DOC-52099

Generated by Jive on 2015-10-26+01:001

Payroll Data Conversion Plan

Folks,

Attaching a Payroll Data conversion plan which i used some time back in one of my projects .Hope it will be of

help to people doing it the first time.

Regards

Harris

1 Introduction

1.1 Purpose of this documentThe purpose of this document is to define the requirements and activities for Client data conversion to SAP R/3

solution and to establish a common understanding of the associated obligations of SYSTEM INTEGRATOR

and Client for all key activities.

1.2 ObjectivesData conversion requirements are based on payroll critical information (employee master data), including

base salary, taxation, etc and year to date balances as required on a country by country basis for year end

legislative reporting.

To meet these objectives, strong control mechanisms must be in place to ensure schedule timeframes are met.

1.3 ResponsibilitiesData cleansing, manipulation, collection and validation are the responsibility of Client.

System Integrator will be responsible for ensuring that critical data requirements are identified, data upload

specification completed and data upload programs written and data uploaded.

Client is responsible for providing the data in the format defined in the data upload specification, these

specifications are country and client specific.



Specific responsibilities will be defined in detail in subsequent sections of this document.

1.4 Data conversion process overviewThere are seven key activities included in data conversion. These are:

• Definition of requirements• Data mapping• Data cleansing• Data extraction• Data preparation and verification• Data transfer and verification• Data validation and sign off

These key activities are conducted in sequence as listed above.

Each of these activities will be defined in detail, with assigned responsibilities for each task in the data

conversion process section of this document

2 Data conversion process

2.1 Definition of data requirements

There are two types of data requirements for each country; standard master data and year to date data.

2.1.1 Master data

SAP R/3 requirements for standard master data are defined within the Master data mapping specification.

This specification lists the generic (cross-country) data records (infotypes) and the associated data elements.

The data element requirements are listed in order of field sequence in each data record, with details of SAP

field name, description, type length and possible field value. The generic specifications include cost centre and

OM objects. Cost centres are required for general ledger posting.

Only those cost centres and OM objects specific to the locations included in the implementation and any

exceptions currently assigned to active employees, should be migrated to SAP R/3.

2.1.2 Year to date dataCertain provisions require that historical accumulated data be uploaded into the SAP R/3 solution.



The data is usually specific to the current tax period, except where it is required for termination calculation

purposes. It includes either one time only year to date data or period by period (i.e., payroll period) up to and

including the period end prior to the first parallel test run.

The accumulations are required for customer wage types and technical wage types such as total gross pay,

total base salary etc.

System Integrator will provides the specifications for accumulation and standard payment codes for year to

date and/or period to date on a country by country basis (refer to chapter Appendices)

Legacy systems

Client Master Data and YTD / PTD data will be extracted from the Client local SAP HR and Payroll system

2.2 Data mapping

There are two types of data mapping required, including:

Matching SAP R/3 data field specifications to legacy systems

Matching SAP R/3 data value codes to legacy system value codes

2.2.1 Data field mappingThis mapping relates specifically to master data interface and upload requirements.

System Integrator will provide details of any mandatory fields in these specifications.

The data that cannot be interfaced will either need to be manually input or provided for automatic upload via

formatted input sheets. This is applicable both to data conversion and future operational requirements.

2.2.2 Data value code mapping

This mapping relates to upload requirements for both master and year to date data. The SAP R/3 data value

codes are matched to the legacy system data value codes. The Business Blueprint should include a full

list of all data value codes. During data mapping, requirements for data cleansing will be identified and the

procedures for this work will be defined.

2.3 Data cleansing

Data cleansing of master data is a prerequisite to data conversion to the SAP R/3 solution. No cleansing is

required for YTD / PTD data. The YTD / PTD data is a snapshot of the legacy payroll results to date.



Data cleansing activities include:• Alignment of Client HR data values to SAP R/3 solution specifications• Ensuring Client use of HR data fields, such as address fields, is consistent

2.4 Data extraction

Initial master data extractions will be required from the legacy system. YTD/PTD data extraction will be

required from the legacy system.

