HR390 Introduction to Payroll HR390

Transcription

1 0 HR390 Introduction to Payroll HR390 R/3 System Release 46C 05/02/2001

2 Overview - Bank Transfer and Check Printing HR390 Introduction to Payroll Copyright Human Resources 4.6 (1) Human Resources 4.6 (2) Course Prerequisites Target Group Introduction to Payroll Introduction to Payroll: Unit Objectives Course Overview Diagram Introduction to Payroll: Business Scenario Roles in the Workplace Composite Roles in Payroll Payroll Overview of the Payroll Process Calculation of Wage Elements Statutory and Voluntary Deductions Storing HR Master Data Using Exact Dates Retroactive Accounting Introduction to Payroll: Summary Data for Exercises Exercises Solutions Entering Payroll Data Entering Payroll Data: Unit Objectives Course Overview Diagram Entering Payroll Data: Business Scenario Payroll Prerequisites Overview - Personnel Processes Ref. (1) Hiring Ref. (2) Organizational Reassignment Ref. (3) Deviations from the Work Schedule Methods of Entering Time Data Entering Payroll Data: Summary Entering Payroll Data Exercises Entering Payroll Data Solutions

3 Organizing a Live Payroll Run Organizing a Live Payroll Run: Unit Objectives Course Overview Diagram Organizing a Live Payroll Run: Business Scenario Overview - Payroll Organization Setting up the Payroll System in Customizing Payroll Areas Payroll Periods Generating Payroll Periods (1) Generating Payroll Periods (2) Generating the Calendar for Cumulations Payroll Control Record: Status Payroll Control Record: Periods Payroll Status Infotype (System) Payroll Status Infotype (Changed Manually) Retroactive Accounting Limits (3 Scenarios) Organizing a Live Payroll Run: Summary Organizing a Live Payroll Run Exercises Organizing a Live Payroll Run Solutions Payroll Process Payroll Process: Unit Objectives Course Overview Diagram Payroll Process: Business Scenario Overview - Payroll Process Payroll Simulation Release Payroll / Release for Payroll Start Payroll / Release for Payroll (Part 1) Start Payroll / Release for Payroll (Part 2) Payroll Log Detail View of a Processing Step Rejected Personnel Numbers Matchcode W Check Result / Check Payroll Results Corrections / Release for Correction Exit Payroll / End of Payroll Payroll Process: Summary Payroll Process Exercises Payroll Process Solutions

4 Payroll Reports Payroll Reports: Unit Objectives Course Overview Diagram Payroll Reports: Business Scenario Overview - Views of the Payroll Results Display Payroll Results Remuneration Statement Payroll Account and Payroll Journal Wage Type Evaluations Evaluation of Payroll Results Infotype Definition Ad Hoc Query Payroll Reports: Summary Payroll Reports Exercises Payroll Reports Solutions Posting Payroll Results to Accounting Posting Payroll Results to Accounting: Unit Objectives Course Overview Diagram Posting Payroll Results to Accounting: Business Scenario Components Involved Overview - Posting to Accounting Posting Information Stored in Master Data Posting Information in the Payroll Results Posting Environment Posting Process Execute Posting Run Execute Run - Selection Screen Posting Run Log Document Analysis: Overview Display Posting Runs Document Overview Ref a) Display Posting Document Revision Information on the Posting Document Payroll Result and Posted Amounts Ref. b) Releasing a Document Posting a Run Ref. c) Displaying Posting Documents Displaying the Resulting FI Document Displaying the Resulting CO Document

5 Completeness Check Reversing a Posting Run Integration with other Subsequent Activities Posting in Financial Accounting Posting Payroll Results to Accounting: Summary Posting Payroll Results to Accounting Exercises Posting Payroll Results to Accounting Solutions Bank Transfers and Check Processing Bank Transfers and Check Processing: Unit Objectives Course Overview Diagram Bank Transfers: Business Scenario Generating Checks/Bank Transfers Preliminary Program DME Generating Bank Transfers Generating Checks Repeating a Run Qualified Advance Payment Advance Payments from Master Data Bank Transfers: Unit Summary Bank Transfer and Check Processing Exercises Bank Transfer and Check Processing Solutions Process Model Process Model: Unit Objectives Course Overview Diagram Process Model: Business Scenario Payroll in a Background Operation Process Model - Advantages Overview - Process Model and Process Elements of a Process Model The Process Step and its Attributes Breakpoint between Steps Conditional Breakpoint - An Example Monitoring HR Processes Repeating a Process Process Model: Summary Process Model Exercises Process Model Solutions Problem-Solving Aids

6 Problem-Solving Aids: Unit Objectives Course Overview Diagram Problem-Solving Aids: Business Scenario Delayed Time Recording Sheets Retroactive Employee Transfer Change of Payroll Area Error Due to Missing Basic Pay Infotype Error in Planned Working Time Infotype (0007) Errors in Payroll Administration Partial-Period Factoring / Factoring Problem-Solving Aids: Summary Problem-Solving Aids Optional Exercises Problem-Solving Aids Solutions Appendix Off-Cycle Payroll Off-Cycle Payroll Process Off-Cycle Functions Out-of-Sequence Checks Out-of-Sequence Checks: Cumulations Transferring Remuneration Statements as Payment Advice Zero-Net Checks / Zero-Net Advices

