feat: Tax for recurring additional salary (#27459)

* fix: Logic for tax calculation on recurring additional salary

* fix: Get actual amount always in case of overwritten additional salary even if based on payment days

* feat: Test case added for recurring additional salary

* fix: use query builder to get additional salaries instead of raw SQL

* fix: query formatting and remove trailing spaces

Co-authored-by: Rucha Mahabal <ruchamahabal2@gmail.com>

erpnext/hr/doctype/employee/test_employee.py

@@ -55,6 +55,7 @@ def make_employee(user, company=None, **kwargs):
 			"email": user,
 			"first_name": user,
 			"new_password": "password",
+			"send_welcome_email": 0,
 			"roles": [{"doctype": "Has Role", "role": "Employee"}]
 		}).insert()
 

erpnext/payroll/doctype/additional_salary/additional_salary.py

@@ -125,27 +125,28 @@ class AdditionalSalary(Document):
 		no_of_days = date_diff(getdate(end_date), getdate(start_date)) + 1
 		return amount_per_day * no_of_days
 
+@frappe.whitelist()
 def get_additional_salaries(employee, start_date, end_date, component_type):
-	additional_salary_list = frappe.db.sql("""
+	comp_type = 'Earning' if component_type == 'earnings' else 'Deduction'
-		select name, salary_component as component, type, amount,
+
-		overwrite_salary_structure_amount as overwrite,
+	additional_sal = frappe.qb.DocType('Additional Salary')
-		deduct_full_tax_on_selected_payroll_date
+	component_field = additional_sal.salary_component.as_('component')
-		from `tabAdditional Salary`
+	overwrite_field = additional_sal.overwrite_salary_structure_amount.as_('overwrite')
-		where employee=%(employee)s
+
-			and docstatus = 1
+	additional_salary_list = frappe.qb.from_(
-			and (
+		additional_sal
-					payroll_date between %(from_date)s and %(to_date)s
+	).select(
-				or
+		additional_sal.name, component_field, additional_sal.type,
-					from_date <= %(to_date)s and to_date >= %(to_date)s
+		additional_sal.amount, additional_sal.is_recurring, overwrite_field,
-				)
+		additional_sal.deduct_full_tax_on_selected_payroll_date
-		and type = %(component_type)s
+	).where(
-		order by salary_component, overwrite ASC
+		(additional_sal.employee == employee)
-	""", {
+		& (additional_sal.docstatus == 1)
-		'employee': employee,
+		& (additional_sal.type == comp_type)
-		'from_date': start_date,
+	).where(
-		'to_date': end_date,
+		additional_sal.payroll_date[start_date: end_date]
-		'component_type': "Earning" if component_type == "earnings" else "Deduction"
+		| ((additional_sal.from_date <= end_date) & (additional_sal.to_date >= end_date))
-	}, as_dict=1)
+	).run(as_dict=True)
 
 	additional_salaries = []
 	components_to_overwrite = []

erpnext/payroll/doctype/salary_detail/salary_detail.json

@@ -12,6 +12,7 @@
   "year_to_date",
   "section_break_5",
   "additional_salary",
+  "is_recurring_additional_salary",
   "statistical_component",
   "depends_on_payment_days",
   "exempted_from_income_tax",
@@ -235,11 +236,19 @@
    "label": "Year To Date",
    "options": "currency",
    "read_only": 1
+  },
+  {
+    "default": "0",
+    "depends_on": "eval:doc.parenttype=='Salary Slip' && doc.additional_salary",
+    "fieldname": "is_recurring_additional_salary",
+    "fieldtype": "Check",
+    "label": "Is Recurring Additional Salary",
+    "read_only": 1
    }
  ],
  "istable": 1,
  "links": [],
- "modified": "2021-01-14 13:39:15.847158",
+ "modified": "2021-08-30 13:39:15.847158",
  "modified_by": "Administrator",
  "module": "Payroll",
  "name": "Salary Detail",

erpnext/payroll/doctype/salary_slip/salary_slip.py

@@ -630,7 +630,8 @@ class SalarySlip(TransactionBase):
 				get_salary_component_data(additional_salary.component),
 				additional_salary.amount,
 				component_type,
-				additional_salary
+				additional_salary,
+				is_recurring = additional_salary.is_recurring
 			)
 
 	def add_tax_components(self, payroll_period):
@@ -651,7 +652,7 @@ class SalarySlip(TransactionBase):
 			tax_row = get_salary_component_data(d)
 			self.update_component_row(tax_row, tax_amount, "deductions")
 
