Overview of Payroll Process in SAP

Payroll is a process to calculate the salary and wages of permanent and temporary employees. Payroll calculation considers the information of employee's attendance, bonus, overtime, tax rules and others to generate the payslip of that employee. Payroll can be run daily, weekly, monthly due to the salary cycles of organization.

The following flowchart  gives depiction of the SAP HR  payroll process along with the status of the control record during each phase.

Released Payroll:

- At this stage, the Payroll control record is set to "Release for Payroll"

- Past and present HR data is locked for preparing the run of payroll

- If the payroll is released from the 'Exit' stage, the system goes into the next payroll period, increases the payroll period area by 1 in the payroll control record.

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 in something called "Matchcode W".

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 Matchcode W, 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.

Payroll Area:

- Typically employees may have different pay frequency, for example blue collar workers are paid weekly, bi-weekly, while white collar workers usually are paid by monthly

- Payroll area groups employees together on the same payroll run frequency (weekly, bi-weekly, monthly, ...)

- When executing a payroll for a particular payroll area all employees belonging to that payroll are processed. This avoids the need for running payroll individually for employees who are paid at same frequency

Payroll Period:

- Records of payroll run for earlier months an employee are always stored for tax, audit and retro purposes. Suppose the current month is Oct 2010 and you want to refer to the payroll results for the month of Jan 2010 for an employee who is paid on monthly basis. It surely is easy to look for this data. But what if the employee is configured to be paid every 9 days and you want to know what his 16th payslip, for the current financial year ,looked like. How do you go about searching for this data ? Inconvenient isn't it ? Well, Enter Payroll Periods.
- Payroll Periods represents the period for which regular payroll is run.
- It is identified by a period number and a payroll year.

-The payroll period includes a "start date", an "end date". In the above example period 01 for payroll area xx has start date 01/01 and end date 01/31
- For each payroll area, payroll periods are generated for current and future years.
- When generating payroll periods, the period number depends on the period parameter (semi-monthly, monthly, etc.) and the start of the fiscal year. For example, for countries for which the financial year starts in April, payroll period "01 2010" represents the payroll period for April 2010.

Pay Day:

- Its the date the salary is credited to bank account of the employee.
- Pay Day differ from organizations to organizations. Some pay on the last working way of the month.Some companies pay last months salary on the 10th of the current month.

How to Run Time Evaluation (PT60)

Time evaluation processes the employee's absences from work and attendances at work to make sure they are paid accordingly.

Before executing the Payroll program, all employees need to process by the time evaluation program.

Step 1) To Run Time Evaluation, Enter PT60 in the SAP Transaction Code Box 

Step 2) In the next SAP Screen

1. Enter Personnel Number
2. Enter Evaluation Schema
3. Enter Evaluation Up to Date (The date until which Time Data will be evaluated)

Step 3) Enter any other selection field if required. Click Execute

Step 4) Time should be evaluated and a log must be displayed.

You can view the Time Results Generated , using transaction PT66

SAP PT66: How to Check Time Evaluation Results RPTIME

SAP stores time evaluation results generated by executing RPTIME in cluster B2.

Step 1) To view the results , in the SAP command prompt , enter transaction PT66
 

Step 2) In the next SAP screen, Enter Personnel Number whose results you want to see 

Step 3) In the next SAP screen , double click on the period you want to see the results for.
 

Step 4) In the next SAP screen, double click on the Table whose results you want to see
 

Results are shown-
 

SAP HR Time Management

This tutorial covering essential elements of SAP HR Time.

SAP HR Time Data includes:
- Daily working hours
- Absences (annual leaves, sick leaves, ..)
- Time-related payments (meal allowances, Overtime, Shift allowances, ...)
- Absence quotas (accumulations, deductions, corrections)

Time Types:
- Time data (attendances or absences) is stored using time types
- Time types are stored in HR master data or created by time evaluation program during time evaluation

Time Data Recording:
To record the employee time data such as hourly worked, trip, , we can use variety of methods, such as:
- Online by time administrators
- Separate time recording systems
- Cross-Application Time Sheet (CATS)
- Employee Self-Service (ESS) applications, such as Internet Application Components (IACs), Workflow forms, or touch screen systems
- Customer(Legacy) systems with an interface to the R/3 System

Categories of Absences and Attendances

There are 2 categories of absences:

- Quota-driven absences

- Non quota-driven absences

Quota-driven absences are absences with allocated limits over a set time (for example, annual leave, sick leaves)

Non quota-driven absences are absences that do not have periodic time limit (such as study leave, unpaid leave)

