Processing Provisional Year End Adjustment with Shoyo Payroll

Purpose

For cases when Provisional Year End Adjustment business process is to be exercised, Shoyo payroll of December must be executed with Provisional Year End Adjustment. Processing scenario of Provisional Year End Adjustment with Shoyo Payroll consists of processes of Year End Adjustment preparation, estimation of December monthly payroll and Shoyo payroll of December.

For more information on functional features, see Provisional Year End Adjustment with Shoyo Payroll Calculation .

Prerequisites

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

You must have completed customization on how to estimate employee’s Kijun-gai payment that is accounted during Provisional Year End Adjustment with Shoyo Payroll calculation. Please refer the customizing documentation " Check Wage Types for Simulating December Payroll " in the Implementation Guide (IMG) of Payroll Japan for details.

Which employees should be subject to Year End Adjustment is specified by " YEA indicator " in Personnel Tax Status Information (0145) . And this " YEA indicator " must be set to " Normal Y.E.A. " otherwise Year End Adjustment will not be performed to an employee and only Shoyo payroll results of December will be created.

Process Flow

Unlike monthly payroll, Shoyo payroll function is designed to be performed when the status of payroll control record for a payroll area is outside of Release Payroll to Exit Payroll.

  1. You print legal forms and maintain employees' Year End Adjustment information.

Before performing Year End Adjustment with Monthly Payroll, each employee's Y. E. A. Information (Infotype 0146) must be checked and maintained. The following are legal forms to collect employees' Year End Adjustment information:

You also need to collect information relevant to Year End Adjustment, such as, housing acquisition deduction and maintain it in the employees' master data.

  1. You estimate December monthly payroll result and check its adequacy.

  2. Before starting to process Year End Adjustment with Shoyo Payroll calculation, you must first execute Estimation of December Monthly Payroll and perform Estimated December Monthly Payroll Result Check .

  3. You check the status of payroll control record of a payroll area.

  4. We recommend that you ensure the status of payroll control record is outside of Release Payroll to Exit Payroll .

  5. You start Provisional Year End Adjustment with Shoyo Payroll.

  6. The system calls up payroll program and sets specific parameters for Year End Adjustment with Shoyo payroll.

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

  8. During this phase, unlike monthly payroll, you can change any data which is related to payroll, and which will affect present or past payroll information. The payroll area in question is NOT locked for payroll.

    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.

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

  10. During the 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.

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

  12. You end Provisional Year End Adjustment with Shoyo Payroll.

Note Note

You can only end Year End Adjustment with Shoyo 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.

End of the note.

Result

You have run Provisional Year End Adjustment with Shoyo Payroll for all the personnel numbers in a payroll area and create the following:

  • Employee's Income Tax and Family Dependent Tax Deduction form

  • Life Insurance and Spouse Tax Deduction form

  • Shoyo payroll results

  • Year End Adjustment results (provisional result)

You can perform the following steps in the payroll:

  • Create a remuneration statement for Shoyo

  • Wage and Salary Payments for Shoyo

  • Posting to Accounting for Shoyo