2.4.1 Master data – initial extraction and changes

Client is required to set up a procedure for extraction and transfer of the initial master data from the legacy

system. Client must ensure that the extract file contains the records for all employees who need to be

recorded for tax year end reporting; including:• Terminated employees (current tax year)• Prior tax year terminated employees who have received payments in current tax year• All active employees• Retirees

NB: Parallel testing usually identifies some changes are required to the LEGACY HR interface file. Client

should anticipate that these changes (usually minor) will occur (for each phase) and retain appropriate

technical resources to ensure these changes are made in a timely manner.

2.4.2 YTD/PTD dataClient is required to source extract files of YTD/PTD data codes and values from the legacy payroll system,

according to the SAP R/3 specifications.

2.4.3 Payroll transactionsPayroll transaction details are required for the parallel testing and initial operational payroll processing. Client

will need to decide whether these details will be extracted from the legacy system or whether a process is put

in place to capture the details prior to their input into the legacy system.

Whatever approach is taken, Client will provide the data for upload in the data upload spreadsheets formats

provided by System Integrator.



2.5 Data preparation & verification

This step provides an opportunity to confirm the earlier data mapping against actual data from the legacy

systems, as well as preparing file formats for later data reconciliation.

2.5.1 Confirm data mappingPersonnel numbers in each system should be mapped to each other. Data code mapping should be re-verified.

This helps to confirm that what was expressed in the Blueprint design documentation as data codes has been

set up correctly in the system and whether the information in the Blueprint represents the actual legacy payroll

processing practices.

2.5.2 Data manipulationManipulation may be required of payroll legacy system data into the SYSTEM INTEGRATOR provided SAP

formats. Client is responsible for any manual manipulation to the data files that may be required.SYSTEM

INTEGRATOR will provide formatted upload spreadsheets for all data loads.

2.5.3 Data file verificationClient is required to check each data file and confirm that the requirements defined in the SAP R/3

specifications have been fulfilled.

This verification should include (but is not limited to):• All employee records included, as per the control records• All mandatory fields contain data• All data in field is consistent with requirements• Employees have all the required data records and wage types

Client must ensure that subsequent master data change files do not include any data records with an effective

date earlier than the earliest dates set for retro calculation in both the parallel run and production environments

NB: The earliest retrospective calculation dates will differ depending on the Client phasedapproach. Some data records will need to transfer earlier effective dates and produce an ‘legacyHR message’ on upload so that manual calculation and input actions can be taken (relevant forretrospective payments with actual effective dates from to first parallel test payroll period date).System Integrator will provide details of the specific data records that are subject to these date requirements.

2.5.4 Data file control sheetEach data file must be accompanied by a control sheet. This control sheet should be confirmed as verified by

the Client payroll team.

An example of the standard control sheet is:



1.1 Data transfer & verificationThe aim of the data transfer (data load) exercise is to confirm that what Client has in the legacy system has

been converted across to SAP R/3 and the two systems in are in sync.

1.1.1 File transfer approachAll data files must be sent to the following Client specific email address for data loads at SAP R/3:

TBC

Data files are not to be sent via ftp until advised by System Integrator. This is usually not until the final parallel

test has been signed off.

Data files should be sent password protected. Password details should be sent to System Integrator in a

separate email.

All employee master data load file must be accompanied by an SAP R/3 data load control form. SAP R/3 and

Client are required to confirm the file records against this data load form.

Data file are first loaded to the TEST environment. Once data load is verified as correct, data is loaded into the

PROD environment.

1.2 Data validation & sign offThis final validation by Client confirms that all active employees (and employees terminated within the tax year)

have full master file records.

