Year End Adjustment Correction

Purpose

You must correct the Year End Adjustment (YEA) result and legal statements and returns must be re-issued if an employee’s master data is changed after the Year End Adjustment. For example, correction is required if an employee’s master data such as, family is changed or spouse's income tax deduction is not correct after processing the Year End Adjustment.

Processing scenario of Year End Adjustment Correction consists of processes of Year End Adjustment master data correction, execution of Year End Adjustment and reporting of Year End Adjustment results.

For more information on functional features, see Year End Adjustment Correction .

Prerequisites

The employees who are subjected to Year End Adjustment is 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 Correction will not be performed for an employee.

Furthermore, you execute Year End Adjustment Correction only to employees who need Year End Adjustment result correction, you should identify target employees, explicitly. You can identify such target employees from individual employee's notification and/or Year End Adjustment Checklist .

Process Flow

Year End Adjustment Correction 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 correct employees' master data and Year End Adjustment information.

    Before performing Year End Adjustment Correction, master data such as Family and Related Person National Features J apan (infotype 0021) , Personnel Tax Status Information (0145) , and Y. E. A. Information (Infotype 0146) of employees who need Year End Adjustment result correction must be checked and corrected.

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

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

  3. You start Year End Adjustment Correction .

    The system calls up payroll program and sets specific parameters for Year End Adjustment Correction .

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

    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.

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

    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 together in a list under matchcode W. In payroll with matchcode W, payroll only takes place for the corrected personnel numbers.

  6. You start the Year End Adjustment Correction with Match code W.

  7. You end Year End Adjustment Correction .

    Note Note

    You can only complete Year End Adjustment Correction when the payroll has run successfully for all target personnel who need correction in the selected payroll area. This means that payroll is completed 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.

  8. You print legal statements and report.

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

    Wage Ledger (Gensen Chousyu-Bo/Chingin Dai-Cyo)

    Tax Statements for Year End Adjustment

    Payment Report for Year End Adjustment (Soukatsu-Hyo)

Result

You have run Year End Adjustment Correction for all target personnel who need correction in a payroll area and created the following results:

  • Employee's Income Tax and Family Dependent Tax Deduction form (if re-printed.)

  • Life Insurance and Spouse Tax Deduction form (if re-printed)

  • Corrected Year End Adjustment results

  • "Kampu-chosyu Kin" which is to be paid or deducted from the monthly payroll of January.

  • 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)