when paid crt us 2002

Version 2.0 April 2002

Accumulating U.S. Payroll Amounts on a When-Paid Basis: When-Paid CRT Tips for the Remuneration Statement

Accumulating Payroll Amounts on a When-Paid Basis: When-Paid CRT

Contents

Purpose 3

Introduction 4

Process Flow 5

Example of When-Paid Accumulation 5

Payroll Configuration 9

Remuneration Statement Configuration 17

Additional Configuration 18

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Purpose The purpose of this document is to provide U.S. customers of mySAP Human Resources (mySAP HR) with an overview of the process by which amounts in payroll results accumulate on a when-paid (rather than when-earned) basis.

For additional information and documentation on mySAP HR and mySAP HR Payroll, please refer either to the SAP Library, the SAP Help Portal, or the website in the SAP Service Marketplace for U.S. customers of mySAP HR. These resources are accessed as indicated below.

• SAP Library

o at Release 4.5B, choose Help → R/3 library from any SAP R/3 System screen

o at Release 4.6B and above, choose Help → SAP Library from any screen

• SAP Help Portal

o http://help.sap.com

• SAP Service Marketplace

o http://service.sap.com/HRUSA (mySAP HR USA)

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http://help.sap.com/

http://service.sap.com/HRUSA


Introduction On employee remuneration statements, information from several payroll periods is merged into a few basic amounts:

current pay

merged differences caused by retrocalculation

YTD information (from the CRT and TCRT tables)

Applying when-earned annual accumulation amounts from CRT (via calendar type Y) results in retrocalculation differences occurring in past years not being considered on current remuneration statements. This is because these differences remain in the previous payroll year and the remuneration statement only evaluates YTD information from the current payroll year.

Given these problems, it becomes clear that the most consistent and easily understood way of displaying YTD information on remuneration statements is to use the accumulation of amounts in CRT that accrued on a when-paid basis.

When-paid accumulation of CRT amounts results in any differences that occurred as a result of retrocalculation to be moved forward into the current period. Using this method, amounts will always be brought forward, regardless of how high the retro-calculated differences are, or whether they are positive or negative.

Example

Patrick Murphy earned $1,000 in December 2001 and $1,000 in January 2002. In February 2002, he received a pay increase of $100 effective as of December 2001.

Under when-earned accumulation, the $100 difference for December 2001 is stored in the CRT of tax year 2001, while the $100 difference for January 2002 is stored in the CRT of tax year 2002. Patrick’s February 2002 remuneration statement would reflect current pay in the amount of $1,100, a correction amount of $200 (December 2001 difference + January 2002 difference) and a YTD value of $2,200 (new January earnings of $1,100 + new February earnings of $1,100). However, Patrick expected to see a YTD amount of $2,300, because he received an additional $100 for December 2001. Under when-earned accumulation, the YTD value in this example reflects neither the expectations of the employee, nor the appropriate amount to be paid.

Under when-paid accumulation, the $100 difference for December 2001 and the $100 difference for January 2002 are moved forward to the current period (February 2002) and stored in the CRT of tax year 2002. Patrick’s February 2002 remuneration statement would reflect current pay amount of $1,100, a correction amount of $200 (December 2001 difference + January 2002 difference) and a YTD value of $2,300 (new January earnings of $1,100 + new February earnings of $1,100 + differences in December, calculated in 2002).

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Process Flow 1. An infotype that contains payroll-relevant amounts is retroactively changed.

2. Payroll cumulates the changes in CRT in the retro period (using when-earned CRT accumulation via calendar type Y).

3. Payroll collects the difference and stores it in the CRT of the current period (using the when-paid accumulator associated with calendar type K).

4. The Remuneration Statement processes these when-paid accumulations in CRT.

Example of When-Earned Accumulation Period 12/2001 without retrocalculation Payroll results for 12/2001 in 12/2001

Wage type RT amount YTD value/ CRT amount

M001 $1,000 $12,000

/TXB $1,000 $12,000

/TAX $100 $1,200

/559 $900 $10,800

Period 01/2002 without retrocalculation Payroll results for 01/2002 in 01/2002


M001 $1,000 $1,000

/TXB $1,000 $1,000

/TAX $100 $100

/559 $900 $900

Retrocalculation in period 02/2002 Payroll results for 12/2001 in 02/2002


M001 $1,100 $12,100

/TXB $1,000 $12,000

/TAX $100 $1,200

/559 $900 $10,800



M001 $1,100 $1,100

/TXB $1,000 $1,000

/TAX $100 $100

/559 $900 $900

Payroll results for 02/2002 in 02/2002


M001 $1,100 $2,200

/TXB $1,300 $2,300

/TAX $130 $230

/559 $1,170 $2,070

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The example above demonstrates the advantages of cumulating payroll results on a when-paid basis. The example tracks per-period amounts in a user wage type (M001), the corresponding taxable amount (/TXB), the tax (/TAX) and the net amount (/559).

A typical U.S. remuneration statement for pay period 02/2002 is shown below.

Earnings

Wage type Amount YTD

Salary $1,100 $2,200

Salary Retro $200

Deductions


With. Tax $130 $230

Net Amount YTD

$1,170 $2,070

Taxable Amount YTD

With.Txbl. $1,300 $2,300

The disadvantages of when-earned accumulation on remuneration statements are as follows.

The YTD amount of the previous remuneration statement (where salary = M001 = $1,000) plus the current amount (M001 = $1,100) plus the corrections (M001 = $200) does not match the new YTD (M001 = $2,200). Employees would expect M001 to equal $2,300 ($1,000 + $1,100 + $200).

Taken together, the YTD earnings (where salary = $2,200) and the YTD deductions (where tax = $230) do not match the YTD net amount of $2,070, where employees would expect $1,970 ($2,200 - $230). Going forward, this discrepancy would be visible on the remuneration statement of any future period (03/2002, 04/2002, etc.).

This mismatch occurs because the $100 correction in period 02/2002 for period 12/2001 is stored in the CRT of 12/2001. However, on a one-page remuneration statement, this information (CRT of 12/2001) is not accessible.

Alternative: When-paid CRT amounts

If the correction in 02/2002 for 12/2001 would be stored in the period where the money is paid out, then the remuneration statement would be both easier to understand and more consistent, from the employee’s point of view.

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Example of When-Paid Accumulation (Continued)


Wage type

RT amount

YTD value/ CRT amount

YTD value/ when-paid

CRT amount

M001 $1,000 $12,000 $12,000

/TXB $1,000 $12,000 $12,000

/TAX $100 $1,200 $1,200

/559 $900 $10,800 $10,800


Wage type

RT amount



CRT amount

M001 $1,000 $1,000 $1,000

/TXB $1,000 $1,000 $1,000

/TAX $100 $100 $100

/559 $900 $900 $900


Wage type

RT amount



CRT amount

M001 $1,100 $12,100 $12,000

/TXB $1,000 $12,000 $12,000

/TAX $100 $1,200 $1,200

/559 $900 $10,800 $10,800


Wage type

RT amount



CRT amount

M001 $1,100 $1,100 $1,000

/TXB $1,000 $1,000 $1,000

/TAX $100 $100 $100

/559 $900 $900 $900

Payroll results for 02/2002 in 02/2002

Wage type

RT amount



CRT amount

M001 $1,100 $2,200 $2,3001

/TXB $1,300 $2,300 $2,300

/TAX $130 $230 $230

/559 $1,170 $2,170 $2,070

1 This amount is derived from the sum of the YTD values from 01/2002 and 02/2002 ($1,000 and $1,100, respectively) plus the correction that arose between 01/2002 and 12/2001 ($200).

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The remuneration statement for 02/2002, if calculated using CRT amounts that accrued on a when-paid basis, would appear as follows:

Earnings


Salary $1,100 $2,300

Salary Retro $200

Deductions


With. Tax $130 $230

Net Amount YTD

$1,170 $2,070

Taxable Amount YTD

With.Txbl. $1,300 $2,300

The sum of the previous YTD value, the current pay, and the retrocalculation would match the new YTD value.

The sum of the YTD earnings and the YTD deductions would match the net YTD.

This approach is easier to understand and more consistent with common payroll practices. Since the net amount, by definition, is a when-paid amount, it is more intuitive to handle the gross and the deduction amounts in the same way.

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Payroll Configuration Calendar types and payroll periods

Define new calendar type

To define a general when-paid accumulation, a corresponding calendar type must be set up in the calendar type and accumulation tables, as illustrated below. To perform this configuration, execute the following Payroll U.S. IMG step: Cumulations → Company-Specific Cumulation → Define cumulation types.

Assign calendar type to period parameters

This new calendar type must then be assigned to all existing payroll time units. The standard settings (shown below) can be modified in the IMG under Cumulations → Company-Specific Cumulation → Assign cumulation periods to payroll time units.

Important! At Release 4.6C, this step must be performed manually, since the view is no longer found in the Implementation Guide. To this end, you must execute transaction SM30 and maintain view V_T54C4. A solution to maintain this step from within the IMG is currently in development.

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Definition of accumulation window

After assigning the new calendar type to all existing payroll time units, you must define the period from which the new calendar type is to be applied. To do this, execute the following IMG step: Cumulations → Company-Specific Cumulation → Define cumulation periods. If you are asked for a functional group before getting the maintenance view, enter functional group 01.

Important! At Release 4.6C, this step must be performed manually, since the view is no longer found in the Implementation Guide. To this end, you must execute transaction SM30 and maintain view V_T54C6. A solution to maintain this step from within the IMG is currently in development.

Definition of when-paid accumulation

A final step defines the calendar type to be used for when-paid accumulation. To this end, you must select the Accumulation Type checkbox as illustrated below, in the following IMG step: Cumulations → Company-Specific Cumulation → Define when-paid accumulation.

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Assigning calendar types to payroll periods (Release 4.6B and below)

At Release 4.6 and below, after defining the calendar type K as a new accumulation calendar type, this calendar type needs to be assigned to every pay period in your payroll areas. This can be done either by maintaining each payroll period (represented by the date modifier and period modifier in the view shown below) or by choosing System → Services → Reporting and executing generation program RPUCTP10. Keep in mind that when this program is run, all calendar types are regenerated and assigned to a year and payroll period (Y, Q, and so on).

Important! If you have already assigned periods for the year to other calendar types, we recommend that you do not run this program, since it will overwrite all existing entries for the year requested. For calendar years where the period assignment was already generated for the existing calendar types, you must assign the period for the new calendar type manually, under the following IMG step: Cumulations → Check calendar for cumulation.

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Assigning calendar types to payroll periods (Release 4.6C and above)

As of Release 4.6C, it is no longer necessary to assign a calendar type to individual payroll periods. Payroll periods are now assigned to a general cumulation type parameter, which can be directly assigned to calendar types. You configure this in the following IMG step: Cumulations → Company-Specific Cumulation → Define cumulation intervals, then select Define cumulation types.

Assign wage types to special cumulation (All releases)

For all releases, to use the new cumulation method for the wage types that you would like to accumulate on a when-paid basis, you must ensure that each wage type is directly assigned to the new calendar type. This is done in a configuration table. To create the link between the wage type and this configuration table in payroll, a special processing class for these wage types must be appropriately configured. Processing class 30 defines how to cumulate wage types in CRT. When not using value T, the system only performs standard annual when-earned accumulation. To accumulate on a when-paid basis, value T must be assigned to this wage type in processing class 30, using the following IMG step: Cumulations → Set cumulation categories for wage types. (Can’t find this activity in any system!)

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In the subsequent dialog box, select the Wage types for cumulation activity.

Important! When changing the specifications of processing class 30, you must ensure that all calendar types to be used are correctly configured in the following step. For example, if the previous specification for processing class 30 was 2 (“BETRG of wage type must be cumulated in current year”), by changing the processing class value to T, the new calendar type K can now be assigned to the wage type. However, if accumulation should still be permitted under the previously used calendar type (Y), then you must perform the following step for when-earned calendar type Y, too.

Assign accumulation to wage type

If you have not already assigned the processing class specification to wage types for which you want to apply the when-paid cumulation method (as described in the previous step), then you must define the previous definition (e.g. annually cumulate only the amount field) in this step. You may then add the calendar type (in this example, K) that you have specified for when-paid cumulation. To this end, execute the following IMG step: Cumulation → Set cumulation categories for wage types. On the subsequent dialog box, select the Cumulation of wage types activity.

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Configuration of payroll schema U000 (all releases)

Configuration of adjustment payroll schema UAD0 (Release 4.6B and below)

To run a when-paid cumulation during a payroll run, you must have configured payroll schema U000. For Release 4.6B and below, you must also have configured adjustment payroll schema UAD0.

To prepare your system to perform cumulation on a when-paid basis, you must modify function PITAB in subschema UPR0 (or your customer-specific equivalent) to reflect a new parameter – PITAB A PCT – as shown below.

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To make the functionality available for adjustment payroll schema UAD0, you must add similar functions to subschema UTRN (or your customer-specific equivalent), as shown below, if you operate at Release 4.6B or below.

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Rebuilding CRT when-paid accumulation

If configuration for when-paid CRT accumulation was changed – for example, if additional wage types were configured for this accumulation method – and if wage types in existing payroll results should be cumulated into the when-paid CRT, then you must run a re-build program to ensure that these wage types are added to the when-paid CRT for existing payroll runs. To this end, run program RPUCRT0P.

In order to run the program, you must specify a pay date, after which applicable amounts should be re-accumulated into CRT. In response, the program will only rebuild when-paid amounts in CRT.

If you have used the regular (when-earned) re-build program RPUCRTU0 at Release 4.0B and below, or RPUCRT00 at Release 4.5B and above, then you must run the new when-paid program to re-build the when-paid amounts.

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Remuneration Statement Configuration Assign table indicator CRTK to wage types

Until now, table indicator CRT has been used in the configuration of the Remuneration Statement to define that the annual when-earned amount should be taken from CRT (calendar type Y) for the wage type specified.

If you have used when-earned indicator CRT as a definition for printing YTD values on remuneration statements and would like to change this setting to when-paid indicator CRTK, so that when-paid YTD accumulations are printed on remuneration statements, simply replace table indicator CRT with table indicator CRTK on the grouping definition of a window within the Remuneration Statement definition, as shown below.

Assign when-paid amounts to cumulation identifiers

The same principle applies to the definition of cumulation identifiers. If you want to add a when-paid annual accumulation amount to a cumulation identifier (cumulation ID), simply assign table indicator CRTK to the wage type, rather than when-earned indicator CRT.

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Additional Configuration The following section describes configuration steps for the Remuneration Statement to be performed if retroactively changed amounts in payroll are to be printed in a compact format.

Print retroactive changes on the same page with current amounts

The first available option for printing compact remuneration statements is to print all changes that occurred over several retrocalculation periods on the page of the remuneration statement where results from the current period are printed. To do this, the Remuneration Statement program must be executed with special values for two parameters: Print retroactive runs and Layout of retroactive runs.

Value L of the parameter Print retroactive runs ensures that a remuneration statement is printed for retrocalculation periods where changes in wage type amounts occurred.

Value S of the parameter Layout of retroactive runs ensures that retroactive changes to wage type amounts can be printed on the same page where current amounts are printed. In addition, this value specifies that only differences are to be printed on the same page.

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By specifying these values before executing the Remuneration Statement program, retroactive changes and current period amounts will be displayed on the same page. However, unless further configuration is performed, the retroactive changes that occurred in each past payroll period will be displayed on a separate line of the remuneration statement. Thus, the following section describes how to reduce the number of lines printed by merging all retroactive changes together in one amount, or even printing this merged amount on the same line as the current amount.

Printing retroactive differences and current amounts on the same line of the Remuneration Statement

Table indicator RTS for total retroactive changes

Using table indicator RTS (shown below), each wage type can be configured to display a special amount that consists only of retroactive changes.

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Defining a rule in the Form Editor

Using the Form Editor, you can define a rule that separates retroactive amounts from original amounts within the Remuneration Statement program.

The rule (here, R1) must be assigned to the original amount (table indicator RT).

Important! Both the original and the retroactive amount must be assigned to the same subgroup and page type. The only distinction to be made between these two amounts is the column type, since the retroactive amounts should be printed separately from the original amounts. Moreover, within any one subgroup, whichever amount appears first on the Remuneration Statement must be assigned a lower number than the following wage type amounts.

Upon performing this configuration, the Remuneration Statement would appear as follows.

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when paid crt us 2002

Documents

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paid crt purpose

paid crt introduction

accumulating payroll

accumulation of amounts

paid crt tips

mysap hr payroll

payroll configuration