Employee Self Services (India Payroll) IT Declaration – Details and Configuration

Biraju S Rajyaguru, SAP Labs India January 2009

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Agenda

1. General Description 2. Employee Process 3. Approver Process 4. Tax Declaration Update 5. Configuration

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Tax Declarations General Description

Income from Salary is taxable under the Income Tax Act, 1961. The Act provides for certain benefits which will allow exemptions from the tax computation. Further it also permits an employee to declare any other income which needs to be considered for tax computation. ESS on Tax Declarations provides for entry and processing of any such investment and income for the purpose of tax benefit and computation. © SAP 2007 / Page 3

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Tax Declaration Role Definitions Employee Role View tax declaration requests across years Create tax declaration request for: Sec 80 Sec 80C House Rent for HRA Exemption Income/Loss from House Property Income from Other Sources Previous Employment Income Edit/Delete tax declaration request before approval/rejection.

Approvers Role: Reject/Approve a request. Update declaration amounts based on proofs submitted © SAP 2007 / Page 4

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Tax Declarations Features Supports different types of Tax Declarations Configurable field display Update of Tax Declaration Amount Configurable for multiple level approval Flexible Mail Format Supports Document Attachment

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Tax Declarations Availability

Currently under development Will be available as part of Enhancement Pack 5 (EHP 5) on top of SAP Release ECC 6.00 Customers planning to implement this application before EHP 5 availability should contact India localization Product Manager Manjusha Nair at [email protected] Disclaimer: Screenshots explained in subsequent slides are captured during the development of the application. This layout may change before release of this application to customers. © SAP 2007 / Page 6

The IT Declarations application is built on the Advanced Claims framework which is a pre-requisite, available in the releases mentioned below: Available from 31st October 2008, for all releases (ECC 600 & above) Back-End: SP-35 & equivalent of Higher Release. Front-End: SAP_ESS Stack-14.

Complete Availability ( with all the “Enhanced Features” )

EA-HR 603 Back-End: SP-13. Availability: 22-01-2009. Front-End: SAP_ESS Stack-04 for ECC 6.03. Availability: 16-02-2009.

EA-HR 604 Back-End: SP-05. Availability: 22-01-2009. Front-End: SAP_ESS Stack-04 for ECC 6.03. Availability: 16-02-2009.

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Tax Declarations Key Concepts IT DECLARATION TYPES An IT Declaration Type identifies the various tax declarations supported on ESS. E.g. Sec 80, Sec 80 C. REQUEST PHASE The phase of a request in its process from creation to approval and payment is identified through Request Phase REQUEST STATUS The approval status of a reimbursement request is updated under Request Status FINANCIAL YEAR BEGIN AND END DATES (April 1st to March 31st) Signifies the Financial year applicable for the tax declaration. All tax declarations except for House Rent is applicable only at a Financial year level

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Tax Declarations Key Concepts Cont’d PROPOSED AMOUNT The amount proposed by the Employee as his investment plan to avail tax benefit in the beginning of financial year. ACTUAL AMOUNT The amount actually invested by the Employee and relevant proofs submitted to substantiate investments. This process is normally done in the last quarter of the Financial Year APPROVED AMOUNT Amount approved by Approver after verification of proofs submitted CONSIDER ACTUALS A flag that determines the applicability of actual values for IT computation. This is used in Sec 80 and Sec 80C declarations

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Tax Declarations Key Concepts Cont’d

New

Request Created, Reviewed and Saved as Draft

New

In Process

Request Reviewed and Send

To Be Approved

Completed

Request Rejected by Approver

Rejected

In Process

Request Approved, Infotype not Updated

Approved

In Process

Request Approved, Infotype Updated, Payroll executed

Processed in Payroll

In Process

Request Partially Approved, Infotype not Updated

Partially Approved

Request Status

Request Phases

Process Description

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The above slide shows the request phase and the corresponding request statuses and the events that triggers the status change.

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Agenda

1. General Description 2. Employee Process 3. Approver Process 4. Tax Declaration Update 5. Configuration

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Employee Process Process Start

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This shows the ESS link to the “Declarations for Income Tax” application.

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Employee Process IT Tax Declaration Overview

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The IT Declaration type shows a list of the different types of deductions handled in the system.

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Employee Process Create New Request

Click on Calculate to update Proposed Amt in Header

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On choosing an IT Declaration type and clicking on “Get Requests” button takes us to the detail screen with all investments/ contributions relevant to the Declaration type. The maximum limit is non editable. The proposed amount can be entered by the employee. Clicking on the “calculate” button updates the header information with the proposed amount.

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Employee Process Review Request and Send

Send © SAP 2007 / Page 14

Then the request is reviewed and sent.

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Employee Process Edit Exiting Request

Change © SAP 2007 / Page 15

Clicking on the “Edit” button allows changing the request before the same is approved/rejected.

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Employee Process Create Request : Sec 80 Declarations

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The creation of a Section 80 Declaration request is shown in the above slide. The calculate button sums up the values in proposed /actual columns along with the previous approved amount( if any).

