There are lots of issues related to time period and payroll period and I find it very useful to put together my experiences and my replies into a document to use as a reference.
Here you can see some of related discussions which are related to this important issue and in some of them you have my reply.
Almost SAP HCM consultants think time period and payroll periods are the same and it’s definitely 01(monthly period) but totally it’s wrong!
Time period and payroll period are two different concepts but you can keep them same as they are by default(period 01). Time management and it’s related reports and programs work based on time period by payroll works based on payroll period.
Changing time evaluation period effects almost standard reports and final process of time evaluation. For example PT_BAL00 report works based on time evaluation period. system works based on RP-DEF-TIME-PERIOD of table TRMAC. Yes this is time period.
For example if you would have reports of time from 21th to 20th you must define such a period in V_T549R and define the periods of it in V_T549Q. Then you have to put time period, which you have defined in V_T549R into TRMAC as RP-DEF-TIME-PERIOD. The default value is ’01’ and because of this system works monthly base by default.
By changing this macro you should generate almost programs like PT60, PT_BAL00 report and so on. Otherwise they won’t consider the changes.
For this go to source codes of programs, for example it’s RPTIME00 for PT60 and RPTBAL00 for PT_BAL00, and choose “Generate” option from program menu. You can find the program of TCodes from System -> Status… menu.
Don’t forget to regenerate PT66 (program RPCLSTB2).