If an employee is retrospectively assigned to another company code, retroactive accounting is triggered. Posting of this retroactive accounting run happens in the following way:

• Posting of the old payroll results from the retroactively accounted period is reversed in the old company code.

• The new payroll result from the retroactively accounted period is posted in the new company code.

The payment that took place in period 01 can no longer be reversed. In this way, a receivable or a payable arises between the two company codes, which then appears on the company code clearing accounts.

The graphic shows an example for the case of an employee who has retrospectively changed company code. To simplify matters, the assumption is made that the company code has changed retrospectively for the whole period 01.

Originally, an amount of 5,000 was posted from the Remuneration account to the Outgoing payment account in period 01 in company code 0001. After making the payment, the Payment account was cleared by the manual posting Payment to bank clearing account to the amount of 5,000.

The backdated change of company code for the employee from company code 0001 to company code 0003 causes the Remuneration to payment posting of 5,000 to be reversed in company code 0001. However, as the payment has already been made to the employee, a receivable of 5,000 incurs from company code 0001 to company code 0003 that appears on the company code clearing account of company code 0001.

In company code 0003, an amount of 10,000 is posted as an expense to the Remuneration account. This amount contains the expense of 5,000 for period 01 and the expense of 5,000 for period 02. This posting of 5,000 to the payment account of company code 0003 and 5,000 to the company code clearing account of company code 0003 offsets this.

After the amount of 5,000 was paid to the employee for period 02, the system performs a manual posting Payments to bank clearing accounts of 5,000. This clears the payment accounts in both company codes, but does not clear the company code clearing accounts.

• The balance of the company code clearing account for company code 0001 shows a receivable of 5,000 against company code 0003.
• The balance of the company code clearing account for company code 0003 shows a payable of 5,000 against company code 0001.

The symbolic account to which wage type /559 Bank transfer is posted, has the account assignment type FO Posting in original period only. For more information, see the Implementation Guide (IMG) for Payroll, under Reporting for Posting Payroll Results to Accounting ® Activities in the HR System ® Employee Grouping and Symbolic Accounts ® Define Symbolic Accounts.

The balances of the company code clearing accounts correspond to the receivables and payables between the company codes.

You must manually clear the receivables and payables between the company codes. When doing so, you also clear the balances of the company code clearing accounts.