What is retroactive calculation in SAP (LOD-SF-NGP - SAP SuccessFactors Next Generation Payroll)?

SAP Term: retroactive calculation

• Component: LOD-SF-NGP

• Component Name: SAP SuccessFactors Next Generation Payroll

• Description: A payroll calculation executed to reflect a change in an employee's earnings for the past. Example: In a payroll area with monthly frequency, March is the current payroll period. The results for the periods January and February already exist. A salary increase is created in March, effective beginning of January. The system must calculate the affected periods January and February again retroactively, in March.

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• Key Concepts: 
  Retroactive calculation is a feature of SAP SuccessFactors Next Generation Payroll (LOD-SF-NGP) that allows for the recalculation of payroll data based on changes in employee data. This feature allows for the adjustment of payroll data to reflect changes in employee data, such as salary increases, bonuses, or other changes. 
  
  How to use it: 
  Retroactive calculation can be used to adjust payroll data to reflect changes in employee data. To use this feature, the user must first enter the new employee data into the system. Once the new data is entered, the user can then select the “Retroactive Calculation” option from the menu. This will recalculate the payroll data based on the new employee data. 
  
  Tips & Tricks: 
  When using retroactive calculation, it is important to ensure that all employee data is up-to-date and accurate. This will ensure that the payroll calculations are accurate and reflect any changes in employee data. Additionally, it is important to review all payroll calculations after they have been recalculated to ensure accuracy. 
  
  Related Information: 
  For more information on retroactive calculation and other features of SAP SuccessFactors Next Generation Payroll (LOD-SF-NGP), please refer to the official documentation provided by SAP. Additionally, there are many online resources available that provide tutorials and tips on how to use this feature.