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Employee Process Create Request : Sec 80 Declarations Further information about the investment / section can be provided

Terms and Conditions © SAP 2007 / Page 17

Clicking on any of the contributions opens a pop-up which shows detailed information about the contribution. This is configurable and the customer can enter his own data here. The terms and conditions link information is also configurable and can be entered by the customer.

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Employee Process Create Request : Income/Loss from House Property

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This shows the create request for an IFOS for House property IT Declaration type.

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Employee Process Create Request : Other Income

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This shows the create request for an IFOS IT Declaration type. Here, there is no requirement for proposed amount but only a column for the actual amount.

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Employee Process Create Request : House Rent

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This shows the create request for Housing (HRA/CLA/COA) IT Declaration type. The accommodation type can be chosen between Rented Accommodation and own accommodation. For other accommodation types available in R/3, only the administrator can change the accommodation type in the backend, not available for the employee through ESS.

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Employee Process Create Request : Previous Employment

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This shows the create request for PETD (Previous Employment tax details) IT Declaration type. Here, there is no requirement for proposed amount but only a column for the actual amount.

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Employee Process Request Overview

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The request overview screen displays all requests for the search criterion provided.

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Agenda

1. General Description 2. Employee Process 3. Approver Process 4. Tax Declaration Update 5. Configuration

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Approver Process Employee Request Status

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This screen shows the status of the employee requests.

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Approver Process Universal Worklist

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The IT Declaration requests that need approval from the approver are enlisted in his inbox. The approver clicks on the individual line item and clicks on “Launch WebDynpro”.

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Approver Process Request view for Approver

Filter Options

Mass Approval © SAP 2007 / Page 26

Here all the requests of the employee are enlisted and the approver can enter his decision against every line item. The approver has the option to approve all or reject all with multiple line item selection.

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Approver Process Request view for Approver

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Clicking on the calculate button, calculates the sum of all the approved amounts and updates the header with the approved amount. The approver is required to check the checkbox “Checked all the documents” as a measure to ensure that all the relevant documents have been verified.

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Approver Process Request view for Approver

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The approver takes decision and then reviews. The status of the request changes according to the decision taken.

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Agenda

1. General Description 2. Employee Process 3. Approver Process 4. Tax Declaration Update 5. Configuration

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Approver Process Request view for Approver

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The infotype update program is run to update the details from the approved requests onto the relevant infotype.

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Agenda

1. General Description 2. Employee Process 3. Approver Process 4. Tax Declaration Update 5. Configuration

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Configuration views specific to Tax Declaration covered here

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Configuration Basic Settings Header Level Fields

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In this IMG activity, the attributes at the header level are defined. The system displays these fields during request creation through Employee SelfService (ESS). Depending upon the attributes that you have maintained, you can use these fields as visible fields, read only fields, input fields or output fields.

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Configuration Basic Settings Header Level Fields

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In this IMG activity, the attributes at the header level are defined. The system displays these fields during request creation through Employee SelfService (ESS). Depending upon the attributes that you have maintained, you can use these fields as visible fields, read only fields, input fields or output fields.

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Configuration Basic Settings Header Level Values

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In this IMG activity, you define selection values for fields at the header level. The system displays these fields during request creation through Employee SelfService (ESS). Note You specify selection values for fields that have the field type as Dropdown (Values From Customizing) or F4 Help (Values From Customizing).

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Configuration Basic Settings Multiple Line Customizing

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In this IMG activity, you define the fields and their attributes at the multiple line level. The system displays these fields during request creation through Employee SelfService (ESS). Depending upon the attributes that you have maintained, you can use these fields as visible fields, read only fields, input fields or output fields.

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Configuration Basic Settings Multiple Line Customizing

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In this IMG activity, you define the fields and their attributes at the multiple line level. The system displays these fields during request creation through Employee SelfService (ESS). Depending upon the attributes that you have maintained, you can use these fields as visible fields, read only fields, input fields or output fields.

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Configuration Basic Settings

VALUE of Constant ESSTD 1: 'Proposed' column is editable, 'Actual' column is not editable. Both columns are visible. 2: 'Proposed' column is not editable, 'Actual' column is editable. Both columns are visible. 3: 'Proposed' and 'Actual' both columns are not editable. Both columns are visible © SAP 2007 / Page 37

This constant controls the visibility of the proposed and actual columns/fields for employees for all ESS tax declaration scenarios.

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Configuration BAdIs Determine Visibility of Actual / Proposed Column

Overwrite City Category

Controls the visibility of actual or proposed column in tax declaration scenarios

Overwrites the city category selected by employee Customer can build their specific logic to determine city category of Metro / Non Metro

Tax Declaration Scenarios supported: Sec 80

Applicable in the House Rent Declaration service

Sec 80C Housing

BAdI : HR_IN_ESS_IT_DECL_CITY_CAT

Income from other sources (subtype 0001) BAdI : HR_IN_ESS_IT_DECL_ACTPROP

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This shows a list of BAdIs available.

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Thank you!

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