Problems can occur when users trigger payroll retroactive accounting when it is not required. That can lead to incorrect payroll calculations. I explain in detail the retroactive trigger dates for those who want to set the initial payroll run in the SAP ERP HCM system and how to do this in one stroke for thousands of employees.

When the system is configured to allow retroactivity and the user changes some of the infotype fields, such as payroll administrator or personnel administrator or something in infotype 0001 (organizational assignment) or infotype 0002 (personal data), the system triggers retroactive accounting, although this is not required. If this happens, the user has to reset the field (Earliest MD change date) in infotype 0003. By doing this, the user can avoid retroactive calculations and run the accurate payroll for an employee.

In the case of a single employee or multiple employees up to 20, the user can easily reset infotype 0003 by using transaction code PU03. However, if this change is required for 20 or more employees, then the user must reset infotype 0003 for each employee manually. Using examples I show the user how to make this change for multiple employees in one simple stroke. This simple solution saves time and energy for payroll managers and administrators and helps cut development costs by alleviating the need to come up with new programs to update infotype 0003 using technical roots.

For example, if an employee’s basic pay is $1,000 in December 2011, but it is changed to $1,200 starting in October 2011, he needs to be paid retroactively for the months of October, November, and December 2011 (e.g., he is supposed to get $600 in total as arrears and applicable taxes for this additional amount). You can adjust the basic pay information using infotype 0008. If you change the start date for infotype 0008, and then the basic pay details, the SAP Payroll system automatically calculates the pay amount and the amount of the corresponding taxes, and pays arrears through December 2011.

You can achieve this functionality by updating the master data with retroactive dates; in turn, the system automatically updates the infotype 0003 (payroll status) date. Using this method identifies the retroactive payments and pays in the current payroll period. However, in some cases if you are entering the master data for a set of employees for infotype 0001 (organizational assignment) or infotype 0002 (personal data), the earliest master data change stored in infotype 0003 is updated with the previous payroll period’s date. 

When you run the payroll for those employees, it triggers the retroactive run from the master data change date. If you don't want that change retroactively run, you have to go to each employee and change the payroll status dates manually using transaction code PU03. This is a tedious and time-consuming task. However, if you run this report and give the date from which you want to run the payroll, it is easy to change the data for multiple employees at the same time by using infotype 0003.

Before going any further, it is important to have an understanding of the complete functionality of infotype 0003 (payroll status). Figure 1 shows the definitions of all of the available fields in infotype 0003.

Figure 1

Overview of infotype 0003 (payroll status)

First, you must analyze the use of each of the available fields of infotype 0003. The screen in Figure 1 is taken from transaction code PA20 (Display master data).

Payroll/Retroactive Accounting 

The data fields shown in Figure 1 are detailed below.

The Earl.pers.RA date field is the date in the payroll history up to which master and time data changes were allowed, as well as the date up to which the system carries out retroactive accounting.

The Accounted to field is the date up until the payroll run has been done for the personnel number.

The Run payroll up to field is the date up until the payroll can be set to run. It can be a future date, which is the case if an employee is not active during this period, but his or her payroll still has to be processed. This would be the case, for example, for an employee who is planning to leave in the future at an already determined date, or for an employee who is on sabbatical or some other unpaid extended leave.

The Earliest MD change field date is the earliest date from which a master data change is valid when a change is made to employee data that is relevant to payroll. This date can be a future date after the last payroll run.

For example: 

You have to run payroll for an employee up to December 31, 2009. There is a change in the master data of an infotype that is relevant for payroll:

• If the start date is September 6, 2009, the date in the earliest master data change is set to September 6, 2009, and retroactive accounting is not performed during the next payroll run.
• If the start date is April 3, 2009, the date in the earliest master data change field is set to April 3, 2009, and this period is recalculated in the next payroll run.

The Do not account after field is the final payroll run date of an employee. After this date the employee is not selected for an active payroll run, and an override of this date is not allowed.

The Mast.data chng.bonus field date is set by master date processing and deleted when any bonus payments in the payroll program are processed. This field is similar to the Earliest MD change field in that the date is set when the master data is changed.

If the Pers no.locked box is checked, then this employee is not included in the payroll run. Use this check box to lock out or exclude an employee from a payroll run. This situation would occur when employees are on unpaid leave and it is unclear if they are going to return to paid status.

The Payroll correction box is automatically checked by the system if the personnel number is rejected on the payroll run or if any data corrections are made during the relevant payroll period or during the payroll correction phase.

The Earl.pers.rec.date field is the earliest retroactive accounting date related to time evaluation. Through this field an individual employee’s time data can be restricted for payroll evaluations as required.

The Pers.calendar from field is the date when the employee’s personal calendar is generated (the system set date)—in other words, the employee’s first working day of the pay period.

The PDC recalculation field is the date of the next start date of time evaluation after the previous time evaluation period has ended.

The PDC error indicator check box is marked if the selected personnel number will not be evaluated up to the required date because of an error in the RPTIME00 report. The RPTIME00 report is the time evaluation driver that processes the time data. Time balances and time wage types are formed after processing this driver and, in turn, they are evaluated for payroll calculations.

