What is outgoing wage type in retroactive accounting period in SAP PY-CN - China?

SAP Term: outgoing wage type in retroactive accounting period

• Component: PY-CN

• Component Name: China

• Description: The wage type in which the system stores an amount that results from retroactive accounting. The system uses outgoing wage types when you follow the inflow principle and need to take into account of amounts that result from retroactive accounting in the current payroll period, rather than in previous payroll periods. For each outgoing wage type /A** that the system uses, it must transfer the contents of the outgoing wage types to corresponding incoming wage types /Z** from the previous payroll period. The system processes the incoming wage types during the current payroll period. &Example& Assume that the current payroll period is August and you run retroactiveaccounting for July. Retroactive accounting for July results in an increase of CNY 500 in the base amount for calculating transportation allowance. According to the inflow principle, you do not change the base amount for transportation allowance in July. Instead, you add CNY 500 to the base amount for transportation allowance in August

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• Key Concepts: 
  Outgoing wage type in retroactive accounting period is a feature of SAP’s payroll system for China. It allows employers to make retroactive payments to employees for wages earned in a previous accounting period. This feature is especially useful for companies that need to make adjustments to employee wages due to changes in the labor law or other factors. 
  
  How to use it: 
  To use the outgoing wage type in retroactive accounting period feature, employers must first enter the wage type into the payroll system. This can be done by selecting the “Outgoing Wage Type” option from the payroll menu. Once this is done, employers can enter the details of the retroactive payment, such as the amount and date of payment. The system will then calculate the amount of taxes and other deductions that need to be taken from the payment. 
  
  Tips & Tricks: 
  When entering the details of a retroactive payment, it is important to ensure that all information is accurate and up-to-date. This will help avoid any potential issues with tax authorities or other government agencies. Additionally, employers should keep track of all payments made through this feature, as they may be subject to audit by government agencies. 
  
  Related Information: 
  The outgoing wage type in retroactive accounting period feature is part of SAP’s payroll system for China. It is designed to help employers comply with local labor laws and regulations when making retroactive payments to employees. Additionally, SAP provides a range of other payroll features for China, such as salary calculation, tax calculation, and employee benefits management.