Housing
Purpose
This component helps you create and maintain information on the employee accommodation. You can also compute the exemptions and perquisites applicable on a housing benefit.
Integration
During the computation of the annual exemptions and perquisites, the Income Tax functionality also includes the exemptions and perquisite wage types of the housing functionality.
· Basic Pay infotype (0008)
When you create or modify a housing record using the Housing(HRA / CLA / COA) infotype (0581), in case of SAP GUI, the system dynamically updates the Basic Pay infotype (0008) with the new or changed wage type for Housing.
Features
· The SAP system caters to the following categories of accommodation:
¡ Rented Accommodation
In a Rented Accommodation, the employee receives a House Rent Allowance (HRA) to meet the expenses incurred by renting a residential accommodation. The system computes an exemption on the rented accommodation.
¡ Company Leased Accommodation (CLA)
In a CLA, the company leases an accommodation and provides it as a housing benefit to the employee. Employee eligibility towards CLA depends on the Pay Scale Grouping for Allowances.
If an employee has a CLA benefit, the system will compute the perquisite applicable on the CLA.
¡ Company Owned Accommodation (COA)
In a COA, the company owns the accommodation and provides it as a housing benefit to the employee. Employee eligibility towards COA depends on the Pay Scale Grouping for Allowances.
If an employee has a COA benefit, the system will compute the perquisite applicable on the COA.
¡ Hotel Accommodation
In this case, the employer provides a hotel accommodation to the employee. If the stay in the hotel exceeds a fixed period, as specified by the Government, a perquisite is applicable on the cost of accommodation.
If you have specified a perkable hotel accommodation in the Housing (HRA / CLA / COA)infotype (0581), the system will compute a perquisite.
· You can specify the Accommodation Type for an employee, and maintain the housing details using Housing (HRA / CLA / COA) infotype (0581).
· If your company has provided furniture and helper(s) as a part of the accommodation, the system will compute the applicable perquisites.
· To create and process the different categories of accommodation, the SAP system provides a standard set of Accommodation Types. For example:
¡ Rented Accommodation
¡ Company Leased (Old)
¡ Perkable Hotel Accommodation
You have the option of creating your own Accommodation Types also. You can do so through the IMGunder Payroll India ® Housing ®Define Accommodation Types.
· To process the Housing functionality, the system makes use of standard configurations. You can view these configurations using the following table views:
¡ Housing code for taxation (V_T7INR1)
¡ Housing related statutory constants for taxation (V_T7INR5)
¡ Codes for Housing Types (V_T7INR7)
¡ City category for housing type (V_T7INR9)
SAP recommends that you do not change the default configurations of the tables listed above.
· User Exits
If you have created your own Accommodation Types, you must also specify the computation rules for these Accommodation Types. You may also need to define your own set of validations for the Housing (HRA / CLA / COA) infotype (0581). The Housing functionality provides the following user exits:
¡ EXIT_HINCALC0_005 User Exit in the Enhancement HRINHRA0
With the help of this user exit, you can define the computation methods for the Accommodation Types defined by you. Use this exit to determine all the housing related wage types during a payroll run, in particular the exemption and the perquisite wage types.
To access this user exit through the IMG, choose Payroll India ® Housing ® User Exit: Determine Perk Value for Housing.
When you create your own Accommodation Types and specify their computation rules, you must ensure that you also specify the computation rules for the standard set of Accommodation Types. This is because the standard computation rules will no longer apply on the any Accommodation Type.
¡ EXIT_MP058100_007 User Exit in the Enhancement HRINHRA1
With the help of this user exit, you can define a customized set of validations, to be performed in the Housing (HRA / CLA / COA) infotype (0581).
If the system performs a standard set of validations on the infotype, it may result in the generation of error messages. Using this user exit, however, you can override any error messages resulting from standard validations performed on the infotype data.
To access this user exit through the IMG, choose Payroll India ® Housing ® User Exit: Screen Validations for Housing infotype.
Constraints
In the SAP system, you can only maintain one Accommodation Type for an employee, at one point in time. For the same From Period, you cannot create Housing records in the Housing (HRA / CLA / COA) infotype (0581) that have two different Accommodation Types.
See also: