HR Pay Roll General

India SAP CoE, Slide 1

HR1004 - Payroll General – v1.0

SAP HR Payroll


Payroll Overview

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Payroll Overview

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Purpose

This Document will prepare you with the • Payroll Information• Basics of Payroll• Payroll Process• Reports and Transactions


Use

A Payroll System must meet the demands of employee and employers, and be able to generate an exact, up-to-date payroll run. This payroll run can be easily corrected if changes are required, for example, if overtime payments or wage/salary Increases need to be taken into account.


Payroll Overview

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Process Flow


Overview of Payroll Process

Gross Net


Process DescriptionThe employee’s HR master data/Infotypes is maintained in SAP system

Employee enters his/her time daily in CATS, which is then approved by supervisor

Transfer of approved CATS time entry to HR. Then Time Evaluation is run.

Optional

optional


Process DescriptionPayroll Processed: payroll is calculated for all employees. Highlights potential errors.

Payroll FI simulation is run to determine if any posting errors exist

Payroll correction period for payroll errors


Process Description

Payroll correction period for FI posting errors

Payroll production run-posts to Finance and subsequent payroll process

Paychecks and Direct Deposits


HR Master data

HR master data is stored against the exact dates. This is required as Payroll Program needs them so that it can perform calculations for specific days, and Retroactive accounting for previous periods.


Important Infotypes for Payroll

• IT0001- Organizational Assignment• IT0007- Planned Working Time• IT0008- Basic Pay• IT0009- Bank Details• IT0014- Recurring Payments and Deduction• IT0015- Additional Payments

*Other country specific Infotypes & Payroll Infotypes.


Basic Pay


Payroll Process Flow

Payroll Driver Schema

FunctionsRules

Operation Wage Type

Executes

Contains

May Use

Contain

May Manipulate

May Manipulate


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Wage TypeA Wage type is a primary data element which stores the payroll data – a

rate, number, and/or amount. • A Wage type attributes can be controlled so to process & manipulate

in payroll. • The most typical use of a wage type is to store the amounts of

earnings, deductions and taxes of an employee’s payroll data.• The operation indicator controls whether a wage type is a payment or

a deduction.• For example: An Employee’s basic pay is stored in a wage type, the

amount of their loan deduction is stored in a wage type, and their taxable wages & taxes are also stored in wage types.


Types of Wage Type

SAP system have two main categories of wage types:

• Primary wage types/Dialog wage type• Model wage types• Technical wage types.


Primary Wage Type

• These are defined each individual company and are customer specific payroll requirements.

• The SAP system contains examples of primary/ dialog wage types in a sample wage type catalogue.

• for example-• MA10- standard pay.• MB10- Basic salary• M230- HRA• The characteristics are predefined for model wage types.


Model Wage Type

Model Wage Type Customer Wage Type


Technical Wage Types• Technical wage types have “/” as the first character.• These are provided by SAP and need not be changed• /101- Gross pay• Wage type characteristics for technical wage types is not predefined

as the system defines their value during pay roll processing.• Technical wage types are not part of employees master data.


Wage type creation• Transaction OH11 or PU30 is used for creating a new customer

wage type.• The customer Wage types are always created by copying the model

wage types. • All the characteristics of the model wage type are also copied.


Contd:


Wage type Characteristic

View: V_T511


Wage type Characteristic• Direct valuation The amount that is used to valuate the wage type is entered in the

info type manually

• Indirect valuation The system automatically calculates the wage type amount and

enters in the Infotype, 8/14/15.• Combination of Amount, Number & Unit can be described here. • Whether wage type amount can be replaced or nor is set here in indirect valuation.• Attribute of Deduction is set here.


Processing and Cumulation Classes• Processing classes control the processing of wage types at various

stages of payroll.• Processing class 06 -Transfer wage types from the results an the

imported previous period to the current period. The specification 0 in this class denotes that the wage type is not transferred to the current payroll period.

• In total there are 99 processing classes. • 90-99 can be used for customer specific processing. • 01-89 belong to SAP .• Cumulation classes are used for Cumulation of amount to some

specific wage type.e.g. Total Gross• Cumulation classes like processing classes cannot be created.


Process.,Cumul. & Eval. Classes

View V_512W_D


Permissibility of wage typeWage types are assigned to Infotypes for master Data.

View V_T512Z


Personnel Calculation Rule-PCR’s

T. Code :PE02

PCR’s are used for processing wage types according to there processing classes. They holds logic to manipulate Rate & Amount fields of Infotype &then move them to the Output &other internal tables used in PY processing.


Personnel Calculation Rule-PCR’s

• Calculation logic are build up on Wage Types using different operations.

• Employee subgroup grouping for PCR is important to understand as calculations can be based on them.

• Debug PCR’s -> Insert the Command BREAK in the node to debug the PCR.

• Report RPUCYD00 can be used to search PCR’s for Time and Payroll.

• Variants (1,2,3,4,5) available to process the calculation depending upon multiple criteria's.


Operations in PCR’s• Working with wage types in a rule is sort of like working with internal tables in ABAP. The

function that called the rule (PIT, PRT, P0014 or whatever) loops through the table, placing each row, one at a time, in a 'header' space. You work with the wage type in that header space, and when finished add it back to the table.

• MULTI - This operations let you multiply two fields of a wage type and store it in a third. The fields you can work with are AMT, RTE and NUM. MULTI RNA would multiply the rate by the number and store the result in the amount field.

• DIVID - This operations let you divide one field by another of a wage type and store it in a third field. DIVID ANA would divide the amount field by the number and store it back in the amount field.

• NUM, RTE and AMT - These are very basic and powerful operations that manipulate the content of their respective fields.

E.g. of using NUM,RTE and AMT in PCR’s NUM=1 and AMT=2.50 and hence MULTI NAA Use constants instead in table T511K with Key ZNUM and hence use NUM=KZNUM


Operations in PCR’s• ADDWT - Transfers the wage type in the header to some other table - enabling us to save

all that work before the next wage type goes to the header. The basic idea is that you transfer the wage type to another table, with or without changing the wage type number.

Example: ADDWTE* adds the wage type to the RT without changing the wage type number. ADDWTE9XXX transfers it to the RT and renames it to 9XXX.

• FILLF- This simple operation resets the value of a wage type field. Example: FILLF A resets the amount back to what it was when the rule was first called.

• VAKEY- Operation VAKEY places the field specified as a parameter, from a record being read, into the variable key.

• VWTCL - This operation returns the value of a certain processing class for the current wage type. Example: VWTCL 93 places in the variable key the value of

processing class 93


Variants for Operations in PCR’sVariant 1 Wage Type

X nnnn , X corresponds to the name of table & nnnn wage type

Variant 2 Table FieldsXnnnnn, X corresponds to the name of table & nnnn table fields

Variant 3 Direct Valuesnnnnnn, Direct Value can be assigned

Variant 4 Record Layout Fieldsnnnnn, Fields from different global tables can be used

Variant 5 IT Wage Typesnnnn, Fields from table IT can be accessed


FunctionsFunctions are used in Schema. Used to perform business process specific calculation within the Payroll Driver run.

• Transaction Code : PE04• Functions can me created with customer development. Z*• PIT PIT is an acronym for Process Input Table. When wage types are

read into payroll by the Pxxxx functions, they are = stored in an internal table called IT - Input Table. PIT loops through that table and applies logic contained in rules. The goal of PIT is to move wage types out of the IT and into the RT - Results Table.

• PRT - PRT is short for Process Results Table. Although most wage type processing happens via PIT, there are several occasions where you want to process the wage types that have already been transferred to the Results Table (RT). PRT work much the same as PIT, looping through the RT and applying logic from a rule.


Functions


SCHEMA Schema is Basically collection of Functions and schemas to be

processed in sequential manner during payroll run.

• Schemas can call other schemas within them using function COPY.• Transaction code for Schemas is PE01• Schemas are Country Specific• Edit Commands for Schema

– D - Deletes a line– I - Inserts a line– C - Copies a line– DD - Indicates the start / end of a block to be deleted– CC - Indicates the start / end of a block to be copied– A - Places the block after the chosen line– B - Places the block before the chosen line


SCHEMA

Functions

Schema


Payroll Driver Program

• Program for calculating payrolls. • SAP has developed Country specific payroll drivers, based on driver

RPCALCx0, the penultimate character refers to the country indicator (For example: D for Germany, G for UK etc.).

• The driver take the statutory and administrative regulations of a country into account.

• The Payroll driver calls the accompanying schema, which consists of a sequence of functions and performs the activities as specified in the country specific schemas.


Payroll Driver Program

Payroll Area

Schema

Run Type


Data flow

Schema Call Functions & PCR’s

Input Payroll Area Employee Number Schema Name

Payroll Driver Program PC00_M40_CALC( Contains Subroutines with the Call sequence and Parameters mentioned in schema )

Output Results to Clusters Pay Slip Generation


Payroll Process Flow• The country specific payroll driver calls the respective schema, which

in turn performs the sequence of functions.• The system imports the relevant payroll master data and updates the

databases.• The previous results are imported.• Gross Payroll calculation - Calculation of gross wages, considering

shift schedule, shift change compensation and valuation bases. Any master data relevant to payroll is included in the calculation at this point.

• Calculation of partial period factors, lump sums and salary elements and cumulate the gross results.

• Calculation of net remuneration and retroactive accounting if specific master data is changed in the previous payroll periods.

