Generation of Recalculation Differences
Purpose
If you change an employee’s wage and salary elements with retroactive effect, the system calculates difference amounts and forwards them to the current payroll period as recalculation differences.
Process Flow
If wage and salary elements are changed with retroactive effect, the amount of wage type /560 (
Payment amount
) is not changed. Recalculation differences are calculated and forwarded as follows:
The system calculates a new payment amount for the previous payroll period, but does not save this value in the payroll result.
The system calculates the difference between the new payment amount and the original payment amount for the retroactive accounting result.
If the new payment amount is greater than the original payment amount, the employee receives an arrears payment. In this case, the system saves the insufficient amount transferred to the employee with a negative sign in wage type /551
(Recalculation difference)
.If the new payment amount is less than the original payment amount, the employee must effect a repayment. The difference is withheld in the current payroll period. In this case, the system saves the excessive amount transferred to the employee with a positive sign in wage type /551
(Recalculation difference)
.
The system transfers the amount of wage type /551
(Recalculation difference)
from the retroactive accounting result with a reversed sign to the payroll result of the current payroll period, and saves it in wage type /552(Subs.clearing/prev.month):
If the employee receives an arrears payment, the sign changes from minus (-) to plus (+).
If the employee must effect a repayment, the sign changes from plus (+) to minus (-).
Therefore, wage types /551 (
Recalculation difference
) and /552 (
Subs.clearing/prev.month
) always have opposite positive (+) / negative (-) signs:
Change |
Sign for wage type /551 ( Recalculation difference) in retroactive accounting result |
Sign for wage type /552 Subs.clearing/prev.month in payroll result of current payroll period |
An employee’s remuneration element is increased with retroactive effect |
negative |
positive |
An employee’s remuneration element is reduced with retroactive effect |
positive |
negative |
See also: