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manuals. Please contact David.Haynes@ERPtips.com if you have any SAP training needs, or visit www.ERPtips.com for more information.
Written by Christian Davidson Published by Klee Associates, Inc.
Copyright Klee Associates, Inc., 2009
Unit 3: Payroll Process in SAP
In this unit we will cover the following:
Payroll Process Overview Start Payroll: Running Payroll with the Payroll Driver Check Results Release for Corrections Exit Payroll Subsequent Activities
Payroll Process Overview
The Payroll Process in SAP begins with the entry and maintenance of data and ends with the “Subsequent Activities” performed after each payroll is completed to satisfaction.
Steps of the Payroll Process in SAP
Data Entry – Data for a given pay period can be entered in the system any time before the pay period is run. If using an interface for time data, the interface is generally run just prior to the payroll run, along with Time Evaluation, if appropriate. Release for Payroll – Once data has been entered in the system for a given pay period, the Control Record is set to Released for Payroll. As discussed in the previous unit, this locks all employees in the Payroll Area, preventing any past or present data maintenance. If any employees are already being processed at the time the Control Record is set to Released for Payroll, a message will be issued indicating that not all employees could be locked. This is because an employee can only be
SAP Payroll Basic Training ECC 6.0
SAPtips Sample Basic Payroll_ Payroll Process in SAP
03 Payroll Process in SAP
Klee Associates, Inc.
locked by one function at a time. If a user is maintaining data for a given employee, the control record cannot lock that record. The same holds true if another program has the employee record locked. Start Payroll – The step where payroll calculations are performed. Check Results – This step allows you to check the payroll results calculated for your employees prior to finalizing the payroll. Release for Corrections – Allows master data changes to be made. Exit Payroll – Finalizes the payroll period.
Payroll Process Diagram
SAP Payroll Basic Training ECC 6.0
and using the proper payroll rules and calculations. Remuneration Statement variant – allows you to select a variant of the Remuneration Statement (check stub) program so that you can generate a remuneration statement based on the results of your pay run. It is critical that you select the schema configured for your company in order to properly calculate payroll.0 Rev. 03 Payroll Process in SAP Start Payroll The Start Payroll transaction is the step where payroll calculations are performed. Forced retro. Schema – configured set of rules and operations used to calculate payroll. a list of steps of the payroll calculation will be shown so you may view the inputs. Inc. 05/05/10 3 . or a range of personnel numbers. The Payroll Driver screen has several important fields that must be filled in prior to execution: Payroll area – choose the appropriate payroll area that you want to process. SAP Payroll Basic Training ECC 6. where payroll is "run." Payroll is processed using the Payroll Driver (payroll program). Other period – can be used when running simulations. Search Helps – useful when re-processing employees that have had errors or changes during the payroll process. Use only when processing a small number of employees. Accounting as of – allows you to force the system to retroactively process payroll back to specified date. as this can extend processing time greatly. Current period – when running live payroll (as opposed to simulations). a screen where pertinent information is entered in order to run payroll for the appropriate group of employees. as this can extend processing time greatly. which do not store payroll results to the database. Use only when processing small number of employees.Klee Associates. for the appropriate pay period. you should always be running the current payroll period according to the control record. Use Search Help W to select such employees. and outputs of each step of the payroll calculation. Test-Run – Select this to run a simulated payroll. – used to select only specific personnel numbers. Personnel no. Display Log – When checked. calculations. Used primarily for testing purposes. when running simulations or re-processing employees that have had errors or changes during the payroll process.
Even when the log is switched off (for larger runs). Inc.03 Payroll Process in SAP Klee Associates. 05/05/10 SAP Payroll Basic Training ECC 6. You will not. be able to drill into the details leading up to the error. and research errors or incorrect calculations from the payroll run. When the log is switched on. you can drill into the steps of the payroll run to determine what caused errors or incorrect results. however.0 . 4 Rev. Sample Payroll Driver screen: Payroll Display Log The display log is built into the output screen when running payroll. errors will still be displayed so you can see what employees did not process successfully through payroll and the reason they were unsuccessful. This can be a very useful tool to validate payroll results.
This means no payroll result will be stored for the employee. An incorrect result implies that the employee did process through payroll without any errors. 03 Payroll Process in SAP There is a key difference between an “error” and “incorrect result.Klee Associates. For example.0 Rev. Sample view of the Display Log SAP Payroll Basic Training ECC 6.” Errors in payroll occur when there is insufficient or inappropriate data for the system to process entirely for a particular employee. 05/05/10 5 . the employee may have an Infotype 0008 (Basic pay). payroll cannot process. but the salary entered may be incorrect for that employee. but some elements of their pay may be incorrect. if an employee does not have an infotype 0008 stored for the pay period. Inc. For example.
