You can use the balance functionality to slowly reduce large amounts from the ARRRS table (Arrears) over several periods. This is called arrears recovery.

If a deduction is stored in table ARRRS because the net amount was too low, the system transfers this deduction in the following period to the IT table and tries to withhold the amount again. If an employee does not have income for several periods the amount in the ARRRS table can quickly increase. The total amount is deducted from the ARRRS table in the first period that the employee receives an income again. This means that the net amount paid to the employee could be very low. It is possible that the deduction could even exceed the payment amount.

In such a situation it can be useful not to deduct the amount all at once but rather to deduct the amount slowly over several periods.

SAP supplies the following model wage types in the standard system:

• MD50: Deduction that is transferred to the ARRRS table if the net amount is not sufficient.
• MD60: Recovery wage type
• MD70: Balance wage type

The system uses the following indicators to link to the arrears functionality:

The indicators are stored in table T51P3 (Indicator for Wage Type Assignment) for each country grouping.

The link between the wage types is made in table T51P1 (Wage Type Assignment):

• You link the arrears wage type with the recovery wage type.
• You link the recovery wage type with the balance wage type.

For this there is an activity in Customizing for Payroll under Deductions ® Arrears and Priorities® Maintain Recovery of Arrears.

To perform arrears recovery, you specify a repayment plan with fixed installments. You can do this in the system as follows:

You specify the amount that should be transferred from table ARRRS in the infotype Additional Payment (0015). The wage type used for this is called the recovery wage type.

In the period in which the validity date of the recovery wage type in the infotype Additional Payment (0015) falls, the system reduces the arrears wage type in the IT table by this recovery amount. If a balance remains, it is left in table IT.

In addition, the system creates a balance wage type from the recovery wage type with the same amount. The link between the recovery and balance wage types creates a balance out of the arrears debt, that the system can reduce using the normal balance processing. To do this you have to enter the regular installment, which you use to deduct the balance amount, as a deduction wage type in the infotype Recurring Payment/Deduction (0014).