The Fundamentals of Customizing SAP Payroll with Schemas, Rules, Functions, and Operations

Mike Timm Integrated Consulting Group

2008 Wellesley Information Services. All rights reserved.

In This Session

Develop an understanding of SAP Payroll schemas, rules, operations, and functions Step through an actual payroll process to see examples of each object Learn how to create and modify schemas and rules Leave with advice to avoid potentially costly mistakes when developing custom schemas, rules, operations, and functions Explore functions and operations, and why it may be more efficient to develop custom operations to address functionality gaps
1

What Well Cover

Overview of payroll and payroll objects Introducing and configuring schemas Understanding and customizing functions Introducing and configuring rules Understanding and customizing operations Putting them all together Wrap-up

Overview of Payroll and Payroll Objects

First, select Release payroll

In this step the payroll area and payroll period to be processed are selected The payroll control record is set to allow payroll processing Employee master data records are locked

Next, select Start payroll, enter screen parameters, and launch the payroll process
Payroll processes generating wage types Assignment to company and cost center are done Check the results by viewing the Remuneration statement

Finally, select Exit payroll

The payroll control record is set to finalized, allowing for additional processing such as posting to accounting and thirdparty remittance Employee master data records are unlocked for maintenance

Overview of Payroll and Payroll Objects (cont.)

Payroll screen parameters include a schema The schema determines how the payroll program should be utilized
Payroll Program (Driver) contains Function modules Schema Function Rule

Operation Operation modules

What Well Cover

Overview of payroll and payroll objects Introducing and configuring schemas Understanding and customizing functions Introducing and configuring rules Understanding and customizing operations Putting them all together Wrap-up

Schema Introduction and Configuration

Schemas control the payroll processing steps

Provide the instructions for payroll Supply the logical flow of data in, calculation performance, and data out Customizable and flexible to meet business requirements However, configuring has a feel of mixing table configuration and programming together

The payroll program contains code that is called by the schema

The schema utilizes the snippets of code within the payroll program for calculations, etc. Schemas control the use of functions
6

Schema Introduction and Configuration (cont.)

Where Transaction code PE01 is used to maintain to FIND it schemas Copy SAP standard schemas to a customer name range

Copy standard payroll schema U000 and then only maintain the new Z000 schema Reduces issues when SAP provides updates to a standard schema with support packages or upgrades When making an update to the custom schema, make a back-up copy first since there is no version management Makes it easier to reverse changes or scrap all the changes quickly if needed

Schema Introduction and Configuration Example

Weve made a copy of standard SAP schema UT00 and called it ZML2 to handle customized time data processing The payroll driver uses ZMLT (copy of U000) and calls ZML2 instead of UT00

Customized function Customized rules 8

Schema Introduction and Configuration Tips

Compare schemas with menu path Schema Compare after displaying the schema in transaction code PE01 Program RPDASC00 outputs a schema with differing levels of detail set by the user

Tip

What Well Cover

Overview of payroll and payroll objects Introducing and configuring schemas Understanding and customizing functions Introducing and configuring rules Understanding and customizing operations Putting them all together Wrap-up

10

Overview of Function Use in Schemas

Functions are snippets of code found in the payroll program that are called by the schema
Function may or may not have parameters set in the schemait isnt always a requirement You can determine the available parameters by using the F1 (Help) key when you put your cursor on a function in the schema view

Functions may read:

Infotypes Process rules Process multiple tables to calculate wage types Process payroll internal tables

Version management is available

11

Function Use in Schemas Example

In our example schema ZML2, we can see the use of standard and custom functions The functions request the snippet of code from the payroll program

Standard functions

Custom function

12

Function Use in Schemas Example (cont.)

Maintaining or displaying the functions is done using transaction code PE04

You may configure the characteristics of the function and available parameters

Available for countries Using F1 (help) next to RAB in the schema

Parameter 3 Parameter 4 13

Function Use in Schemas Example (cont.)

