Planning Cloud: Current Year Tax Component Calculation with YTD Threshold Scope for Existing Employees
(Doc ID 2773401.1)
Last updated on MAY 28, 2021
Applies to:Oracle Enterprise Planning and Budgeting Cloud Service - Version 21.04.50 and later
Information in this document applies to any platform.
Current year Tax component calculation, which has YTD threshold scope, for existing employees
Had a tax component called National Insurance (NI), which is calculated on Basic Salary, Bonus and Car Allowance. National Insurance is calculated in a tiered manner, i.e. 0% up to 6000 YTD and 13.8% when total exceeds 6000 TYD, on the mentioned components above. The National insurance tax component in benefits and taxes wizard has been set-up as per this requirement.
For the first year in forecast scenario, encountering an issue. Our forecast scenario starts from Mar, so we are loading the required data for existing employees in the month of March as per the data load template and running the process loaded data rule to get the compensation calculated for the entire range of period against forecast scenario. Since there is no data for the month of Jan and Feb in forecast scenario, system starts calculating the NI as per the defined setup, however it starts the YTD threshold calculation in the month of March, which is giving us an incorrect number in March. The threshold of 6000GBP YTD (Basic + Bonus + Car Allowance) for an existing employee has already exceeded in Jan in real-world, so when NI gets calculated in March it should be calculated as 13.8% of the total amount in March and not as 13.8% on the amount exceeding 6000. Due to this we are getting an error only in the first month, remaining months are fine.
How this requirement should be handled so that the system calculates correct number for the first month also?
To view full details, sign in with your My Oracle Support account.
Don't have a My Oracle Support account? Click to get started!
In this Document