SAP NZ Retro Wage Types

7/15/2019 SAP NZ Retro Wage Types

http://slidepdf.com/reader/full/sap-nz-retro-wage-types 1/3

Extract from HR400 Payroll Course

Lesson: Calculating Retroactive Accounting DifferencesLesson Overview

The lesson focuses on calculating retroactive accounting differences. In thislesson, you will learn about the characteristics of retroactive accounting. You willalso learn about the tasks that need to be performed while processing retroactiveaccounting.

Lesson ObjectivesAfter completing this lesson, you will be able to:

Identify the characteristics of retroactive accounting

Identify the tasks that need to be performed while processing retroactive

accounting

Business ExampleIn payroll programs, it often occurs that you have to run payroll functions forperiods in the past, which have already had payroll calculated. In this case, specialwage types must be created to process the differences. An employee at yourcompany receives a basic pay raise in payroll period 02 that is backdated to themiddle of period 01. This means that the amount in period 01 must be recalculatedin a retroactive accounting run. In addition, another employee receives anotherbasic pay raise in payroll period 03 that is backdated to payroll period 01. Thisincrease in basic pay comes into force in the first payroll period as well as at alater date in the payroll period.

Creating Retroactive Wage Types



Figure 107: Calculating Retroactive Accounting Differences:

Wage type /550 is created in the net cumulation part of the payroll schema. Theamount for wage type /550 is then added to wage type /560.Wage types /551 and /553 are created in the case of retroactive accounting. Thedifference between wage type /560 from the old payroll result (table ORT) andthe newly calculated payment amount is stored in wage type /551 for the payrollperiod calculated retroactively.Wage type /553 is created as the difference between the payment amount for theperiod currently being accounted and the previous result for the same period.Where multiple retroactive accounting takes place for a period, the wage typecontains the difference between the amounts paid for previous and currentretroactive accounting. Wage types /551 and /553 are both stored with a reversedsign +/-.

Note that wage type /560 in the results table for the retroactive accounting runcontains the amount specified in the original payroll result.

Simple Retroactive Accounting

In this example, the employee’s basic pay is increased from 3,000 to 4,500 in themiddle of payroll period 01. The statutory net amount for the period calculatedretroactively is the total of the statutory net amount for both partial periods of this payroll period.Due to subsequent clearing, the statutory net amount of period 01 in period 02 aswell as the amount paid are higher than those specified in the original payroll run.Wage type /551 contains the difference between the old and the newly calculatedpayment amount with reversed +/- sign.In the current period, the amount in wage type /551 is then transferred to wagetype /552.



Multiple Retroactive Accounting

In this example, the employee’s basic pay is increased from 4,500 to 5,800 in

period 03 at the start of the last of payroll period 01.Due to subsequent clearing, the statutory net amount for period 01 in period 03and the payment amount are again higher than in the original payroll run. Wagetype /551 contains the difference between the original and the newly calculatedpayment amount. Wage type /553 contains the difference between the newlycalculated payment amount and that from the previous retroactive accounting run.

The statutory net amount for period 02 in period 03 is higher than that in theoriginal payroll results. Wage type /552 contains the subsequent clearing amountfrom the first retroactive accounting run for period 01.

The amount for wage type /553 from both retroactively accounted periods istransferred to wage type /552 in the current period.

SAP NZ Retro Wage Types

Documents

Transcript of SAP NZ Retro Wage Types