• Perform Bank Transfers, sort results table (RT & CRT).• Transfer of payroll results to Financial Accounting.


Setting up Payroll Run

Payroll is controlled using Payroll area and Payroll control record.

• Pay Scale Structure• Payroll Area• Payroll Period • Payroll Control Record


Pay Scale Structure

• Pay scale type• Pay scale area• Pay scale group• Pay scale level


Pay Scale Type / Area• Pay Scale Type – represents the scope of a pay scale.• It differentiate with in the type of business & group employees as per the

Collective agreement plan.• Pay scale area is grouped by Pay Scale Type.• The physical area of validity of a collective agreement, for example

USA, INDIA• Represents the geographical region to which a pay scale applies• These are two character key in SAP system that are defined for each

region.• Pay scale Type/Area can be defaulted using Feature TARIF• Employee Subgroup grouping is used for grouping employees for CAP.


Pay Scale group and Level• The enterprise and personnel structure determines that which pay

scale group is displayed in IT 0008.• Pay scale group and levels are defined for each country grouping,

Pay Scale Type, Pay Scale area & employee subgroup grouping for CAP.• Pay Scale Groups are used for Indirect Valuation.• Pay Scale Group are divided into Pay Scale Levels.


Payroll Area• Payroll area is used to group together employees for whom

payroll is run at the same time, and also to set the dates for the payroll period

• Employee from different employee subgroups can belong to the same payroll area.

• It is also used as selection criteria for many reports.• Feature ABKRS defaults payroll area in IT0001• If an organization pay employee on monthly and weekly basis so

two payroll areas will be required.


Payroll PeriodPayroll period determines the period for which payroll results is created.They are Generated using period parameters, which explains thefrequency run of Payroll.


Payroll Control RecordThere is one control record for each Payroll area, Control record controls the individual stages of Payroll.


Payroll Control RecordTransaction Code : PA03


Payroll Process


Posting PY Results to Accounting• Payroll runs are grouped to show the total Payroll costs.• Financial Accounting department must be informed of the Payroll costs so that financial resource can be administered.• Cost Accounting department needs to know where the cost arise so that

budgets can be controlled.• Posting Process:

Create Document Check Document Release Document Post Document Check Completeness


Retroactive accounting• Period for which Payroll has already been run is known as Payroll Past

and any changes to it triggers Retroactive accounting .• Example: Arrears, Salary Change in Past, Change in Time Data• Each Infotype have customizing setting to set trigger for Retro. this could be on a single field or any field of that Infotype.• Control record and Infotype 3 contains earliest date for the retroactive

accounting.• Different remuneration statement can be generated for the retro

amount.


Bank Transfer & Check ProcessingDME Programs i.e. Data Medium Exchange Programs assists in creating file with all payment details and used to transfer money.


Pre-DME and DME programs• Pre-DME programs reads the payroll cluster and generates the

temporary dataset which is then used as input to DME program.• DME program then creates a file that complies with the banking regulation for DME by disk, and contain all payment information.• Checks can also be generated based on the preliminary program.• Pre-DME generates unique ID which works as an input to DME.


Payroll Run• Payroll run is a process where country specific driver program is

executed.• Inputs like : Payroll area for which payroll need to be run and

Schema.• Payroll Driver can execute the payroll in test mode or live run.• Test mode does not update clusters but remuneration slip can be

generated.• Log is created after run which can be used for the analysis of errors

and success messages.• Batch process for run can be created.


Running Payroll

Enter Payroll Area

Enter Schema

Define Run Type


Payroll Log


Errors display in O/P


Payroll Overview

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Exercises

1. Create Wage type2. Create Payroll Area and Control Record3. Change in Status of the control record4. Payroll Simulation Run5. Check Payslip


Transactions and Reports• Payroll Driver Program : PC00_M40_CALC *• Payroll Cluster Display : PC00_M40_CLSTR*• Remuneration Statement : PC00_M40_CEDT*• Wage Type Statement : PC00_M99_CLGA00

* Country Specific Transactions and Reports are used


TransactionsPath/Transaction Code Transaction Details

Human Resources Payroll Tools Customizing Tools Schema

PE01 -Maintain Payroll Schema

Human Resources Payroll Tools Customizing Tools Rules

PE02 -Maintain Payroll Rules

Human Resources Payroll Tools Customizing Tools Function/Operation

PE04 -Maintain Function-

Human Resources Payroll Tools Customizing Tools Wage Type

PU30 -Maintain Wage Type-

Human Resources Payroll Display Remuneration Statement

PE51 -Maintain Remuneration Statement


Payroll Overview

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Tips and Tricks

Do not change the attributes of technical wage type as this will hinder in running of payroll for all the users.

Cluster data cannot be viewed through database table views likeSE11 and SE16

Documents

HR Pay Roll General