SAP Payroll Process
HCM Structure
Personnel Structure
Pay scale Structure
Info type
Payroll in OGC
Define the Input Components (i.e.
Benefits, Time Management)
Identify the Payroll Info types
Payroll Area and Process Control
Concepts in Wage Types and their
Relation with Payroll Schemas and
Rules
Identify Pay Structures
Develop Basic Pay Structure
Transformation Pay Scale vs. Pay
Human Capital Management:
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Administration
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Human Capital Management (HCM) modules in SAP R/3 incorporate HCM
concepts and practices, enabling managers to perform transactions
pertaining to the HRM cycle of events.
HR modules in SAP R/3:
Organizational management
Personnel management,
Payroll
Time management
Travel management,
Structure of HCM:
Personnel Structure:
This structure describes an employees position within the company in
regards to work hours and compensation
The Personnel Structures is made up of the following elements
o Employee Group
o Employee Subgroup
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o Payroll Area
Personnel Structure Employee Group and Employee Subgroup
o Employee Group
An employee group defines the extent to which employees are placed in their
work environment
to fulfill the objectives of the state (Active, Retiree, Early Retiree, etc.)
Employee Group represents a primary subdivision of personnel
Employee groups are divided into several employee subgroups
o Employee Subgroup
An Employee Subgroup is a subdivision of an Employee Group
Example: Within the employee group for active employees, a distinction is
made between the
Following employee subgroups:
Hourly Employees
Salaried Employees
1
Employee Subgroup
Organizational Structure: Pen Inc.
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What is an Info type?
An info type is the classification of associate information into logical data
groups.
It is a SAP screen that holds information about an employee regarding his/her:
Personal Data
Work Location,
Addresses
Company Assignment
Family, etc.
Can be maintained individually or in a group
Field layout can be manipulated
Is Validity Date Driven?
Is an HR term
Maintaining Info type:
CREATE:
CHANGE:
New info type record Create blank entry screen Fill required
Correct or
Fields.
change
(History)
data for an info type record
COPY:
DELIMIT:
Copy data from an existing info type record. (History)
Enter end date for current record. (H
(Over righting Start date)
DELETE:
HumanRemove
Capital Management
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Info type from
database.
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(No History)
Pay Scale Structure
An employees basic pay attributes
Consists of a class code, salary table, schedule and step or level of
employees
Pull associated salary
Integrated with Org Management, Compensation Management, and
Personnel Administration
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Grass Salary is distributed by
Basic Salary
House Rent
Utility Allowance
Others Allowances
Medical Allowances
(Gross Pay*2/3)
Medical Allowance
Su
b
Co
de
Pasca
le
Group
Director Operations
DR
OM13
General Manager
GM
OM12
MM
OM10
2000
SM
M2
M1
SD
DM
AM
OM9
OM8
OM7
OM6
OM5
OM4
1500
1500
1000
1000
800
600
(40% of Basic Pay)
Name Of
(10% of Basic Pay)
Employees
(Round of Salary)
(As per Grade)
Deputy General
Manager
Sr. Manager
Manager
Managers
Employee Data: Info types Sr. Deputy Manager
Deputy Manager
Assistant
Manager
Numerous info types will be created for each
employee
o
Organizational Assignment must be the first info type recorded
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Medica
l
Allowa
nce
As Per
Act
As Per
Act
Personnel File
Information maintained about an employee is stored in their Personnel File
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a 0000Actions
are0001Organizational
given below
Assignment
0025Appraisals
0027Cost Distribution
0002Personal Data
0031Reference Personnel Numbers
0003Payroll Status
0032Internal Data
0004Challenge
0033Statistics
0005Leave Entitlement
0035Company Instructions
0006Addresses
0037Insurance
0007Planned Working Time
0041Date Specifications
0008Basic Pay
0045Loans
0009Bank Details
0048Residence Status
0011External Transfers
0050Time Recording Info
0014Recurring Payments/Deductions0057Membership Fees
0015Additional Payments
0077Additional Personal Data
0016Contract Elements
0078Loan Payments
0017Travel Privileges
0082Additional Abs. Data
0019Monitoring of Tasks
0083Leave Entitlement Compensation
0021Family Member/Dependents
0105Communication
0022Education
0165Deduction Limits
0023Other/Previous Employers
0167Health Plans
0024Qualifications
0168Insurance Plans
0169Savings Plan
Payroll Area:
0495Retirement Benefits/Death Gratuity
Det
il
The Payroll Area is used to group employees with the same payroll cycle and pay
date. The payroll area also defines the frequency with which an employee is
paid.
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In a company payroll is the sum of all financial records of salaries for an
employee, wages, bonus and deductions. In accounting, payroll refers to the
amount paid to Employees for services they provide during a certain period of
time.
