Changes to an employee's payroll data in a past payroll period trigger a retroactive payment calculation in the current period. This calculation either takes place automatically or you can force it in the payroll run.

During retroactive accounting, the system recalculates all of the employee’s pay for the affected period(s). The new figure is compared with the original payments that the employee received. The difference in net pay is carried forward and paid in the current payroll period.

The standard system processes retroactive calculations that affect net payments. SAP HR Payroll Australia has three additional functions that process retroactive changes to:

• Superannuation
• Taxation
• Leave accruals and entitlements