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Question on Payroll Periods

former_member32001
Product and Topic Expert
Product and Topic Expert
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Hi,

Is it always mandatory to have monthly payroll period as first day of the calendar month?

Can it start for example from 26th of the previous month to 25th of the current month?

Would you please help list the benefits of having first day of the calendar month till month end versus having 26th of the previous month till 25th of current month as payroll periods.

Is there any impact on any reporting or configuration if payroll period is between 26th of previous month to 25th of current month.

Note: Inlegacy system the period is currently being followed as 26th to 25th. There is no issue from FI side to have this date also no issue from any Legal aspect.

Best regards,

Sanjay

Accepted Solutions (1)

Accepted Solutions (1)

udaykumar_kanike
Active Contributor
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Hi Sanjay,

            It is absolutely valid to set payroll period from any date of previous month to any date of current month. The basic purpose of maintining payroll period is to give enough time to process salary for current month. Say for example in your case, payroll period is 26th of previous month to 25th of current month. That means payroll team has 5days to process the salaries of employees.

It could be different in different organizations. In our case, our payroll period is from 16th or previous month to 15th of current month. They will take into account only those number of days between these dates as working days and that is what is displayed on your payslip.

As far as my knowledge, there are no special advantages of starting payroll period from 1st of every month or from any other day of the month except that payroll team want enough time to process salaries.

Hope it helps.

Regards

Uday

former_member32001
Product and Topic Expert
Product and Topic Expert
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Hi Uday,

Thanks for reply.

So there is no disadvantage too if payroll period starts from 26th to 25th right?

Since they want to go for positive time with overtime and thus actual time what ever is recorded between 26th to 25th needs to be paid.

Any specific changes in Payroll Schema to be done if the period is from 26th to 25th?

Note: This is for UAE.

Best regards,

Sanjay

Answers (2)

Answers (2)

former_member32001
Product and Topic Expert
Product and Topic Expert
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Hi All,

Note: This is not for India Payroll.

And customer says he does not have issue with the days from 26th till 31st December coming to next Financial year.

They have financial year from January till December. And these 6 days in December is considerered to next Financial year and Customer say this is not a issue for them.

Regards,

Sanjay

Sujith_EM
Active Contributor
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If it is dubai there is not that much problem with the period which you mentioned.You can go ahead with AS IS.....

Please check with social security and pension calculation have any effect because of this.

But this is the right time to get it into a standard way  first to end of the month. If you can convince client then it is better to go with first to end of the month.

sikindar_a
Active Contributor
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The issue will come when there is cross financial year

Ex: For India  if you maintain 22 march to 22 of april than we are haveing corss financial year in that case you wont have full results for a financial year

SAP has provided an alternative to this but can you please let me know which country payroll you are working for

former_member32001
Product and Topic Expert
Product and Topic Expert
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Hi Sikindar - This is for UAE.

They have financial year from January till December. And these 6 days in December is considerered to next Financial year and Customer say this is not a issue for them. And they do have this setup in their Legacy system.

Regards,

Sanjay

sikindar_a
Active Contributor
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Than i feel there will be no issue

But , Can you let us know is there any reports do you have based on Financial year , Which are Statutory.....

Please check them if your client doesn't have any issue than there wont be any issue