Examples of Retroactive Processing
The examples of corrective and forwarding retro in this topic illustrate the basic difference between the two methods: in corrective retro, the recalculated values of elements in the pay run replace the previous calculations, while in forwarding retro, the system uses the recalculated values to compute retro deltas, and then carries the deltas forward as adjustments to elements in the current period.
Example 1: Corrective Retro—No Exceptions
In this example, Earning 1 rate changes from 100 to 120; effective date is in period 1; notified in period 2:
| Re-Calc Option | Calendar Period 1 | Prior Results (Old Value) | Re-Calculation (New Value) | Deltas | Corrective Replace Old Value with New Value | Forward Y/N |
|---|---|---|---|---|---|---|
|
Always |
Earning 1 |
100 |
120 |
20 |
Y |
N |
|
Always |
Deduction 1 (flat amount) |
30 |
30 |
0 |
Y |
N |
|
Not applicable |
Net Pay (segment accumulator) |
70 |
90 |
Y |
N |
|
|
Not applicable |
YTD Accumulator Earning 1 |
100 |
120 |
This table shows the processing results:
| Calendar Period 2 | Current Results | Retro Adjustment |
|---|---|---|
|
Earning 1 |
120 |
None |
|
Deduction 1 (flat amount) |
30 |
None |
|
Net Pay |
90 |
None |
|
YTD Accumulator Earning 1 |
240 |
In this example, only Earning 1 generates a retro delta. The segment accumulator (Net Pay) is updated. No element is forwarded for processing in the current period, and the new value of Earning 1 replaces its old value. The banking process determines the difference between the net pay from the prior calculation (70) and the recalculation (90) and manages the retro delta (20).
Example 2: Forwarding Retro—No Exceptions
In this example, Earning 1 rate change from 100 to 120; effective date in period 1; notified in period 2:
| Re-Calc Option | Calendar Period 1 | Prior Results (Old Value) | Re-Calculation (New Value) | Deltas | Corrective Replace Old Value with New Value | Forward Y/N |
|---|---|---|---|---|---|---|
|
Always |
Earning 1 |
100 |
120 |
20 |
Not applicable |
Y |
|
Always |
Deduction 1 (flat amount) |
30 |
30 |
0 |
Not applicable |
Y |
|
Not applicable |
Net Pay (segment accumulator) |
70 |
90 |
20 |
Not applicable |
N |
|
Not applicable |
YTD Accumulator Earning 1 |
100 |
Not applicable |
Not applicable |
Not applicable |
N |
This table shows the processing results:
| Calendar Period 2 | Current Results | Retro Adjustment |
|---|---|---|
|
Earning 1 |
120 |
20 |
|
Deduction 1 (flat amount) |
30 |
None |
|
Net Pay |
110 |
None |
|
YTD Accumulator Earning 1 |
240 |
None |
In this example, the system forwards the retro delta for Earning 1 to the current period (period 2), where it is recorded as an adjustment to Earning 1.
Even though the retro method is forwarding, the system does not forward all elements from the first period to the second period:
-
The system does not forward the Net Pay accumulator because it already contains the value of Earning 1.
If the Net Pay accumulator had been forwarded along with Earning 1, Earning 1 would have been counted twice in the current period.
-
Global Payroll does not forward balance accumulators. This is because they sum the values of elements that have potentially already been forwarded, so moving them into the current period would generate incorrect results.
Note:
Even when the retro method is forwarding, Global Payroll does not forward all elements in the process list. On the Retro Process Overrides page, you must individually select the elements that you want forwarded. No element is forwarded automatically.