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Function documentation Advance Payment  Locate the document in its SAP Library structure

Use

This function enables you to run payroll for an employee for several periods in advance independently of the regular payroll runs for the payroll area.

Example

An employee leaves the company and is to receive all the money owed immediately.

An employee takes leave. You want the employee to receive payment in advance for the payroll periods in which the leave occurs.

Integration

If you want to settle an absence, such as leave, in advance, you can also carry out an absence payment. This means that the employee is only paid in advance for the time that he or she is absent. However, you use the advance payment function to run payroll in advance for all the periods in which the absence takes place.

Example

The employee is to take 10 days leave. The leave period affects three payroll periods. In the case of an absence payment, the employee is paid in advance for 10 days. In the case of an advance payment, the employee is paid in full for all three payroll periods in which the leave takes place.

Prerequisites

The standard system already contains an off-cycle reason for advance payments. In Customizing for Payroll, you can, if required, set up an off-cycle rea son for payments in advance . Choose Off-Cycle Activities ® Set Up Off-Cycle Reasons. You must assign the reason to the Category Advance payment.

In Customizing, under Off-Cycle Activities ® Define Default Values for Payments in Advance, you specify how many payroll periods the system is to propose for payments in advance.

Features

When you select the relevant off-cycle reason in the Off-Cycle Workbench, the system offers several periods for payroll. The number of periods proposed depends on the settings in Customizing for Payroll.

If you pay several payroll periods in advance, only one original result is created, and only one payment is effected. The system creates the original result for the latest of the periods for which you run payroll. All other periods prior to this period are processed using retroactive payroll.

The system ensures that the employee who is to receive an advance payment is not processed twice. The employee is then automatically excluded from the payroll area’s regular payroll runs for the periods already processed.