The same is not true for incorrect results. you can still exit payroll and move on when time constraints require. Another valuable activity while in the Check Results status is running simulations for subsequent activities.03 Payroll Process in SAP Klee Associates. you can use payroll reporting tools to do so while in the Check Result status. Check Results The Check Results transaction allows you to check errors as well as run reports to check the accuracy of your payroll results. Payroll cannot be exited until all errors are resolved so that all employees in the payroll area can be successfully processed with results stored. If an employee’s pay is incorrect. Inc. 05/05/10 SAP Payroll Basic Training ECC 6. 6 Rev. Check Results menu path. such as Posting to Accounting and Third Party Remittance. Both are important.0 . Simulating such programs in advance is recommended in order to identify any issues that may cause errors in those programs. before it is too late to change master data and re-run payroll. if you want to check for accuracy. However.
Klee Associates. This is necessary in order to make changes to employee data. 05/05/10 7 .0 Rev. Inc. 03 Payroll Process in SAP Release for Corrections Once you have determined the cause of payroll errors or incorrect results. not only those with errors. SAP Payroll Basic Training ECC 6. Infotype 0003 is updated to flag those employees for reprocessing. Match-Code W (also called Search Help W) can then be used to reprocess payroll for only those employees who had errors and those that have had changes made while in Release for Corrections. you can un-lock your employees for master data maintenance using the Release for Corrections status. since it was locked during the Release for Payroll step.*** As you make changes. Menu path for the Release for Corrections transaction. ***It should be noted that this un-locks ALL employees in the payroll area.
Inc. and Third-Party Remittance).0 .*** Once payroll has been exited. and all payroll results are satisfactory. ***It is highly advisable to first run subsequent activities in simulation mode prior to exiting payroll to ensure that your data not only passes correctly through payroll processing. payroll results for that period cannot be changed in any way. Print Checks. Exit Payroll Once all payroll errors have been resolved. payroll can be finalized or closed by changing the control record to Exit Payroll status. all employees have been successfully re-run through payroll. Create DME (direct deposit).03 Payroll Process in SAP Klee Associates. 05/05/10 SAP Payroll Basic Training ECC 6. but also through the subsequent steps necessary to complete your payroll (Pre-Program DME. Menu path for the Exit Payroll transaction: 8 Rev. Posting to Accounting.
Subsequent Activities that rely on payroll results can be performed. Inc. 05/05/10 9 . Simulate payroll for the employee you hired in the previous unit. Enter appropriate information for your employee for the following fields: Payroll Area Payroll Period – if the current period does not cover the employee's hire date. Access the Payroll Driver in simulation mode via transaction code PC00_M10_CALC_SIM or the menu path shown in the screen shot below: b. 03 Payroll Process in SAP Subsequent Activities Once payroll has been exited. click on the Other Period radio button and enter a pay period that includes the hire date.0 Rev. Such activities may include: Pre-Program DME – prepares data for payment Print Checks Create DME (Direct Deposits) Posting to Accounting (General Ledger) Third-Party Remittance (posting to Accounts Payable) Exercises: Running Payroll 1. SAP Payroll Basic Training ECC 6.Klee Associates. a.
Display variant Rem. 05/05/10 SAP Payroll Basic Training ECC 6.03 Payroll Process in SAP Klee Associates. Inc.0 . Personnel Number – enter Personnel Number for your employee Payroll Area – should match payroll area entered in the Payroll Period selection section Schema – accept default of ZUSP Test Run – note that in Simulation mode. Stateme – SAP_US2 c. this is checked-on and cannot be removed Display Log – Check on. Click Execute 10 Rev.
e. 03 Payroll Process in SAP d. Expand the log tree to display the Final Results Table by opening each folder as shown in the below screen shot: SAP Payroll Basic Training ECC 6. Inc.0 Rev. 05/05/10 11 . Click the Form button to display the Remuneration Statement.Klee Associates. Sample snapshot of remuneration statement: Click the Back button to return to the Display Log Tree screen.
which could also indicate that the wage type was calculated the same way for all employees. is the table from which payroll data for most reporting and subsequent activities are drawn. 12 Rev. so the same wage type may be treated differently for different types of employees. There can be multiple occurrences of a given wage type in the Results Table. the Cumulative Results Table (CRT) or Tax Cumulative Results Table (TCRT) are used in place of the Results Table.. the first field on the left in the table. The Results Table shows each wage type line by line in sequence. g.g. The Results Table is where the result of the payroll calculations are stored.03 Payroll Process in SAP Klee Associates. and Amount. including several pieces of valuable information including the calculated Rate. Number. In some cases where payroll results for multiple pay periods are required (e. This will happen when there are differences in key fields such as Rate. 05/05/10 SAP Payroll Basic Training ECC 6. and Employee Subgroup Grouping. Double click on the RT line to display the Final Results Table. f. year-to-date or month-to-date). Employee Subgroup Groupings are set in configuration to determine how each wage type is processed. Sample Results Table snapshot. An asterisk in this field means the wage type was summarized in the Results Table for all Employee Subgroup Groupings. The RT as it is often called.0 . Another key field is the Employee Subgroup Grouping field. Number. Inc.
