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retroactive accounting in payroll

Former Member
0 Kudos

hi

can anyone explain me what is retroactive accounting in payroll. i could not find the exact explanation.

thanks in advance.

1 ACCEPTED SOLUTION

Former Member
0 Kudos

Hi,

Retroactive Accounting :

If you change the master or time data for an HR master record for a period for

which payroll has already been run, the old payroll results must be checked in the

next regular payroll run, and, if necessary, the payroll run must be repeated.

The system automatically creates a retroactive accounting run in the payroll past

Only changes to master and time data are relevant for retroactive accounting

since previous Payroll results must be corrected.

Example :

An employee’s Basic Pay is increased from $3,500 to $3,700 from Sep 1, 2003.

The payroll has already run for this employee for the period up to Oct 30, 2003.

If you change the Basic Pay record, the system performs retroactive accounting

when the next payroll runs for this employee. This ensures that the increase in

basic pay, effective as of Nov 1, 2003, is taken into retroactive consideration.

Earliest Possible Retroactive Accounting Period

The earliest period for retroactive accounting is the payroll period furthest in

the past for which you can run retroactive accounting. This is stored in the

payroll control record for the payroll area.

Use

The company determines this period. You can specify, for example, that

retroactive accounting for the previous year is not possible after a particular date

in the current year.

Reward Points if found helpfull..

Cheers,

Chandra Sekhar.

2 REPLIES 2

Former Member
0 Kudos

Retroactive is adjustment in the pay ... Might be increase or

decrease ..

Former Member
0 Kudos

Hi,

Retroactive Accounting :

If you change the master or time data for an HR master record for a period for

which payroll has already been run, the old payroll results must be checked in the

next regular payroll run, and, if necessary, the payroll run must be repeated.

The system automatically creates a retroactive accounting run in the payroll past

Only changes to master and time data are relevant for retroactive accounting

since previous Payroll results must be corrected.

Example :

An employee’s Basic Pay is increased from $3,500 to $3,700 from Sep 1, 2003.

The payroll has already run for this employee for the period up to Oct 30, 2003.

If you change the Basic Pay record, the system performs retroactive accounting

when the next payroll runs for this employee. This ensures that the increase in

basic pay, effective as of Nov 1, 2003, is taken into retroactive consideration.

Earliest Possible Retroactive Accounting Period

The earliest period for retroactive accounting is the payroll period furthest in

the past for which you can run retroactive accounting. This is stored in the

payroll control record for the payroll area.

Use

The company determines this period. You can specify, for example, that

retroactive accounting for the previous year is not possible after a particular date

in the current year.

Reward Points if found helpfull..

Cheers,

Chandra Sekhar.