Standard SAP function RAB pulls all absences in from Infotype 2001 and assigns work center split indicators
When an absence appears in an inactive period (after termination, LOA, etc.), an error is received This may be changed with Parameter 4, but this allows all absences in an inactive period to pass without an error message

Our goal is to make it so we dont receive the error message for specific absence types
Copy RAB to ZRAB and modify ZRAB using transaction code PE04
Config change

14

Function Use in Schemas Example (cont.)

SAP standard RPCMAS09_FURAB

Calls function HR_CONVERST_2001_INTO_AB_TECH

ZRPCMAS09_FUZRAB
The function is identical except that the custom version calls function ZHR_CONVERST_2001_INTO_AB_TECH And we also define a custom operation, which well look at later

Code change

15

Function Use in Schemas Example (cont.)

ZHR_CONVERT_2001_INTO_AB_TECH
zpermitabsences contains absence types that wont cause errors If the absence type is found in the custom table, then no error and allow continued processing If the absence is not found in the custom table, then error (follows SAP standard)

Additional code

Custom table absence type lookup

16

Summary of Function Use in Schemas

Weve been able to use an existing function to make quick and easy modifications to handle business requirements
Now we are able to process a specific set of absence types in an inactive period without errors Other methods were available, but those methods required much more complex configuration Later, well go through an example to show how proration has to be modified to handle these absences

Functions are not as difficult to review and understand as most people first think Use custom functions only when existing options will not meet business requirements
Just because you can, doesnt mean you should
17

What Well Cover

Overview of payroll and payroll objects Introducing and configuring schemas Understanding and customizing functions Introducing and configuring rules Understanding and customizing operations Putting them all together Wrap-up

18

Rule Introduction and Configuration

Rules provide the logic flow of processing payroll

They are attached to schemas and executed during payroll processing Functions in the schema process a rule Rules contain operations that perform calculations or other decision logic

Configuring rules is not necessarily intuitive

Configuration has a feel of mixing table configuration and programming together Not directly date delimited like table entries, but options are available to work around this Placement of the rule in the schema needs to be carefully considered
19

Rule Introduction and Configuration (cont.)

Highly customizable to meet business requirements

Rules may make decisions on a variety of objects such as employee group/subgroup, personnel area/subarea, etc. Wage types contain splits that link related data, such as WPBP to it, and should be considered when developing rules Wage type specific or generic Hard-coding values should be avoided and table entries such as constants should be used instead Variables may be set and used for later processing to trigger other rules to perform specific tasks

20

Rule Introduction and Configuration (cont.)

Rules are configured in transaction code PE02

Display or maintain rules Make decisions based on objects such as employee group/subgroup or wage type processing class Operations are set within the rule

21

Rule Introduction and Configuration (cont.)

Transaction code PE02 is used to display/maintain rule U010

Multiple operations are performing steps for the desired output
Adds wage type to output table

Indicates decision

22

Rule Introduction and Configuration Example 1

In the ZRAB function example, we made it so a select number of absences process through an inactive period without causing an error A side effect was that the proration became skewed because of the absence
If the payroll period is then days, the person is inactive for the last five days and has three absences in the last three days The standard proration returned two active days Ten payroll days five inactive days three absence days We resolved this by creating a custom operation %TACT, which well cover later And, modifying the standard proration
23

Rule Introduction and Configuration Example 1 (cont.)

Z000 US accounting schema for RPCALCU0 Z000 calls schema ZML3 for the gross calculation

Rule /ML4 uses custom operation %TACT to look for action UB If the action is UB, returns a Y, otherwise N When N, the proration follows standard SAP proration logic When Y, the proration is changed to allow for the ZRAB function allowing absences during an inactive period 24

Rule Introduction and Configuration Example 2

In this example, lets assume that we are using Infotype 2010 to process time from an external system If we were to use standard premium code functionality, multiple premium codes would have to be created for each type of time (standard, overtime, double time, etc.) to generate the appropriate premium rate Instead, we will use standard configuration tables and three custom payroll rules to allow only one premium code to be entered and generate the appropriate premium rate

25

Rule Introduction and Configuration Example 2 (cont.)

