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How to Prevent Retro Pay Errors in SAP Payroll

Feb 15, 2017 12:30:00 PM / by Whitaker-Taylor

How to Prevent Retro Pay Errors in SAP PayrollAutomatic calculation of retro pay is a welcome cost and time saver—until it isn’t. I have seen the effects when an unsuspecting user updates a non-payroll infotype only to be surprised when payroll recalculates for multiple periods or even years.

Retroactive accounting is triggered in a current payroll run by changes to master data or time that could potentially affect previous payroll results. The process recalculates the previous run, compares it to the previous result, and writes the difference as a retro entry.

Although the concept of retroactivity may seem like an Achilles heel for the payroll team, the function is critical. The retro functionality allows payroll processing to not only account for missing or changed payroll entries anytime during the past that could have affected an associate’s pay but also adjust and correct in an according plus efficient fashion the affected associate’s pay when applicable.

 
How to Configure Retroactivity Settings

Table V_582A_D is where you can maintain the retroactivity characteristics of an infotype

How to Prevent Retro Pay Errors in SAP Payroll

Figure 1. SM30 Transaction Code of the V_582A_D table

Once you access this table, you arrive at a list of available infotypes. Using this list, select the desired infotype to see its retroactivity properties and characteristics.

How to Prevent Retro Pay Errors in SAP Payroll

Figure 2. Retroactivity characteristics for Infotype 0022- Education showing the retroactivity trigger.

The available values are:

  • Blank: Infotype is not relevant for retroactive accounting.
  • R: Change triggers retroactive accounting.
  • T: Retroactive accounting is field-dependent according to table T588G.

How to Prevent Retro Pay Errors in SAP Payroll

Figure 3. Retroactivity characteristics for Infotype 0022- Education showing the retroactivity trigger turned off via the empty value in the Retr.acct.payr field.

A nifty feature is that the retroactivity characteristic can also be applied and changed with regards to time evaluation. Time Evaluation processing will behave in the same way with regards to the previously mentioned payroll processing.

How to Prevent Retro Pay Errors in SAP Payroll

Figure 4. Retroactivity field characteristics related to Time Management Evaluation.

Another helpful feature is the ability to set the value of T in the Retr. Acct.payr. field as seen in Figure 5:

How to Prevent Retro Pay Errors in SAP Payroll

Figure 5. Retroactivity value of “T” which allows the trigger of retro calculation for select fields within an infotype by referencing table T588G.

By setting this value to T, you can selectively choose which fields (by referencing T588G) within the infotype will trigger retroactivity. This is useful when you do not want to eliminate the retroactivity trigger for an entire infotype (leaving the field empty as referenced in Figure 2) but rather for select fields within an infotype.

How to Prevent Retro Pay Errors in SAP Payroll

Figure 6. The individual fields for an infotype in T588G that can be selected for the trigger of retroactivity as it pertains to IT0021.

 
How to Validate the Results

A simple way to ensure if retroactivity is triggered during a change in master data is to reference that employee’s infotype 0003- Payroll status.

How to Prevent Retro Pay Errors in SAP Payroll

Figure 7. Change within an associate’s IT0022- Education infotype.

As you can see above, a master data change was initiated on 01/25, but with the retroactivity field left blank for IT0022 (Figure 3), nothing is updated with regards to the payroll/retroactive accounting fields in his IT0003 field seen in Figure 8 below.

How to Prevent Retro Pay Errors in SAP Payroll

Figure 8. Associate’s IT0003- Payroll status left unaffected by the change in the master data in IT0022.

Now, when we change the return value of the retroactivity field to an R (Figure 2), we see that the fields are updated differently in the associate’s IT0003: Earliest MD change and Mast.data. chang.bonus fields are updated with the date in which the infotype was changed (01/25). This result will lead to the reprocessing of payroll for the corresponding period and ultimately triggering retro calculation.

How to Prevent Retro Pay Errors in SAP Payroll

Figure 9. Associate’s IT0003 impacted by the change in master data in IT0022 which ultimately prompts retroactivity for the selected date 01/25/2017.

 

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