This segment from our 155 page Basic Payroll manual is being made available                         as a sample of our tra...
03 Payroll Process in SAP                                           Klee Associates, Inc.               locked by one func...
Klee Associates, Inc.                                                        03 Payroll Process in SAP    Start Payroll   ...
03 Payroll Process in SAP                                              Klee Associates, Inc.           Sample Payroll Driv...
Klee Associates, Inc.                                                         03 Payroll Process in SAP                   ...
03 Payroll Process in SAP                                              Klee Associates, Inc.    Check Results             ...
Klee Associates, Inc.                                                        03 Payroll Process in SAP    Release for Corr...
03 Payroll Process in SAP                                               Klee Associates, Inc.    Exit Payroll             ...
Klee Associates, Inc.                                                        03 Payroll Process in SAP    Subsequent Activ...
03 Payroll Process in SAP                                            Klee Associates, Inc.                                ...
Klee Associates, Inc.                                                        03 Payroll Process in SAP                    ...
03 Payroll Process in SAP                                             Klee Associates, Inc.                        f.   Do...
Klee Associates, Inc.                                                         03 Payroll Process in SAP                   ...
03 Payroll Process in SAP                                             Klee Associates, Inc.                        l.   Ve...
Klee Associates, Inc.                                                        03 Payroll Process in SAP                    ...
03 Payroll Process in SAP                                             Klee Associates, Inc.                        p. Once...
Klee Associates, Inc.                                                         03 Payroll Process in SAP                   ...
03 Payroll Process in SAP                                              Klee Associates, Inc.                             S...
Klee Associates, Inc.                                                         03 Payroll Process in SAP                   ...
03 Payroll Process in SAP                                               Klee Associates, Inc.            NO WARRANTY: This...
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Erptips sap-training-manual-sample-chapter-from-basic-payroll

  1. 1. This segment from our 155 page Basic Payroll manual is being made available as a sample of our training 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., 2009Unit 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 beSAP Payroll Basic Training ECC 6.0 Rev. 05/05/10 1SAPtips Sample Basic Payroll_ Payroll Process in SAP
  2. 2. 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 Diagram2 Rev. 05/05/10 SAP Payroll Basic Training ECC 6.0
  3. 3. Klee Associates, Inc. 03 Payroll Process in SAP Start Payroll The Start Payroll transaction is the step where payroll calculations are performed; where payroll is "run." Payroll is processed using the Payroll Driver (payroll program), a screen where pertinent information is entered in order to run payroll for the appropriate group of employees, for the appropriate pay period, and using the proper payroll rules and calculations. 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.  Current period – when running live payroll (as opposed to simulations), you should always be running the current payroll period according to the control record.  Other period – can be used when running simulations, which do not store payroll results to the database.  Personnel no. – used to select only specific personnel numbers, or a range of personnel numbers, when running simulations or re-processing employees that have had errors or changes during the payroll process.  Search Helps – useful when re-processing employees that have had errors or changes during the payroll process. Use Search Help W to select such employees.  Schema – configured set of rules and operations used to calculate payroll. It is critical that you select the schema configured for your company in order to properly calculate payroll.  Forced retro. Accounting as of – allows you to force the system to retroactively process payroll back to specified date. Used primarily for testing purposes.  Display Log – When checked, a list of steps of the payroll calculation will be shown so you may view the inputs, calculations, and outputs of each step of the payroll calculation. Use only when processing a small number of employees, as this can extend processing time greatly.  Test-Run – Select this to run a simulated payroll.  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. Use only when processing small number of employees, as this can extend processing time greatly.SAP Payroll Basic Training ECC 6.0 Rev. 05/05/10 3
  4. 4. 03 Payroll Process in SAP Klee Associates, Inc. Sample Payroll Driver screen: Payroll Display Log  The display log is built into the output screen when running payroll. This can be a very useful tool to validate payroll results, and research errors or incorrect calculations from the payroll run.  Even when the log is switched off (for larger runs), errors will still be displayed so you can see what employees did not process successfully through payroll and the reason they were unsuccessful. You will not, however, be able to drill into the details leading up to the error.  When the log is switched on, you can drill into the steps of the payroll run to determine what caused errors or incorrect results.4 Rev. 05/05/10 SAP Payroll Basic Training ECC 6.0