-	def update_component_row(self, component_data, amount, component_type, additional_salary=None):
+	def update_component_row(self, component_data, amount, component_type, additional_salary=None, is_recurring = 0):
 		component_row = None
 		for d in self.get(component_type):
 			if d.salary_component != component_data.salary_component:
@@ -698,6 +699,8 @@ class SalarySlip(TransactionBase):
 			else:
 				component_row.default_amount = 0
 				component_row.additional_amount = amount
+
+			component_row.is_recurring_additional_salary = is_recurring
 			component_row.additional_salary = additional_salary.name
 			component_row.deduct_full_tax_on_selected_payroll_date = \
 				additional_salary.deduct_full_tax_on_selected_payroll_date
@@ -894,25 +897,33 @@ class SalarySlip(TransactionBase):
 					amount, additional_amount = earning.default_amount, earning.additional_amount
 
 			if earning.is_tax_applicable:
-				if additional_amount:
-					taxable_earnings += (amount - additional_amount)
-					additional_income += additional_amount
-					if earning.deduct_full_tax_on_selected_payroll_date:
-						additional_income_with_full_tax += additional_amount
-					continue
-
 				if earning.is_flexible_benefit:
 					flexi_benefits += amount
 				else:
-					taxable_earnings += amount
+					taxable_earnings += (amount - additional_amount)
+					additional_income += additional_amount
+
+					# Get additional amount based on future recurring additional salary
+					if additional_amount and earning.is_recurring_additional_salary:
+						additional_income += self.get_future_recurring_additional_amount(earning.additional_salary,
+							earning.additional_amount) # Used earning.additional_amount to consider the amount for the full month
+
+					if earning.deduct_full_tax_on_selected_payroll_date:
+						additional_income_with_full_tax += additional_amount
 
 		if allow_tax_exemption:
 			for ded in self.deductions:
 				if ded.exempted_from_income_tax:
-					amount = ded.amount
+					amount, additional_amount = ded.amount, ded.additional_amount
 					if based_on_payment_days:
-						amount = self.get_amount_based_on_payment_days(ded, joining_date, relieving_date)[0]
+						amount, additional_amount = self.get_amount_based_on_payment_days(ded, joining_date, relieving_date)
-					taxable_earnings -= flt(amount)
+
+					taxable_earnings -= flt(amount - additional_amount)
+					additional_income -= additional_amount
+
+					if additional_amount and ded.is_recurring_additional_salary:
+						additional_income -= self.get_future_recurring_additional_amount(ded.additional_salary,
+							ded.additional_amount) # Used ded.additional_amount to consider the amount for the full month
 
 		return frappe._dict({
 			"taxable_earnings": taxable_earnings,
@@ -921,11 +932,21 @@ class SalarySlip(TransactionBase):
 			"flexi_benefits": flexi_benefits
 		})
 
