Professional Documents
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PAYROLL
This component/sub module provides solution for calculation of remuneration for work performed by
an employee in an organisation.
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).
SAP HCM is Integrated with FICO through the Cost Center , GL account , Vendor Account etc. SAP
HCM has integration with other SAP Hr sub modules such as PA,OM,TM, Travel management .
Overview of Payroll Process steps
1.Released Payroll
2.Start Payroll
3.Corrections
4.Check Results
5.Exit Payroll
SAP HR Payroll Processing consists of the following sub processes:
Preparation for monthly/biweekly payroll run
Payroll run (monthly/biweekly)
Bank transfer
Posting to accounting
Monthly/biweekly post payroll activities
Year end process
SAP HR INFOTYPES
Infotypes-Information Types
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
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
Infotypes Infotype Description
0167 Health Plans
0168 Insurance Plans
0169 Savings Plans
0170 Flexible Spending Account
0171 General Benefits Information
Infotypes Infotype Description
0167 Health Plans
0168 Insurance Plans
0169 Savings Plans
0170 Flexible Spending Account
0171 General Benefits Information
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
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
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
Infotypes Infotype Description
0167 Health Plans
0168 Insurance Plans
0169 Savings Plans
0170 Flexible Spending Account
0171 General Benefits Information
Infotypes Infotype Description
0167 Health Plans
0168 Insurance Plans
0169 Savings Plans
0170 Flexible Spending Account
0171 General Benefits Information
1. To display the payroll status (released for payroll, release
4.Benefits Infotypes
IMG->Payroll->Payroll India->Basic Salary for India->Asssign Basic Wage Types to Groupings for
Allowances
IMG->Payroll->Payroll India->Basic Salary for India->Asssign Basic Wage Types to Groupings for
Allowances
IMG->Payroll->Payroll India->Basic Salary for India->Assign Basic Codes for Allowance Groups
Reimbursements, Allowances and Perks (RAP) configurations
IMG->Payroll->Payroll India->Reimbursements, Allowances and Perks->Assign Wage type Model
for Payscale Grouping for Allowances
IMG->Payroll->Payroll India->Reimbursements, Allowances and Perks->Maintain Default Wage
Types for Basic Pay
IMG->Payroll->Payroll India->Reimbursements, Allowances and Perks->Maintain Wage Types
Characteristics
IMG->Payroll->Payroll India->Reimbursements, Allowances and Perks->Maintain PayScale Groups
and Levels.
IMG->Payroll->Payroll India->Reimbursements, Allowances and Perks->Maintain Valuation of
Basic of Basic Wage Type
IMG->Payroll->Payroll India->Reimbursements, Allowances and Perks->Maintain Allowance Rules
Based on Slabs
IMG->Payroll->Payroll India->Reimbursements, Allowances and Perks->Calculate Eligibility for
RAPs
Tax & professional Tax configurations
IMG->Payroll->Payroll India->Professional tax->Define professional tax grouping details
IMG->Payroll->Payroll India->taxation -> Define taxation method for company
Statutory (Provident Fund,ESI, Labor welfare fund, Gratuity, Superannuation) configurations
Provident Fund:
IMG->Payroll->Payroll India->Statutory social contribution ->Provident Fund ->Define trust details
for provident fund
IMG->Payroll->Payroll India->Statutory social contribution ->Provident Fund ->Assign company
rates for provident fund
IMG->Payroll->Payroll India->Statutory social contribution ->Provident Fund ->Define trust validity
period
IMG->Payroll->Payroll India->Statutory social contribution ->Provident Fund ->Maintain
contribution details for Provident Fund
IMG->Payroll->Payroll India->Statutory social contribution ->Provident Fund ->Define contribution
type for statutory rates for Provident Fund
ESI:
IMG->Payroll->Payroll India->Statutory social contribution ->ESI-> Maintain ESI Eligibility limit
IMG->Payroll->Payroll India->Statutory social contribution ->ESI-> Maintain number of working
days in a month
IMG->Payroll->Payroll India->Statutory social contribution ->ESI->Define per area & sub area
groupings for ESI
IMG->Payroll->Payroll India->Statutory social contribution ->ESI->Assign ESI grouping for per
area & sub area
IMG->Payroll->Payroll India->Statutory social contribution ->ESI-> Maintain contribution rates for
ESI.
