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Description
The Payroll Reconciliation Report is executed to reconcile payrollresults from a specified time interval both with Tax Reporter resultsand, to a lesser extent, with the amounts posted to the Financials
(FI) application component. The output of this report can be usedto cross-check the accuracy of the results produced by these reportingprograms.
The output of the Payroll Reconciliation Report is meant to reflectactual payroll results as closely as possible. It is not the intent ofthis report to duplicate the logic of the FI posting program, nor ofthird-party remittance functionality, nor of Tax Reporter.Therefore, amounts reported by the Payroll Reconciliation Reportwill not necessarily match the results of other reporting programs.Indeed, the fundamental purpose of the Payroll Reconciliation Report isto enable users to discover such discrepancies, so that they mayultimately resolve them.Configuration
As delivered, the Payroll Reconciliation Report features severalstandard wage type applications that enable reconciliation to takeplace between payroll and other system reporting applications. However,if your enterprise requires additional (non-standard) wage typeapplications, you may perform one optional configuration step. Thisconfiguration is carried out in the following chapter of the U.S.Payroll Implementation Guide:
Reporting
-> Reconciliation
,,-> Maintain wage type applicationsFeatures
The primary features of the Payroll Reconciliation Report are asfollows:
- As stated above, for each type of variance tracked by this report, the
standard system features several pre-defined wage type applications.Each of these applications reviews groupings of reportable wage types,gathered into wage type buckets, to display actual payroll results.Users can compare these results with the results of other reportingapplications (such as Tax Reporter) to discover potentialdiscrepancies. For example, wage type application CSUI reviewswage type buckets containing the wage types that are relevant to theTax Reporter SUI form. By executing the report with applicationCSUI, the user can discover variances between the SUI amounts p
osted to FI and the SUI amounts produced by Tax Reporter.
- In addition to these wage type applications, the Payroll Reconciliation
Report may also be executed for individual wage types or arbitrary setsthereof.
- The report also enables users to track and record the processing of
retroactive payroll data and to reconcile it with the results from TaxReporter and FI.
- User-defined report selections may be configured as well.
- Reconciliation can be performed expressly for voided payroll results.
- Reconciliation can be performed expressly for off-cycle payroll
results.
- Reconciliation can be performed expressly for year-to-date,
quarter-to-date, or month-to-date amounts.
- Depending upon the volume of data to be processed, you can instruct the
system to report only total amounts or to provide detailed breakdownsof payroll results.
- When executed to reflect variances between Tax Reporter and FI, the
report considers outflow amounts in accordance with the taxed-when-paidprinciple.Selection criteria
The Payroll Reconciliation Report allows for a broad range of selectioncriteria to enable a high degree of precision in the scope of thereport and its output data. To take full advantage of thefunctionality offered by this report, we recommend that you alwaysdefine the report selection options as narrowly as possible.
- Standard selection criteria
The Payroll Reconciliation Report features the same standard selectioncriteria found in other reports, including selection by date,by payroll period, by personnel number and by payrollarea. To further restrict standard selection criteria when executingthis report, choose Further selections from the top of theselection screen.
- Tax-related selections
In this section, you may specify the tax companies and tax authoritiesfor which you would like to perform reconciliation. When makingselections in this section, enter the category of tax data to bereconciled, as follows:
A - Employee taxes
B - Employer taxes
C - Employee and Employer taxes
- Wage type selections
In this section, enter the four-character designation of the wage typeapplication to be evaluated by the Payroll Reconciliation Report. Forexample, to perform reconciliation for all wage types related to theTax Reporter W-2 form, specify wage type application CCW2.Alternatively, you may select Ad hoc WT selection to specify anynumber of wage types of your choosing.
- Output options
Detailed view of payroll results
Select this checkbox to view, within the report output, detailedbreakdowns of payroll results per wage type, wage type bucket and payperiod (as described below under Output description). Since thisoption provides a greater amount of data to help users finddiscrepancies, it may facilitate in the analysis and resolution ofpotential payroll errors. On the other hand, since this option mayreduce performance, we recommend that you select it only if a smallvolume of data is to be processed.
Accumulations
If applicable, specify the period(s) for which accumulated data shouldbe displayed - year-to-date, quarter-to-date or month-to-date. Theseoptions, however, may only be used in conjunction with the Detailedview of payroll results option, described above.
