Converting Payroll to Concurrent Employment 

Use

If you have activated concurrent employment in your system, you must be aware of some special features in payroll.

Only make this conversion once payroll and all its subsequent activities (in particular, wage and salary payments, and posting to Accounting) have been completed.

Features

Retroactive accounting

If the employee only had one personnel number before the conversion to concurrent employment, after the conversion the system can calculate back to the time before the conversion. If the employer or the legal person have changed for the personnel number in question during the time for which you are performing retroactive accounting (see Grouping for Net Calculation, Retroactive Accounting and Payment), you must, in certain cases, perform subsequent processing. Whether or not you must perform subsequent processing depends on why retroactive accounting was triggered.

You have activated concurrent employment in your system on April 12 2003. One employee has one personnel assignment (this means, one personnel number). He or she was employed by employer A until February 9 2003. As of February 10 2003, he or she was employed by employer B. During the payroll run that you perform on April 25 2003, the system runs retroactive accounting back to the payroll period in which the employer was changed.

The following cases can occur during retroactive accounting:

·        Retroactive accounting is triggered by a change in one of the infotypes Basic Pay (0008), Recurring Payments/Deductions (0014), or Additional Payments (0015).

For such a retroactive accounting run, after conversion to concurrent employment the system uses the payroll results that were created by the payroll driver for which concurrent employment was not active (RPCALCx0) in order to calculate the retroactive accounting differences. The system takes the differences into account in the current in-period when calculating the net amount.

It creates the retroactive accounting result using the structure of the payroll driver for which concurrent employment is active (RPCALCx0_CE). This means, for example, that the system stores the /5xx wage types (for example /599 (Payment)) together with the grouping value of the personnel assignment in table RT_PERSON (Results Table for Person). In this case, the grouping value is derived from the grouping for net calculation, retroactive accounting, and payment, to which the personnel assignment is assigned in the for-period for which retroactive accounting is being run. (In the above example, the grouping value is, therefore, employer A.)

In this case, subsequent processing is not necessary.

·        Retroactive accounting is triggered by a change in the gross or net deductions, or by a change in facts that are treated according to the principle of origin (for example, tax).

For such a retroactive accounting run, the system transfers the differences that arise for the /551 wage types (Retroactive Accounting Differences) and /553 wage types (Difference to the Last Retroactive Accounting Run) to the current in-period and takes them into account when calculating the net amount. The system stores the wage types and the grouping value of the personnel assignment in table RT_PERSON. In this case, the grouping value is also derived from the grouping for net calculation, retroactive accounting, and payment, to which the personnel assignment is assigned in the for-period for which retroactive accounting is being run. (In the above example, the grouping value is also employer A.)

However, since the grouping of the current in-period is different from the grouping of the for-period, the system cannot deduct a carry-forward wage type that arises (wage type /565) or a claim (wage type /561) in the current in-period from the remuneration of the employee, nor can it pay an amount to the employee. This is because the system would process the amounts in the grouping for the current in-period, which is the wrong grouping. (In the above example, employer B is debited or credited instead of employer A.)

You receive notification in the payroll log that either wage type /565 (Carry-Forward for Subsequent Period) or /561 (Claim) was created for the employee. In this case, you must ensure that a personnel assignment with the right grouping is available, to which the wage types can be transferred. For more information, see “Activities”.

The following restrictions exist for retroactive accounting runs before the conversion to concurrent employment:

·        The system cannot perform retroactive accounting for employees who had several personnel numbers before the conversion to concurrent employment. An exception to this rule is when you restrict retroactive accounting in such a way so that after the conversion, the system only calculates back for one of the two personnel numbers in the time before the conversion.

·        As soon as you have run payroll with the payroll driver for which concurrent employment is active (RPCALCx0_CE), you can no longer use the payroll driver for which concurrent employment is not active (RPCALCx0). The payroll driver for which concurrent employment is not active cannot calculate back to payroll results that were created by the payroll driver for which concurrent employment is active.

·        The payroll result that the system calculates during a retroactive accounting run can be different to the original result that was first created for this payroll period. This can be caused by changed functionality or changed Customizing settings.

Changing the payroll area

See changing personnel area for personnel assignments.

Changing the grouping for net calculation, retroactive accounting, and payment (“Change of Employer” or “Legal Person Change”)

See Change the Grouping for Net Calculation, Retr. Accounting, and Payment for Personnel Assignments.

Activities

When you receive notification in the payroll log that either wage type /565 (Carry-Forward for Subsequent Period) or /561 (Claim) was created for the employee, proceed as follows:

·        In the in-period, use a hiring action to create a new personnel assignment for the employee, which you assign to the grouping for net calculation, retroactive accounting and payment of the for-period (in the above example, employer A). Create the personnel assignment with the status inactive.

·        In the Run payroll up to field of the payroll status infotype (0003), enter the end date of the current in-period for the new personnel assignment.

·        Confirm the data in the Bank Details infotype (0009) that was proposed in the hiring action, or enter the required data. Then the system makes sure that wage type /565 (Carry-Forward for Subsequent Period) for the personnel assignment is paid out within the right grouping (which means the right employer).

Whether the system suggests data for the new personnel assignment in the Bank Details infotype, depends on the grouping for the infotype. The individual infotypes are each assigned to a grouping reason for personnel assignments in Customizing for Personnel Management under Personnel Administration ® Customizing Procedures ® Settings for Concurrent Employment ® Copy Infotypes. A grouping rule is assigned to each grouping reason.

In the standard system, grouping reason 0009 (Bank Details (infotype 0009)) is assigned to the Bank Details infotype. The following grouping rules are assigned to this grouping reason:

·         Cross-country assignment: grouping rule XMOL (Country grouping)

·         Assignment for country version USA: grouping rule USTC (US Tax Company (Employer))

The grouping rule determines the rules according to which the infotype records of a concurrently employed person are copied, if you create another personnel assignment for him or her.

·         If you create the new personnel assignment for a country version other than the USA, the system copies the existing infotype record from the existing personnel assignment to the new one. The system uses this available data as default values during the hiring action.

·         If you create the new personnel assignment for the USA country version, the system does not copy the existing infotype record from the existing personnel assignment to the new one. You must create the infotype record yourself during the hiring action.

·        For wage type /561 (Claim), you must store the appropriate amount in the Additional Payment (0015) infotype in the personnel assignment for which the claim is incorrect. (In the above example, you must do this in the personnel assignment with employer B.)

In the other personnel assignment you must enter the same amount in the Additional Payment (0015) infotype as a deduction because in this case there really is a claim on the employee. (In the above example, you must do this in the personnel assignment with employer A.)