be considered as 1 (one). SAP will calculate as it is falling at the end of tax year calendar, just the same as when we come to end of year, that is December period in normal cases. So at the month of termination/resignation, there’ll be Tax Overpaid and therefore a Tax refund must be delivering for the employee.
Harry Poernomo 
February 17, 2009 at 2:40 pm
Hi,
This is really a gr8 work you have done, Do you any knowledge for Indian payroll, if yes then please post in your blog , that will be really helpful
March 8, 2010 at 7:57 am
Hi Pak Harry,
Artikel yang bagus. Tapi apa boleh tahu juga bagaimana system menentukan NAMTY dan NAMTD? Atau input / parameter apa yang menentukan NAMTY dan NAMTD?
Terima kasih.
November 14, 2011 at 7:40 am
Dear
There is std solution to this, for the cases were termination / resignation are going to be the case. Please maintain N0 in IT0041, system will project the tax for the date which is being maintained under N0 reason.
February 23, 2012 at 6:40 am
Hello Mas Harry;
Please correct me if I’m wrong. If we see under FUIDTAX, during the calculation of annual regular net (/414), the system will calculate the amount using the formula below:
annual regular net = annualizing factor * projection factor * (current regular + regular ytd) + previous regular
or if we are to use the wage type symbolization, then the formula will look something like this:
/414 = /401 * /402 * (/412 + /412 ytd) + /4P1
where /401 is annualizing factor
/402 projection factor, the formulation is as stated above. It will reset its number of month and current period when the employee is transferred to a different tax office grouping, or turned into 1 if the employee is terminated (but not deceased or left the country).
/412 current regular income where it gathered all regular incomes as defined so
/412 ytd (year to date) is the accumulated regular income from the previous periods within the same tax year or tax office grouping period taken from CRT
/4P1 is the amount of cumulated regular incomes from the previous company or previous tax office grouping period
What I wanted to ask is, what is the “most correct” projection factor number at the end of period?
Here’s an example according to my understanding:
Tugiyel Minal Minul is an employee who worked in Company PT Beleketewek Gunjreng , Tbk. started working in branch A, transferred in May to another branch (B) with different tax office grouping, and transferred again to branch C in July. She is paid 20 Million Rupiahs a month and no changes in remuneration during the transfer
The calculation will be performed as below:
Jan 1 * 12/1 * (20 + 0) + 0 = 240
Feb 1 * 12/2 * (20 + 20) + 0 = 240
Mar 1 * 12/3 * (20 + 40) + 0 = 240
Apr 1 * 12/4 * (20 + 60) + 0 = 240
May transferred to another branch, number of total period would be 8 and previous regular income is 80
May 1 * 8/1 * (20 + 0) + 80 = 240
Jun 1 * 8/2 * (20 + 20) + 80 = 240
July transferred to yet another branch, number of total period would be 6 and previous regular income is 100
Jul 1 * 6/1 * (20 + 0) + 120 = 240
Aug 1 * 6/2 * (20 + 20) + 120 = 240
Sep 1 * 6/3 * (20 + 40) + 120 = 240
Oct 1 * 6/4 * (20 + 60) + 120 = 240
Nov 1 * 6/5 * (20 + 80) + 120 = 240
Dec 1 * 6/6 * (20 + 120) + 120 = 240
With this rule, the annual regular is stable through the whole year.
Your advice is highly appreciated 🙂
Regards,
Ari
July 4, 2021 at 12:22 pm
Hi Harry,
Can you explain the other WTs as well for ID on how they are used?
Wagetype
/401 Annualised Factor /402 Projection Factor
/410 Regular Fuction Cost /411 Irregular Function Cost
/412 Regular Net Income /413 Irregular Net Income
/414 Annual regular Net /415 Annual irregular Net
/417 Annula PTKP /420 Annual regular Tax
/421 Annual Irregular Tax /422 Regular Tax
/423 Irregular Tax /424 Total Tax
/427 Total Tax after subsidy
/429 Industry Specific Subsidy
/4P1 Previous Regular Net
/4P2 Previous Irregular Net
/4P3 Previous regular Tax
/4P4 Previous irregular Tax
Thanks
July 4, 2021 at 12:42 pm
The name explains itself
July 4, 2021 at 12:57 pm
Is there a calculation for /401 or any other WT as we have for /402?
July 4, 2021 at 1:09 pm
Also what do we load in
/410 Regular Fuction Cost
/411 Irregular Function Cost
Thanks,