Inc.Klee Associates. j. 05/05/10 13 . From the SAP Easy Access screen. 03 Payroll Process in SAP h. SAP Payroll Basic Training ECC 6. Press Enter. k. Enter payroll area and press Enter. Return to the SAP Easy Access screen by clicking the yellow and white Exit button several times. Navigate to the Release Payroll step as shown in the screen shot below and release payroll for your assigned payroll area.0 Rev. i. access the SAP US Payroll menu by entering transaction code PC10 in the Command Field as shown below.
m. Inc. 05/05/10 SAP Payroll Basic Training ECC 6.0 . Verify that the correct pay period will be released (pay period covering the start date for your employee) and click Yes. 14 Rev. l.03 Payroll Process in SAP Klee Associates. Access the Payroll Driver to run a "Live" payroll by clicking the Start Payroll button or entering transaction code PC00_M10_CALC in the Command Field. consult the course instructor. If the pay period is not correct.
Klee Associates. 05/05/10 15 .0 Rev. which store the results on the database. ***Be sure that the Current Pay Period defaults to the correct pay period for your employee. but un-check the Simulation check-box. Inc. Enter appropriate information in the Payroll Driver as in the Simulation step. *** Click Execute. These results will be used later in the course for subsequent activities and reporting. or "live" payrolls. giving you the option of running simulated payrolls. o. Sample snapshot of the Payroll Driver for the Start Payroll step. 03 Payroll Process in SAP n. Review the Remuneration Statement and Final Results Table as in the Simulation step. Note that this can be un-checked when accessing the Payroll Driver through the Start Payroll transaction. SAP Payroll Basic Training ECC 6.
Once you have reviewed payroll results. Access the Maintain Master Data screen. p. change control record status to Released for Corrections to add a Cost Center.0 . Inc. 16 Rev. Enter Infotype 0027 – Cost Distribution in the Infotype field and click Create. q. r.03 Payroll Process in SAP Klee Associates. 05/05/10 SAP Payroll Basic Training ECC 6.
05/05/10 17 .Klee Associates.00 Click Save. Repeat steps j. Sample IT 0027: t. 03 Payroll Process in SAP s. u. to release and re-run payroll. Inc. Distrib: 01 Company Code: 3000 Cost Center: 1000 Pct. Verify that your cost center was evaluated in payroll by viewing the C0 table (double click on "C0") in the display log as shown in the screen shot below: SAP Payroll Basic Training ECC 6. through o. Click Exit to return to the SAP Easy Access screen.: 100.0 Rev. Enter information as follows: Start Date: Enter the date the employee was hired.
Inc. w. Access transaction code PA03 to verify Payroll has exited. use the Exit button to return to the SAP Easy Access screen. Exit Payroll from the SAP Easy Access screen.03 Payroll Process in SAP Klee Associates.0 . Sample C0 table showing Cost Distribution: v. 05/05/10 SAP Payroll Basic Training ECC 6. 18 Rev. Once satisfied with results. Enter your assigned payroll area and click Display. Click Yes when prompted x.
specifically for purposes limited to improving your personal knowledge of SAP software which does not in any way compete with Klee Associates. Used with permission. Inc. Inc. SAP Payroll Basic Training ECC 6.Klee Associates..0 Rev. Inc. unless copyright permissions for copying have been acquired from Klee Associates. The manual will not be physically copied for distribution to other individuals or converted to an electronic copy for distribution to other individuals. 05/05/10 19 . The manual will not be used to conduct training classes by you or other individuals. Inclusion of the concepts in this book in any internal client training material is allowed if the source of the concepts is acknowledged as follows: Copyright 2010 All rights reserved. Inc. Klee Associates. Inc. and is sold or is part of an ERPtips class with the following conditions: The manual will be used for your personal professional development. without the written permission of Klee Associates. license granted to the purchaser by Klee Associates. This manual is protected by copyright law. constitutes an implied agreement by the purchaser to a limited. Legal Speak: Purchase of this book or acquisition at an ERPtips class. 03 Payroll Process in SAP Note the green check-mark next to the Exit Payroll step.
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