Configuration requires table updates

The creation of time wage types, such as regular, overtime, and doubletime Premium wage types and values Premium codes

Configuration also requires schema and rules development

Modification of schema UT00 by exchanging a rule and adding a new rule Modification of rule X930 Creation of rule ZMUL

26

Rule Introduction and Configuration Example 2 (cont.)

Regular, overtime, and doubletime wage types are created

The wage types are available in Infotype 2010

Shift and lead premium wage types are created

Wage types are behind the scenes and not available in any Infotypes

27

Rule Introduction and Configuration Example 2 (cont.)

Premium codes are created in table T510P Amounts are not assigned to the premiums Use of the Premium ID could be used to reduce the number of premiums even further Premium No. could be LD with three Premium IDsone for each of the shifts

28

Rule Introduction and Configuration Example 2 (cont.)

Wage types are added and assigned a value in table T510J Payroll rules will use the premium code entered in Infotype 2010 to generate a premium wage type The premium wage type then receives the value from this table Using the PMod (payroll modifier set in rule UMOD) grouping, different values may be generated for the same wage type

29

Rule Introduction and Configuration Example 2 (cont.)

Schema ZUT0 is a copy of delivered UT00

Two modifications, the first being Z930

Z930 replaces X930

30

Rule Introduction and Configuration Example 2 (cont.)

Rule Z930 replaces standard rule X930 in the schema The rule makes a decision on the payroll area
If the payroll area is not 03, standard rule X930 is called If the payroll area is 03, rule ZPRE is called to start the premium code dynamic valuation

31

Rule Introduction and Configuration Example 2 (cont.)

Rule ZPRE performs a couple decisions to verify required data fields are populated
If the amount is not zero, continue directly to the premium rule If the amount is zero, do hours exist in Infotype 2010 Number of hours field? If the amount is zero and the Number of hours field is zero, then use the hours from the Number field

32

Rule Introduction and Configuration Example 2 (cont.)

Rule ZPR1 is where the premium code attached to the time wage type in Infotype 2010 is used to generate a premium wage type and to add Split C3
The SETIN 3 variable will be used in the new rule ZMUL added to schema ZUT0

The rate and amount are zeroed since these will be calculated as part of the premium process The number field is brought from the time wage type to the generated premium wage type

33

Rule Introduction and Configuration Example 2 (cont.)

In the case of the premium L3, the Lead wage type is generated in addition to the Shift wage type
The Lead wage type does not have the C3 Split set since the rate does not change based on the type of time

Lead wage type

Shift 3 wage type

34

Rule Introduction and Configuration Example 2 (cont.)

Schema ZUT0 is a copy of delivered UT00

Two modifications, the second being ZMUL

ZMUL is added after valuations are performed

35

Rule Introduction and Configuration Example 2 (cont.)

Rule ZMUL uses the C3 Split added in ZPR1 to determine which percentage the premium wage type needs to be processed with

36

Example: Processing During Payroll

Lets step through example 2 processing in payroll We will use a single premium code, L3, and dynamically generate the premium wage types and rates End users follow the same process as they would whether this was implemented or not

37

Example: Processing During Payroll (cont.)

Time wage types are loaded in Infotype 2010 Premium code L3 is assigned to each entry
Lead premium of $1.50 per hour Shift 3 premium of $3.00 with time-type reference

38

Example: Processing During Payroll (cont.)

Process payroll with the log checked

Expand the P2010 node to see the detail

39

Example: Processing During Payroll (cont.)

The Input table contains the three entries from Infotype 2010 The wage type, hours, and premium no. are all pulled in and will process through the rule Z930

40

Example: Processing During Payroll (cont.)

Each wage type processes through Z930 individually and generates wage types 0413 and 0412 Wage type 0412 is generated with the C3 Split set when wage types 0401 and 0402 process
Wage type 0401 sets Split C3 to 15 and 0402 sets Split C3 to 20

41

Example: Processing During Payroll (cont.)

