Retroactive Accounting functionality in HCM payroll PART-II
In this blog I am going to explain how the retroactive accounting functionality of HCM payroll is handled in payroll schema and pcr level.
Retroactive accounting may occur in the payroll in the following two scenarios,
- Master data changes happened in the payroll past.
- Processing payroll for more than one payroll period.
This blog is a continuation of my previous blog post. In my previous blog post, I have explained the Scenario 1 – Master data changes happened in the payroll past.
You can find my previous blog post information below.
Note: I am going to use Saudi Arabia payroll program (PC00_M24_CALC) for demonstrating this functionality.
Disclaimer: The employee number and other details I am using in this blog is from demo system only and this is only for knowledge sharing purpose.
Scenario 2: Processing payroll for more than one payroll period
Employee number – 117086 is having 3000 SAR per month compensation.
Payroll is processed for employee till February 2022.
Now in the month of March 2022, payroll is not processed for an employee 117086 due to some reasons. In the month of April 2022, both March and April month payroll are processed at a single point of time. So, this Scenario leads to retro accounting functionality in the April month payroll automatically by the system. So let us see how it is handled in PCR level.
Retro accounting activities will be handled under “Retroactive accounting INTERNATIONAL” block in payroll program.
Under “Retroactive accounting INTERNATIONAL” block ELSE part will be processed since there is retro in March 2022.
In the PCR X048, the value of the variable will be set to Zero.
Since there is no old Payroll result table (ORT) is available for March 2022, LPEG loop will not be processed.
System will check whether LPEG loop is processed or not using the Condition IF LPRC. Since LPEG is not processed, control will move to ELSE part.
Note: This is major difference between scenario 1 (explained in last blog) and scenario 2. In Scenario 1, since there is old payroll result available for month, LPEG loop is processed.
Next, in the PCR X043 DT and IT tables will be processed.
The following operations will be processed for /560 wage type from IT table.
- /560 from IT table will be added with /551 from DT table and it will be stored in DT table.
- /560 from IT table will be added with /553 from IT table and it will be stored in IT table.
- /560 from IT table will be added with /551 from DT table and it will be stored in IT table.
- Then value of BTEX variable is compared with 1, in our case its value is 0, so /560 is removed from IT table. (Note: In scenario 1, since LPEG loop is processed value of BTEX variable is updated to 1, but in the current scenario, since LPEG loop is not processed, BTEX variable remains 0.)
In our case /560 will be 3000, /551 and /553 will be 0, the following calculation will happen,
/551 from DT = 3000+0= 3000.
/551 from IT = 3000+0= 3000.
/553 from IT = 3000+0= 3000.
Finally in the RT table for the period March 2022, /551 and /553 Wage types will be present but /560 Wage type will not present.
Payment wage type /560 will not be present when payroll is processed for more than one month for the first time.
Under “Retroactive accounting INTERNATIONAL” block IF part will be processed since it is normal payroll period in April 2022.
DT table will be processed in the PCR X041. DT table contains /551 wage type (Retro differences) from the previous payroll period.
The following operations will be performed in the PCR X041 for the wage type /551.
- /551 will be added to /552 and it will be stored in IT table.
- /551 will be added to /560 and it will be stored in IT table.
- /551 will be added to /562 and it will be stored in IT table.
In our case /560 and /562 will be 3000, /551 will be 3000, the following calculation will happen,
/552 = 3000.
/560 = 3000+3000 = 6000.
/562 = 3000+3000 = 6000.
Finally in the RT table for the period April 2022, /552 Wage type will be present along with /560 Wage type.
As a conclusion retro difference 3000 SAR is paid to employee in the current payroll period.
In this blog I have explained how retroactive accounting functionality of HCM payroll is handled in PCR and schema level for the Scenario “Processing payroll for more than one payroll period”. With this I am ending retro accounting blog series, I hope that the Blog post has been useful for the understanding the retro accounting concepts of payroll in PCR and Schema levels. Please feel free to share your suggestions and queries regarding this blog in comments section if any.