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Exception: Income Received for code 3703 may not be reflected on IRP5 / IT3A together with 3702 or 3701

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Summary

How to fix this Exception in Sage Pastel Payroll.

Description

This is an exception on your Statutory Exception report that needs to be corrected before you can continue with your Bi-Annual or Year End process

Cause

This is caused by the transaction 5540 (Reimbursive travel non taxable) being processed along with the code 5501 (Travel Allowance) or 5520 (Reimbursive travel taxed on assessment).

Resolution

If you are doing your Bi-Annuals or Year End submission when you get this error/exception you will need to restore back to the last period for that reporting phase. The last period will be August (Bi-Annuals) or February (Year End) to do this correction.  If you restore you will need to then recapture all of the months between the month you are restoring to and the one you are currently in. If you do not wish to recapture, then you can have a chargeable datafix done.

  1. Navigate to the income tab of the employee’s payslip (Process, Payslips, click on the magnifying glass and select the employee).
  2. Make the period value for code 5540 ‘0’ and make a note of the value in the YTD column
  3. Then process the Year to Date value you just noted as a negative amount in the period amount field which would then in turn change the Year to Date value to ‘0'
  4. You will now add 5520 to the income tab of the employee’s payslip (click on the first available white line on the income tab and type in 5520) and capture the value that was reversed in the above step on this transaction as a positive.

Example:

The code 5540 has an amount of R200 in the period amount on the income tab and an amount of R1500 in the YTD tab.  Make the period amount a 0 and your YTD would have changed to R1300.  You will now capture an amount of –R1300 (Negative R1300) in the period value tab that will change your YTD to 0.

You will now add the code 5520 to the income tab and process the amount or R1300 in the period value.

Note: If this person is to receive Reimbursive Travel in this period you will have to add it to the amount on 5520.

If this is due to a Bi-Annual/Year End Exception and you wish to not restore a backup and rather have a Consultant do a datafix for you, you can make a booking using the online platform here.

TIP: If this is for a Terminated employee, you will have to either restore back to the period that the employee was terminated in and recapture, exclude the employee from the IRP5 export and create a manual IRP5 in the [email protected] system for the employee, or reach out to your Business partner to get a datafix done.