Design And Implementation Of Non-monthly Payroll Systems

Payroll accounting plays an important part in the human resources management. It does not only include the HR operations that must be dealt with a regular routine of traditional services, but also a complex and painstaking work. Being related to the economic interests of each employee, illegal results and errors are strictly prohibited in payroll accounting. With the continuous improvement of the economy and social welfare, the increasingly growth of personnel operations as well as diverse types of salary compensation makes the calculation of the various wage categories much more complicated. First HR clerks need to know the latest information and personnel data, and calculate employee payroll data correctly. Secondly, payments of payroll have a strong time constraints which must be strictly in accordance with the given time units required to complete the calculation of the payments and withholding amounts for employees. This accounting accuracy and timeliness require for a higher payroll accounting efficiency and flexibility. Therefore high flexibility and efficiency of the amount calculation should be an important part of payroll accounting. Therefore, establishing a more flexible, high-applicability algorithm and enhancing payroll accounting cycle from a traditional monthly basis to higher frequencies are relatively important for improving efficiency of payroll accounting.In this article, the main calculation algorithm of all the existing monthly amounts are reviewed and improved in a non-monthly payroll period based on the current calculations in a monthly period, in order to give the correct amounts even in a non-monthly payroll period. Secondly, the amount calculations in a retroactive scenario among periods in a higher payroll frequency in a single calendar month are improved with more flexibility. In addition to that, payroll posting is enhanced as well in order to integrate the payroll results from the enhanced payroll frequencies into FI/CO systems. The article summarized the basic requirements for a non-monthly payroll accounting system, then designed and implemented the new algorityms as the enhancement of the main sub functionalities and calculations in a non-monthly payroll. It includes the following enhancements:1. Algorithm for payments and deduction calculation in non-monthly payroll periods shorter than a month. It includes hourly payments, basic pay and recurring payments with different pay time units from regular pay periods, as well as algorithm for monthly deduction amounts.2. If retroactive master data changes trigger retroactive accounting within a single month, there are some scenarios where net deduction amounts are changed among periods in the same month. This makes the net amounts retro more complicated. The article enhanced the net retro mechanisim base on the gross retro model.3. The posting for time payments can be done both in the occurring period basis and in the paid period basis in a non-monthly basis.Whereas the posting for net retro deductions within a month has been designed based on the gross retro model.4. Implementation for the new algorithms and new functionalities into the curent payroll modules as an enhancement of an ERP system.Verification by the real scenarios in the system has proven the correctness and efficiency of the new algorityms.In a word, the new calculations proposed in the article resolved the difficulties of amount calculation in a non-monthly payroll system and ensured the accuracy and accountability of its payroll results, in the same time improved the flexibility to meet the increasingly growing business needs and requirements.