7 Overview - Bank Transfer and Check Printing Payroll results Preliminary Program DME Create DME Generating Checks Bank Wage/salary check Payable to: Employee Bank Signature

8 HR390 Introduction to Payroll HR390 Introduction to Payroll SAP AG 1999 SAP AG System R/3 Release 4.6C September 2000 Material number

9 Copyright Copyright 2001 SAP AG. All rights reserved. Neither this training manual nor any part thereof may be copied or reproduced in any form or by any means, or translated into another language, without the prior consent of SAP AG. The information contained in this document is subject to change and supplement without prior notice. All rights reserved. Trademarks: Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft, WINDOWS, NT, EXCEL, Word and SQL Server are registered trademarks of Microsoft Corporation. IBM, DB2, OS/2, DB2/6000, Parallel Sysplex, MVS/ESA, RS/6000, AIX, S/390, AS/400, OS/390, and OS/400 are registered trademarks of IBM Corporation. ORACLE is a registered trademark of ORACLE Corporation, California, USA. INFORMIX -OnLine for SAP and Informix Dynamic ServerTM are registered trademarks of Informix Software Incorporated. UNIX, X/Open, OSF/1, and Motif are registered trademarks of The Open Group. HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C, World Wide Web Consortium, Laboratory for Computer Science NE43-358, Massachusetts Institute of Technology, 545 Technology Square, Cambridge, MA JAVA is a registered trademark of Sun Microsystems, Inc., 901 San Antonio Road, Palo Alto, CA USA. JAVASCRIPT is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. SAP, SAP Logo, mysap.com, mysap.com Marketplace, mysap.com Workplace, mysap.com Business Scenarios, mysap.com Application Hosting, WebFlow, R/2, R/3, RIVA, ABAP, SAP Business Workflow, SAP EarlyWatch, SAP ArchiveLink, BAPI, SAPPHIRE, Management Cockpit, SEM, are trademarks or registered trademarks of SAP AG in Germany and in several other countries all

10 over the world. All other products mentioned are trademarks or registered trademarks of their respective companies. Design: SAP Communications Media

11 Human Resources 4.6 (1) HR051 Level 2 Human Resources Essentials I HR052 HR053 Human Resources Essentials III 1 day 2 days Human Resources Essentials II 2 days HR305 3 days Configuration of Master Data HR306 4 days Configuration of Time Recording HR505 Organizational Management 3 days HR325 3 days Benefits Administration HR540 3 days Compensation Management HR510 3 days Personnel Development HR515 3 days Training and Event Management Level 3 see HR2 HR310/311 Time Evaluation 5 days HR520 2 days Shift and Workforce Planning CA500 2 days CATS The Cross Application Time Sheet HR250 2 days Employee Self-Service HR580 3 days Reporting in Human Resources HR307 2 days Configuration of HR System Controls HR350 5 days Programming in HR HR530 3 days Technical topics in Human Resources

12 Human Resources 4.6 (2) Level 2 Level 3 HR051 Human Resources Essentials I HR052 1 day 2 days Human Resources Essentials II HR305 Configuration of Master Data 3 days HR390 Introduction to Payroll HR400 Payroll Configuration HR490 Incentive wages 2 days 5 days 4 days HR053 2 days Human Resources Essentials III Note: Please note our country specific curriculum and our curriculum for release 4.6B.

13 Course Prerequisites HR051 HR Essentials I HR052 HR Essentials II HR305 Configuration of Master Data

14 Target Group Members of the project team Consultants Data processing project team members responsible for the configuration of the payroll system Duration: 2 Days SAP AG 1999 SAP AG Notes to the user The training materials are not teach-yourself programs. They complement the course instructor's explanations. Your material includes space for noting down this additional information. There may not be enough time to do all the exercises during the course. The exercises are intended to be additional examples that are dealt with during the course. Participants can also use them to deepen their knowledge after the course.

15 Introduction to Payroll Contents: Roles in Payroll Payroll overview Calculation of wage elements Statutory and voluntary deductions Storing HR master data using exact dates Retroactive accounting (C) SAP AG HR

16 Introduction to Payroll: Unit Objectives At the conclusion of this unit, you will be able to: Name roles in connection with Payroll Describe the relationship between the basic components of payroll Give examples of an employee's payments and deductions Explain why the R/3 System is able to perform retroactive accounting (C) SAP AG HR

17 Course Overview Diagram Introduction to Payroll Entering Payroll Data Organizing a Live Payroll Run Payroll Process Payroll Reports Posting Payroll Results to Accounting Bank Transfers Process Model Problem-Solving Aids (C) SAP AG HR

18 Introduction to Payroll: Business Scenario You are the HR Administrator for the Caliber A Bicycle Company, which sells bicycles and bicycle accessories. You now want to get familiar with Payroll in the SAP system. You expect the payroll system to perform an accurate and up-to-date payroll run. It is also essential that changes, for example, overtime payments or wage and salary increases, can be easily corrected. (C) SAP AG HR