Totals view of payroll results
Select this option if you would like the report to display a conciselist of the total amounts within the payroll results per applicablewage type or wage type bucket, without displaying pay period detailsand accumulation amounts.
These total amounts may then be compared with the total amountscalculated by other system applications. If the respective totals donot reconcile, then you may re-execute the report using theDetailed view of payroll results option to enable a more preciseanalysis of the differences between the respective amounts.
Detailed/Totals view: EE data
Select this option to display payroll results per employee in both thedetailed and the totals view of the report output. However, if thisoption is chosen and reconciliation executed for a large pool ofemployees, then the performance of this report may be considerablyreduced. Consequently, this option should only be selected whenprocessing data for small groups of employees.
Print log
Select this option if you want the system to print the log of thePayroll Reconciliation Report along with its output.
Reportable fields
Choose this function button to customize the fields to be included inthe report output. Within that output, the fields will be listed in theorder that they were selected in the Reportable fields dialogbox.
- FI/Tax Reporter views
Show FI - W-2 variance
Show FI - 941 variance
Show FI - SUI variance
If you select one of these views to run the Payroll ReconciliationReport, the system will consider the parameters used by Tax Reporter toexclude prior period adjustments or to include adjustments that tookplace after the specified interval for payroll results within thatinterval, then find any variances that may be present between amountsposted to FI and amounts reported by Tax Reporter for Form W-2, Form941 or State Unemployment Insurance forms.
Show FI view only
This section also determines how the Payroll Reconciliation Report willtake retrocalculations into consideration. If you select this option,then execute the report, the system will display all payroll resultsthat were paid during the interval specified in the Payroll period
section. In addition, any adjustments that occurred inretrocalculations of these payroll results will be reported.
However, adjustments in retrocalculation that occurred in payroll runsthat were processed after the specified interval for periods withinthat interval are ignored. Since this method of evaluating payrollresults is similar to the method of posting and remitting payrollresults, the amounts shown by the report when this option is chosen canbe compared with the results produced by posting and third-partyremittance.
Additional options
Tax Reporter production run
If a productive Tax Reporter run occurred during the specifiedinterval, the Payroll Reconciliation Report can directly access the TaxReporter control records and consider the as-of dates of the chosen TaxReporter form, provided that you select this option before executingthe report.
Tax Reporter simulation run
If no production run occurred during the specified interval, you canenter the as-of date for the previous reporting interval and the as-ofdate for the current reporting interval manually. To do this, selectthe Tax Reporter simulation run option and enter the appropriateas-of dates. For the current interval, it is possible to specify therun dates to take into consideration. If payroll results created aftera special run date/time should be excluded, the date and time of thisrun should be entered under Simulation generation date and
Simulation generation time, respectively.
- Payroll result selections
The final section of the selection screen enables you to restrict theselection of payroll results. By making the corresponding selection,you can instruct the report to process only the last payroll result -for example, if you would like to check outstanding claim wage types.You may also instruct the report to process voided results only, or toprocess only off-cycle results. When instructing the system to processonly off-cycle payrolls, you can restrict the selection to specificpayroll types, such as adjustment runs or bonus runs.Recommendation
To ensure optimal performance, we recommend that you always select theTotals view of payroll results when executing the PayrollReconciliation Report for an entire reporting unit. Doing so will alsoenable a reconciliation of totals with other system applications.
To attain more detailed information at the employee level, we recommendthat you restrict reporting units to a small number of employees. Sincethe output of this report may constitute an immense amount of data(especially if employee data is displayed), evaluating larger reportingunits may lead to performance problems and lengthy processing periods.
To reconcile payroll results with the results generated by a productiveTax Reporter W-2 run, we recommend that you refrain from enteringspecific tax authorities on the report selection screen. Since W-2 taxreporting is performed for all tax authorities, the report cannotdetermine as-of dates for any particular tax authority.
If W-2 reconciliation, however, is desired for a particular taxauthority, then you may manually enter the as-of dates on the reportselection screen.
When you perform reconciliation for Form 941, we recommend that youspecify tax authority FED on the report selection screen, sincethe only data contained by the form is federal tax data.
