Global Uptake: Uptake of Retroactive Overpayment and Recovery for Earnings Elements

In Mexico, you can now control how Retropay results are handled. This is important when the results reduce an employee's net pay. To reduce the impact on the employee's pay, you can offset the overpayment across multiple periods instead of automatically taking the full deduction in one period.  You can setup and track repayments by the employee until paid back in full, using the Recoveries calculation card. 

For additional information, please refer to the Global Payroll: Oracle Fusion Cloud Payroll 25C What's New for Retroactive Overpayment and Recovery for Earnings Elements.

For information on the Overpayment Recovery report, please refer to the topic, How do I use the Overpayment Recovery report to manage retroactive recoveries that I have identified?

The Retroactive Overpayment and Recovery for elements gives you control over how Retropay results are handled, particularly when the results reduce an employee's net pay. Instead of automatically processing the overpayment in full, you can now setup repayments for the employee.

Determine how Retropay results are handled. 

Steps to Enable and Configure

To use this feature, you must configure the payroll action parameter, Overpayment Recovery Process Enabling the Over payment for Recovery Process.Default:N.

To change the payroll action parameter to Y:

1. Navigate to Payroll Process Configuration
2. Search for Overpayment Recovery Process Enabling the Over payment for Recovery Process.Default:N
3. Set parameter default value to Y.

Prerequisite steps to configure legislation for Human Resources (described in How do I set up Retroactive Overpayment and Recovery for Earnings Elements?) are not required, as they are already delivered for Mexico.

Tips And Considerations

You must create new elements to use this feature.