19 Roles in the Workplace mysap.com Marketplaces Update Adjust Info Welcome Will Workplace 1 2 Favorites Financial Accounting Human Resources Display Master Data Personnel Actions Start Payroll Exit Payroll Print Remuneration Statement Role My Roles News Information Systems Customizing Stock Ticker Get Quote Symbol ChannelBar Workflow inbox LaunchPad WorkSpace (MiniApps,, Transactions, Websites) WorkSpace The Workplace is the user's portal from which they have access to their role-specific user menu and to MiniApps. To start the Workplace, enter your website address in your browser. If you do not use any Workplace, set up your roles in the R/3 system. The Workplace consists of three main elements: The Channel Bar, in which you can have several applications running in parallel, the Launch Pad, where you find the role-specific user menu, and the WorkSpace. Roles are groups of activities which enable the user to participate in one or several business scenarios. Aceess to the transactions, reports and web-based applications contained in the roles takes place via user menus. User menus should only contain the functions that are typical for the daily work of a specific user. Composite Roles, on the other hand, contain several single roles. The composite roles for Payroll contain both international single roles and all available country-specific single roles. However, this does not mean that the Payroll Process Administrator in the USA, for example, finds activities in their menu that are typical for Canada or Australia and which they therefore do not require. This is because when you generate the menu for a composite role, you specify the country for which you want to do this. The composite roles are delivered with the mysap.com Workplace. (C) SAP AG HR

20 Composite Roles in Payroll Payroll Manager: Displays HR master data and personnel file Displays remuneration statement, payroll account and payroll journal Payroll Process Administrator Performs time evaluation and runs payroll Creates remuneration statement Creates file for wage and salary payments Posts payroll results to Accounting Payroll Administrator Maintains HR master data and Time Management data Simulates payroll Checks remuneration statement and payroll account for individual employees The composite role Payroll Manager (SAP_WP_PAYROLL-MANAGER) is responsible for running the payroll correctly, and provides a general overview of the payroll results. It contains the following single roles: International single role Payroll Manager (SAP_HR_PY_PAYROLL-MANAGER), country-specific single role Payroll Manager <Country> (SAP_HR_PY_xx_PAYROLL-MANAGER) and the BW single role Payroll Manager (SAP_BWC_0ROLE_0023). The composite role Payroll Process Administrator (SAP_WP_PAYROLL-PROC-ADM) controls and supervises the whole payroll process, runs the payroll and controls and corrects it if necessary, is responsible for wage and salary payments and posting to Accounting, and performs evaluations at the employee level. The composite role contains the following single roles: International single role Payroll Process Administrator (SAP_HR_PY_PAYROLL-PROC-ADM) and the country-specific single role Payroll Process Administrator <Country> (SAP_HR_PY_xx_ PAYROLL-PROC-ADM). The composite role Payroll Administrator (SAP_WP_PAYROLL-ADM) is responsible for all the tasks carried out at employee level. They enter the payroll data for the employee into the system and then check this data. They provide the employee with information concerning their payroll, answer their questions and perform evaluations for the individual employees. It contains the following single roles: International single role Payroll Administrator (SAP_HR_PY_PAYROLL-ADM), country-specific single role Payroll Administrator <Country> (SAP_HR_PY_xx_ PAYROLL-ADM) and for countries that use the Loans component, the single role Payroll Administrator for Loans (SAP_HR_PY_PAYROLL-LOAN-ADM). (C) SAP AG HR

21 Payroll Master data Time data C CE Payroll Remuneration statements Posting to Accounting Payments to various payees Broadly speaking, payroll is used to calculate remuneration for work performed by individual employees. More specifically, payroll is an umbrella term for a variety of work processes, such as the creation of payroll results and remuneration statements, bank transfers, and payments by check. The phrase also covers a number of subsequent activities such as the posting of results to Accounting and other evaluations, for example, for taxes. (C) SAP AG HR

22 Overview of the Payroll Process Payroll CE Calculation of wage elements Statutory and voluntary deductions Remuneration Remuneration is calculated in two main steps: Calculation of wage elements Statutory and voluntary deductions (which are country-specific) Wage elements, statutory deductions, and voluntary deductions are all based on the individual payments and deductions that are calculated for an employee during a payroll period. The payments and deductions are stored as wage types and then included in the payroll calculation. (C) SAP AG HR

23 Calculation of Wage Elements Basic pay Gratuities Sickness Nightwork bonuses Wage elements Bonuses Overtime Leave An employee's wage elements are determined on the basis of the individual wage types used in a payroll period. Payments that may be included in the calculation of remuneration are, for example, basic pay, bonuses, vacation allowances, Christmas bonuses, and gratuities. Company-owned apartments, company-sponsored day care services and the like can all cause deductions from an employee's pay. Such payments and deductions can increase or reduce the amount of an employee's income that is subject to tax, and this is determined by a variety of factors such as the laws of a specific country or a particular company's policies. The wage types can be entered online or generated during the payroll run using rule tables. (C) SAP AG HR

24 Statutory and Voluntary Deductions Tax Unemployment insurance Loans Wage elements Pension insurance Check x x x x x x x x x x x x x x x x x x x x x x Payment of remuneration To determine the payment amount, statutory and voluntary deductions, such as taxes and social insurance contributions, are effected. The deductions are calculated on the basis of gross values, such as the total gross amount and the gross tax amount. For this reason, various amounts are calculated during the payroll run which are then used for subsequent processing. (C) SAP AG HR

