Hierarchy
SAP_HRCCA (Software Component) Sub component SAP_HRCCA of SAP_HR⤷
PY-CA (Application Component) Canada⤷
P07C (Package) HR customizing: Canada
IMG Activity
| ID | OHAKOI002 | Permit negative outflows for advance wage types |
| Transaction Code | S_PL0_09000163 | (empty) |
| Created on | 20020328 | |
| Customizing Attributes | OHAKOI001 | Payroll Canada - Outflow/Inflow Processing |
| Customizing Activity | OHAKOI002 | Permit negative outflows for advance wage types |
Document
| Document Class | SIMG | Hypertext: Object Class - Class to which a document belongs. |
| Document Name | OHAKOI002 |
Use
If you would like to enable taxable cash wage types to create outflows for negative amounts, then you must assign specification 1 to processing class 55 in all applicable wage types.
Requirements
The configuration discussed here addresses processing methods without regard to their possible adverse legal implications. Therefore, we strongly recommend that your enterprise first contact the Canada Revenue Agency and le Ministère du Revenu du Québec (if applicable) to discuss the legal implications of the processing that you wish to perform.
Please discuss the implications of your chosen processing method with the appropriate authority before you take steps to implement it.
Standard settings
As delivered, during outflow/inflow processing, the standard system only considers wage types that cumulate into technical wage type /101 (Total gross). Non-taxable cash wage types, which are not considered during standard outflow/inflow processing, must cumulate into technical wage type /110 (Net Payments/Deductions).
If the sum of the differences of all taxable cash payments within a particular pay period is positive, then the standard system generates an outflow, which will be accounted for in the current pay period.
If the sum of the differences of all taxable cash payments within a particular pay period is negative, then no outflow will be generated.
Activities
- Execute the activity associated with this IMG step.
- On the subsequent screen, highlight the table entry that corresponds to the first taxable cash wage type for which you would like the system to permit creation of outflows for negative amounts.
- In the application toolbar, choose Details.
- On the subsequent screen, place the cursor in the field that corresponds to processing class 55; in that field, enter the value 1.
- Save your entry, then return to the previous screen for an overview of all wage types.
- Repeat step 2. for all applicable taxable cash wage types, then exit this step of the Implementation Guide
Example
Example 1
In February, an employee's advance wage type is reduced by $200 and a non-advance wage type is increased by $100 for December of the previous year. An amount of -$100 is carried forward into the current year. In case T4s have already been filed in mid-January, no amended T4 would be required.
Example 2
In February, an employee's non-advance wage type is reduced by $200 and an advance wage type is retroactively increased by $100 for December of the previous year. No amount will be carried forward into the current year. Instead, the overall reduction of -$100 will be accounted for in the previous year. In case T4s have already been filed in mid-January, an amended T4 would be required.
Example 3
Your enterprise utilizes negative time recording for its hourly employees. In December, an employee received an advance payment of $5,000. Federal taxes of $2,000 were calculated and remitted to CRA. In February, the employee's advance payment of $5,000 is retroactively reduced to zero (the employee entered the corresponding paid-up leave into the system). An amount of -$5,000 is carried forward into the current year. In this case, if you had already filed your T4s in mid-January, no amended T4 would be required. However, since no amended T4 would be processed, the employee would not be able to claim the refund of $2,000 in taxes paid on the amount of $5,000. Instead, the amount of -$5,000 will be accounted for in the current pay period. Assuming that the employee receives periodic income only during the current pay period, no tax will be refunded. The employee will not be able to reclaim the additional taxes paid until the beginning of next year, upon receipt of the T4 for the current year.
Example 4
Your enterprise utilizes negative time recording for its hourly employees. In December, an employee received an advance payment of $5,000. Federal taxes of $2,000 were calculated and remitted to CRA. In January, the HR department enters the employee's paid-up leave for December into the system. An amount of -$5,000 is carried forward into the current year. According to the employee's shift schedule, no advance payment is processed for January. Coincidentally, the HR department terminates the employee at the end of January. As a result, the employee will "earn" taxable income of -$5,000, with no taxes paid at the end of the current year. The system cannot process negative taxable income to be reported on an employee T4.
Business Attributes
| ASAP Roadmap ID | 204 | Establish Functions and Processes |
| Mandatory / Optional | 2 | Optional activity |
| Critical / Non-Critical | 1 | Critical |
| Country-Dependency | I | Valid for countries specified |
Maintenance Objects
| Maintenance object type | C | Customizing Object |
| Assigned objects | ||||||
|---|---|---|---|---|---|---|
| Customizing Object | Object Type | Transaction Code | Sub-object | Do not Summarize | Skip Subset Dialog Box | Description for multiple selections |
| V_512W_O | V - View | SM30 | 551 | Permit negative outflows for advance wage types |
History
| Last changed by/on | SAP | 20020328 |
| SAP Release Created in | 470 |
