Incorrect HRA Exemption Calculation In Case Of Retro (Doc ID 2199316.1)

Last updated on NOVEMBER 03, 2016

Applies to:

PeopleSoft Enterprise HCM Global Payroll India - Version 9.2 and later
Information in this document applies to any platform.

Symptoms

Incorrect HRA Exemption calculation in case of Retro effective basic salary change.

Since HRA Exemption is calculated on a minimum of three conditions, in this case, the issue is with Earning HRA BASE PCT which calculates 40% or 50% of the basic. Retro salary is added twice resulting in excess calculation of HRA Exemption.

STEPS:
The issue can be re produced by following the below steps:

1. Run the payroll for April and check for HRA BASE PCT calculation
2. Change the basic salary in May effective April.
3. Run the Payroll and check the HRA BASE PCT calculation, this will calculate incorrectly.

Cause

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