25 Storing HR Master Data Using Exact Dates Hiring Pay scale reassignment Promotion Transfer Promotion 5/1/00 7/1/00 8/1/00 7/1/01 11/01/01 The R/3 System assigns a start date and an end date to HR master data, as well as a large number of Customizing table entries. The payroll program requires these dates so that it can perform calculations for specific days, and retroactive accounting for previous periods. The system automatically recognizes changes to payment infotypes and triggers retroactive accounting, for example, after a salary change. Because of automatic retroactive accounting recognition, the R/3 System does not allow you to change the payroll results manually. (C) SAP AG HR

26 Retroactive Accounting Payroll past Payroll for period 06 is complete C CE Period 03 Period 04 Period 05 Period 06 Period 07 Changes to HR master data Retroactive accounting for previous periods, then the current period You have completed the payroll run for this period. However, if you then change HR master data in a period for which the payroll has already been run, the payroll must be run once again for this period using the current values. This is known as retroactive accounting. All of the periods for which you have completed and exited payroll constitute the payroll past. If you maintain an infotype that is relevant to retroactive accounting, the Earliest MD Change Field in the Payroll Status infotype (0003) is set to the start date of the changed infotype. This ensures that retroactive accounting is automatically triggered up to this retroactive accounting date when the next payroll run is performed. The system automatically performs a retroactive accounting run if certain types of master data or time data are changed in the payroll past. To ensure that retroactive accounting is only triggered for certain changes, rather than for all changes, the system determines whether the changes are relevant to retroactive accounting or not. Therefore, changes only trigger a retroactive accounting run if they require a correction of the payroll results. Retroactive accounting relevance can be defined for an infotype or an infotype field. (C) SAP AG HR

27 Introduction to Payroll: Summary An employee's total remuneration consists of individual remuneration elements such as basic pay, overtime and bonuses. Various deductions, both statutory and voluntary, are used to calculate an employee's net remuneration. Delimiting the date enables the system to perform retroactive accounting. (C) SAP AG HR

28 Data for Exercises Hiring Action: Hiring HR390 (Infotypes 0000, 0001, 0002, 0006, 0007, 0008, 0009, 2006) Molga (MOL) = 99 User group (UGR) = 99 Personnel area = CABB Employee group = 1 Active employee Employee subgroup = X0 Salaried employee Company code = CABB with currency UNI, Molga 99 Personnel subarea = 0001 Sales, 0002 Purchasing Payroll area = ## (Group ##) Positions = Buyer ## (Group ##) Work schedule rule = NORM Pay scale group = E05, Level = 01 Payment method = U (bank transfer) Payment method = C (check) Bank key = Citibank Remuneration statement form = XF01 Payroll account form = XK01 Payroll journal form = XJ01 Printer = LP01 20 employees with the personnel numbers ## without infotype 0007 and with infotype 0009, are set up for payment method C (check). The employees are assigned to payroll area ##. (C) SAP AG HR

29 Data for Exercises Explanation of the symbols used in the exercises and solutions Exercises Solutions Course Objectives Business Scenario Tips & Tricks Warning or Caution (C) SAP AG HR

30 Exercises Unit: Introduction Setting the user profile Simplify the work you have to enter daily by setting user profiles for your user. 1. Set the following user parameters: 1-1. Molga (MOL) = User group (UGR) = Set the following user defaults: Logon language: The language of your country (C) SAP AG HR

31 Solutions Unit: Introduction 1. SAP Easy Access Menu: System User Profile Own Data Select Parameter. Make the following entries: 1-1. For the molga, enter parameter MOL in the first column and enter the value 99 in the second column For the user group, enter parameter UGR in the first column and enter the value 99 in the second column. Save the data and return to the SAP Easy Access Menu. 2. SAP Easy Access Menu: System User Profile Own Data Select Defaults. Enter the following: Logon language of your country Save the data and return to the SAP Easy Access Menu. (C) SAP AG HR

32 Entering Payroll Data Contents: Payroll prerequisites Hiring a new employee Organizational reassignments Deviations from the work schedule (C) SAP AG HR

33 Entering Payroll Data: Unit Objectives At the conclusion of this unit, you will be able to: List the prerequisites for Payroll Specify the activities required when setting up Payroll Describe how payroll data is entered in the R/3 System for an employee (C) SAP AG HR

34 Course Overview Diagram Introduction to Payroll Entering Payroll Data Organizing a Live Payroll Run Payroll Process Payroll Reports Posting Payroll Results to Accounting Bank Transfers Process Model Problem-Solving Aids (C) SAP AG HR

35 Entering Payroll Data: Business Scenario Payroll data is changed when an employee: Enters the company Changes organizational assignment Changes personal data Performs overtime or takes leave (C) SAP AG HR