Some important Time Management infotypes:

Absences	2001
Attendance	2002
Overtime	2005
Absence Quotas	2006
Attendance Quotas	2007
Time Events	2011

Important Time Transactions

• PA51: Display time data
• PA53: Display time data
• PA61: Maint. Time data
• PA62: List entry for  additional data
• PA63: Maint. time data PA64: Calendar entry

How to CREATE, COPY & DELIMIT a Position: SAP PPOME

How to create a new Position
1. Enter transaction PPOME
2. In the next screen, click the  button
3. In the next screen, enter the Start Date of the new Position

 

4. Search for the Organization Unit to which the position to be added, enter the name of the organization unit and click Find. In the result window, select the desired Org. Unit.





5. The selected organizational unit will be displayed in the overview section. Select the target org unit and click create.

6. The next SAP pop-up window enables you to choose the relationship between the Organizational unit and Position. Select "Incorporates"
 

7. In the details section , give information of the new position that  you are creating and Click the save button.
 

8. In the overview section , you will notice that the new position has been added under the Organizational unit.
 

How to Copy a New Position

Step 1) In the SAP command prompt , Enter transaction PPOME

Step 2) In the next SAP screen, click the  button.

Step 3) In the next SAP screen, Enter the start date of the new position

Step 4) Next , search for the organizational unit to which new position will be added. Enter the name of the organizational unit and click find.

Step 5) In the results window , double click on the desired result.

Step 6) The selected organizational unit will be displayed in the overview section. Select the position you wish to make copies of and click the copy button.

Step 7) The next SAP pop-up window select the number of copies you want to make of the position . Also specify the start date , end date and , description

Step 8) In the overview section , you can see the position "clerk" is copied thrice

Now , if required , you can change the details of the position , in the Details section.

How to Delimit a Position

If, because of a restructuring, the position should cease to be available, you should NOT delete the position from the system but proceed with delimitation of the position.The prerequisite to be able to delimit a position is that no active employee is linked to it. If that is the case, first the employee should be terminated or moved to another position.Be sure that you really do not need this position before proceeding because this action is very difficult to roll back.

In order to delimit a position proceed as follows:

Step 1) While in SAP transaction PPOME
 

Step 2) Select the position you want to delimit
 

 

Step 3) Select the button 'delimit' and chose the option 'object'
 

 

Step 4) In the next SAP pop up window ,enter the delimit date. Click the Check Mark Button.
 

 

The position is Delimited.
 

SAP PP01: How to maintain OM Infotypes

There are two methods of maintaining infotypes:
- Using the organization and staffing transaction
- Using the Expert Mode

Transaction PP01 can be used to maintain all object types. Due to the authorization restrict, you may not be able to access transaction PP01. In this case, you may use these Tcode instead:

• PO10 Organizational Unit
• PO03 Job
• PO13 Position
• PO01 Work Center

The PP01 screen is shown below. Screens for PO10,PO03,PO13 & PO01 are very similar

1. Plan Version: It is important to ensure that you are working in the correct plan version at all times (for this you can also default the plan version in the user parameter
2. Object Information:The object type, ID and abbreviation are displayed so the user can ensure that the right object is being edited.
3. Status: Select the status of the infotype you want to maintain using the tab pages (select Active which has status = 1).
4. Infotype: Select the infotype you want to maintain.
5. Validity Period: Start and end dates specify the period during which the object exists in the plan version selected.

Important OM Infotypes
1.IT0001 - Description: It gives an Object's Abbreviation and Name

2.IT0002- Relationships:

• There are many different relationship types that you can create between object types
• Each individual relationship represents a subtype of the Relationships infotype (IT1001).
• Not all relationships apply to every object.
• Relationship records can manually be created using the Expert Mode interface, but they are also automatically created when using other interfaces (e.g. Organization and Staffing, Simple Maintenance).
• When creating a relationship, the inverse relationship is usually automatically created by the system.

Learn Organizational Management (OM) in SAP HR

OM Modules of SAP HR
Object types
Each aspect of OM is recorded as an object type, the way of grouping similar data together. For example, position is an object type, organizational unit is an object type.

Relationships
There are many objects within OM, and the relationship defines the links between those objects.

Infotypes
There are the screens for inputting the data to record the OM information. Some infotypes are updated "behind the scenes". Some requires to manually input the information.

How SAP HR organization works as a single unit
We need to look at 2 types of the relationship:
- Relationship of same object types
- Relationship of different object types

Let's look at them in details

- Relationship of same Object Types
Organizational units are related with each other to form a hierarchical structure. For example, the Org. unit "Regional Office" relates with org. unit "Finance and Accounting Office".

