Hi Shinu
As I am a core Finance guy without HR relevance, I am not the right person
to comment on this. Yet, I shall give you a generic idea of what happens
based on the domain experience I have gained ( please note that it is not
SAP specific). Besides, I cannot be specific since most of HR related items
are country -specific and have to be adhered to in line with the prevailing
statutes.
I assume you are relating your question according to the Indian norms.
Bonus,Gratuity, Insurance and other Deductions are commitments on the part
of the employer. In some cases such as health insurance etc... the employee
may also be permitted to make a contribution which would usually be a
deduction from his salary/wage.
HR might create employee-wise lists of all these deductions and may have
their own documentation formats.
As regards FI , an entry debiting the related Expense ( Bonus/ Insurance
etc.) and crediting a Payable account would be created. The payable would
feature as a liability in the balance sheet whereas the expense would be
listed in the profit and loss account. This entry is usually created as a
provision entry using the accrual principle of accounting. SAP handles
accruals using a. Accrual Document b. Recurring Entry c. Accrual using
Accrual Engine.
As regards Bonus in India , eligibility of an employee to receive bonus is
possible if he / she has worked 30 days in a fiscal year. A Minimum of 8.33
% or a maximum of 20 % computed on the employee's annual earnings is
usually paid as bonus . The actual percentage would be determined by the
Management in consultation with the body representing the employees. Bonus
liability would be created accordingly and is usually paid once a year.
As regards Gratuity in India, every employee who has worked 240 days in a
year and has put in 5 years of uninterrupted service is entitled to 15 days
wage / salary per year of completed service which is payable to him at the
time of termination of services ( Retirement / Death / Resignation / Other
Termination etc). Usually an actuarial valuation would be periodically
performed and liabilities created accordingly.
With regard to many other deductions such as Provident Fund Etc. the
employee is also allowed to contribute a sum which is accrued and remitted
to government authorities. The employer also contributes toward the purpose.
All such contributions are remitted to the appropriate Government bodies and
the amount payable( with interest) to the employee at the time of his / her
termination of service.
If an employee contributes, then the FI entry would be to debit the related
Expense and Credit the Salary / Wage account and the net amount payable to
him / her would be reduced accordingly.
Salary Account Debit 100 Units
Deduction from Employee Credit 15 Units
Salary Payable Credit 85 Units
I suppose you get the big picture of the thing.
Accounting based on profit centers requires data entry ( using substitution
rules, manual entry during document posting, derivation through cost center
, default assignment etc ). If that happens you would be able to generate
profit center oriented profit and loss accounts. However, if you need
balance sheets also, you need to activate New General Ledger, activate
document splitting , assign Profit Center Scenario and then extract Balance
sheets. New GL is a vast subject and requires to be learnt in details . I
am just giving you a basic insight of it.
All the best and regards
VidhyaDhar
On Sat, Jul 17, 2010 at 1:19 PM, Shinu via sap-acct <
sap-acct@groups.ittoolbox.com> wrote:
> Posted by Shinu(Mr)
> on Jul 17 at 9:21 AM Thanks
> Sir..
>
> Can u provide Some Information about FI HR Integration and GL...
> Bonous, gratuity, Insurance and other Deductions..
>
> GL Entry that is happening at the time HR rum Payroll
>
>
> Or In Asset Transfer Inside the Company Code, That Accumulated
> Depreciation..
> In Company Books Of Accounts, It is Ok, But when we generate P & L &
> balance sheet on Profit Center Wise, How it will affect the Profit Center.?
>
>
>
> ---------------Original Message---------------
> From: Shinu
> Sent: Friday, July 16, 2010 11:55 PM
> Subject: Depreciation at the Time of Repaires and maintenance ? Asset
> Accounting ?
>
> > Hello Gurus ?
> >
> > At the Time of Repairs and Maintenance or at the time of Asset
> Overhauling, How the Depreciation is Working ?
> > How to Stop Depreciation at that time till the Asst come back to Plant
> for usage ?
> >
> > Also, at the Time of Sending asset to Repaires Out side, How we can Track
> the Asset by Custodian ?
| __.____._ Copyright © 2010 Toolbox.com and message author.
Toolbox.com 4343 N. Scottsdale Road Suite 280, Scottsdale, AZ 85251
| |  VidhyaDhar
SAP Accounting Helper
Posted helpful replies on 5 threads in a group to earn a Bronze Achievement Related Content White Papers
In the Spotlight  _.____.__ |
Mark as helpful