36 Payroll Prerequisites Master and time data Administration Subsequent activities... Prerequisites Work schedules Dialog and time wage types Infotypes 0000, 0001, 0002, 0006, 0007, 0008, 0009 and countryspecific infotypes (such as tax) The payroll processes other infotypes: 0014, 0015, 2001, 2010, 2003, Payroll areas and periods Payroll control record Bank details, and information on house banks Cost centers Remuneration statements... Activities Use Customizing to set up and generate work schedules Make copies of model wage types in wage type catalog to create customer wage types in customer name range Use personnel actions to enter employee data in the system Set up and generate using Customizing Create using Customizing Usually set up by FI Usually set up by FI - link to organizational units Retrieve standard form... A number of prerequisites must be met before you can enter and process employee data in the system. SAP provides you with a whole series of model entries, which you can then adapt to meet the needs of your particular enterprise. The above list gives you an overview of the most important elements. (C) SAP AG HR

37 Overview - Personnel Processes Leaving Rehiring Increase in payments Employee (1) Hiring (3) Deviations from the work schedule (2) Organizational reassignment During an employee's employment relationship a series of events take place. These can be relevant to remuneration. If these events occur in the payroll past, they trigger retroactive accounting. If an employee leaves your enterprise you should not delimit information regarding their remuneration and bank details immediately, as you may need this information in the event of a retroactive accounting salary change. When an employee rejoins the company they are given their old personnel number again so that it is possible to have the employee's complete history. (C) SAP AG HR

38 Ref. (1) Hiring Input templates for hiring: Country-specific infotypes Actions (infotype 0000) For example, taxes Personal data (infotype 0002) Organizational assignment (infotype 0001) Canada Europe Addresses (infotype 0006) Planned working time (infotype 0007) Basic pay (infotype 0008) Bank details (infotype 0009) Absence quotas (infotype 2006) USA South America Australia Asia South Africa A hiring action consists of a series of different infotypes. Some of these infotypes, such as the ones listed on the left-hand side of the graphic, are the same for all countries. Furthermore, each country is assigned infotypes that are country-specific. They enable you to enter tax data, for example. If you set your user parameters for a particular country, such as 01 for Germany or 10 for the USA, the system accesses the correct personnel actions, which include all of the relevant country-specific infotypes. (C) SAP AG HR

39 Ref. (2) Organizational Reassignment Reassignment Changes to: Organizational assignment and work center data - Payroll area - Working time - Payment - Cost center... Employee data can be changed in any payroll period. Such changes may be concerned with transfers, substitutions, increases or decreases in basic pay, or simply corrections. New data is either created or copied, while corrections are made by changing existing data. Sometimes, the data must be entered in a series of infotypes. At other times, you are only required to access a single infotype. Do not forget that changes made to infotypes that are relevant to payroll, in periods for which the payroll has already run, automatically trigger retroactive accounting. (C) SAP AG HR

40 Ref. (3) Deviations from the Work Schedule Leave Overtime Availability for duty Illness Substitutions Departures from the work schedule usually constitute the largest share of tasks that are periodically performed in a Human Resources department. In the system itself, such departures take the form of time data, such as hours or days, or remuneration data. To ensure that the correct amount of time in lieu and overtime payments are available, it is important that they are entered in the system at the right time. The following infotypes are used to enter data that does not adhere to the work schedule: Absences : Used to enter employee absences. Attendances : Used to enter employee attendances. Substitutions : Used to enter substitutions, such as when an employee works a different shift. Availability : Used, for example, to enter times at which an employee is available for duty in addition to his or her regular shift. Overtime : Used to enter start times and end times for additional working hours. The system automatically generates wage types in accordance with rules that can be specified in Customizing. EE Remuneration Information : Used, for example, to enter overtime manually. Monthly Calendar : Used to enter attendances and absences in a monthly overview screen. Weekly Calendar -2052: Used to enter attendances and absences in a weekly overview screen. (C) SAP AG HR

41 Methods of Entering Time Data Fast Entry of Time Data Absences Absence quotas Substitutions EE remuneration information Availability for duty Overtime Data entry on a fast entry screen Manual preselection Preselection using a report Preselection using Ad Hoc Query Fast data entry enables you to create and maintain the same infotype record for more than one employee at the same time. This means that you do not have to enter a separate record for each individual employee, and that a single screen enables you to enter the data for more than one employee simultaneously. This results in faster, more efficient data processing. All of the various types of processing (creating, changing, copying, deleting, and locking/unlocking) are available. There are four different ways of selecting the personnel numbers to be processed: You can enter the personnel numbers directly in the fast entry screen You can list the personnel numbers yourself before maintaining the fast entry screen You can use a report to list the personnel numbers on the basis of specific search criteria You can choose your own selection criteria using the Ad Hoc Query (C) SAP AG HR

42 Entering Payroll Data: Summary Payroll Prerequisites: Master and time data: Wage types, work schedules and infotypes Administration: Payroll areas, payroll periods and control records Subsequent activities: Bank details, cost centers, remuneration statements Enter payroll data for employees using different personnel processes (C) SAP AG HR

