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2 SAP Payroll Control Center: Johnson & Johnson Co-Innovation with SAP Silvia Gonzalez - Johnson&Johnson Julia Yatskar - SAP SESSION CODE: HM690

3 Legal disclaimer The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP s willful misconduct or gross negligence. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions SAP SE or an SAP affiliate company. All rights reserved. Customer 3

4 Many manual steps necessary towards correct and consistent payroll results No or little transparency over complete end-to-end process No or little transparency over complexity of calculation Results of a payroll run are a best kept secret 2015 SAP SE or an SAP affiliate company. All rights reserved. 4

5 Many manual steps necessary towards correct and consistent payroll results No or little transparency over complete end-to-end process No or little transparency over complexity of calculation Results of a payroll run are a best kept secret 2015 SAP SE or an SAP affiliate company. All rights reserved. 5

6 Experience Many manual steps necessary towards correct and consistent payroll results No or little transparency over complete end-to-end process Insight Now Future No or little transparency over complexity of calculation Interactive Real-Time Speed User End-To-End Transparency Efficiency Simple Collaboration Results of a payroll run are a best kept secret Make the entire end-to-end payroll process simple and efficient 2015 SAP SE or an SAP affiliate company. All rights reserved. 6

7 New Payroll Experience Re-Defining Payroll Tax Declaration Pay Statement Social Insurance Employee Payment Financials Update 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 7

8 New Payroll Experience Re-Defining Payroll Tax Declaration Pay Statement Social Insurance Employee Payment Financials Update 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 8

9 New Payroll Experience Re-Defining Payroll Tax Declaration Pay Statement Social Insurance Employee Payment Financials Update 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 9

10 New Payroll Experience Re-Defining Payroll Tax Declaration Pay Statement Social Insurance Employee Payment Financials Update Tax Declaration Pay Statement Social Insurance Employee Payment Financials Update 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 10

11 New Payroll Experience Re-Defining Payroll Tax Declaration Pay Statement Social Insurance Employee Payment Financials Update Tax Declaration Pay Statement Social Insurance Employee Payment Financials Update 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 11

12 New Payroll Experience Re-Defining Payroll Tax Declaration Pay Statement Social Insurance Employee Payment Financials Update Tax Declaration Pay Statement Social Insurance Employee Payment Financials Update 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 12

13 New Payroll Experience Re-Defining Payroll Tax Declaration Pay Statement Social Insurance Employee Payment Financials Update 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 13

14 New Payroll Experience Re-Defining Payroll Tax Declaration Pay Statement Social Insurance Employee Payment Financials Update 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 14

15 New Payroll Experience Re-Defining Payroll Tax Declaration Pay Statement Social Insurance Employee Payment Financials Update 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 15

16 New Payroll Experience Re-Defining Payroll Tax Declaration Pay Statement Social Insurance Employee Payment Financials Update 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 16

17 New Payroll Experience Re-Defining Payroll Policy verification Lock employee data maintenance Payroll result production Run payroll Tax Declaration Pay Statement Social Insurance Tax Declaration Re-check of policies Un-lock employee data maintenance Employee Payment Re-conciliation Fix problems (if any) Social Insurance Employee Payment Financials Update Pay Statement Financials Update 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 17

18 2015 SAP SE or an SAP affiliate company. All rights reserved. 18

19 What Happened So Far 2014 H1 Payroll Administrator 2014 H2 Process Manager 2014 H2 Payroll Control Center Now Payroll Process Manager Process manager Real-time insight into payroll data Smarter reconciliation Completely new SAP Payroll user experience Improves usability and streamlines the process Automates creation of audit trails Integrated into EC and EC Payroll Modernized SAP Payroll user experience Software Service Content Enablement 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 19

20 Technical Prerequisites Enhancement package 7 HR Renewal 2.0, Feature Pack 3 (equals HRSP12) NW 7.40, SP05 and above SAP_UI SP11 (SAP_UI SP11 is defined as an import condition for HRSP12, therefore it is installed automatically) 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 20

21 Additional Information How do SAP HCM customers benefit from declustering Payroll and Time Management on SAP HANA? Improve payroll data validation with SAP Payroll control center add-on The new SAP HCM Payroll experience (HR Renewal 2.0 FP1) SAP Payroll control center add-on: the payroll evolution continues in Feature Pack SAP SE or an SAP affiliate company. All rights reserved. Customer 21

22 New Payroll Experience Payroll Control Center Process Overview Productive Payroll Process Follow Up Process Legal Reporting Monitoring Process The Process Overview is the entry point for the payroll process manager and shows the processes of his responsibility It provides insights into each process at a glance (e.g. progress of each process, information on payroll data quality issues, ) Allows context sensitive actions (e.g. navigate to the current active step, start upcoming processes, ) 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 22

23 New Payroll Experience Payroll Control Center Process Step Productive Payroll Run All relevant information for a process step is available in one single view. If required further details can easily accessed Process steps can be automatically executed without further user interaction 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 23

