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OHAUORS001 - Activate Overpayment Recovery

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In the U.S. country version, Overpayment Recovery functionality is delivered - in the standard system and in a Concurrent Employment environment alike - to supplant customary Claims Processing. As delivered, Overpayment Recovery functionality streamlines the process of identifying amounts that have been overpaid to employees, decreases the manual effort that is required of payroll administrators, and simplifies the task of complying with legal requirements that vary from one state to another - for example, with states that proscribe employers from recovering overpaid amounts in excess of a certain percentage without first obtaining the consent of the employee, or with states that mandate a minimum wage in excess of the Federal amount.

Overpayment Recovery functionality distinguishes itself from customary Claims Processing in that employee overpayments are automatically processed - that is, recovered in part or in full - at the time that payroll is executed for the current period and in accordance with the settings that your enterprise performs in this section of Customizing for Payroll USA (PY-US). Automatic recovery of employee overpayments is supported in the standard system and in a Concurrent Employment environment alike. Because employee overpayments are processed automatically, the (manual) clearance of employee claims via customary Claims Processing is made redundant. Moreover, in comparison to customary Claims Processing, Overpayment Recovery functionality provides increased transparency in the administration of employee overpayments, since the associated report allows payroll administrators to monitor such overpayments more easily. Because overpayments are monitored per personnel number (in the standard system) or per Person ID (in a Concurrent Employment environment), Overpayment Recovery functionality provides payroll administrators with a more detailed summary of the current status, per employee, of overpaid amounts.

Overpayment Recovery functionality is optional; if your enterprise is satisfied with customary Claims Processing, via program RPCLMSU0, then it may continue to process employee claims in this manner, and need not transition to the Overpayment Recovery functionality that is provided in program RPCLMRU0 (or, in a Concurrent Employment environment, in program RPCLMRU0_CE). Nonetheless, if your enterprise wishes to implement Overpayment Recovery functionality, it is at liberty to do so at any time, and can execute this Customizing activity to that end. However, before it may implement Overpayment Recovery functionality, your enterprise is required to clear all existing employee claims. Furthermore, once your enterprise has activated Overpayment Recovery functionality, it cannot revert to customary Claims Processing.

Execute this activity to activate Overpayment Recovery by assigning a value of X to Group Name CCURE and Semantic Abbreviation NWCLM within the associated System Table (T77S0).

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