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what is retro active accounting and earliest retro active 
 Question Submitted By :: HR
I also faced this Question!!     Answer Posted By  
# 1
Retroactive accounting:
A payroll run is repeated for a period for which payroll accounting has already been performed in the payroll past. Retroactive accounting is triggered during the payroll run for the current period if certain master and time data affecting the payroll past has been changed in the meantime.

Only changes to master and time data are relevant for retroactive accounting since previous payroll results must be corrected. A retroactive accounting limit can be set for the whole company and/or for just one employee.

Earlierst Retroactive Accounting period Example:

In Payroll status: if you update this period as 06 2010. Any changes before this period related to Master data or time data wouldnt be allowed into the SAP System. The changes which are within the earliest retroactive accounting period is accepted. Exceptions are there for this but again based on the requirement.
Is This Answer Correct ?    4 Yes 0 No

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