Sap payroll :

Payroll specifications :
1) Payroll area
2) Define EE subgroup grouping for pcr and collective agreement provision.
3) Define reason for change.
4) Check pay scale type
5) Check pay scale area
6) Revise pay scale levels and groups
7) Define pay scale ranges
8) Specify working hours fixed by cap
9) Pay scale changes
10)Create wage types catalog/ salary heads
11)Define wage types permissibility for each personal subgroup and employee
subgroup
12)Check wage type characteristics
13)Revise default wage types
14)Define valuation of base wage types
15) Determine indirect valuation for positions/work center
16)Check total salary against salary range
17)Recurring payments and deductions
18)Additional payments
19)Salary packaging
20)Define period paramaeters
21)Define date modifiers
22)Generate payroll periods
23)Long term reimbursement
24)Retirement benefits ( gratuity and superannuation)
25)Statutory social contribution ( provident fund ad employee state insurance)
26)Reimbursement
27)Professional tax
28)Income tax
29) Posting payroll accounting.
30)Payment or bank transfer
Payroll area:

SAP Payroll area is used to group together employees for which payroll is run at the
same time, and set the dates for payroll period. ...Payroll areas facilitate the following
functions in Payroll Accounting: Personnel numbers that are to be included in the
same payroll run are grouped together.

Recommendation:

Determine which employee groups you want to settle separately. On the one hand, this
decision depends on whether you want to settle individual employee groups (for
example, business and salaried employees) at different times, and, on the other hand,
on how detailed you want the evaluations to be with regard to the payroll area.

Define EE subgroup grouping for personal calculation rule and collective

agreement provision:

Employee subgroup grouping for the personnel calculation rule:

The personnel calculation rule allows one wage type to be processed in different ways
in payroll accounting.

The value of the standard pay wage type should be used as a basis of valuation for
hourly wage earners. The value of the standard pay wage type should be divided by
the planned working hours before being used as a basis of valuation for salaried
employees.

Employee subgroup grouping for collective agreement provisions:

A standard agreement designates the same pay scale groups and levels for both hourly
wage earners and salaried employees; however, the user must still be able to enter
hourly or monthly values in the pay scale table.

Recommendation:

The meanings of the grouping for the personnel calculation rule are fixed and may not
be changed.

The grouping for the collective agreement is not subject to any restrictions

Define reason for change:

You want to be able to evaluate which changes in basic pay are caused by an employee
being promoted.

Check pay scale type:

The pay scale type defines the area of economic activity for which a collective
agreement is valid. The area in which it is valid may be determined at company or trade
union level and often applies to a whole industry, for example, the chemical and metal
processing industries or the civil service.

The pay scale types are described by a two-character alphanumeric identifier per
country grouping and are defined in Customizing for Personnel Administration.

Within a pay scale type, you define the pay scale groups and levels for each pay scale
area and employee subgroup grouping for collective agreement provisions.

Check pay scale area:

The pay scale area defines the geographical area in which a collective agreement is
valid. The geographical validity area is determined by the size of the pay scale area
borough, state, and country pay scale, The pay scale areas are described by a two
character alphanumeric identifier per country grouping and are defined in Customizing
for Personnel Administration.

Within a pay scale area, you define the pay scale groups and levels for each pay scale
type and employee subgroup grouping for collective agreement provisions.