The R/3 System differentiates between qualified and unqualified advance payments.

With qualified advance payments payroll accounting takes place for some of the payroll elements in the first payroll run and is transferred if necessary. The payroll run is not ended. It receives instead the Payroll correction status. During the correction phase, you enter the other payroll elements. In the subsequent payroll runs you carry out payroll accounting for these remaining payroll elements and transfer them to your employees. The payroll program finishes when accounting has been performed for all payroll elements.

Employees may receive an advance salary payment prior to the payroll run. In this case, only the employee’s master data is read for the transfer. No payroll run is performed. Wage types from the following infotypes are taken into account:

• External Bank Transfers infotype (0011)
• Recurring Payments and Deductions infotype (0014)
• Additional Payments infotype (0015)

The initial payment is effected gross for net since there is no payroll run to calculate withholdings, such as for taxes and insurance contributions. Net accounting for the advance payment takes place during the payroll run, which is performed later. This type of advance payment is known as an advance payment on the basis of master data. The payroll run takes place at the end of the payroll period.

An unqualified advance payment is independent of the payroll period and is therefore considered a period-independent activity.