Sap HR Payroll

This component/sub module provides solution for calculation of remuneration for work
performed by an employee in an organization.
The SAP HR Payroll India component integrates with other SAP HR components such as
Personnel Administration (PA) and Personnel Time Management(TM. There are interfaces to
Financial Accounting and Controlling (SAP FICO). What are important General Payroll
infotypes?
0003
0008
0025
2010
0416
0015
0057
0128
0052
0014

Payroll Status
Basic Pay
Appraisals
Employee Remuneration Info Infotype
Time Quota Compensation Infotype
Additional Payments
Membership Fees
Notifications Infotype
Standard Wage Maintenance
Recurring Payments/Deductions

What are US Payroll Infotypes?

Besides the common infotypes these are some of the U.S pay roll specific infotypes that need to
configure in SAP US Payroll.
Infotypes Infotype Description
0195
Garnishment Order
0194
Creating a Garnishment Document
0216
Garnishment Adjustment
0161
IRS Limits
0161
Creating IRS Mandates for an Employee
0208
Work Tax area
0207
Residence Tax Area
0207
Creating Residence Tax Area Data
0210
W-4 Withholding Information
0234
Creating Withholding Overrides
0234
Withholding Overrides
0208
Creating an Employee's Work Tax Area
0235
Other Taxes
0209
Unemployment State
0446 0457 U.S. Tax Payroll ITS
0506
Tip Indicators
0496-0501 U.S. Benefits Payroll

What are Payroll India specific infotypes?

Infotypes Payroll India Specific Infotypes
0580 Previous Employment Tax Details
0581 Housing(HRA / CLA / COA)
0582 Exemptions
0583 Car & Conveyance
0584 Income From Other Sources
0585 Section 80 Deductions
0586 Section 80 C Deductions
0587 Provident Fund Contribution
0588 Other Statutory Deductions
0589 Individual Reimbursements
0590 Long term reimbursements
What is payroll area and uses of payroll area?
Employees payroll area is maintained in Organization assignment infotype(0001).Payroll areas
are used to group together employees for whom payroll is run at the same time. Employees from
different employee subgroups can belong to the same payroll area.Payroll Control record
should be created for every payroll area. This control record controls the individual stages of
payroll.

How to create payroll area?

IMG Path for Creation of Payroll Area:
IMG->Personnel Management -> Personnel Administration -> Organizational Data ->
Organizational Assignment->
Do below 3 steps to create a payroll area.
1.Create Payroll area (for text)
2.Create Payroll area
3.Check Default Payroll Area (To maintain feature ABKRS).

Which criteria determine payroll areas?

Payroll Area are mainly determined on
1.) Payroll cycle Eg: Monthly , Bi Monthly
2.) Payment Date

What is the feature to Default Payroll Area?

Payroll Area is used to group employees whose payroll is run with same frequency and same
payment date.Employees from different employee subgroups can be belong to the same payroll
area. We can use feature ABKRS to set default payroll area value based on enterprise structure
and personnel structure.
Payroll Control Record is important for the payroll run, and which contains all the information
on a payroll area.

What are main functions/status of a payroll control record?

The main functions/status of a control record are:
1)Released for Payroll
2)Release payroll for corrections
3)Exit Payroll
4)Check Payroll Results

What are the uses of Payroll Control Record?

Main role of Payroll Control Record are
1. To display the payroll status (released for payroll, release
for corrections, check payroll results, exit payroll).
2. To determines last payroll run period
3. To determines earliest retro accounting period.

2.What is meant by a control record in Payroll?

Transaction code to access Payroll Control Record is PA03.
SPRO path:
Personnel Management -> Personnel Administration -> Organizational Data -> Create Control
Record.
The Payroll Control Record describe the current payroll period and payroll past for retroactive
accounting. Payroll Control Record locks the HR Master Data against changes during a payroll
run.

What is meant by payscale structure? How did you configure payscale structure?
Payscale structure is defined by following element
Payscale area, payscale type, payscale level , payscale group, Employee sub group grouping for
CAP.

How do we assign employees to the pay scale structure?

We assign employees to the pay scale structure in the following infotypes
Basic Pay (0008),Recurring Payments and Deductions (0014),Additional Payments (0015) and
Wage Maintenance (0052).

