Retroactive accounting

[chinmaypanda2]

What is the difference between retroactive accounting and earliest retroactive accounting. Please explain the concept.

Regards,

Chinmay

[Former Member · Accepted solution]

Hi Chinmay,

Retroactive accounting:

A payroll run is repeated for a period for which payroll accounting has already been performed in the payroll past. Retroactive accounting is triggered during the payroll run for the current period if certain master and time data affecting the payroll past has been changed in the meantime.

Only changes to master and time data are relevant for retroactive accounting since previous payroll results must be corrected. A retroactive accounting limit can be set for the whole company and/or for just one employee.

Earliest Retroactive accounting

The payroll period furthest back in the past for which it is still possible to perform a retroactive accounting run.

It is stored in the HR control record for the payroll area.

Regards

Ghouse

[Former Member]

HI Chinmay,

Earliest Retroactive Accounting: The maximum point to which payroll can be rerun for. Eg If and Employee starts of with a Probation salary of Rs 10,000 per month and the company has advised after probation period his salary will be increased as of his hire date to Rs 15,000 per month.

As Skkandar explained there could be 3 Earliest retroactive accounting points. In the above case it is his hire date. The maximum earliest retro point for any employee could only be his hire date because we cannot run payroll for an EE who is not hired.

Retro Active Accounting: Eg EE gets an OT approved at a later date. A montly EE has done some OT is period 03 and gets paid in period 04, this triggers Retro Active Accounting and recalculates his pay for period 03 and brings the amount to period for payment. It will also perform tax recalculation and the extra tax is deducted in this period.

Regards

Seher

[Former Member]

hi,

Retroactive accounting define as changes take place in the Master data and Time data in a period for which the payroll has already been run, the system will check the past payroll result againest the regular payroll run, not all the chenges triggers the retroactive accounting only those changes that requrie a correction of the payroll result triggers the retroactive accounting.

Earliest possible retroactive accounting date field enable you to determine the date up to which retroacive accounting is possible for the employee,

Earliest possible retroactive accounting period can only be change, after you have set payroll status to exit payroll and before you save the payroll in control record.

RupaPrasad.

[chinmaypanda2]

looking for support

[former_member47879]

Earliest Retroactive Accounting

The payroll period furthest back in the past for which it is still possible to perform a retroactive accounting run.

It is stored in the HR control record for the payroll area.

RetroActive accounting

A payroll run is repeated for a period for which payroll accounting has already been performed in the payroll past. Retroactive accounting is triggered during the payroll run for the current period if certain master and time data affecting the payroll past has been changed in the meantime.

Only changes to master and time data are relevant for retroactive accounting since previous payroll results must be corrected. A retroactive accounting limit can be set for the whole company and/or for just one employee.

[sikindar_a]

Retroactive accounting is payroll run of the past period for which payroll is already. Its a normal scenario with a execption of it is even if payroll result for the original period is missing then also it called retroactive accounting.

Earliest retroactive accounting is dependent on 3 entries

1. Entry maintain in tcode PA03 for that particular payroll area.

2. entries maintain through tcode PU03

3. Entry maintain in Infotype 3.

max of these 3 will define the Earliest retroactive accounting for the payroll area.

You can limit by changing the date in infotype 3 if its specific to 1 employee but if its for a payroll area then u can do this through tcode PA03.

Retroactive Acc Period: The retroactive accounting period refers either to an individual employee or to a payroll area. The earliest possible retroactive accounting period is specified for a payroll area. The system also takes into consideration the employee's initial entrydate.

Earliest Retroactive Acc'g Period: The period furthest back in the past for which it is still possible to perform a retroactive accounting run. This means that retroactive accounting takes place for a period for which payroll has already been performed.

Retroactive Accounting

A payroll run is repeated for a period for which payroll accounting has already been performed in the payroll past. Retroactive accounting is triggered during the payroll run for the current period if certain master and time data affecting the payroll past has been changed in the meantime.

Only changes to master and time data are relevant for retroactive accounting since previous payroll results must be corrected. A retroactive accounting limit can be set for the whole company and/or for just one employee.

Earliest Retroactive

The payroll period furthest back in the past for which it is still possible to perform a retroactive accounting run.

It is stored in the HR control record for the payroll area.

taken from another thread

[chinmaypanda2]

Thanks for your response. Can you please explain through an example.

Regards,

Chinmay

[sikindar_a]

retroactive accounting and earliest retroactive accounting. Please explain the concept.

Retro Accounting - X an employee got promoted in June and there is change in his pay but the order has been issue in he month of august so at this time retro will happpen

Earliest Retroactive - Check the feild in the PA03

the retro will happen from that date which is mentioned in the control record eariler to that the system donts accepts

kindly check