Arrears Calculation

[Former Member]

Dear Friends,

This query is regarding Arrears Calculation. Please, go through & provide best possible solution.

Its Indian Payroll project in BBP phase. Client have to pay arrears to its entire employees from April 2009 (6th pay commission), settlement is still awaited. Client had provided the proposed structure to me, in which i found there is change in basic pay (different percentages to different levels & grades) there by difference in the pay components which, are depended on basic. Client is planning to golive by 01-012011.

I had suggested client to handle the arrear calculation in legacy system & to provide the results but, client is expecting the arrears calculation in SAP system. We had planned to do Midyear Golive with golive date as 01-01-2011 & upload the T558B, T558C from April 2010.

Client wants the Arrear calculation from 2009 April in SAP system, along with the Tax relief 89(1) sothat, client can generate any report pertaining to Arrears in SAP system & need not check the Legacy system for the same. How to hadle this situation? Should i run payroll for all periods from April 2009 & retro run with golive or is there any other solution to solve this?

Also, can any one provide the content of SAP Note #0338560

Thanks & Regards

Navya

[Former Member]

Hi Navya,

Your scenario seems to be quite difficult.

As your client is not agreeing for mid year go live strategy and wants sap should do the arrears calculation.

The following may be one option.

You have to put the data from 01.04.2009 and each month run the payroll in sap & tally with legacy for each month then only you

can run the arrears correctly.

The above case quiet difficult and the taxes may not tally exactly,those cases you need to upload legacy taxes through voluntary

tax wage type.

Dear Gurus suggest a better option.As the above will take too much time.

Regards

Ramesh

[Former Member]

Dear Mr. Ramesh,

Thanks for the reply, The solution that, you have given is last option. I thought of doing it if, there is no other way.

Here client, does not want to refer the legacy system if at all they want to generate different reports pertaining to the arrears (April 2009 to golive date). This is their main requirement. If different reports can be generated in SAP system pertaining to Arrears from April 2009 to golive date, i can convince them to do the arrear calculation in legacy system. can i upload the values of arrears (WT) period wise from April 2009 to golive date in T558b & T558C? & can different reports can be generated as i mentioned above?. Please, let me know, if, any solution is there.

Best Regards

Navya

[Former Member]

Hi,

I m new to payroll. Can anybody let me know how to do retro run for arrears? where can we find retro run? can we do retro run for each employee who is having arrears or is there any option like uploading like that?