Define Arrears Set - A summary of activity

Through this activity, you can define an arrears set. You can also modify and view details of an existing arrears set. Note that you cannot modify arrears set if it has already been authorized.

This activity allows you to delete an arrears set.

Arrears is the differential amount of salary that is paid to the employee because of some retrospective changes in the pay. One of the common instances of arrears is revision of pay with effect from a back date. Take an instance of an employee earning  $1000 P.M. since January. In the month of March, the pay is revised to $1500 P.M. with effect from January. The arrears payable to the employee till March: $500 ($1500 - $1000) *2 for the months of January and February. 

To define an arrears set, you must specify the following:

• The payroll and the payset for which the arrears need to be computed.  These are referred to as the Arrear Payroll and Arrear Payset.

• The arrear group denotes a process name under which certain pay elements are grouped. Elements which have certain common attributes, can be grouped under a process.  For example  if there is a back dated effect on the base salary of an employee, it affects other dependent pay elements.  Such elements must be grouped under a process using the “Process Element Mapping” activity under Payroll Component.

• The range of process periods for which arrears need to be computed.  The system  ensures that the arrears pay elements specified are mapped to one of these process periods.

•  The rule, if any that determines the eligibility criteria for employees for  processing under the arrears set.

•  The process period in which the arrears are to be paid. 

•  The different pay elements that form an arrears set and for which arrears must be computed.

•  The common arrear pay by element by which arrears must be  paid for all the arrear pay elements.

•  Exception employees for whom the arrears are to be processed using the “Specify Exception Employees” screen.

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Prerequisites

 A payroll and a payset must have been created

 Process periods must be created and mapped to the payroll and the payset.

Payroll must have been authorized for at least one of the employees for one of the arrear periods.

What you can do in this activity

Defining arrears set

Defining arrears set

To define arrears set, you must perform the following tasks in the given order:

• Specify the payroll definition unit, arrears set id, arrears set  description, arrear group, payroll, payset,  period, pay in process period, arrears eligibility rule, common arrear pay  element, common pay through element.

• Specify the employees entitled for arrears.

• Select the pay elements, and the fixed amount or rule which must be applied to them to arrive at the arrears amount.

• Select the common pay element through which arrears can be paid for all pay elements.

You can also modify the parameters defined for an arrears set or delete an arrears set.