43 Entering Payroll Data Exercises Unit: Entering Payroll Data Topic: Hiring an Employee Hire a new employee Review the personnel file of the new employee. A new buyer joins the purchasing department of Caliber A Bicycle Company at the beginning of the year. Hire this new employee to be paid on a monthly basis. 1. Use the personnel action Hiring HR390 to add the new buyer into the company as of the beginning of the year On the Personnel Actions screen assign your new buyer to personnel number 390## (## = Group Number). Select the from date as January 01 of this year, the personnel area as Caliber A Bicycle Company (CABB), the employee group as Active (1) and the employee subgroup Salaried Employee (XO) On the create Actions screen (infotype 0000) screen, use the structured search to find the correct position number for the buyer (##-buyer) in the main office of the Caliber A Bicycle Company, and save the data On the create Organizational Assignment screen (infotype 0001) enter the personnel subarea 0002 (Purchasing). The system suggests the default payroll area X0. Enter an administrator of your choice for the payroll. Delimit the vacancy of the position to the last day of the previous month, if the system asks you On the create Personal Data screen (infotype 0002) fill in the required fields with your choice of entries and save the data On the create Addresses screen (infotype 0006) fill in the required fields with your choice of entries and save the data. (C) SAP AG HR

44 1-6. On the create Planned Working Time screen (infotype 0007) select the work schedule NORM and save the data On the create Basic Pay screen (infotype 0008), select pay scale group E05 and level 01. Wage type M020 and the amount 6950 UNI per payroll period are defaulted. Save the data On the create Bank Details screen (infotype 0009) set up the bank transfer to your employee's main bank. Enter bank key for Citibank and the bank account number (any number) On the create Absence Quotas screen (infotype 2006), enter 10 days leave (defaulted by the system). 2. Review your new employee's (390##) personnel file. What infotypes exist for the employee that you did not create? (C) SAP AG HR

45 Entering Payroll Data Solutions Unit: Entering Payroll Data Topic: Hiring an Employee 1. In the SAP Menu select: Human Resources Personnel Management Administration HR Master Data Personnel Actions Select Hiring HR Make the following entries before carrying out the action: Personnel number: 390## From: January 01 of this year Personnel area: CABB Employee group: 1 Employee subgroup: X Use the structured search in the Position field to locate the ## buyer position in the Purchasing organization unit of the Caliber 'A' Bicycle Company. Save the data Make the following entries and save the data: Personnel subarea: 0002 Payroll administrator: Your own choice The system suggests the default payroll area X Create Personal Data screen (infotype 0002): Enter data of your own choice and save Create Addresses screen (infotype 0006): Enter data of your own choice and save Create Planned Working Time screen (infotype 0007): Enter the Work Schedule Rule: NORM, select Enter (the working time fields are filled accordingly) and save the data Create Basic Pay screen (infotype 0008): Enter the Pay Scale Group E05 and Level 01. Select Enter (wage type M020 is defaulted with the value 6950 UNI) and save the data Create Bank Details screen (Infotype 0009): Enter the following data: Bank key: for Citibank Bank account: any number Payment method: U (Bank transfer) (C) SAP AG HR

46 1-9. Create Absence Quotas (infotype 2006) Leave: 10 days Deduction from: Hire date Deduction to: End of March next year Save the data and return to the SAP Easy Access Menu. 2. SAP Menu: Human Resources Personnel Management Administration HR Master Data Personnel File Enter Personnel number 390##. Select Display. Choose Next Record to dispaly the individual infotypes. The Payroll Status (0003) and Additional Actions (0302) infotypes are available, although you did not create them previously. Exit and return to the SAP standard menu. (C) SAP AG HR

47 Organizing a Live Payroll Run Contents: Payroll areas and payroll periods Payroll control record Payroll status in the employee master data Retroactive accounting limits - scenarios (C) SAP AG HR

48 Organizing a Live Payroll Run: Unit Objectives At the conclusion of this unit, you will be able to: Describe the organization and control of a payroll run Set up payroll administration for a live payroll run (C) SAP AG HR

49 Course Overview Diagram Introduction to Payroll Entering Payroll Data Organizing a Live Payroll Run Payroll Process Payroll Reports Posting Payroll Results to Accounting Bank Transfers Process Model Problem-Solving Aids (C) SAP AG HR

50 Organizing a Live Payroll Run: Business Scenario Payroll runs are carried out at different times (for example, at the beginning of the month) and with different periodicity (for example, monthly). Payroll consists of different phases which take place one after the other. This is controlled by payroll areas and payroll control records, which you set up in Customizing. (C) SAP AG HR

51 Overview - Payroll Organization Monthly or weekly? Additional date types Which payroll year, start, end of periods Are assigned to the payroll area Period parameters and Date modifier For every payroll area there exists a For every combination of period parameters and control record Controls the individual stages of payroll date modifier Payroll periods Calendar for cumulations Cumulation of wage types for report purposes You must make some basic settings in Customizing to be able to run payroll in the SAP System. A period parameter and a date modifier are assigned to each payroll area. The period parameter determines whether payroll is run monthly, bi-monthly, weekly or for several weeks. Each period parameter used is assigned to a time unit. The values for the time units are defined (monthly, semimonthly, weekly, bi-weekly, every four weeks, and annually.) Payroll periods must be generated for each combination of period parameters and date modifiers assigned to a payroll area. All periods within the specified time interval are defined based on the period parameter. The start date and end date for each period is defined and the payday is calculated using a rule entered as a parameter. The payroll year and period define the exact dates for the payroll period. You must create a control record for every payroll area. This control record controls the individual stages of payroll. (C) SAP AG HR

