How to configure a sporadically generated allowance in the payroll?
We have a business requirement where specific allowances (which are currently being paid by cheque or bank transfers through invoice processed in FI module) payable to employee have to be configured so that they can be paid through payroll.
The issue is that
1. These Allowances are non-recurring payments, such as bonuses or vacation bonus, and are not part of the monthly remuneration. They are sporadically generated at any time of the year.
2. Secondly our payroll execution is not fixed for a particular day of the month.
Combining both these issue we encounter a major problem; where <u>if the allowance is generated after the payroll has been released for execution, the payroll of that respective month does not cater the payment of that allowance although it is supposed to be paid along with i</u>t. Also, this allowance will not be processed in the payroll of the next month as well, because it will only include wages for the ongoing month.
In this way the payment of that allowance will be skipped!
If anyone has encountered such a situation please propose a solution for this scenario. Also if someone can share the best practices being followed in this regard.