The input processes through rules Z930, ZPRE, and ZPR1 and produces the 0412 and 0413 wage type output
Note the C3 value of 15 and 20 for two of the 0412 wage types

Split C3 values set by rule ZPR1

42

Example: Processing During Payroll (cont.)

Move further down in the payroll log

Where to FIND it

Expand the PIT ZMUL tree

43

Example: Processing During Payroll (cont.)

The Input table shows each of the 041x wage types with a rate from table T510J Two wage types still contain the C3 Split set by rule ZPR1

44

Example: Processing During Payroll (cont.)

The wage types without a C3 Split are added to the Output table without further processing The two wage types with a C3 Split process through ZMUL

45

Example: Processing During Payroll (cont.)

The two 0412 wage types have had the rate and amount recalculated
C3 15 changed from $3.00 to $4.50 C3 20 changed from $3.00 to $6.00

46

Example: Processing During Payroll (cont.)

The output remuneration statement shows the correct hours, rate, and amount for each of the time and premium wage types

Regular Overtime Doubletime Combined

47

What Well Cover

Overview of payroll and payroll objects Introducing and configuring schemas Understanding and customizing functions Introducing and configuring rules Understanding and customizing operations Putting them all together Wrap-up

48

Operation Use in Rules

Just like functions, operations are snippets of code found in the payroll program that are called by a rule Operations perform calculations or other data manipulation steps
Manipulate one wage type at a time and store the wage type in an output table May perform decisions within the rule to determine a path to followpersonnel area, employee subgroup Up to six operations may be entered on one line of a rule and you have the option of sequential rows allowing for more operations when needed Operations allow for parameters to determine how the operation should behave

Version management is available

49

Tips for Creating a Custom Operation

Use standard SAP routines when possible Follow SAP standards when creating new operations Do not hardcode values in operations; look up the values in tables allowing for easier maintenance and date effectivity Variables seem to get overlooked and need to be cleared so they are not carried along Make sure to include error handling that provides useful feedback Do not sort internal tables used in the main payroll driver since the main program might be expecting the internal table to be in a specific order. If needed, copy data to a new internal table for use in custom operations or functions.
Tips
50

Maintaining and Displaying Operations

Maintaining or displaying the operations is done using transaction code PE04

You may configure the characteristics of the operation and available parameters

Available for countries Using F1 (help) next to PPAR in the rule

Parameters 51

Example: Operation Use in Rules

Following our example of allowing specific absences to process through payroll without error, we had to create operation %TACT Operation %TACT allows for proper proration when the absences are in the inactive period
If we had not modified proration, the absence in the inactive period would cause a reduction in hours paid during the active period The operation returns a Y or an N depending on whether the Infotype 0000 action is the same as the parameter set The work week contains 40 hours and runs Monday through Friday The allow absence occurs on Friday and the LOA action occurs on Wednesday
52

Example: Operation Use in Rules (cont.)

Standard proration will end up paying eight hours of attendance for Monday and Tuesday combined and eight hours of absence for Friday, a total of 16 hours for the week Our goal is to pay eight hours of attendance for both Monday and Tuesday and eight hours of absence for Friday, a total of 24 hours for the week

TSAU = unpaid absence TSAP = paid absence TSAX = paid holiday

53

Example: Operation Use in Rules (cont.)

%TACT is used only in the United States The parameter input is two characters with an output of one character

54

What Well Cover

Overview of payroll and payroll objects Introducing and configuring schemas Understanding and customizing functions Introducing and configuring rules Understanding and customizing operations Putting them all together Wrap-up

55

Putting Them All Together

The example we will be stepping through is based on the schema, function, rule, and operation examples we discussed previously Well start by looking at the entries in the employee master data and then follow them through the payroll log Points where the custom logic differs from the standard SAP logic will be identified Payroll periods are a week with five eight-hour days The employee was originally paid for 32 hours of attendance and eight hours for absences

56

Putting Them All Together (cont.)

