My Oracle Support Banner

Incorrect HRA Calculation For Employees Having Retro Salary Change (Doc ID 1297047.1)

Last updated on MARCH 08, 2017

Applies to:

Oracle HRMS (India) - Version 12.1.2 and later
Information in this document applies to any platform.

Goal

When there is Retro HRA elements and the total HRA value in a given Payroll period differ from the previous periods due to this, the HRA projection and exemptions change for that period alone.

The Taxable HRA Pay & Annual Value is being calculated incorrectly when there is a
1) Retrospective Salary Change for the employee
2) Retrospective Address Change in addition to the Retro Salary Change

Here is the scenario:

1. There is an employee having Basic Salary: 38087 & HRA: 19044 effective 01-Apr-2010. The Payroll was executed for the employee till June with the above salary details. The address of the employee is a Non-metro.
-- The Taxable HRA Pay Value and Taxable HRA Annual Value : 3809.2 & 45710.4 were computed during payroll processing.

2. During the month of July --> effective 01-Apr-2010, there was a retrospective change for the employee in Basic Salary and HRA

Basic was increased from 38087 to 39991 & HRA was increased from 19044 to 19996.
--> The Enhanced Retropay was executed from 01-Apr-2010 and then Payroll. The Enhanced Retropay created 3 new entries for each Basic & HRA arrears in the month of July.

The payroll was executed and the following values were computed for Taxable HRA:
Pay Value: 4570.8
Annual Value: 47995.2

Issue: The Taxable HRA values are incorrect, there needs to be retrospective computation for taxable HRA as well. Currently for taxable HRA, the system has calculated based on [Basic + Total Retro Basic] & [HRA + Total Retro HRA] but expect the system to calculate the Taxable HRA retrospectively effective 01-Apr-2010.


Solution

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
Goal
Solution


This document is being delivered to you via Oracle Support's Rapid Visibility (RaV) process and therefore has not been subject to an independent technical review.
My Oracle Support provides customers with access to over a million knowledge articles and a vibrant support community of peers and Oracle experts.