  5. 5. Klee Associates, Inc. 03 Payroll Process in SAP  There is a key difference between an “error” and “incorrect result.”  Errors in payroll occur when there is insufficient or inappropriate data for the system to process entirely for a particular employee. This means no payroll result will be stored for the employee. For example, if an employee does not have an infotype 0008 stored for the pay period, payroll cannot process.  An incorrect result implies that the employee did process through payroll without any errors, but some elements of their pay may be incorrect. For example, the employee may have an Infotype 0008 (Basic pay), but the salary entered may be incorrect for that employee. Sample view of the Display LogSAP Payroll Basic Training ECC 6.0 Rev. 05/05/10 5
  6. 6. 03 Payroll Process in SAP Klee Associates, Inc. Check Results The Check Results transaction allows you to check errors as well as run reports to check the accuracy of your payroll results. Both are important. Payroll cannot be exited until all errors are resolved so that all employees in the payroll area can be successfully processed with results stored. The same is not true for incorrect results. If an employee’s pay is incorrect, you can still exit payroll and move on when time constraints require. However, if you want to check for accuracy, you can use payroll reporting tools to do so while in the Check Result status. Another valuable activity while in the Check Results status is running simulations for subsequent activities, such as Posting to Accounting and Third Party Remittance. 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. Check Results menu path.6 Rev. 05/05/10 SAP Payroll Basic Training ECC 6.0
  7. 7. Klee Associates, Inc. 03 Payroll Process in SAP Release for Corrections Once you have determined the cause of payroll errors or incorrect results, you can un-lock your employees for master data maintenance using the Release for Corrections status. This is necessary in order to make changes to employee data, since it was locked during the Release for Payroll step. ***It should be noted that this un-locks ALL employees in the payroll area, not only those with errors.*** As you make changes, Infotype 0003 is updated to flag those employees for re- processing. Match-Code W (also called Search Help W) can then be used to re- process payroll for only those employees who had errors and those that have had changes made while in Release for Corrections. Menu path for the Release for Corrections transaction.SAP Payroll Basic Training ECC 6.0 Rev. 05/05/10 7
  8. 8. 03 Payroll Process in SAP Klee Associates, Inc. Exit Payroll Once all payroll errors have been resolved, all employees have been successfully re-run through payroll, and all payroll results are satisfactory, payroll can be finalized or closed by changing the control record to Exit Payroll status. ***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, but also through the subsequent steps necessary to complete your payroll (Pre-Program DME, Print Checks, Create DME (direct deposit), Posting to Accounting, and Third-Party Remittance).*** Once payroll has been exited, payroll results for that period cannot be changed in any way. Menu path for the Exit Payroll transaction:8 Rev. 05/05/10 SAP Payroll Basic Training ECC 6.0
  9. 9. Klee Associates, Inc. 03 Payroll Process in SAP Subsequent Activities Once payroll has been exited, Subsequent Activities that rely on payroll results can be performed. 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. Simulate payroll for the employee you hired in the previous unit. a. 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. Enter appropriate information for your employee for the following fields: Payroll Area Payroll Period – if the current period does not cover the employees hire date, click on the Other Period radio button and enter a pay period that includes the hire date.SAP Payroll Basic Training ECC 6.0 Rev. 05/05/10 9
  10. 10. 03 Payroll Process in SAP Klee Associates, Inc. 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, this is checked-on and cannot be removed Display Log – Check on. Display variant Rem. Stateme – SAP_US2 c. Click Execute10 Rev. 05/05/10 SAP Payroll Basic Training ECC 6.0
  11. 11. Klee Associates, Inc. 03 Payroll Process in SAP d. Click the Form button to display the Remuneration Statement. Sample snapshot of remuneration statement: Click the Back button to return to the Display Log Tree screen. e. 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 6.0 Rev. 05/05/10 11
  12. 12. 03 Payroll Process in SAP Klee Associates, Inc. f. Double click on the RT line to display the Final Results Table. The Results Table is where the result of the payroll calculations are stored. The RT as it is often called, is the table from which payroll data for most reporting and subsequent activities are drawn. In some cases where payroll results for multiple pay periods are required (e.g., year-to-date or month-to-date), the Cumulative Results Table (CRT) or Tax Cumulative Results Table (TCRT) are used in place of the Results Table. g. The Results Table shows each wage type line by line in sequence, including several pieces of valuable information including the calculated Rate, Number, and Amount. Another key field is the Employee Subgroup Grouping field, the first field on the left in the table. Employee Subgroup Groupings are set in configuration to determine how each wage type is processed, so the same wage type may be treated differently for different types of employees. An asterisk in this field means the wage type was summarized in the Results Table for all Employee Subgroup Groupings, which could also indicate that the wage type was calculated the same way for all employees. There can be multiple occurrences of a given wage type in the Results Table. This will happen when there are differences in key fields such as Rate, Number, and Employee Subgroup Grouping. Sample Results Table snapshot.12 Rev. 05/05/10 SAP Payroll Basic Training ECC 6.0