The Initial input field is the initial entry of the master date of the personnel number in the system.

It is important to have a complete understanding of the usage of infotype 0003 (payroll status) to ensure an accurate payroll run. Any data errors or mismatched information results in inaccurate payroll retroactive accounting and the wrong calculations being made during payroll runs.

Resetting Infotype 0003

You can improve your payroll system’s performance at two crucial junctures in the process:

• When setting up an initial run date
• During the initial implementation of the SAP Payroll system

When making changes to master data, such as personal data, education, and some non-payroll details such as organizational administrator, infotype 0003 triggers a retroactive accounting date. However, as they are non-payroll details, your requirement is to trigger payroll-only data that is relevant to the current period.

In this scenario, by resetting the Earliest MD date change on mass data (for all employees in one stroke), you can avoid retroactive accounting and trigger the change for just the current payroll run.

Now I will discuss each of these scenarios in detail.

Scenario 1: In this scenario the initial implementation for all employees is done in April 2011, but the system needs to be set up so that the earliest personnel retroactive accounting date change allowed is March 2011. The requirement is to set the earliest retroactive accounting change date for all employees as March 1, 2011.

This step can be done in two ways. In cases in which the change affects only a few employees, go to transaction PU03, go into infotype 0003, and change the date to March 1, 2011.

Scenario 2: If there is a mass change for all employees, use standard SAP program RPUTRBK0. Enter transaction code SE38, enter the program name RPUTRBK0, and execute (Figure 2). This allows you to update the data without having to enter the data manually or run the LSMW/BDC update.

Figure 2

Initial screen of program RPUTRBK0

Program RPUTRBK0

The period for program RPUTRBK0 is the same as for any standard SAP Payroll system report. The selection information for the following criteria is under the Selection tab:

1. Personnel number (with the option of selecting any range as required)
2. Personnel area (to run the report using required personnel areas)
3. Personnel subarea (to run the report using required personnel subareas)
4. Employee group area (to run the report using required employee groups)
5. Payroll area (to run this report using required payroll areas)
6. Pers.area/subarea/cost center (to run this report using required personnel areas/subareas/cost centers)

Under the Database update option tab, mark the Test run (no update) check box before the actual run of the report to test whether the desired results appear during the run. This performs a test of the run but does not actually update the information.

Payroll/Retroactive Accounting

Now to enter the dates as required by the SAP Payroll system, enter the dates for the following fields:

• Earl.pers RA data (the earliest personnel retroactive accounting date)
• Run payroll up to
• Do not process after
• Accounted to
• Earliest MD change
• Recal.follow-up prog (the current date of the SAP system server)
• Mast.data chng.bonus
• Pers.no.locked
• Payroll correction
• Special run

Under the Time evaluation tab, mark the check box and enter the earliest personnel recalculation date (this is the date from which you want to evaluate the time data for payroll calculations). All of the preceding fields are available fields in infotype 0003. Next, I will run this program for one employee to show you how this functionality works.

Reset the date of the earliest retroactive accounting to March 1, 2011, for employee 99000002, as mentioned previously (Figure 3).

Figure 3

Report with proper selection criteria as required

As shown in Figure 3 I entered the Personnel Number (99000002) and Earl.pers. RA data (01.03.2011—March 1, 2011) in Test run (no update) mode. Click the execute icon , which  results in the screen shown in Figure 4.

Figure 4

Report results of test run

Figure 4 shows that the total number of processed employees is one; because this was run in test-run mode the data is not updated in the database. The Nos of employees updated successfully: and the Nos of employees updated with error: fields have zeroes. Because this is a test run, Test only. No database update. is displayed at the top of the screen.  

Now you run the report for real. To do this, remove the check in the Test run (no update) check box and click the execute icon, which calls up the screen in Figure 5.

Figure 5

Report results after real payroll run using infotype 0003

The screen in Figure 5 confirms that the data is processed and updated for one employee. Now check the payroll status of infotype 0003 for an employee using the master data transaction code PA20, which is captured in Figure 6. 

Figure 6

Display the payroll status infotype of an employee

By using transaction code PA20 you can confirm that the Earl.pers. RA date field is updated by entering the date (in this case, 01.03.2011) and processing the program.

For scenario 2, the system might have updated the earliest MD date based on the master data change. By running program RPUTRBK0 with the required dates, you can reset the payroll recalculations with the appropriate dates.

Raghavendran Parthasarathy

Raghavendran Parthasarathy works for Hexaware Technologies as a Principal Consultant,where he manages SAP solution design for customers across the globe. He has worked in SAP ERP HCM for over 14 years in various capacities, including payroll projects in the Middle East, Europe, and Asia/Pacific. In addition to payroll, Raghavendran has experience in negative time management, personnel administration, and recruitment. He has also been a part of portal implementations. Currently, he is involved with cloud-based HCM applications such as SAP SuccessFactors and Workday.

You may contact the author at raghs99@yahoo.com.

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