Superannuation:
IMG->Payroll->Payroll India->Retirement benefits ->Superannuation->Maintain Superannuation
trust ID
IMG->Payroll->Payroll India->Retirement benefits ->Superannuation->Maintain Superannuation
contribution frequency & relevant wage type
IMG->Payroll->Payroll India->Retirement benefits ->Superannuation-> Define contribution rates
for Superannuation
IMG->Payroll->Payroll India->Retirement benefits ->Superannuation-> Maintain Eligibility details
for Superannuation
Gratuity:
IMG->Payroll->Payroll India->Retirement benefits -> Gratuity->Maintain Gratuity Trust ID
IMG->Payroll->Payroll India->Retirement benefits -> Gratuity->Maintain Gratuity contribution
frequency & relevant wage type
IMG->Payroll->Payroll India->Retirement benefits -> Gratuity-> Define contribution rates for
Gratuity
IMG->Payroll->Payroll India->Retirement benefits -> Gratuity->Maintain the eligibility year for
Gratuity
Labor welfare fund:
IMG->Payroll->Payroll India->Statutory social contribution -> Labor welfare fund ->Define Per
area & sub area grouping for LWF
IMG->Payroll->Payroll India->Statutory social contribution -> Labor welfare fund ->Assign LWF
grouping for Per area & sub area
IMG->Payroll->Payroll India->Statutory social contribution -> Labor welfare fund -> Define
contribution rates for LWF
The Payroll Status infotype (0003) stores data for employee’s 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 employee’s payroll status.
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
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.
In an employee Infotype 0003(payroll status) , there are 3 fields to detects there is a change in HR
Master Data after payroll run. From those fields, SAP determines which employee needs retroactive
accountings.
Accounted to
Earliest MD change
Mast data chng bonus
Payroll Control Record is important for the payroll run, and which contains all the information on a
payroll area.
A Payroll control record is tool used to control the payroll related activities. The main
functions/status of a control record are:
Payroll Process:
When payroll runs HR master data and time data changes are not allowed . This can be controlled by
payroll control record.
Phases in payroll run:
Release Payroll -locks the personnel number comes under payroll area.
Check Result- Check the payroll result after payroll run
Corrections -lock on master data and time data records for the payroll area will be released. You can
make changes in infotypes for personnel numbers having selected payroll area.
Exit Payroll - Payroll Control Record releases infotypes and locks payroll area for payroll run.
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.
If you only want to create an additional off-cycle payment for few employees, we will have to use
the Off-Cycle Workbench. The wage type as an Off cycle payment is maintained in IT0267 and run
the OFFCYCLE payroll for that specific date.
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
Off-Cycle Workbench
Menu Path: Human Resources → Payroll →Payroll India → Off-Cycle → Off-Cycle Workbench
T code :PUOC_40 (India-Off-Cycle Workbench)
In the Payroll tab select reason, click on start payroll tab & save it
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.
Delete Personnel records/HR Records
Steps
1.Go to transaction PU00.
Enter the personnel number to be deleted
Hit enter button
Click on Execute button. A screen appears with infotypes
2.Select infotypes to be deleted & click on delete button
A pop-up screen appears will appear “Do you really want to delete the selected infotype or cluster?”
3.Click on YES
The infotype has been deleted.
Or
RPUDELPN is report/program to delete the personnel numbers in bulk.All infotypes can be deleted
of a personnel number.Entries
2.Delete Payroll Results
Use transaction PU01 to delete the lastest payroll result for an employee provided payroll has not
been posted to GL account.
Steps
1.Go to transaction PU01.
Enter Employee Personnel Number & Click Execute
2.Payroll results will be appeared.
Select the payroll results to be deleted. Click on delete button.
You will get a message that the last payroll results were successfully deleted.
(OR)
Program RPUDEL20 (Mass deletion payroll result) to delete multiple payroll results of many a
employees at the same time.