  13. 13. Klee Associates, Inc. 03 Payroll Process in SAP h. Return to the SAP Easy Access screen by clicking the yellow and white Exit button several times. i. From the SAP Easy Access screen, access the SAP US Payroll menu by entering transaction code PC10 in the Command Field as shown below. Press Enter. j. Navigate to the Release Payroll step as shown in the screen shot below and release payroll for your assigned payroll area. k. Enter payroll area and press Enter.SAP Payroll Basic Training ECC 6.0 Rev. 05/05/10 13
  14. 14. 03 Payroll Process in SAP Klee Associates, Inc. l. Verify that the correct pay period will be released (pay period covering the start date for your employee) and click Yes. If the pay period is not correct, consult the course instructor. m. 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.14 Rev. 05/05/10 SAP Payroll Basic Training ECC 6.0
  15. 15. Klee Associates, Inc. 03 Payroll Process in SAP n. Enter appropriate information in the Payroll Driver as in the Simulation step, but un-check the Simulation check-box. Note that this can be un-checked when accessing the Payroll Driver through the Start Payroll transaction, giving you the option of running simulated payrolls, or "live" payrolls, which store the results on the database. ***Be sure that the Current Pay Period defaults to the correct pay period for your employee. *** Click Execute. Sample snapshot of the Payroll Driver for the Start Payroll step. o. Review the Remuneration Statement and Final Results Table as in the Simulation step. These results will be used later in the course for subsequent activities and reporting.SAP Payroll Basic Training ECC 6.0 Rev. 05/05/10 15
  16. 16. 03 Payroll Process in SAP Klee Associates, Inc. p. Once you have reviewed payroll results, change control record status to Released for Corrections to add a Cost Center. q. Access the Maintain Master Data screen. r. Enter Infotype 0027 – Cost Distribution in the Infotype field and click Create.16 Rev. 05/05/10 SAP Payroll Basic Training ECC 6.0
  17. 17. Klee Associates, Inc. 03 Payroll Process in SAP s. Enter information as follows: Start Date: Enter the date the employee was hired. Distrib: 01 Company Code: 3000 Cost Center: 1000 Pct.: 100.00 Click Save. Click Exit to return to the SAP Easy Access screen. Sample IT 0027: t. Repeat steps j. through o. to release and re-run payroll. u. 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 6.0 Rev. 05/05/10 17
  18. 18. 03 Payroll Process in SAP Klee Associates, Inc. Sample C0 table showing Cost Distribution: v. Once satisfied with results, use the Exit button to return to the SAP Easy Access screen. w. Exit Payroll from the SAP Easy Access screen. Click Yes when prompted x. Access transaction code PA03 to verify Payroll has exited. Enter your assigned payroll area and click Display.18 Rev. 05/05/10 SAP Payroll Basic Training ECC 6.0
  19. 19. Klee Associates, Inc. 03 Payroll Process in SAP Note the green check-mark next to the Exit Payroll step. Legal Speak: Purchase of this book or acquisition at an ERPtips class, constitutes an implied agreement by the purchaser to a limited, license granted to the purchaser by Klee Associates, Inc., specifically for purposes limited to improving your personal knowledge of SAP software which does not in any way compete with Klee Associates. This manual is protected by copyright law, and is sold or is part of an ERPtips class with the following conditions: The manual will be used for your personal professional development. The manual will not be physically copied for distribution to other individuals or converted to an electronic copy for distribution to other individuals, unless copyright permissions for copying have been acquired from Klee Associates, Inc. The manual will not be used to conduct training classes by you or other individuals, without the written permission of Klee Associates, Inc. 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. Used with permission. Klee Associates, Inc.SAP Payroll Basic Training ECC 6.0 Rev. 05/05/10 19
  20. 20. 03 Payroll Process in SAP Klee Associates, Inc. NO WARRANTY: This documentation is delivered as is, and Klee Associates makes no warranty as to its accuracy or use. Any use of this documentation is at the risk of the user. Although we make every good faith effort to ensure accuracy, this document may include technical or other inaccuracies or typographical errors. Klee Associates reserves the right to make changes without prior notice. ERPtips is a valued resource for thousands of clients and consultants worldwide. Visit our web site for more information about upcoming training, books, and newsletters. www.ERPtips.com ERPtips is a registered trademark of Klee Associates, Inc. No Affiliation: Klee Associates, Inc. and this publication are not affiliated with or endorsed by SAP AG. SAP AG software referred to on this site is furnished under license agreements between SAP AG and its customers and can be used only within the terms of such agreements. SAP AG is a registered trademark of SAP AG. All other product names used herein are trademarks or registered trademarks of their respective owners.20 Rev. 05/05/10 SAP Payroll Basic Training ECC 6.0

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