Reversing Wage Components 

Use

To reverse a wage component, choose one of the following options:

For each of these changes to an infotype record, the date is stored as the validity date of the infotype record. If a change is made for a payroll period in the payroll past and not the current payroll period, a retroactive run is triggered in Payroll.

An employee cannot have a negative gross tax amount in Payroll, however, it is possible to process negative wage components. The system cannot check whether negative wage components would cause a negative gross tax amount when they are transferred.

Scope of Function

The reversal process is dependent on whether payments from previous periods are taxed according to the principle of origin or the inflow principle.

Principle of Origin (Taxation in Period in Which the Payment Originated)

The third-party application uses one of the methods of the business object EmpWageComponentExt to transfer to HR the changes with specification of the date of the original document. HR sets the retroactive accounting date.

To make the relationship clearer, it should be possible to access the original document from the reversal document in the third-party application.

With this type of taxation, the document must not be summarized over several commission accounting periods.

Inflow Principle (Taxation in Period in Which the Payment is Paid Out)

The third-party application can transfer items to be reversed with the current wage components to the current payroll period

It is also possible to transfer the changes with the date of the original document. The country versions of the payroll program carry out the taxation in the correct period.