The payroll process configuration parameter Distributed costing for a
retro element uses normal elements to distribute the costs of a retroactive
element based on regular entries and retro entries.
However, regular entries from the current period are used only in the distribution
calculation when the sum of the retroactive entries in the distribution group is
0.
When the payroll process configuration parameter Distributed costing for a
retro element is set to Y and the sum of the
retroactive entries in the distribution group is 0, the deduction distributes based
on the distribution group entries for the current payroll period and the retroactive
entries. The parameter default is Y.
For example, an employee's original earnings are processed and costed for January and
February. Now, in March, the earnings and deductions are changed effective January
1st and the retroactive entries for the differences are created in month of March
for processing. The sum of the retroactive entries in the distribution group is 0.
In this scenario, when you set this profile option to Y, the retroactive deduction
amount distributes on the current pay period earnings in addition to the retroactive
earnings. However, in this scenario, when you set this profile option to
N, the process isn't able to distribute and sends to the
suspense account.
Note: When the sum of the retroactive distribution group entries is
greater than 0, the costs distribute based on the retroactive entries only.
In
the table below, you are viewing the current pay period (CPP) Earnings1, CPP
Earnings 2, retroactive element earnings (REE) Earnings 1, REE Earnings 2
and REE Earnings 3. The sum of the retroactive entries in the distribution
group is 0.
Example:
Element |
Original Earnings |
Changes |
Retro (REE) |
Current (CPP) |
|
31-Jan |
28-Feb |
31-Jan |
28-Feb |
31-Mar |
31-Mar |
Deduction |
100 |
100 |
150 |
150 |
100 |
100 |
Earning 1 |
500 |
500 |
750 |
750 |
500 |
200 |
Earning 2 |
600 |
600 |
450 |
450 |
-300 |
100 |
Earning 3 |
400 |
400 |
30 |
300 |
-200 |
0 |
Distribution Group Total |
|
|
|
|
0 |
|
Deduction REE uses all 5 elements: Earning 1 REE, Earning 2 REE, Earning 3
REE, Earning 1 CPP, and Earning 2 CPP
Deduction CPP uses 2 elements: Earning 1 CPP, and Earning 2 CPP