24 New Payroll Experience Payroll Control Center Process Step Details Error Overview (e.g. list of employees rejected in payroll and reason for rejection) Program Details (e.g. list of parallel payroll jobs executed, their status and the ability to display the result spool list) Contacts and their contact details which are able to support the payroll process manager for this particuliar step 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 24

25 New Payroll Experience Payroll Control Center Payroll Data Validation Monitoring Step During the monitoring process the monitoring step provides up-todate information on payroll data quality Payroll data quality issues are shown and are either automatically or manually assigned to processors (via Edit ) KPIs illustrate the overall health of the current payroll process and help to identify general issues at an very early stage long before the execution of a productive payroll 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 25

26 New Payroll Experience Payroll Error Management The Payroll Error Overview is the entry point for the payroll administrator It provides insights into each process at a glance (e.g. error number of each process assigned to current Payroll Admin, check policies with error results, ) Only top3 check polices with errors will be listed, click Show more to see the whole list Processes without errors will be listed in an individual tab Allows context sensitive actions (e.g. navigate to the Process errors detail page, ) 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 26

27 New Payroll Experience Payroll Error Management This check detail page provides overall info for each individual errors (Proposed solutions, Key Value information, Error overview, ) Allows context sensitive actions (e.g. navigate to the Solution detail page, ) Click on the link of solution proposal, it leads to the data correction screen directly 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 27

28 New Payroll Experience Payroll Error Management This error detail page provides detailed info for each individual errors (Text, Generic Overview, Spool file, Simple Wage Type,, ) Allows context sensitive actions (e.g. Validate, Reset Status, ) 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 28

29 New Payroll Experience Payroll Error Management This Solution detail page provides detailed info for pre-defined solutions Allows context sensitive actions (e.g. Apply Solution, ) Validate immediately after solution applied 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 29

30 New Payroll Experience Payroll Error Management The error can also be forwarded to the proper processor or back to process queue 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 30

31 New Payroll Experience Roadmap for 2015 and Beyond Introduce a New Payroll Experience for EC Payroll (Cloud Payroll) and SAP HCM Payroll (On Premise) New way of processing payroll with a new, fresh and easy to use user interface along the two roles "Payroll Process Manager" and "Payroll Administrator" Q1/2015 Q2/2015 2nd half 2015 Contd./2016 Payroll Process Manager Role Process overview with key status information Process monitoring along KPIs Ability to have early insight into payroll data quality Policy handling Automated error assignment to processors Automated process execution Simplified correction process in a productive payroll run Payroll Process Manager Role Process overview with key status information (contd.) Process monitoring along KPIs (contd.) Automated detection and execution of policy validations based on employee data changes Policy handling (contd.) Payroll Administrator Role Work inbox based on process overview Ability to forward policy violations to other administrators for processing Payroll Process Manager Role Fiori Launchpad tasks Fiori Launchpad and process overview KPIs Automated detection and execution of policy validations based on employee data changes (event handling) (contd.) Specialized process steps for country versions (localization) Payroll Administrator Role Work inbox based on process overview (contd.) Fiori Launchpad tasks Payroll Process Manager Role Start of ad-hoc processes Off-cycle adjustment checks Termination handling Categorized visualization of payroll errors Specialized process steps for other country versions (contd.) Simplification of customization Enable payroll follow up reports to be included in the pre-productive payroll monitoring Solution proposals for policy violations Root cause analysis of policy violations Ability to navigate from the solution proposal to master data maintenance Enable Team (of payroll administrators) concept Delegation ( segregation of duties ) 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 31

32 SAP Payroll Processing Control Center Johnson & Johnson Experience May 2015 Silvia Gonzalez Johnson & Johnson Payroll Processing Manager

33 Learning Points Johnson & Johnson Journey Benefits of Payroll Control Center Flexibility and Functionality of Check Validations Phases and Timelines 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 33

34 Our Journey Why did Johnson and Johnson choose to participate in ramp up for the payroll control center? How is the strategy for requirements gathering for the payroll control center unique? How did JnJ evaluate control center opportunities? What are the benefits JnJ expects from implementing the control center? 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 34

35 Current Situation The JnJ Payroll Department spends significant amounts of time running validation reports and performing analysis. These validations are performed manually which leaves us open to compliance risk. Payroll has made a commitment to validate payroll relevant master data changes occurring prior to payroll release SAP SE or an SAP affiliate company. All rights reserved. Customer 35

36 Why the Payroll Control Center? Key tool to automating our processes and reducing human interaction in the process of paying employees Validations occur in the source system, eliminating manual execution and downloading of reports Eliminates the opportunity for payroll to miss required validations and eliminates compliance risk Intuitive UI5 display functionality within this tool enables payroll management and leadership the ability to track progress of activities performed The SAP payroll control center functionality allows required activities within the department to be grouped to the roles responsible for the activities removing confusion about responsibilities All activities in the payroll control center are logged and tracked creating an excellent point of reference for our audit activities SAP SE or an SAP affiliate company. All rights reserved. Customer 36

