Retroactive Accounting for Previous Years ![Locate the document in its SAP Library structure]()
Use
Certain net payments would occur with a retroactive increase of gross wages in previous calendar years. Using this function you can calculate these net payments in the present.
Due to the recalculation, there is a difference between the new payroll result and the payroll result in the original payroll periods of the previous years. You applied retroactive accounting to the original periods. The outgoing wage types transfer the difference from the retroactively calculated payroll period to the next payroll period. The outgoing amounts from the periods of previous years are transferred to the current payroll period. Here they are used for the calculation.
You can initiate the function for each employee. If you have made the appropriate settings (see below), payment-relevant changes in an employee’s master data that you make for a past date are registered by Retroactive Accounting for Previous Years.
The following infotypes are taken into account:
- Basic Pay (0008)
- Recur. Payments/Deds (0014)
- Additional Payments (0015)
- EE Remuneration (2010)
Changes to the infotypes Organizational Assignment (0001) and Fiscal Data A (0042) are not taken into account.IntegrationNormal retroactive accounting, which includes adjustment runs in the previous year and the transfer to the current payroll year, is still possible. You do not need to make any special system settings to use the normal retroactive accounting.![Caution]()
If you have calculated a period with the Retroactive Accounting for Previous Years function, you cannot carry out an adjustment run for this period afterwards. Therefore, perform the normal retroactive accounting before you use the Retroactive Accounting for Previous Years function.For information on normal retroactive accounting, see ![]()
Retroactive Accounting.PrerequisitesTo use the Retroactive Accounting for Previous Years function, you must make the following settings:- In the control record, set the Earliest period for retroactive accounting field to the earliest period back to which the calculation using Retroactive Accounting for Previous Years is possible. Proceed as follows:
- Choose from the
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Area Menu for Payroll Austria the following path: Settings ®Set Payroll Area. - Choose the appropriate payroll area.
- Set the payroll status to Exit payroll.
- Enter the new earliest period for retroactive accounting in the Earliest period for retroactive accounting field.
- Only if you do not use the M475 (Subsqnt pymt (arbitrary, no leaving)) and M495 (Special payment par. 67 art. 10):
If you have copied these model wage types as user wage types into the customer name space, adjust the copy of the new coding for the M475 and M495 wage types.ActivitiesUserTo trigger Retroactive Accounting for Previous Years, you must create the ARdatetype in the Date Specifications infotype (0041) for each employee. In the Date field, enter the key date before which a payroll period should be recognized as a period relevant for the Retroactive Accounting for Previous Years function. The key date must be the first of the month.The system retroactively calculates payroll periods earlier than the key date using the conventional method of retroactive accounting.![Example]()
Example:The current payroll period is March 1997. The key date for the Retroactive Accounting for Previous Years function (the AR date type) is January 1, 1997. On November 5, 1997, change in master data is carried out:The system calculates November and December 1996 retroactively using the Retroactive Accounting for Previous Years function. The system calculates January and February 1997 retroactively using the conventional method of retroactive accounting. ![This graphic is explained in the accompanying text]()
- Determine applied percentage rate for taxes
The applied percentage rate is the standard rate assigned to the wages for the last full calendar year.The system determines the applied percentage rate automatically. The prerequisite for the automatic determination of the applied percentage rate is the existence of a complete previous payroll year for the employee. The system recognizes a complete previous payroll year by means of the maximum tax days from wage type /400 Tax days) in December of the previous payroll year. With the automatic calculation of the applied percentage rate, the standard tax from the previous year is compared with the taxation assessment basis of the previous year. The system takes the flat-rate taxes at that time into account.You can determine the applied percentage rate manually. Thus you can still run payroll for an employee even if the prerequisites mentioned above have not been met. Proceed as follows:- For the employee in question, create a record for Additional Payments infotype (0015) with the Percentage applied wage type /407.
- Enter a date from the current payroll period in the Creation date field.
The R/3 System- Calculation of gross amount in the previous year’s periods
Relevant data in the gross portion of a payroll period from the previous year is recalculated. The gross difference (the difference between the gross value of the original payroll results that the gross value of the recalculated payroll result) is carried over up to and in the current payroll period.- Calculation of net amount in the previous year’s periods
Differences occur either through differences between the original assessment bases and the recalculated assessment bases or through differences between the original net portions and the determined net portions.The SI contributions are recalculated. The system uses outgoing and ingoing wage types to transfer the differences in SI contributions to the current payroll period.The employment tax is not recalculated. The original payroll results are simply restored. This means that the data from the original payroll period is transferred without any changes. The differences in the assessment bases are transferred to the current payroll period. Taking the differences between the SI contributions, the system controls the differences in the assessment bases in accordance with the following legal basis:Par 67, art 8 of the Income Tax Law [EStG]Par 67, art 1,2 of the Income Tax Law [EStG]Par 67, art 10 of the Income Tax Law [EStG]The municipal tax is not recalculated. The original payroll results are simply restored. This means that the data from the original payroll period is transferred without any changes. The differences in the assessment bases are transferred to the current payroll period and processed here together with gross of the municipal taxes.- Family-Related Expenses Fund [FLAF]
The contributions for the FLAF are not recalculated. The original payroll results are simply restored. This means that the data from the original payroll period is transferred without any changes. The differences in the assessment bases are transferred to the current payroll period and processed here together with gross of the FLAF.- Evaluations for Social Insurance
The differences in the SI contributions are shown, as usual, in the contribution statement and in the contribution base statement.- Evaluations for the employment tax
The wage types resulting from the Retroactive Accounting for Previous Years have alrea
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If you have calculated a period with the Retroactive Accounting for Previous Years function, you cannot carry out an adjustment run for this period afterwards. Therefore, perform the normal retroactive accounting before you use the Retroactive Accounting for Previous Years function.
Retroactive Accounting.PrerequisitesTo use the Retroactive Accounting for Previous Years function, you must make the following settings:
Example:The current payroll period is March 1997. The key date for the Retroactive Accounting for Previous Years function (the AR date type) is January 1, 1997. On November 5, 1997, change in master data is carried out:The system calculates November and December 1996 retroactively using the Retroactive Accounting for Previous Years function. The system calculates January and February 1997 retroactively using the conventional method of retroactive accounting. 