10 most critical factors of SAP payroll: Overpayment and claims

Overpayment and Claims

We have reached the final post in the 10 most critical factors of SAP payroll seriesOverpayments and claims are amounts that SAP Payroll determines to be owed by the employee to the company. Overpayments and claims are generated when master data is changed retroactively and the employee

  • received too large of an increase in Basic Pay
  • was on LOA and has benefits deductions due on return
  • received a bonus in error

Payroll will generate wage type /561 Claim which represents the amount the employee owes the company. The Payroll Reconciliation Report discussed in an earlier post provides a great way to identify employees with an outstanding claim. Then, the Claims Report (RPCLMSU0) can processed to gain a detailed understanding of what makes up the claim.

Claims will clear themselves during the next payroll run if there are sufficient funds to cover the claim. If not, the claim will remain in subsequent payrolls until paid off. However, many organization do not want to withhold the full claim amount from an employee’s check, especially, when it would result in zero net pays. This may be a hardship on the employee so the claim is cleared and a loan is set up for repayment. Another reason claims are typically cleared is due to taxing consequences when crossing tax years.

Three options exist for clearing claims:

  1. Claims are recouped during subsequent payroll(s)
  2. Company forgives the claim
  3. Employee repays the claim

SAP provides model wage types for repayment and forgiveness of claims. The wage types and details of how SAP wants claims processed can be found on the SAP service market place. If you are interested in a different take on how to clear claims, Steve Bogner provides a different method that may be much simpler to understand and implement.

We’ve come a long ways in this blog post series and I hope that you have found the information good and useful.

Here at Integrated Consulting Group, we specialize in the design, development, and customization of SAP Human Capital Management business software for leading edge North American companies with global reach. Have any questions about SAP? Feel free to contact us via the contact page of our site, or on Twitter or LinkedIn.