1.2.1 Milestone sign offClient is required to formally sign off data conversion when all data loads are confirmed.

2 Actions ListsThe following Action List is an overview Guideline for the whole process of Data Migration.

2.1 Action List 1 - Definition of Data Requirements

Project Phase Steps Activity Owner

Blueprint Employee master data

1 Provide base line HR

interface specifications,

System Integrator



including details of any

mandatory fields

2 Provide base line non HR

data record (infotypes)

specifications, e.g.

allowances, deductions

System Integrator

3 Provide base line country

specific data record

(infotypes) specifications

System Integrator

4 Conduct preliminary

investigation and identify

legacy data source

(system/s)

Client

5 Source payroll register

report and/or other

payroll reports to action

step 6 and to establish

control counts for relevant

periods

Client

Year to date (YTD) data

6 Provide YTD

specifications

System Integrator

Full list of wage types

required, including

customer specific

wage types codes from

Blueprint and technical

and accumulation wage

type specifications

Determine frequency of

upload - Is it a single load

YTD accumulated or a

PTD (month by month)

load

Include accumulation

rules, i.e. System

Integrator will advise what

wage types are added

together to produce



total accumulators

(dependent on SAP rules

for accumulation rather

than legacy approach)

Technical/accumulator

wage type values will be

generate from the base

data in the legacy system

based on these rules

2.2 Action List 2 – Data mappingProject Phase Steps Activity Owner

Blueprint 1 Provide final HR interface

specifications (

System Integrator

2 Match SAP R/3 data

codes (payments &

deductions etc) to legacy

system codes in Blueprint

design document

Within abovementionedspecification, thecolumn “Source Field”needs to be mapped.

Client

Realisation 3 Complete full data field

comparison/match

and final definition

(using configuration

spreadsheets)

Additionally, to the field

mapping done in point 2,

the value mapping has to

be done as the 1st task

of the Data Conversion

activities in Realisation

Phase.

Client



4 Final confirmation of

legacy data sources for all

systems

Client

5 Identify all data to be

transferred

Client

6 Identify all alternative data

transfer requirements

(manual or automatic

upload sheets)

Client

7 Define procedures for

input of non legacy data

(pre and post go live,

including process for

collection)

Client

8 Define rules for mapping

data values in the

interface file

Client

9 Code and unit test

production of legacy

interface file

Client

10 Define procedures for

data cleansing

Client

11 Produce preliminary

extract of YTD data from

legacy system

Client

2.3 Action List 3 - Data cleansing

Project Phase Steps Activity Owner

Realisation 1 Initiate any system

development effort

possible to maximize

Client data collection in

the legacy system, ensure

data is set up prior to

initial data extraction, if

needed

Client



2 Ensure correct data field

alignment for interface file

requirements (e.g., there

may be optional fields in

the legacy system for data

capture which need to be

restricted, e.g. address

lines and fields)

Client

2.4 Action List 4 – Data extractionProject Phase Steps Activity Owner

Realisation Extraction from legacy

system

1 Provide details of the

effective dates for

master data records &

relevant data records

(infotypes) for earliest

YTD requirements

System Integrator

2 Provide details of the

effective dates for master

data records & relevant

data records (infotypes)

for retroactive calculations

by phase

System Integrator

3 Produce full extract file for

sample set of employee

master data from legacy

system (test interface field

definition and placement)

Client

4 Set up control record

comparative base line,

pay period by pay period

Client

headcount list of

all valid employees

defined by interface



specifications as active

employees

5 Extract full employee

master data base file

(effective date of records

as per specifications at

item 1 above)

Client

6 Verify master data

extraction file against

headcount control record

(identify terminated

employees)

Client

7 Prepare terminated

employee details in

separate manual upload

file

Client

Extraction from legacy

system

8 Produce full master data

extract file from legacy

system for all employees

(to confirm what data

is available in legacy

system, in what format)

Client

9 Set up control record

(baseline)

Client

• Compile list of anyemployees who havebeen in the payrollduring current tax year

• Compile list of allterminated employees& date of termination

10 Produce full extract file

from legacy system for all

employees

Client

• Start date forinitial infotype loaddetermined by SAPcontrol record not



employees’ hiredate

11 Extraction file/s verified

against control record

(to ensure all active

employees are included)

Client

12 All files confirmed by

Client payroll team as

valid after extraction (if

extractions is done by IT

team or external vendor)

Client

Payroll transactions

13 Compile or extract

transactions from

legacy system, into SAP

R/3 formatted upload

spreadsheets

Client

PTD/YTD

14 Produce full YTD/PTD

extract file for 1st period,

from legacy system for all

employees

Client

15 Build PTD/YTD values by

employee by period.

