04-11-2008 9:28 AM
hi
can anyone explain me what is retroactive accounting in payroll. i could not find the exact explanation.
thanks in advance.
04-11-2008 9:31 AM
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 employees 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.
04-11-2008 9:31 AM
Retroactive is adjustment in the pay ... Might be increase or
decrease ..
04-11-2008 9:31 AM
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 employees 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.