- Relationship of different Object Types
Any SAP organization unit will have positions attached to it. Therefore, there is a relationship which is established between the organization unit and position as the following image:

Structure in SAP HCM

Personnel Structure:
Personnel structure display the position of a personnel in the enterprise. It includes:
- Employee groups
- Employee subgroups

Example: Active, Retiree, External

Employee group:
- It is used for general term
- Employee group can be used to generate the default values for data entry, example for Payroll accounting area, employee's basic pay
- It can be used as entity for authorization check

Employee subgroup:
- Employee subgroup are subdivisions of employee group
- Employee subgroup examples for Active Employee group can be Salaried Employee, Hourly wage earner, ..
- Employee regulations are identified at Employee subgroup level

Organization Structure:
It is based on Organizational Plan
Organization uses organizational plan to set the relationship between individual departments and work-groups

Integration
If enter the position ( for an employee in Action infotype, then the Employee group, Employee subgroup and personnel information from organization are automatically filled as default values for Employee.

Dunning Run (Transaction F150)

Sometimes customers fall behind the due date of payments. In this case, you can generate dunning letter to send to them for reminding of outstanding debts.

Dunning Process

1. Billing document is issued and customer invoices is generated in system.

2. Dunning programs selects all of overdue documents based on criteria in selection screen.

3. Dunning program determines dunning level of each document (dunning level is determined by the number of days past the due date). Normally, system groups data based on vendor/customer and dunning level. In case of you need specify grouping, you can do a setting of dunning group in dunning configuration.

4. Program generates dunning notice. Format and layout of dunning notice is based on dunning text that you assign to dunning procedure. Normally, dunning text is developed as SMARTFORMs. So, this case you need ABAPer to develop first and then assign in dunning procedure configuration.

How to use F150 in SAP

1. Define Run Date and Identification

Run Date and Identification are the keys of each execution.

2. Enter parameter for dunning.

Tab 'Parameter'

Dunning date: Enter date that you need system to calculate number of overdue of each document. This parameter effects to dunning level.

Document posted up to: The date on which document is posted. Only documents which have been posted up to this date are included in this processing.

Company code: Only documents which have been posted in this company are included in this processing.

Customer: Only documents which have been posted to customer in this list are included in this processing.

Vendor: Only documents which have been posted vendor in this list are included in this processing.

Tab 'Free selection'

    In this tab, you can limit system to select only documents that you need. This step, you can define select condition by choosing any field in document (actually, they are field in table BSID and BSIK). Then, enter the value of field that you need to create selecting condition.

There are 3 ways to enter value in “Free selection” tab. First is single value. This is to enter only 1 values such as enter only one document number. Second is to enter value as range. When you need to enter value as range, you have to maintain in pattern like “(from, to)”. The last ways is to enter several values. Comma is the sign that SAP know as separator. So, you have to enter like this “value1, value2, value3”.

Tab 'Additional log'

    Additional log is use to scope vendor/customer that you need system to generate log. The important of log is for data analysis. Sometimes you may see result that some documents are not in dunning proposal. The easiest way to find reason for missing document is to open dunning log. So every time that you execute dunning, please make sure that all vendor/customer are maintained in “Additional log”.

3. Execution

Press <schedule button> on the top left. System pop-up new screen asking for output device.

After enter output device, system ask for job scheduling. You just select "start immediately" to let system start execution.

Wait until system finishes processing. You will see many buttons appears.

Log Button: You can click this button to check how system determine dunning document.

Dunning List: You can click this button to call standard dunning report. Below is a sample of standard dunning report.

4. Print-out dunning notice

How system calculate dunning level

    Dunning level is a configuration in dunning procedure. First, you have to know what is setting in your current dunning procedure. Assume that dunning procedure is setting as below:

Dunning Level 1  = Due Date

Dunning Level 2  = 30 days overdue

Dunning Level 3  = 60 days overdue

Dunning Level 4  = 90 days overdue

Net due date of document is on 4 February 2015.

Dunning date is on 7 March 2015.

    The easiest way to count days after due date is to call report FBL1N/FBL5N. In this report, you can change report layout to add field “net due date” and “arrear after net due date”.

    From sample above, these 2 documents overdue for 31 days. These documents will be determined as dunning level 3 (over 30 days but not over 90 days).

Related Table

MHNK – Store data at level of grouping by dunning level, dunning are and vendor/customer.

MHND – Store data at level of document. You can find all documents number and some detail of each document in this table.