Client

Ensure values are

'signed' according to

the rules provided by

System Integrator for

technical wage types and

deductions (including

employer contributions)

Confirm rules for input -

values vs. quantity (e.g.

leave and overtime as

values instead of units)

16 Record headcount per

period and accumulated



values for each period for

total payroll and per wage

type as control records,

including ER contribution.

Map legacy reconciliation

payment types to

SAP wage types, as

defined in the SAP R/3

specifications for country

specific wage types.

2.5 Action List 5 – Data preparation &verificationProject Phase Steps Activity Owner

Realisation 1 Map legacy payroll

employee number to SAP

ID number

Client

2 Identify any data codes

discrepancies between

the legacy system and

SAP R/3 SAP since initial

mapping

Client

• Advise these to SAPR/3 for investigationand confirmation ofany variation fromBlueprint baseline

3 Manipulate data into SAP

format

Client

• refer to chapterAppendices –Data MappingSpreadsheet

4 Data file verification Client

Extraction file/s verified

against control record



(to ensure all active

employees are included)

All employees have all the

required data records and

wage types

Records contain data in

all mandatory fields

All data in the data

columns is consistent with

the requirements.

All initial data load records

are dated earlier than the

first day of the YTD load

period (as per APD ES

specifications)

All subsequent master

data change files do not

include any data records

with an effective date

earlier than the first day

of the first parallel test

payroll period (as per SAP

R/3 specifications)

All files verified by Client

payroll team as valid prior

to upload

Sort and sub-total upload

sheets by wage type

and compare to payroll

register sub totals, by

payment, earning and

deduction code

Remove sub totals and

sort by employee ID

by wage type prior to

sending to SAP R/3

5 Data file control sheet Client

Complete control sheet

specific to data file



Wherever possible,

confirm via the control

sheet that all data for

all employees has

been provided (detail

exceptions)

Control sheet to include

control totals by data

records (infotype)

2.6 Action List 6 – Data transfer & verificationProject Phase Steps Activity Owner

Realisation Master data files

(LEGACY HR & legacy

systems)

1 Data file sent via email to

SAP R/3

Client

Include control sheet for

verification

2 Receipt of data file

acknowledged

SYSTEM INTEGRATOR

Data file checked (to

determine that Client has

understood requirements

SYSTEM INTEGRATOR

3 Data file uploaded SYSTEM INTEGRATOR

4 Data load verified SYSTEM INTEGRATOR

Run SAP report of allemployees to verifyinput against controlrecord – infotype byinfotype reports

Compare with upload

control sheet to ensure



data loaded for all

employees

5 Client advised dataloaded (includes SAPreport if client doesnot have access to SAP– MPS model)

SYSTEM INTEGRATOR

YTD/PTD

1 Data file sent via email

to SAP R/3 (period by

period)

Client

Include control sheet for

verification

2 Receipt of data file

acknowledged

SYSTEM INTEGRATOR

Data file checked (to

determine that Client has

understood requirements)

3 Data file uploaded SYSTEM INTEGRATOR

4 Data load verified SYSTEM INTEGRATOR

Run SAP report

(RPCLGV09) Wage

Type Distribution List

by employee (under the

YTD load payroll area) to

verify input against control

record

Compare with upload

control sheet to ensure

data loaded for all

employees

5 Client advised data

loaded

SYSTEM INTEGRATOR

6 Run payroll to transfer

values to final YTD

figures, e.g. YTD single

SYSTEM INTEGRATOR



pay run, PTD multiple pay

runs and reconciliation.

YTD single pay run.

Compare final YTD values

to confirm sum of parts =

whole for all values

2.7 Action List 7 – Data validation & sign offProject Phase Steps Activity Owner

Realisation 1 Validate SAP baseline by

comparison with legacy

system

Client

Compare with payroll

register reports (with pay

details to net)

Compare with individual

payslips

2 Sign off control sheet

comparison

Client

3 Complete data conversion

milestone sign off

document

Client

Documents

DOC-52099