Car and Conveyance

Car and Conveyance

In this section of the IMG you set up the benefit of a company car being provided to the employee. The company car could be provided for employee's use with or without the provision to transfer the ownership of the car to the employee at the end of a specified period. The benefit of a Company provided car is provided to employees for official use. Company cars are also provided for the personal use of the employee where a perquisite value is attached to the use of the car based on the horsepower of the car and the extent of benefit provided to the employee. If the employee is provided with a driver for a car an additional perquisite value is added for the driver. The perquisite values attached are fully taxable and added to the gross salary. The allowance or reimbursements for conveyance is a separate amount given to all employees to commute to office but the eligibility for the allowance varies if the employee uses a company provided car.


To set up this component, you:

1. Define the eligibility criteria for a Company owned car and own your car schemes.

2. Assign eligibility amounts for conveyance.

3. Assign a perquisite value for the vehicle and for the benefit of a Driver.


Define Vehicle Details - In this activity, you define details of the vehicle such as the type of car and its horsepower.

Activities

1. Enter the type of car in the Car type field.

2. Enter a description for the car in the Car description field.

3. Enter horsepower value of the car in the Car HP field.

4. Save your entries.


Define Conveyance Types - In this activity you define a code for Conveyance Type.

Recommendation - Six pre-configured codes for Conveyance Type have been provided for you.


They are:

Code Conveyance Type

1 Availing COCS (company owned car scheme)

2 Availing OYCS (own your car scheme)

3 Availing Company Transport

4 Own Two Wheeler

5 Own Two Wheeler

6 No Vehicle

You can create additional codes for Conveyance Type in the name range 'F' through 'Z'. Based on the chosen code for Conveyance Type, WT placement or substitution will happen in IT08. The codes for Conveyance Type will be associated with Tax Codes. This activity can be accessed from Payroll India -> Tax -> Define Tax Codes.


You must check view V_T7INT7 in TRESC maintenance for:

• name space range for taxability codes

• creating new taxability codes

When you are creating a taxability code, the consideration should be that at a time an ALGRP should have only one WT for a given taxability code.

Further notes - In case of new rule based taxability codes, a new payroll function may be required.

Define Amounts and Numbers for Car Schemes - In this activity, you maintain details about the employees' entitlement to a company-owned car. For each allowance group, you define the total value of the car and the number of cars employees in the group are entitled to.

Activities

1. Enter the allowance group in the AllGrp field.

2. Select the type of car scheme eligible for the group in the Car scheme field.

3. Enter the number of cars the employee is eligible for in the No of cars field.

4. Enter the max value of the car for which the emp. is eligible in the Amt limit field.

5. Select the currency in the Currency field.

6. Enter the start and end dates for the period.

7. Save your entries.

Assign Type and Age of Car for Car Schemes - In this activity, you associate a car scheme and other vehicle details to an allowance grouping. This information is used to identify the eligibility criteria for a group of employees.

Activities

1. Enter a grouping for car schemes in the AlGrp field.

2. Select the type of scheme applicable to the grouping in the Car scheme field.

3. Select the type of car applicable to the grouping in the Car type field.

4. Enter the age of the car in the Car age field.

5. Enter the start and end dates for the period.

6. Save your entries.

Assign Eligibility Criteria for Conveyance Allowance - In this activity, you assign WTs used to calculate eligibility amounts for conveyance and the type of vehicle to an allowance grouping. These inputs are used to calculate the eligible amounts payable to employees who belong to the respective allowance grouping.


Activities

1. Enter the allowance group in the AlGrp field.

2. Enter the type of vehicle used by the employee in the Vehicle type field.

3. Enter the wage type to calculate amounts for conveyance in the WT field.

4. Enter the start and end dates for the period.

5. Save your entries.

Maintain Rate of Perquisite for COCS - In this activity, maintain the Car perk calculation rate constant (CRPRK) of Payroll Constants table view (V_T511K). In this constant, you maintain the rate of perquisite for the second and third cars in case of Company Owned Car Scheme (COCS).

Standard settings - The value of this constant till 31.03.2005 is 10%. As per budget changes 2005, the value of the constant the employees were not required to pay perquisite on the cars. Hence the value of this constant was changed to zero.

After budget 2009, the value of the constant is again set to 10%.

Constant CRPRK - Car perk calculation rate - Symbolic constant – value renumeration / constant

Explanation - This constant stores the rate of perquisite for the second and third cars in case of Company Owned Car Scheme (COCS).

BAdI: Perquisite and Exemption Processing - This Business Add-In is used in the Car and Conveyance (PY-IN) component. This Add-In enables you to determine, during a payroll run, values for all the conveyance perquisites and exemption related WTs.

Prerequisites - You should only carry out this step if both of the following points apply:

• The SAP standard processes do not suit your needs.

• You are a competent ABAP/4 programmer.

Default - In the standard system, the Business Add-In is not activated.

Activities - After calling up the IMG activity, a dialog box appears, in which the existing implementations are displayed. Choose Change, and proceed as follows:

1. From the tab index, choose Interface.

2. Place the cursor on the method, and double-click to enter method processing.

3. Enter the coding for the implementation between the statements method - if_ex_hr_in_cco_processing ~ <Name of method> and endmethod.

4. Save and implement your coding. Return to the Edit Implementation screen.

5. Save the entries on the Edit Implementation screen.

Note: You can also change the implementation, and then activate it at a later time. In such a case, end the processing stage at this point.

6. Choose Activate.

The coding you stored in the method will be run when the application program is executed.

Example - To display the sample code, choose Goto -> Sample Code -> Display.