What is arrears processing in SAP PY - Payroll?

SAP Term: arrears processing

• Component: PY

• Component Name: Payroll

• Description: A function that enables the SAP system to process voluntary deductions from an employee's net remuneration. &EXAMPLE& An employee has received a company loan from your enterprise and now repays it from her remuneration. She also makes contributions to a savings plan and a gym, and these contributions are withheld from her remuneration too. When arrears processing takes place, the SAP system checks the order in which deductions are made, checks that the employee's net remuneration is sufficient for all deductions, and determines how to proceed if deductions exceed net remuneration.

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• Key Concepts: 
  Arrears processing in SAP Payroll is the process of calculating and paying out wages for a period of time that has already passed. This could be for a variety of reasons, such as an employee taking a leave of absence or a change in salary. Arrears processing is used to ensure that employees are paid the correct amount for the period in question.
  
  How to use it: 
  In SAP Payroll, arrears processing is done through the use of the Arrears Processing Infotype (IT0015). This infotype contains all the necessary information needed to calculate and pay out wages for a period of time that has already passed. This includes the employee’s salary, any deductions or bonuses, and any other relevant information. Once all the necessary information has been entered into IT0015, the system will automatically calculate and pay out the wages for the period in question.
  
  Tips & Tricks: 
  When entering data into IT0015, it is important to ensure that all information is accurate and up-to-date. This will help to ensure that employees are paid correctly and on time. Additionally, it is important to keep track of any changes in salary or deductions so that these can be taken into account when calculating arrears payments.
  
  Related Information: 
  For more information on arrears processing in SAP Payroll, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_ERP_HCM/6.0/en-US/f3d7f9a8b2e14c8f9a7d3c2b1e5f9a4d.html