Example: Posting Retroactive Accounting Data
In period 1, an employee receives monthly remuneration of 5,000. In period 2, monthly remuneration is increased retroactively to 6,000 for period 1 and all subsequent periods.
The following graphic only includes the basic wage types that are relevant to posting:
Wage type /560 (
Payment amount
) is not posted, so posting-relevant wage type /559 (Bank transfer
) is used for the payment.No other payments or deductions are taken into consideration. The payment (wage type /559
Bank transfer
) therefore corresponds to monthly remuneration for the employee (wage type M020).
Part I: Consideration of Payroll Results
In period 01, monthly remuneration for the employee is 5,000 (wage type M020). This amount is paid (wage type /559
Bank transfer
).
In period 02, retroactive accounting for period 01 gives rise to a new payroll result in which monthly remuneration is increased to the new agreed amount of 6,000 (wage type M020). The payment amount in period 01 remains unchanged (wage type /559
Bank transfer
). The difference of 1,000 is recorded in separate wage type /551
Recalculation difference
.
In period 2, the employee is paid 7,000 (wage type /559
Bank transfer
) as a result of the retroactive pay increase. This amount consists of monthly remuneration for period 02 (wage type M020 = 6,000) and the retroactive pay increase for period 01 (wage type /552
Subs.clearing/prev.month
= 1,000).
Note
If tax is calculated according to the principle of origin, wage types /551
Recalculation difference
and /552
Subs.clearing/prev.month
are formed when retroactive accounting differences arise. However, if tax is calculated according to the inflow principle, other wage types may be relevant to posting with regard to retroactive accounting differences either instead of or in addition to these wage types.
Part II: Consideration of Postings
When this retroactive accounting run is posted, the posting for payroll result
period 01 in period 01
is reversed. In this way, the posting of wage type M020 creates a balance of 7,000, which is posted to the debit side of the
remuneration
account as an expense. The posting of the payment amount (wage type /559) creates a balance of 7,000, which is posted to the credit side of the
Payments
account as a payable. In the posting, the amounts for wage types /551 and /552 create a balance of zero. Therefore, no posting is created from these recalculation differences.
Part III: Consideration of Accounts
7,000 are posted to the debit side of the
Remuneration
account. 7,000 are posted to the credit side of the
Payments
account. There is no posting to the recalculation difference account. A retroactive accounting run can, for example, trigger a posting to the recalculation difference account if several company codes are affected by the retroactive accounting run.
See also: