Countries Page

Use the Countries page (GP_COUNTRY) to define retroactive processing for General Ledger.

Navigation:

Set Up HCM, and then Product Related, and then Global Payroll & Absence Mgmt, and then System Settings, and then Countries, and then Countries

Note:

The Countries page is discussed in another topic in this product documentation.

See Countries Page.

Use Current Results + Adjustment for General Ledger

Most organizations that implement Global Payroll choose to use the default method to process the chartfields and element groupings that are posted to the General Ledger when retroactive processing occurs in a finalized payroll. These organizations only need to specify on the Countries page the default retro method, either forwarding or corrective, that is used by their organization, or that is most appropriate for their country extension of Global Payroll.

Other organizations prefer to post only V1R1 results to General Ledger. The To Process General Ledger check box is an additional option that addresses this business requirement, and permanently changes the way that the system handles General Ledger postings in relation to retroactive processing that has occurred in the payroll system.

The default setting for the To Process General Ledger check box is deselected. When you select it, you are telling the system not to reverse previous postings of chartfields and element grouping amounts to the General Ledger and to skip all topics and steps responsible for retro calculation (reversing) and instead send results from V1R1 and adjustments only. If you select the To Process General Ledger check box, the effect depends on the default retro method you use:

  • If the Default Retroactive Method is Corrective, then selecting the To Process General Ledger check box does not affect the way that retro is processed for General Ledger.

  • If the Default Retroactive Method is Forwarding, retroactivity changes as follows:

    • The system does not reverse prior chartfields and amounts associated with element groupings that have been mapped to General Ledger accounts.

    • The system does not post recalculated amounts to the General Ledger that result from retroactive processing in payroll. Instead, the payroll system sends current results (V1R1) plus adjustments to the General Ledger.

Note:

If your retro method varies and you select the Use Current Results+Adjustment check box for General Ledger, you will see both retroactive methods, corrective and forwarding, in General Ledger results. Any forwarded element will include the amount of the delta or adjustment; the corrective method will reverse and correct previous entries.

Note:

Do not enable either setting in the Use Current Results + Adjustment group box if you are satisfied with the way the system currently handles retroactive processing in relation to banking and GL. These settings are not backward compatible.

Note:

Once you enable one or both of the Use Current Results + Adjustment settings, you cannot change them back to the default setting. The check boxes become read-only and remain so.

Note:

The tables used by and modified in banking and GL are independent. Consequently, you can select the To Process Banking and the To Process General Ledger check boxes independently of one another.

See Process Definition Page.

Example: Selecting the Use Current Results+Adjustment Check Box to Process General Ledger When Forwarding is the Default Retro Method

In January a deduction with a payment of 100 is posted to GL account 210003, the account associated with ChartField Department 1. There is a change in payroll that triggers retroactive processing, and you realize that the employee whose payment was posted in January was really in Department 2, not Department 1. Deductions associated with Department 2 should be posted to GL account 210004.

This table summarizes the results that are sent to General Ledger when the Use Current Results+Adjustment check box is selected for General Ledger and forwarding is the default retro method:

Month Version/Revision Amount Account # Action

January

V1R1

100

210003

Resolution (last period)

February

V1R1

100 + 0

210004

Resolution (current period + adjustment)

In this example, the system does not send the reversal and reinstatement of chartfields and amounts associated with element groupings to General Ledger. It processes only the current period plus adjustment. (The adjustment in this case is 0 because the amount of the deduction does not change.) When using the To Process General Ledger check box, the system uses the current resolved chartfields. The system does not use the original chartfields. This may result in adjustments being posted to a different account.

Note:

You must manually correct the January posting, as the amount is posted to the wrong account.