What are the important elements in pay scale structure?

Pay scale type

Pay scale area
Employee subgroup grouping for collective agreement provisions
Pay scale group
Pay scale level

Difference between Off cycle payroll and retroactive account?

Any Payroll run that is carried out other than regular payroll run is called as Off-Cycle payroll
run.
Examples for Off-Cycle payroll run are additional payment, bonus, advance payment.
The payroll run for a period is completed .if there is change in HR master data for which period
the payroll has already been run, the payroll must be run once again for this period using current
values. This is known as retroactive accounting. Retroactive accounting is a standard procedure
of SAP-HCM which provides the changes in the last period.
Example:
If SAP HR system is live from 06.01.2008 and in 2010 the company decided to increase the
reimbursement/Salary of employees w.e.f 01.01.2011 then the system will calculate all the
arrears due to an employee from 01.01.2011.

When you perform a Off-cycle payroll?

Any Payroll run that is carried out other than regular payroll run is called as Off-Cycle payroll
run.
Examples for Off-Cycle payroll run are additional payment, bonus, advance payment.

Difference between Regular payroll and Off Cycle payroll?

Regular payroll runs only at fixed payroll date. for example 30 th of every month.
For Off cycle payroll there is no fixed payroll date. For example bonus payment for certain
employees on 10 th of a month.

What are the advantages of off cycle payroll run?

1.Correction Payroll -Off-Cycle payroll run allows to give adjustment for all erroneous payroll
2.Bonus payment to an employee for a special occasion.
3.Carry out an immediate correction run
4.Advance Payroll Run -We can run payroll for several periods in advance. for example, an
employee is leaving the company
5.Individual Off-Cycle Payment Run
6.Mass Off-Cycle Payment Run

What are the Configuration steps of Off Cycle payroll run?

IMG->Payroll ->Payroll India -> Off cycle activities -> Recurring Check entry permissibility per
infotype(0267)
IMG-> Payroll ->Payroll India -> Off cycle activities -> Set up Off cycle reasons
IMG-> Payroll ->Payroll India -> Off cycle activities ->Define default for payment in advance
IMG-> Payroll ->Payroll India -> Off cycle activities ->Specify default for wage types
IMG-> Payroll ->Payroll India -> Off cycle activities ->Specify default for payroll results

IMG-> Payroll ->Payroll India -> Off cycle activities ->Specify default for payment methods
How does the system know when to trigger retroactive accounting for a particular employee?
When there are some HR master data change related to payroll past

What is Matchcode W used for?

Matchcode W is a list of all those personnel numbers for a selected payroll accounting area and
its payroll period which were rejected during payroll accounting because of incorrect data, and
therefore could not be included in a payroll run.

What steps are required to post payroll results to Accounting?

Posting to Accounting includes the evaluation of the payroll results, the creation of summarized
documents and posting them in the Accounting components.
When posting to Accounting, you carry out the following activities:
Simulating a Posting Run
Creating A Posting Run
Checking a Posting Run
Checking the Posting Documents
Releasing Posting Documents
Posting Posting Documents
Checking Accounting Documents
Checking the Completeness of the Postings

Where do you specify whether an employee is paid in cash or whether the money is transferred
to a bank account?
IT 0009

How Time management and payroll is is integrated?

Time management and Payroll are integrated through the info type 0007. Time data (employee
working hours) is collected from It 0007 and these hours are taken in basic as Number of hours
worked .
What is the connection between Planned Working Time (IT7) and Basic Pay (IT 8)?
The system takes Employment Percentage and Average working hours from IT 0007 are
defaulted into Capacity Utilization level and Working hours per period in IT 0008. Capacity
utilization level and Work hours/period fields in Basic pay infotype are brought to IT0008
from IT0007.
Integration between time and payroll is done here.

How do you run payroll?

There are the steps to run the pay roll
a) Simultaion
b) Release Pay roll
c) Start pay roll
d) Check the pay roll
e) Correction and Exit the pay roll

How do your correct payroll?

We can correct payroll using transaction PC00_M99_PA03_CORR.

