Processing Regular Year End Adjustment with December Monthly Payroll

Purpose

For cases when the Provisional Year End Adjustment (YEA) with Shoyo Payroll, that creates provisional Year End Adjustment results, is performed, the Regular Year End Adjustment with December Monthly Payroll must be performed to create the final Year End Adjustment result. Processing scenario of Regular Year End Adjustment with Monthly Payroll, that performed as a part of Provisional Year End Adjustment business process, consists of monthly payroll of December and reporting of Year End Adjustment results.

For more information, see Regular Year End Adjustment Calculation .

Prerequisites

To process Year End Adjustment with monthly payroll, a customizing set up for specifying the type of Year End Adjustment processing scenario must be properly defined. For more information, see Set Up Processing Scenario of Y.E.A. Calculation in the Implementation Guide (IMG) for Payroll Japan.

The employees that are subjected to Year End Adjustment are specified by " YEA indicator " in Personnel Tax Status Information (0145) . This " YEA indicator " must be set to " Normal Y.E.A. " otherwise, Year End Adjustment will not be performed to an employee and only monthly payroll results of December will be created.

Process Flow

The payroll control record status is changed automatically with every step that is carried out during payroll.

  1. You release a payroll area for payroll.

  2. The System sets the period number to 12 (December). You cannot change the infotypes for personnel numbers, which belong to this payroll area, if it affects the payroll past or present. Changes affecting the future are still possible.

  3. You start Year End Adjustment with Monthly Payroll.

  4. The system calls up a payroll program and sets specific parameters for Year End Adjustment with December monthly payroll.

  5. You check whether payroll has run correctly, or determine where errors have occurred.

  6. During this phase, you can no longer change any data which is related to payroll, and which will affect present or past payroll information. The payroll area in question is also locked for payroll; in other words, you cannot start a payroll run.

    The SAP System includes a report program that reads and checks the stored payroll results. The report allows each employee to see the contents of all internal tables containing payroll results. This allows you to check all partial results for a payroll run and determine the point during the payroll run when an error occurred.

  7. You correct master or time data for personnel numbers which contain errors and which the payroll program cannot process.

  8. During payroll run, the SAP System flags the Payroll Correction field in the Payroll Status infotype (0003) for all rejected personnel numbers. When you correct master or time data for a personnel number this field is also flagged. These personnel numbers are grouped in a list under matchcode W. In payroll with matchcode W, payroll only takes place for the corrected personnel numbers.

  9. You release payroll again.

  10. The payroll period does not change.

  11. You start the Year End Adjustment with Monthly Payroll with Matchcode W.

  12. You complete Year End Adjustment with Monthly Payroll. The personnel numbers for the payroll area can be processed again.

  13. You can only end Year End Adjustment with Monthly Payroll when the payroll has run successfully for all personnel numbers in the selected payroll area. This means that payroll is finished for all of the personnel numbers in the payroll area, including the rejected personnel numbers, and the payroll period is complete.

  14. You print legal statements and report.

As the closing of Year End Adjustment, you need to print the following legal forms and statement:

Result

You have run Regular Year End Adjustment with Monthly Payroll for all the personnel numbers in a payroll area and created the following results:

  • December monthly payroll results

  • Year End Adjustment results (final result)

  • Wage Ledger (Gensen Chousyu-Bo / Chingin Dai-Cho)

  • Withholding Tax Statement for Employment Income (Kyuyo Shotoku no Gensenchoshu-Hyo)

  • Salary Income Information Return for Salary Income Earner (Kyuyo Shiharai Houkoku-Sho)

  • Payment Report (Soukatsu-Hyo)

You can perform the following steps in payroll:

  • Create a remuneration statement for December monthly payroll

  • Wage and Salary Payments for December monthly payroll

  • Posting to Accounting for December monthly payroll