Understanding Wage Type /552 in SAP HR: Retroactive Accounting’s Key Player

In the intricate world of SAP Human Resources (HR), a specific wage type holds significance when dealing with changes that impact past payroll periods – wage type /552. This secondary wage type emerges as a crucial element within retroactive accounting. Let’s explore its purpose and mechanics.

What is Retroactive Accounting?

Retroactive accounting is the process of recalculating payroll for past periods due to changes in an employee’s master data or time data. These changes might include:

• Salary adjustments
• Corrections to past-time entries
• Updates to tax or benefits information

The core principle of retroactive accounting is to ensure that an employee’s pay reflects any modifications that have a bearing on their past earnings.

Where Does Wage Type /552 Fit In?

When SAP HR executes a retroactive payroll calculation, it generates two key wage types:

1. /551 (Recalculation Difference): This wage type houses the difference between the employee’s initial pay in the past period and the newly calculated amount after the retroactive changes.
2. /552 (Subsequent Adjustment from Previous Month): The magic happens in This wage type. It acts as a bridge connecting the past and the present. The net difference calculated in /551 is transferred to /552 and seamlessly integrated into the current month’s payroll.

A Simple Illustration

Let’s say an employee received a salary increase effective from the start of the previous month. Here’s how /551 and /552 play their roles:

1. Retroactive Calculation: SAP HR recalculates the previous month’s payroll, factoring in the salary increase. Let’s say the recalculation results in an additional $200 owed to the employee.
2. /551: Wage type /551 will store the value of $200.
3. /552: The $200 from /551 is transferred to wage type /552 and included in the employee’s current month’s payroll.

Why is /552 Important?

/552 ensures that any discrepancies in past payroll calculations are accurately accounted for and promptly paid out to the employee. It maintains the integrity of payroll records and upholds fair compensation practices.

Key Points to Note

• Wage type /552 is always secondary, meaning the system generates it and cannot be directly maintained.
• The calculations behind /552 can be complex, especially concerning country-specific tax and social security regulations.
• HR and payroll professionals need to have a solid understanding of retroactive accounting principles and the role of wage types like /552.