52 Setting up the Payroll System in Customizing Display Structure: SAP Reference IMG Implementation Guide Edit Goto Information Utilities Standard Settings System Help Existing BC Sets BC Sets for Activity Change Log Where Else Used Payroll Payroll: International Environment Payroll Organization Define Period Parameters Define Date Modifiers Check Payroll Area Generate Payroll Periods Generate Calendar for Cumulations The necessary administrative elements, for example, payroll area and period, payroll control record and the employee payroll status are explained in the following section. You find the IMG steps in Customizing for Payroll for your country under >Environment > Payroll Organization (C) SAP AG HR

53 Payroll Areas Payroll area xx Payroll area yy MONTHLY payroll run, on the 28th of the current month WEEKLY payroll run, on the Thursday of the current week The SAP HR System uses payroll areas to group together employees for whom payroll is run at the same time, and also to set the dates for the payroll period. Employees from different employee subgroups can belong to the same payroll area. For example, an organization may pay employees on a monthly and weekly basis so at least one monthly and one weekly payroll area must be created. You must also create payroll areas if you want to run payroll for employees at different times. The payroll area is used as a selection criterion for many payroll processes. For example, for the payroll run, the remuneration statement, and evaluation reports for the payroll run. If you want to select fewer employees for a payroll run or other evaluations, you can also use additional selection criteria, for example, the cost center, or employee subgroup. (However, such a selection is only suitable for test and simulation purposes, as the payroll control record is not taken into account). Feature ABKRS delivers a default value for the 'Payroll Area' field in infotype 0001(Organizational Assignment). (C) SAP AG HR

54 Payroll Periods Payroll area xx (monthly) Payroll period 01 01/01 01/31 Payroll period 02 Payroll period 03 02/01 02/28 03/01 03/31 Payroll period /01 04/30 Payroll area yy (weekly) Payroll period 01 Payroll period 02 01/05 01/11 12/29 01/04 Payroll period 03 Payroll period Payroll period /19 01/25 01/12 01/18 01/26 02/01 Payroll period 02/02 02/08 A payroll period determines the period for which a payroll result is created. The length of payroll periods can differ, for example, a payroll period can be a month, a week, or fourteen days. The exact start date and end date of the periods must be defined for the payroll areas. This data is generated automatically when the program is started. This is explained in the following slides. (C) SAP AG HR

55 Generating Payroll Periods (1) Example: Monthly payroll periods Parameter Period parameter Date modifier Start date End year Start of tax year Payday rule Number of days Determine period number Carry out table change Frequency with which payroll is run for a payroll area. (For example, 01 for monthly) Linking additional date types with a payroll calendar 1 Date on which the first period to be generated should begin Year until which payroll periods are generated Payroll periods are linked to the time units using the 'Generate Payroll Periods' step in the Implementation Guide (IMG). You also specify how paydays are defined and enter the start date of the tax year. In addition to the start and end date for a period and the pay date, it is also possible to define a date modifier as an additional payroll date. This modifier links the additional date types with a payroll calendar. In addition to the date specifications for the standard payroll interval, you can also create additional date specifications for each period in the payroll calendar. These additional date specifications can be used, for example, to store the pay date. This example shows the generation of payroll periods for a monthly period modifier. In this case the period start and end dates correspond to the start and end date for a calendar month. Using these settings you generate payroll periods for 24 months (start date until the end year). Caution: The input screen for the report changes dynamically according to the country grouping. (C) SAP AG HR

56 Generating Payroll Periods (2) Example : Weekly payroll periods Parameter Period parameter Date modifier Start date End year Start of tax year Payday rule Number of days Determine period number Time interval in which payroll is run for a payroll area. (For example, (03 for weekly) Day on which the tax year begins. (For example, 01. January) Calculation of the payday for the period Carry out table change Payday rule / Number of days: These two fields determine how the period payday is calculated. The following values can be used for the payday rule: 1 : The number of days is added to the start date of the period to calculate the payday. 2 : The number of days is deducted from the end date of the period. 3 : The number of days is added to the end date of the period. 4 : Only applies to monthly periods, the number is used as the exact date. Determine period number: In this field you define which date of the payroll period the system uses to determine the period number. The system uses the period number in the payroll control record to increse the payroll periods sequentially for a year. With every new tax year the period number is reset to one. In this example, the employee is paid each Thursday for the preceeding week (Start date : Sunday-Saturday period). Reason: The payday rule 3 says that the number of days (5) is added to the end date of the period. (C) SAP AG HR

57 Generating the Calendar for Cumulations Period Year Type No. Year M M Q Q Cumulation type, for example: M = Monthly Q = Quarterly X = Six-monthly Y = Annually U = Unlimited In some countries, the calendar is used for reporting purposes. During payroll, some wage types are cumulated over several periods to create monthly, quarterly, or annual totals. By generating the calendar, each payroll period is assigned to a particular quarter, halfyear, or year. The calendar must be generated for each combination of period parameters and date modifiers assigned to a payroll area. A parameter in the selection screen determines the date in the payroll period (start date, end date, or payday date) on which this assignment is based. You generate this cumulation calendar for several years in advance using a Customizing report. (C) SAP AG HR

