Retroactivity 

 

The retroactive accounting in the SAP system in based on two principles or concepts.

●     Principle of origin: it means that a retroactive calculation modifies the original calculation basis in the original periods and thus the contributions. Only the net differences are transferred the period where the retroactive calculation is made.

●     Inflow principle: it means that a retroactive calculation does not modify the original calculation basis. The differences between the new and the original bases are calculated but the resulting differences are transferred to the period where the retroactive calculation is made.

The retroactive calculation methods are based on these two principles; at the same time, these methods specify how the calculation is made.

It is possible to specify which areas will be affected by the retroactive calculation, for example, if the retroactive calculation is only applied to the Social Insurance, taxes, etc.

It is also possible to specify the reason (from the business point of view) why the retroactive calculation takes place, for example, remuneration increase, pay scale salary, error or omission, etc.

The combination between method, area and reason gives as a result a retroactive calculation type. In other words, the retroactive calculation type defines which retroactive calculation method is used and for which area. For example, the 0001 type can be formed by the Social Insurance area with the inflow principle and the taxes area with the same inflow principle.

This way, for example, it can be defined that due to a wage modification in the past (reason), a retroactive calculation of the taxes (area) is made, following the inflow principle (method).

All these concepts can be defined and linked using the Implementation Guide in section, Payroll Mexico ® Retroactive calculation ® Update relevant data for retroactive calculation.

Infotype Retroactivity (0262) allows to specify employee specific data both for a regular payroll (subtype 001) and for a correction run (0029. The entries in this infotype are not mandatory: if you do not specify anything in this infotype, the retroactive calculation is made according to the system settings.

If you want to create new subtypes for this infotype, you have to change the feature P0262.