37 Requirements Gathering Workshops held to identify the validations required and ability to build within PCC Team s thinking had to change from requesting large general reports to more defined validations Example: In the current state, the requirement might be that the user wants a report to review the data on infotypes 1, 7 and 8 to look for inconsistencies when someone has a master data change on one of those infotypes. We need the requirements to be at a lower level. They need to be at the specific check level. For example, a user should define a check very specifically: o If infotype 1 employee group = BD (Salaried PT OT), or BE (Salaried PT) o Then infotype 7 weekly working hours must be less than 40 and o Infotype 8 Work Hours per period must be less than SAP SE or an SAP affiliate company. All rights reserved. Customer 37

38 Control Center Available Data Sorting/Filtering Employee/Error Status Generic Overview Simple Wage Type Listing Reason Codes Employee Header 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 38

39 Flexibility of Check Configuration Wage Types Diff Criteria for multiple WTs (high gross/net) Same wage types within period (dup earnings) List of wage types (high hours) Ranges on dollar amounts or greater than/less than Calculations Example: o Total Accrued Less Vacation Requested o If Requested Greater than Accrued - error Infotypes Infotype field blank (missing shift code, missing main bank account) Infotype field populated (active with run-up-to) Missing main bank setup on IT9 Compare Compare previous period to current period (count of ees) show diff/variance 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 39

40 Examples of Check Validations at J&J Brazil Quota Checks Go-Live in April SAP SE or an SAP affiliate company. All rights reserved. Customer 40

41 Examples of Check Validations at J&J High Gross/High Net Current Reports: High Gross Audit - /101 gross greater than 20K High Net Audit - /559 net greater than 10K Manual Efforts Run query to identify highly compensated employees and their salaries to confirm their accuracy Run query to gather case #s for IT14/IT15 entries as support for payment Compare High Net to High gross to eliminate duplicate efforts on analysis Efficiencies gained in control center Ability to combine both reports into one check validation Added criteria on /101 OR /559 by pay scale groupings Pay grade through 49 o /101 equal to or greater than 20K OR /559 equal to or greater than 10K Pay grade 50 and above o /101 equal to or greater than 25K OR /559 equal to or greater than 17K Ability to review employee master data quickly and in real time for analysis 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 41

42 Examples of Check Validations at J&J Zero Gross/Zero Net Current Reports: Zero Gross Audit Zero Net Audit Manual Efforts Run query to identify employees on unpaid leave of absence or unpaid suspension Run query to identify employees on leave of absence Run query to identify Global Mobility employees receiving zero salary on IT8 Compare Zero gross to zero net to eliminate duplicate efforts on analysis Efficiencies gained in control center Ability to combine both reports into one check validation with zero gross OR zero net Ability to hard code exclusions for employees on LOA Ability to hard code exclusions for GM with zero base salary 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 42

43 Examples at J&J Continued: Active Employees with Severance Current Reports: Active employees with Severance Manual Efforts Run query to identify mid period terms Run query to identify rehires Efficiencies gained in control center General overview displays latest action (identifies rehire/term) If rehire, need to end date severance (data visible in generic overview) General overview to display IT14 for severance setups to validate against rehire/term action 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 43

44 Examples at J&J Continued: Report: Variance in Base Salary +/- 7% Efficiencies gained in control center General overview displays: o Previous and Current salary and pay scale group o Difference of the two salaries and % difference o Position and Job o Latest action which would identify promotion, demotion, etc SAP SE or an SAP affiliate company. All rights reserved. Customer 44

45 Examples at J&J Continued: Report: Negative Deductions Identifies employees receiving a negative deduction which would result in a payment instead of a reduction to gross Control Center Ability to select on a range of wage types Fails on individual wage types if negative amount 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 45

46 Examples at J&J Continued: Report: Terminated with Pay Identifies terminated employees receiving a net payment Manual Efforts Run query to identify current period terms to exclude Run query to identify employees on severance to exclude Efficiencies gained in control center Configure to exclude current period terms or only include term full pay period Display Severance from IT14 on General Overview, if severance amt = base salary quickly determine ok General overview latest action (term) easy to confirm accrued vacation payout is valid 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 46

47 J&J Phases/Timelines 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 47

48 Scope and Benefits Scope Brazil - Our initial focus was Brazil quota validations US/PR - Followed by validations occurring between payroll preliminary runs and exit of payroll execution Australia Define a set of validations to occur across multiple countries validating master data accuracy Benefits Real Time automated view of payroll discrepancies On-going creation of validation checks as business encounters new issues Process efficiencies Ability to assign validations to groups/individuals All activities are logged and tracked making it visible to auditors Visibility of payroll progress to leadership 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 48

49 STAY INFORMED Follow the ASUGNews team: Tom Chris Craig 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 49

50 THANK YOU FOR PARTICIPATING Please provide feedback on this session by completing a short survey via the event mobile application. SESSION CODE: HM690 For ongoing education on this area of focus, visit SAP SE or an SAP affiliate company. All rights reserved. Customer 50

51 Thank you Contact information: Julia Yatskar Contact information: 2015 SAP SE or an SAP affiliate company. All rights reserved.

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