To provide guidance to staff for processing retroactive adjustments within the SAP HR/Payroll module outside the earliest retroactive date (ERD) (as defined below). For assistance in processing transactions within the earliest retroactive period, please refer to IRIS Human Resources/Payroll (HR) Payroll Refence Manual.
The HR/Payroll module provides the ability to adjust payments for previous payroll periods back to a point in time known as retroactive adjustments, which provides a significant benefit as it allows changes in pay, benefits and taxes to be calculated automatically. However, adjustments caused by changes to cost distributions, late entry of leave balances and error corrections often negatively affect accounting functions, such as, reporting on quarterly financial statements, grant reimbursements and other periodic financial reporting. The impact on accurate, timely financial reporting compels the University of Kentucky to limit the length of time retroactive adjustments will be allowed to process.
IV. Policy
Exceptions:
Departments may complete a Payroll Retroactive Adjustment Request form to request consideration of a change in pay prior to the earliest retroactive date as set in the payroll schedules.
Complete the Retroactive Payroll Adjustment Request form
For all requests include:
Send the form and documentation to the next level business officer for approval;
Note: If the request includes WBS/grants and the time period exceeds 90 days from the posting date, additional signatures as detailed in Appendix 2 Cost Transfers for Sponsored Projects will be needed; and