How to Check Payroll Results

We can use the transaction PC_PAYRESULT to displays all payroll related tables in SAP (i.e.,
RT, RT_, CRT, BT, Versc etc.).
Steps to execute transaction PC_PAYRESULT
1. Enter transaction PC_PAYRESULT
2. Enter the Personnel number of the employees you wish to view pay result and Enter the date
you wish to view all results from

3. Press Enter
4. Click on the personnel number to see payroll results. You will get an Overview of Payroll
Results section
To view the tables double click on the Payroll results line Item
5. Double click on the payroll program table to view more details.

How to Delete Payroll Results?

We can delete payroll results in case accidentally run off cycle payment for an employee.
Using transaction PU01 we can delete the latest payroll result for an employee if payroll has not
been posted to GL account yet.

How to Delete multiple payroll results?

We can use the program RPUDEL20 to delete multiple payroll results of many employees.

What are the importance of Payroll Status infotype (0003)?

The Payroll Status infotype (0003) stores data for employees payroll run and time evaluation.
It is created automatically by the system, in the background, during the Hiring Action. Data is
updated automatically when time is evaluated, payroll is run, or changes are made to the payroll
past for the employee.
The start date is when Payroll is first run for an employee and the end date is
system end date (12/31/9999).The system stores the following information
about an employees payroll status.
The info type screen is divided into two tabs:
Payroll/Retroactive Accounting
Time Evaluation

IT0003 fields description are as follows.

Payroll/Retroactive Accounting
Earl.pers. RA date -If you want to set a retroactive accounting limit for an employee that is
different from the date set in the control record of employee payroll area, you specify the date
here to which the system can run retroactive accounting.
Accounted to - Date until which payroll has last completed for an employee.
Run Payroll up to - Day to which date payroll is run for an employee if he or she has left the
company.This field is set the date to which payroll is run for an employee if the employee leaves
the company but need to be still paid.
Earliest MD Change - if you change payroll related master data, the start date of validity of
those master data is set here. This date is deleted after each completed payroll run. The program
recognizes whether and when payroll must be repeated to take master data changes into account.
Do not Account After -Payroll is run for this employee until this date.
Master data Change Bonus -To perform retroactive accounting in connection with bonus
accounting.
Pers. Number locked You can use the Pers.no.locked indicator to exclude an employee
frompayroll.
Payroll correction The Payroll Correction indicator is set by the system if payroll relevant data
has been changed in the correction phase or if an employee is not accounted for during a payroll
run because of an error in their master data or time data.
Time Evaluation
Earl. Pers. Rec. date To determine a retroactive accounting limit up to which
retroactiveaccounting for time evaluation and pair formation is possible for the employee.
PDC recalculation date This date refers to the date of the employees last error-free
time evaluation

Continued--- Click to Continue

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Pers. Calendar from This field contains the date as of which the employees personal calendar
is generated
PDC Error indicator The Time Evaluation program checks this indicator for an employee if
there is an error during the time evaluation process and cannot correctly perform the evaluation.
Is it possible to configure a single payroll to pay an individual in multiple currencies?
No.
Can we delete a posting run?
Yes. It can be reversed before the Bank transfer.
What is Symbolic Amount?
Symbolic account is an intermediate account between G/L account and wage types while posting
wage type results to FICO.
How to Map Symbolic Account to G/L Account ?
Below are 2 SAP transactions used to map symbolic accounts to different General Ledger
Accounts.
OBYG
OBYE
How to delete delete Payroll Results?
Use transaction PU01 to delete the lastest payroll result for an employee provided payroll has not
been posted to GL account.
How the payroll results of employees are transferred to SAP FICO module?
SAP HCM is basically Integrated with FICO through the Cost Center , GL account , Vendor
Account etc. For integration link the symbolic accounts(from HR) to GL accounts. Symbolic
accounts are the point of integration between FI and HR.
Symbolic accounts forms the link between the wage types in payroll and G/L accounts.

Every wage type have to assign the Symbolic account. The symbolic account will decide to
which type of account (Expense Account, Balance sheet Account, Customer, Vendor) the
postings will made in Finance.
a.Run the Payroll
b.Creating the Data Medium Exchange (DME) for payments
c.Posting to Financial Accounting
d.Posting Third-Party Remittance.