Retroactive accounting period differences

This is the earliest possible payroll execution that can begin on the start date of this earliest retroactive accounting period. In other words, this is the furthest period back in the past for which it is still possible to perform a retroactive accounting run. This means that retroactive accounting takes place for a period for which payroll has already been performed. This has to be specified for each payroll area defined using the transaction code PA03.

Retroactive Accounting date:

The Retroactive accounting date refers either to an individual employee or to a payroll area. It is defined as the date in the payroll past up to which master and time data changes are allowed as well as the date up to which the system carries out retroactive accounting for the changes made. This is an optional field which may be specified for individual employees using the transaction code PU03.

If the Retroactive accounting date is later than the start date of the earliest retroactive accounting period(specified for the payroll area in PA03), then the retroactive accounting date will supersede the earliest retroactive accounting period. It means that retroactive accounting date is the furthest date for which retroactive payroll can be run. Retroactive accounting date can never be earlier than the start date of the earliest retroactive accounting period. System also tracks the hiring date before determining the retroactive accounting limit.

For example, in a monthly payroll area:

Earliest Retroactive accounting period : 01/2007 (01/01/2007 to 01/31/2007)
Reactive Accounting Date in PA03 : 02/01/2007
Hiring Date : 01/01/2007

In this case, system limits the earliest retroactive accounting to 02/01/2007.