Infotype 0008 Basic Pay

Employee is paid 1,711.9106 per 40-hour work week

Infotype 2001 Absences

Absence entry is made prior to LOA action Absence 0200 is located in zpermitabsences

57

Putting Them All Together (cont.)

Proration in the original period was eight hours of absence and 32 hours of attendance at an hourly rate of 42.7978 (salary divided by 40)
Eight hours of absence = 342.38 32 hours of attendance = 1,369.53

Infotype 0000 Actions

An LOA action is created retroactively into the period This effective date of the action causes the previously entered absence to be in an inactive period

58

Putting Them All Together (cont.)

Under standard SAP, the absence in the inactive period will cause an error

59

Putting Them All Together (cont.)

However, custom function ZRAB allows processing, since the absence type 0200 is found in the custom table zpermitabsences

60

Putting Them All Together (cont.)

The payroll period runs from 09/09/2007 to 09/15/2007

09/09 and 09/15 are days off Thus, with an LOA effective date of 09/12, the employee has: Two active days (09/10 and 09/11) Three inactive days (09/12, 09/13, 09/14) Company policy is that the eight paid absence hours are not recouped

During the retro calculation for the period:

The employee should be paid for the two days of attendance And, the employee should still be paid for the day of absence after the LOA began

61

Putting Them All Together (cont.)

However, with standard proration, the employee is paid only for one day of attendance and one day of absence
The absence reduced the two attendance days by one

The first /801 is the active period 40,000 is equivalent to 40% of the period or two days The second /801 is the inactive period 20,000 is equivalent to 20% of the period, or one day Two entries exist for the salary found in Infotype 0008 Each salary entry will be multiplied by each /801

62

Putting Them All Together (cont.)

The first 1,711.91 is multiplied by 40% to generate salary of 684.76 The second 1,711.91 is multiplied by 20% to generate salary of -342.38 Salary nets to 342.38

Remember, the company policy is that the employee receives the two days of salary plus the absence that falls in the LOA period
The employee is missing half the salary amount he/she is owed
63

Putting Them All Together (cont.)

The custom proration rule and operation we created earlier allow for the correct proration

Two /801 wage types flowed into the custom rule /MLP
However, only the /801 from the active period came out with a value In the active period /801, as with standard SAP proration, 40,000 is equivalent to 40% of the period, or two days
64

Putting Them All Together (cont.)

The second /801 was reduced to 0% and was dropped, since absences are not included in the proration
In the standard SAP proration, absences are considered and caused the 20%

Two entries exist for the salary found in Infotype 0008

Each salary entry will be multiplied by /801

65

Putting Them All Together (cont.)

The first 1,711.91 is multiplied by 40% to generate salary of 684.76 The second 1,711.91 does not have a corresponding /801 and is removed

The result is the employee does not have absences during the inactive period recovered from them according to company policy

66

What Well Cover

Overview of payroll and payroll objects Introducing and configuring schemas Understanding and customizing functions Introducing and configuring rules Understanding and customizing operations Putting them all together Wrap-up

67

Resources

Schema, function, rule, and operation help at http://help.sap.com

SAP ERP > ERP Central Components > SAP ERP Central Component > Human Resources > HR Tools

Program RPDSYS00 or transaction code PDSY for HR documentation about specific objects

68

7 Key Points to Take Home

Schemas control the logical flow of data during payroll processing Do not change SAP-delivered schemas, rules, functions, or operationsmake a customer copy and then modify Make a back-up copy of schemas and rules prior to making changes since there is no version management Schemas and rules are not date delimited like table entries Functions and operations call snippets of code from the payroll program

69

7 Key Points to Take Home (cont.)

Custom functions or operations should be created when standard functionality does not exist or configuration would be more time consuming Functions and operations have version management

70

Your Turn!

How to contact me: Mike Timm [email protected] (866) 415-0072

71