When you perform reconciliation for SUI forms, we recommend that youexecute a separate report run for each applicable tax authority.Output
Show FI view only
Upon selecting this option and executing the report, all payrollresults that were paid within the specified interval will be displayed,along with adjustments in retrocalculations caused by these payrollruns.
Totals view of payroll results and Show FI view only
To perform a high-level cross-check of the accuracy of payroll results,the reconciliation process should begin with an analysis of totalamounts. We thus recommend that you initially execute the report withthe Totals view of payroll results option selected. The totalsview has two different output sections, as illustrated below.
---------------------------------------------------... --------..
WT Application - ( CCW2 ) SAP - Payroll Reconcili ...
Pay Period - 00. 01/01/2000 - 03/31/2000 ... Run Date..
---------------------------------------------------... --------..
TOTALS (Curr. Period + Retro Adj. + TaxRep Adj.)
---------------------------------------------------... --------..
WtBkt CoCd TxCo PyAr TxAu PA PSArea Emply ID... Amount..
---------------------------------------------------... --------..
Y401 US01 CA 12345678... 2,279.53-
Y401 US01 CA ... 2,279.53-
---------------------------------------------------...----------..
The first totals section displays the sum of the current period amountsand all retroactive adjustments. These are the amounts that should betaken to compare the output of the reconciliation report with theoutput of other reporting programs.
If the Detailed/Totals view: EE data option has been selected,then the total amounts of each applicable wage type and wage typebucket will be displayed for each employee. These individual amountsare then summated to display a grand total.
A second section displays corrections calculated for payroll runs thatwere paid out before the specified interval, as illustrated below.
---------------------------------------------------... --------..
WT Application - ( CCW2 ) SAP - Payroll Reconcili ...
Pay Period - 00. 01/01/2000 - 03/31/2000 ... Run Date..
---------------------------------------------------... --------..
TOTALS (Prior Period Adjustments)
---------------------------------------------------... --------..
WtBkt CoCd TxCo PyAr TxAu PA PSArea Emply ID... Amount..
---------------------------------------------------... --------..
Y401 US01 CA 12345678... 2,442.34-
Y401 US01 CA ... 2,442.34-
---------------------------------------------------...----------..
Detailed view of payroll results and Show FI view only
Because of the extensive amount of data contained in this view, werecommend that you do not use it to perform an initial cross-check ofFI posting, third-party remittance and Tax Reporter runs. Rather, thedetailed view lends itself to the analysis of payroll results that arealready known to be discrepant, for example, when incorrectly reportedduring posting or third-party remittance runs.
If you have selected both the Detailed view of payroll resultsand the Show FI view only options, then executed the report,then the output will feature three sections, containing the amounts perpayroll period, as illustrated below.
-------------------------------------------------------------------
Tax company US01
Tax authority CA
-------------------------------------------------------------------
-------------------------------------------------------------------
/401 TX Withholding Tax
-------------------------------------------------------------------
PRIOR PERIOD ADJUSTMENTS AMOUNT OF ADJUSTMENT
-------------------------------------------------------------------
10.99-01.00 | 01/28/2000 | 162.81-
11.99-01.00 | 01/28/2000 | 162.81-
12.99-01.00 | 01/28/2000 | 162.81-
12/31/1999 C | 02/01/2000 | 1,953.91-
-------------------------------------------------------------------
CURRENT PERIOD RESULTS Current Period
-------------------------------------------------------------------
01.00-01.00 | 01/28/2000 | 162.81
-------------------------------------------------------------------
TOTALS: 162.81
-------------------------------------------------------------------
RETROACTIVE ADJUSTMENTS Current Period
-------------------------------------------------------------------
10.99-01.00 | 01/28/2000 | 162.81-
11.99-01.00 | 01/28/2000 | 162.81-
12.99-01.00 | 01/28/2000 | 162.81-
12/31/1999 C | 02/01/2000 | 1,953.91-
-------------------------------------------------------------------
TOTALS: 2,442.34-
-------------------------------------------------------------------
GROUP TOTALS: 2,279.53-
-------------------------------------------------------------------
The CURRENT PERIOD RESULTS section provides an overview of all primarypayroll results paid during the specified interval. Retroactiveadjustments caused by these payroll runs are not displayed in thissection.