Release payroll
Start payroll process
Check payroll
Correction
Simulation
Follow up
Tax
Overpayment recovery
Bank transfer
The following flow chart gives depiction of the SAP HR payroll process along
with the status of the control record during each phase.
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Payroll Info types:
Info type
0008: Basic Pay
(earnings)
0009: Bank Details
Master Data
Hourly rate or pay period rate (earnings)
0014:Recurring
Payment/Deduction
0015: Additional
Payment/Deduction
0165:Deduction
Limits
0221: Payroll Result
Adjustment
Payment/Deduction occurs in a regular basis where
frequency can be defined.
Payment/Deduction that are one-offs but are included
on regular payroll cycles.
Define deduction limit by employees
0267:Additional OffCycle
Payments
Check or direct deposit, bank routing account number
Typically before quarter end and year end.
Adjustments on any defined wages including taxable
earnings and imputed incomes. Run as off-cycle
payroll.
Lump sum payment issues outside of regular payroll.
Run as off-cycle payroll.
Released Payroll:
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At this stage, the Payroll Control Record is set to "Release for Payroll".
Past and present HR Master Data is locked for those particular employees.
However, future dated changes in master data are permitted in your SAP
system.
If the payroll is released from the "Exit" stage, the system rolls into the next
payroll period, increases the payroll area period number by 1 in the Payroll
Control Record (for example, from period 11/2015 to 30/2015).
Start Payroll:
You execute the payroll run for one payroll area, for the payroll period defined in
the Payroll Control Record.
If errors occur, you will get a list of employees rejected during the payroll run.
The system has stored the employees rejected during the payroll run.
Corrections:
At this stage, the Payroll Control Record is set to "Released for Correction".
Past and present HR Master Data for those particular employees is now unlocked
for corrections.
You should make appropriate corrections to fix the payroll errors.
Once you have made the appropriate corrections, you need to Release Payroll
and Start Payroll using, which will only select the employees that were rejected
during the previous payroll run.
You can cycle between the "Corrections" and "Released Payroll" stages as
many times as necessary.
Exit Payroll:
At this stage, the Payroll Control Record is set to Exit Payroll.
Past and present HR Master Data for those particular employees is now unlocked
in your SAP system.
The payroll run is closed off for the particular period. You cannot go backwards
in respect to payroll results.
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Payroll Area:
In Pay roll area we have
Z1: All Employee Payrolls
A. Time Management Supports planning, recording, and evaluation of internal employee time data
Shift planning
Time data
Time evaluation
Work schedule
Incentive wages
Time sheet
SAP HCM Time
Time Data that would be Gathered and evaluated
Hours Worked
Leave
Illness
Overtime
Substitutions
Business Trips
Management
Conference, Training
Time management is commonly defined as the various means by which
people effectively use
their time and other closely related resources in order to make the most out
of it.
Reco
Valua
Use..Working
First Step (1st):
Time Data (PA61)
1. Leaves ( info type 2001)
(Casual, Sick, Annual, Compensatory Leaves & Leave
without Pay)
2. Attendance ( info type 2002 )
(Business Trip / Official Duty)
3. Time Events ( info type 2011)
4. Machine data upload ( ZULPA61) , Manual Data Upload ( ZTUP )
5. Working Planned Time (Shift) ( info type 0007)
6. Time Adjustment / time transfer specification (info type 2012)
7. Leave adjustment / time quota compensation ( info type 0416)
Second Step (2nd):
Time Evaluation
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1. Run PT60 (Clock in out)
2. Time Evaluation Data(Zeval)
Error could be,
Same Date in/out
Same Date Clock in/Out & Leave Mark
Again Run Error Employees Time Evaluation
ZEVAL Data:
Select Other Period or Current Period
Define Personnel Area (EHO) & Employees Area
Define Error Indicator (X)
Employee Actual time Evaluation (1)
Then Execute (F8)
Again Time Evaluation
Third Step (3rd):
Payroll Driver Run (PC00_M99_CALC_SIMU)
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Error:
Business Area Not Maintained (Info
type 01)
Recurring Payments (Info type 14)
Loan Payment Amount Exceed From Salary Payable & Wrong Date
Mention
Absence in Payroll Period
Working Hours Not Mention (For
Example)
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Display Log
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Fourth Step
(4th):
Release Payroll (Info type PA03)
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Fifth Step (5th):
Payroll Live Run (PC00_M99_Calc)
Six Step (6th):
Posting Simulation (PC00_M99_CIPE)
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Document overview
Release document
Posting run overview
Post document
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Payroll End-to-End
Start Payroll
Run Payroll
Run Payroll Driver
Correction/Payroll Result
Run Payroll Calculation Exit Payroll
Master Data
Time
Data Benefits Data
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