Retroactivity can occur when master data is changed in Time, Benefits, HR or Payroll. An overpayment is a retroactive adjustment that takes pay away from an employee. When master data is copied or changed in SAP, the old information is “delimited” and the new record becomes effective on the new start date. If the change occurred in the past, the system recalculates the employee’s pay back to the period in which the change happened. The retroactive difference is carried forward and paid on the current pay period.
Overpayments occur when a termination form isn’t processed in a timely manner, an employee has had a change in status or pay, a disciplinary action is forwarded late or a leave hasn’t been processed. If the error is detected after payroll has been processed but before disbursement, and Payroll has the incorrect check on hand, (or if it’s not too late to recall the direct deposit funds from the bank) Payroll will complete a Cancellation Form. An Automatic Check Cancellation form is used to cancel checks less than 3 months old and issued in the current year. A Manual Cancellation form is used to cancel all checks older than 90 days and for year end processing. Automatic check reversals are managed in SAP through the Off-Cycle Workbench. The check or direct deposit will be cancelled and all employee balances and account charges from original payment will be reversed. More details on check and direct deposit voids and reversals will be included in the Business Process – Off-Cycle Processing section.
For SAP New overpayment functionality (USCLM), payroll does not recover those earnings automatically, but rather processes them to a new payroll results table, CLM, and retains original wage types and also /58X wage types. Then dependent on configuration, may recover some portion of the money owed to the university in the current period, while retaining the original payroll results RT table in retro as originally paid. New US Overpayments Recovery Processing determines a claim, or CLM entry in retro-calculation based on any wage type that has been reduced from the original result. This is one basic logic of the USCLM function in the payroll schema by using RT compared to ORT.
If the check is not returned to the Payroll Office or funds not recalled from the bank, Payroll office will complete an Overpayment Form and create a letter summarizing the details of the overpayment. The SAP payroll process will create infotype 909 from CLM or CLM_Person table in payroll results. Payroll office will send the letter to the employee, as well as send a copy to the employee’s hiring department. Another copy will be retained in the Payroll Office. Payroll may also attempt to contact the employee by phone or email.
Payroll will discuss repayment options with the employee. If the employee wants to make payments to repay the amount, a recurring deduction will be created based on the pay period amount and number of payments agreed upon. The SAP payroll will update CLM or CLM_PERSON table and infotype 909 with new balance after each payroll run. If the employee is no longer receiving pay, a check must be sent to Payroll for the net amount. If Payroll does not receive a check from the employee, the overpayment amount will be sent to the Delinquent Receivables Department for collection.
SAP functionality tracks employee claims and will attempt to collect the entire overpayment the next time a payroll is processed. If the employee does not have enough pay to collect the debt, the system generates a claim wage type, /561. Claims processing works much in the same manner as arrearages for deductions. The system will continue to collect all available pay, applying it to the balance due, until the entire claim is repaid.
Here are overview of SAP Overpayments
Overpayments Recovery Processing uses:
- New wage types (/58x)
- A new payroll results table (CLM)
- An Overpayment Processing program (RPCLMRU0 or RPCLMRU0_CE)
- A new Infotype 0909 to process the recovery of overpayments
List of Wage types (/58x)
CLM table in payroll results
Wage types identified as overpaid are stored in CLM table in payroll results . When this occurs, RT is set back to original result for the wage type
Report RPCLMRU0 and RPCLMRU0_CE— U.S. Overpayment Recovery
It creates the IT0909 from the CLM table Program run after regular and off-cycle payroll
When IT0909 is created, payroll has the ability to:
- Do nothing; recover at a later time
- Recover full amount with employee consent
- Recover partial amount with employee consent
- Forgive in full
- Forgive partial
- Stop recovery
Here is a picture of infotype 909 balance section
Payroll Log for Overpayment