The RETROACTIVE ADJUSTMENTS section displays all corrections caused bypayroll results paid during the reporting interval to any previouspayroll results.
The sum of the CURRENT PERIOD RESULTS and RETROACTIVE ADJUSTMENTSsections forms the total amount processed by payroll during thespecified interval for the affected wage types and wage type buckets.These GROUP TOTALS can be compared to posting or third-party remittanceresults.
To provide additional information, the detailed view displays anyretrocalculation adjustments that were made to payroll results paidbefore the specified interval. The PRIOR PERIOD ADJUSTMENTS section isa subsection of the RETROACTIVE ADJUSTMENTS section.
Tax Reporter view
The Tax Reporter view displays the same information as the FI view, butalso accounts for outflow wage types according to the taxed-when-paidprinciple. To this end, tables XDFRT and BAL are included in theevaluation of payroll results. In addition, a separate section displaysthe payroll results that were excluded (or included) in accordance withthe Tax Reporter as-of dates. Payroll results to be excluded will bedisplayed with an opposite sign to back them out of the FI view.
Detailed view of payroll results and Tax Reporter view
-------------------------------------------------------------------
Tax Company US01
Tax Authority CA
-------------------------------------------------------------------
-------------------------------------------------------------------
/401 TX Withholding Tax
-------------------------------------------------------------------
PRIOR PERIOD ADJUSTMENTS AMOUNT OF ADJUSTMENT
-------------------------------------------------------------------
10.99-01.00 | 01/28/2000 | 162.81-
11.99-01.00 | 01/28/2000 | 162.81-
12.99-01.00 | 01/28/2000 | 162.81-
12/31/1999 C | 02/01/2000 | 1,953.91-
-------------------------------------------------------------------
CURRENT PERIOD RESULTS Current Period
-------------------------------------------------------------------
01.00-01.00 | 01/28/2000 | 162.81
-------------------------------------------------------------------
TOTALS: 162.81
-------------------------------------------------------------------
RETROACTIVE ADJUSTMENTS Current Period
-------------------------------------------------------------------
10.99-01.00 | 01/28/2000 | 162.81-
11.99-01.00 | 01/28/2000 | 162.81-
12.99-01.00 | 01/28/2000 | 162.81-
12/31/1999 C | 02/01/2000 | 1,953.91-
-------------------------------------------------------------------
TOTALS: 2,442.34-
-------------------------------------------------------------------
TAX REPORTER ADJUSTMENTS AMOUNT OF ADJUSTMENT
-------------------------------------------------------------------
10.99-01.00 | 01/28/2000 | 162.81
11.99-01.00 | 01/28/2000 | 162.81
12.99-01.00 | 01/28/2000 | 162.81
12/31/1999 C | 02/01/2000 | 1,953.91
01.00-04.00 | 04/28/2000 | 100.00
------------------------------------------------------------------
TOTALS: 2,542.34
------------------------------------------------------------------
GROUP TOTALS: 262.81
------------------------------------------------------------------
The TAX REPORTER ADJUSTMENTS section displays the corrections that wereexcluded by Tax Reporter in light of the as-of date of the previousreporting interval, indicating that these corrections were included ina previous reporting period. The section also displays the correctionsthat were included by Tax Reporter in light of the as-of date of thecurrent reporting interval, since these corrections come from payrollresults that were paid after the specified interval, but that correctedresults that were processed during that interval.
In the example above, The FI total amount was 2,279.53-.
Tax Reporter has included the following corrections into a previousreporting period, assuming that the as-of date of the previousreporting period was 02/15/2000:
10.99-01.00 | 01/28/2000 | 162.81
11.99-01.00 | 01/28/2000 | 162.81
12.99-01.00 | 01/28/2000 | 162.81
12/31/1999 C | 02/01/2000 | 1,953.91
To back these amounts out of the FI total amount, the adjustments aredisplayed with an opposite sign.
Assuming that the as-of date of the current reporting period is04/30/2000, the following correction of payroll period 04 (paid out on04/28/2000) for period 01 would be included in the current reportingperiod:
01.00-04.00 | 04/28/2000 | 100.00
This leads to a total tax reporting adjustment amount of 2,542.34. TaxReporter would report the FI amount of 2,279.53-, plus the adjustmentamounts of 2,542.34, resulting in a total of 262.81.
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