Understanding and Managing Payroll Retrocalculations

  • by Steve Bogner, Managing Partner, Insight Consulting Partners
  • June 15, 2003
One of the most complicated aspects of R/3's Payroll functionality is the concept of retrocalculations. It's complex, no getting around that. However, if you understand the basics, you can use that knowledge to figure out what happened to cause the retrocalculation, and what the retrocalculation changed.

One of the most complicated aspects of R/3’s Payroll functionality is the concept of retrocalculations. It’s complex, no getting around that. However, if you understand the basics, you can use that knowledge to figure out what happened to cause the retrocalculation, and what the retrocalculation changed.

A retrocalculation is the calculation of a previous payroll period while in the current payroll period. Retrocalculation happens automatically because some part of an employee’s master data changed for a payroll period that was already calculated.1 Since that data changed, the employee master data is now out of sync with the payroll results. The retrocalculation gets the master data and payroll results back in sync. The differences between the original payroll result and the recalculated result are posted to accounting, show up in various payroll reports, and are transferred to the employee’s current-period net pay.

Steve Bogner

Steve Bogner is a managing partner at Insight Consulting Partners and has been working with SAP HR since 1993. He has consulted for various public, private, domestic, and global companies on their SAP HR/Payroll implementations; presented at the SAP user's group ASUG; and been featured on the Sky Radio Network program regarding SAP HR.

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