+	def get_future_recurring_additional_amount(self, additional_salary, monthly_additional_amount):
+		future_recurring_additional_amount = 0
+		to_date = frappe.db.get_value("Additional Salary", additional_salary, 'to_date')
+		# future month count excluding current
+		future_recurring_period = (getdate(to_date).month - getdate(self.start_date).month)
+		if future_recurring_period > 0:
+			future_recurring_additional_amount = monthly_additional_amount * future_recurring_period # Used earning.additional_amount to consider the amount for the full month
+		return future_recurring_additional_amount
+
 	def get_amount_based_on_payment_days(self, row, joining_date, relieving_date):
 		amount, additional_amount = row.amount, row.additional_amount
 		if (self.salary_structure and
-			cint(row.depends_on_payment_days) and cint(self.total_working_days) and
+			cint(row.depends_on_payment_days) and cint(self.total_working_days)
-			(not self.salary_slip_based_on_timesheet or
+			and not (row.additional_salary and row.default_amount) # to identify overwritten additional salary
+			and (not self.salary_slip_based_on_timesheet or
 				getdate(self.start_date) < joining_date or
 				(relieving_date and getdate(self.end_date) > relieving_date)
 			)):

erpnext/payroll/doctype/salary_slip/test_salary_slip.py

@@ -536,6 +536,61 @@ class TestSalarySlip(unittest.TestCase):
 		# undelete fixture data
 		frappe.db.rollback()
 
+	def test_tax_for_recurring_additional_salary(self):
+		frappe.db.sql("""delete from `tabPayroll Period`""")
+		frappe.db.sql("""delete from `tabSalary Component`""")
+
+		payroll_period = create_payroll_period()
+
+		create_tax_slab(payroll_period, allow_tax_exemption=True)
+
+		employee = make_employee("test_tax@salary.slip")
+		delete_docs = [
+			"Salary Slip",
+			"Additional Salary",
+			"Employee Tax Exemption Declaration",
+			"Employee Tax Exemption Proof Submission",
+			"Employee Benefit Claim",
+			"Salary Structure Assignment"
+		]
+		for doc in delete_docs:
+			frappe.db.sql("delete from `tab%s` where employee='%s'" % (doc, employee))
+
+		from erpnext.payroll.doctype.salary_structure.test_salary_structure import make_salary_structure
+
+		salary_structure = make_salary_structure("Stucture to test tax", "Monthly",
+			other_details={"max_benefits": 100000}, test_tax=True,
+			employee=employee, payroll_period=payroll_period)
+
+
+		create_salary_slips_for_payroll_period(employee, salary_structure.name,
+			payroll_period, deduct_random=False, num=3)
+
+		tax_paid = get_tax_paid_in_period(employee)
+
+		annual_tax = 23196.0
+		self.assertEqual(tax_paid, annual_tax)
+
+		frappe.db.sql("""delete from `tabSalary Slip` where employee=%s""", (employee))
+
+		#------------------------------------
+		# Recurring additional salary
+		start_date = add_months(payroll_period.start_date, 3)
+		end_date = add_months(payroll_period.start_date, 5)
+		create_recurring_additional_salary(employee, "Performance Bonus", 20000, start_date, end_date)
+
+		frappe.db.sql("""delete from `tabSalary Slip` where employee=%s""", (employee))
+
+		create_salary_slips_for_payroll_period(employee, salary_structure.name,
+			payroll_period, deduct_random=False, num=4)
+
+		tax_paid = get_tax_paid_in_period(employee)
+
+		annual_tax = 32315.0
+		self.assertEqual(tax_paid, annual_tax)
+
+		frappe.db.rollback()
+
 	def make_activity_for_employee(self):
 		activity_type = frappe.get_doc("Activity Type", "_Test Activity Type")
 		activity_type.billing_rate = 50
@@ -1007,3 +1062,17 @@ def make_salary_slip_for_payment_days_dependency_test(employee, salary_structure
 		salary_slip = frappe.get_doc("Salary Slip", salary_slip_name)
 
 	return salary_slip
+
+def create_recurring_additional_salary(employee, salary_component, amount, from_date, to_date, company=None):
+	frappe.get_doc({
+		"doctype": "Additional Salary",
+		"employee": employee,
+		"company": company or erpnext.get_default_company(),
+		"salary_component": salary_component,
+		"is_recurring": 1,
+		"from_date": from_date,
+		"to_date": to_date,
+		"amount": amount,
+		"type": "Earning",
+		"currency": erpnext.get_default_currency()
+	}).submit()