Closing a payroll cycle

Closing the payroll cycle includes these procedures:

Before you continue closing the payroll cycle, use Payroll Cycle Status (PR00.1) to verify the status of the payroll cycle and to verify the successful completion of forms required for Earnings and Deductions Calculation (PR140) to run. The required forms include Retroactive Pay Calculation (PR131) if applicable, FLSA Overtime Calculation (PR132), and Tip Calculation (TP135) if established as required forms by flags on Company (HR00.1) and Process Level (HR01.1).

Use Payroll Close (PR197) to close and complete a payroll cycle. Closing payroll allows the start of a new cycle, creates payroll accruals, updates payroll history with information from the completed payroll cycle, deletes processed time records from the application, and clears the cycle indicators in Payroll Cycle Status (PR00.1). Before running Payroll Close (PR197) in update mode, run PR197 in report mode to produce a report to use when making final edits.

Payroll liabilities flagged for payment in the Accounts Payable application cannot be paid until the general ledger is updated using General Ledger Posting (PR198).

When you close a payroll year through Payroll Year End Close (PR999), the application:

Changes the year in the Payroll Year field on Company (HR00.1) to the new year
Deletes all arrears withholding deductions created by the application during the previous year
Creates new pay period and work period dates for pay plans defined in Pay Plan (PR21.1)

Payroll transactions and adjustments for the closed year can still be submitted after running the Payroll Year End Close (PR999). To create transactions and adjustments, change the payroll year on Company (HR00.1) to the prior (closed) year. You can then create and close transactions. After completing the transactions, change the payroll year back to the new year.