58 Payroll Control Record: Status Human Resources Payroll Payroll areas XX monthly International Payroll status Payroll Simulation Release payroll Release for payroll Release for correction Exit payroll Start payroll Check result Corrections Exit Payroll Check payroll results Coordinates the different stages of payroll You must create a control record in Customizing for each payroll area before it can be used. The personnel control record performs the following functions in payroll: Defines the payroll past for retroactive accounting recognition. Locks master data and time data so no changes can be made during the payroll process. The lock is valid for the payroll past and the payroll present. Changes affecting future payroll runs are still possible. Defines the earliest possible retroactive accounting date for each payroll area. You find the control record in the payroll menu for your country under Tools > Control Record. You can also use the payroll menu for your country to control the different stages of payroll. (C) SAP AG HR

59 Payroll Control Record: Periods Payroll area XX monthly Period of last payroll run Payroll status Payroll period Run 01 Current payroll run saved Earliest RA period Last change to control record by Miller on at 01:01:30 Retroactive accounting is only possible up to the start date of this period Status created Change information You must pay particular attention when creating the payroll control record in your live system. The payroll period used to create the payroll control records must be 1 period before the period in which you want to go live. Example: You want to use the SAP Payroll system to go live in period 05, You must enter period 04, 2001 in the payroll control record. (C) SAP AG HR

60 Payroll Status Infotype (System) Date until which payroll has taken place for an employee Change Payroll Status (Infotype 0003) HR master data Edit Goto Utilities System Help Payroll/retroactive accounting Accounted to Earliest MD change MD change bonus Payroll correction The program recognizes whether and when payroll must be repeated to take master data changes into account If a personnel number has been rejected or data has been changed in the correction phase To perform retroactive accounting in connection with bonus accounting Each employee has an individual payroll status. The necessary data is stored in the Payroll Status infotype (0003). This infotype is created automatically as part of the hiring action and is automatically maintained for each payroll period. You will rarely need to make changes to master data. Occasionally, however, you may need to enter employee-specific information relating to Payroll or Time Management, so it is possible to change particular fields in the Payroll Status infotype manually. The payroll driver enters the end date of the last completed payroll period in the Accounted to field. If master data is changed, the system enters the appropriate date in the Earliest MD Change field. This date is deleted after each completed payroll run. The Earliest MD Change Bonus field (Earliest Master Data Change Bonus) is filled with a date when master data is edited, and this date is deleted during bonus accounting and unauthorized manual checks (NAMC, only for the USA). In this way the payroll system can perform retroactive accounting optimally in connection with bonus accounting. This field is used in a similar way to the Earliest MD Change field (Earliest Master Data Change). The payroll driver flags the Payroll Correction field if a personnel number has been rejected, or you have entered data during the correction phase of the payroll run. The employee is entered in the correction run with this indicator and if payroll is subsequently completed successfully, the indicator is removed. If changes are made in Customizing, the "Payroll Correction" indicator is not set. (For example, a pay scale table change). (C) SAP AG HR

61 Payroll Status Infotype (Changed Manually) Defines the date until which changes can be made in the payroll past and until which the system can perform retroactive accounting Change Payroll Status (Infotype 0003) HR master data Edit Goto Utilities System Help Valid Payroll/retroactive accounting Day up to which payroll is run for an employee, even if the employee leaves the company Earl.pers.RA date Run payroll up to Do not account after Pers.no.locked Employees can be locked for payroll Payroll is run for this employee until this date Earliest personal retroactive accounting date: This field is only used if you want to set a retroactive accounting limit for an employee that is different from the date set in the payroll area. Account to: Day up to which payroll is run for an employee, even if the employee leaves the company. The date must lie in an interval in which the employee is not actively employeed. For example, if an employee has left the company and should still continue to be paid after the leaving date. If you are dealing with payments during a time when the employee is actively employeed, you do not have to enter a date in this field. This is because such payments are triggered automatically during retroactive accounting. Do not account after: You can enter a date after which payroll will no longer be performed for an employee. The subsequent day must lie in a non-active period. Personnel number locked: If this field is flagged, an employee can be locked for payroll. In this case the personnel number will not be selected for payroll. (C) SAP AG HR

62 Retroactive Accounting Limits (3 Scenarios) I. Employee hiring date Earliest retroactive accounting period - control record Earliest personal retroactive accounting data in infotype 0003 II. Earliest retroactive accounting period - control record Employee hiring date Retroactive accounting possible until this date III. Employee hiring date Earliest personal retroactive accounting data in infotype 0003 Earliest retroactive accounting period - control record The retroactive accounting limit determines the exact date until which master data and time data can be changed in the payroll past. The retroactive accounting limit is based on the following values: Per payroll area (payroll control record): Earliest possible retroactive accounting period Employee hiring date Per employee (Payroll Status infotype): Earliest personal retroactive accounting date If the date set for each payroll area differs from the date specified for the employee, the later date is used. The absolute retroactive accounting limit for an employee is the hire date. (C) SAP AG HR