Technical Name of Business Function |
HCM_LOC_CI_12 |
Type of Business Function |
Enterprise Business Function |
Available As Of |
SAP Enhancement Package 5 for SAP ERP 6.0 |
Technical Usage |
Human Capital Management |
Application Component |
Payroll India (PY-IN), Personnel Administration Japan (PA-PA-JP) |
You can use this business function to meet the country-specific requirements in the area of Human Capital Management (HCM) for India and Japan, including the following functionalities:
India Global Employment
Income Tax Declaration — ESS for India
Japan Employee Self-Service Enhancement
You have installed the following components as of the version mentioned:
Type of Component |
Component |
Is Needed Only for the Following Features |
Software Component |
SAP_HRCIN 604, EA-HRCJP 605, EA-HRCIN 605 |
|
Portal Content |
Business Package for Employee Self-Service 1.51 |
Personnel Administration Japan (PA-PA-JP): HR process and forms and master data maintenance in Employee Self-Service (ESS) |
The business function provides enhancements in India Specific Functionality, which allow you to streamline your expatriation and repatriation processes on overseas assignments to your specific needs. The solution supports basic functionality of master data capture and payroll processing of global assignments of an employee. For example, an employee of your Indian firm is seconded to your subsidiary company in the USA. Employee receives payments (a part of salary and allowances) in India as well as in USA. Now, the employee still pays Income Tax in India during his or her overseas assignment. This amount is calculated in the Indian payroll run. But taxable income of the employee need to include payments paid in USA also. Hence these payments are sent from the USA, the sending payroll, to India, the receiving payroll. They are included in employee's taxable income in India, and accordingly income tax is computed and deducted from the employees remuneration during payroll processing.
You can use this solution to enable your employees submit their savings details and other IT declarations through a web application in the Enterprise Portal. The system reads and processes these details for payroll processing. Using the solution:
Employees can create and process the following type of requests:
Section 80
Section 80C
Previous employment details
Housing
Approvers can display, change, reject or approve the above mentioned requests. The approvers can keep a record of the proposed and actual contributions made by an employee towards different income tax sections. For example Section 80.
For more information, see Income Tax Declarations – Employee Self-Service.
Using the HR processes and forms in the following scenarios enable you to efficiently improve the daily data processing:
Year-End Adjustment
During the year-end adjustment (YEA) phase, an employee fills out the interactive YEA forms in the ESS portal, and submits to the HR administrator for approval. Being informed by the system notification, the HR administrator runs the YEA payroll according to the information in the forms, and generates the Withholding Tax Statement Form for the employee. At the same time, the function enables the HR administrator to update the relevant master data in the back-end system. The employees can also check the completed YEA forms for the previous years in ESS portal.
Commuting Allowance
An employee raises request regarding creation or modification of the commuting information in the ESS portal. Informed by the system notification, the line manager approves or rejects the employee’s request. Then the system notifies the HR administrator of the approved request, and enables the HR administrator to check and update the relevant master data in the back-end system.
For more information, see Japan.