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.
 

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.

SAP PA40: Personnel Actions Tutorial

A Personnel Action includes all the necessary infotypes, displayed in a logical sequence, for which data must be entered for a particular HR event like hiring, termination etc.

Step 1) In the SAP Command Prompt, Enter Transaction PA40

 

Step 2) The SAP Personnel Actions screen is divided into 3 sections:

1. Personnel Number: In this field, you enter the employee's personnel number, expect when executing the "Hiring" action, as it may be generated automatically by the system.
2. From: In this field, you enter the start date applicable to the personnel action.
3. Action Type: In this section, you select the appropriate personnel action.

Step 3) To gain a clarity on  Personnel Actions, let's execute a Hiring Action in SAP.

1. Enter the hiring date in the From field.
2. Select Hiring from the Action Type list.
3. Click to execute the transaction.

Step 4) In the next SAP screen

• The Start and to dates are defaulted in, check and maintain if necessary.
• Check the Action Type is correct.
• Enter the Reason for Action.

• Enter  the Personnel Area.
• Enter  Enter the Employee group.
• Enter the Employee subgroup.

Step 5) Click the Save Button. Personnel Number is automatically generated.

Once you click save the hiring Infogroup is activated. Every Infotype relevant to the Hiring action will appear one after each other. Once you have maintained each Infotype, validate your entries by pressing enter and save, save.

What are Time Constraint? SAP HR Tutorial

Infotypes in SAP, have a time constraints which determines how they will exist and how they will react when updated. There are three types of  Time Constraints in SAP ---

Lets look into them in detail-

Time Constraint 1

• For Infotypes falling under Time Constraint 1, it is mandatory for a record to exist, and only 1 can exist at any point in time.
• For example, Infotype 0002 (personal data).

Time Constraint 2

• For Infotypes falling under time constraint 2 , it is NOT mandatory for a record to exist, but only 1 can exist at any point in time.
• For example, Infotype 0218 (membership insurance)

Time Constraint 3

• For Infotypes falling under Time Constraint 3, it is NOT mandatory for a record to exist, but many can exist
• For example, SAP Infotype 0015 (additional payments).

All About Infotype 0003 Payroll Status in SAP

Infotype 003 - Payroll Status

• It automatically stores data that controls the employee's Payroll run and time evaluation.
• It is created automatically by the system, in the background, during the Hiring Action.
• Data is updated automatically when time is evaluated, payroll is run, or changes are made to the payroll past for the employee.
• Data stored in this infotype should be changed ONLY in exceptional cases, as these changes will affect the employee's payroll processing and/or retroactive accounting

Field:	Details:
Earl.pers. RA date	Sets the exact date back to which the system can run retroactive accounting.
Run Payroll up to	Day to when the employee will have payroll run even if he or she has left the company.
Do not Account After	Payroll is run for this employee until this date.
Pers.no Locked	Employees can be locked for payroll.
Accounted to	Date until which payroll has taken place for an employee.
Earliest MD Change	The program recognizes whether and when payroll must be repeated to take master data changes into account.
MD Change Bonus	To perform retroactive Accounting in connection with bonus accounting.
Payroll Correction	If the personnel number has been rejected or data has been changed in the correction phase.

Maintain IT003 :

To maintain Payroll Status in your SAP HR command prompt enter transaction PU03

1.Enter the Pernr.

2.Click Validate

3.Click Execute

Maintain Data as required.