SAP

SAP – Systems, Applications, Products in Data Processing

About SAP
Founded by five former IBM employees in 1972, Walldorf, Germany. Available in 14
languages.

Reasons to Use SAP R/3

- Global Basis
- Faster speed
- Flexibility for changes
- Agility
- Extended supply chain management
- Knowledge sharing
- Creativity focus

ERP – Enterprise Resource Planning

R/2 – R- Real Time, R/2 – Two Tier Architecture
R/3 – R- Real Time, R/3 – Three Tier Architecture
ABAP – Advanced Business Application Programme
SPRO – SAP Project Reference Project

Advantages of ERP

- Better communication
- Improves efficiency
- Improves quality
- Reduces the cost of the product

Scope for SAP

- Implementation
- Training
- Support – (Trouble shooting)

SAP R/3 – Real Time Three Tier Architecture

- Presentation layer
- Application layer
- Database layer

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An SAP screen can contain the following simple screen elements:

- Command field
- Menu Bar
- Standard Toolbar
- Title Bar
- Application Toolbar
- Check Boxes
- Radio Buttons
- Tab
- Status Bar

STRUCTURES IN HR

Enterprise Structure: The Client, Company code, Personnel area, Personnel Sub area,
Employee Group, Employee Subgroup together forms the enterprise structure in HR.

Organization Structure: It forms the hierarchy in which the various organizational units of
an enterprise are arranged according to tasks and functions.

Personnel Structure: It describes the employee’s position within the company. A

distinction is made between the administrative perspective and the organizational
perspective.
ENTERPRISE STRUCTURE

Client

It is a self contained unit in an R/3 system with separate master records and its own set of
tables. Clients are from 000 – 999 but 000 – 099 is reserved and from 100 – 999 can be
created. Client 000 contains SAP original system and this cannot be changed.

Client is an independent legal and organizational unit of the system Ex: Group
A three- character alphanumeric code uniquely identifies the different clients within a
system. Client 000 contains the original SAP system, and cannot be changed.

The system contains both client-independent and client – specific elements:

Client-Independent: Elements that SAP describes as client-independent are used in all
clients.
Some elements that are client-independent are: Data structures such as field definitions,
table structures and file structures, client independent tables, transactions, programs,
standard evaluations, authorization objects, help documentation and user-defined
programs.

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Client Specific: Client-Specific elements are only used in certain special clients. The
following are defined as client specific:
Client Specific Tables: You must copy these from the original client, HR master record,
user master records and authorization profiles.

Company Code

The company code is an independent company with its own accounting unit, a company
that draws up its own balance sheet. The company code represents the highest level of the
enterprise structure within a client.

Personnel Area

Personnel area is a specific entity for personnel administration. It represents a subdivision

of the company code. The personnel area has the following functions:

- The personnel are is a selection criteria for evaluation

- The personnel area is an entity for authorization checks
- You must uniquely assign personnel areas to company codes.
- You can use the personnel area to generate default values for data entry
Ex: Payroll Area

Personnel Sub-area

Personnel subareas are subdivisions of personnel areas. The organization of the most
important subareas in personnel administration, namely the payscale and wage type
structure and work schedule planning are controlled at this level.

PERSONNEL STRUCTURE

The personnel structure displays the position of individual people in the enterprise as a
whole.

Employee Group: Employee group is used to classify employees in general terms. It

defines the position of the employee within the company’s workforce.
Functions of employee groups include:
- use to generate default values for data entry
- use it as a selection criteria for reporting
- use it as an entity for authorization checks

Example of Employee Groups

- External
- Active
- Retiree

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Employee Subgroup: Employee subgroups are divided into employee subgroups. All
control features for the personnel structure are defined at the employee subgroup level.
Ex: The following employee subgroups make up the active employee group
Active Employee Group:

- Hourly wage earners

- Monthly Wage earners
- Payscale Employees
- Non-payscale Employees

Indicators defined by employee subgroups

- Assign employee characteristics for statistical evaluation

- Grouping for collective agreement provision
- Grouping for permitted primary wage types
- Grouping for personnel calculation rules
- Grouping for work schedules.

ORGANIZATION STRUCTURE

Organization Unit: Org units describe the different departments in the enterprise.
Ex:
- by department
- by Region
- by business process
The organization units could be departments, teams, groups and so on.

Job: A job is a general classification for a set of tasks in an enterprise. Jobs as a

‘description of activity’ Ex: sales person, consultant, manager

Position: Positions describe the concrete areas in an enterprise that need to be covered by
available personnel. Positions represent a specific job entity and are occupied by people.

ORGANIZATION KEY

This key is used to enhance the authorization checks in conjunction with the master data.
The organizational key is a 14-character field in the organizational assignment Infotype
(0001) that you can structure according to your own requirements.

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 EMPLOYEE ATTRIBUTES

- Activity Status
- Employment Status
- Training Status

The possible entries for Activity Status are:

- 1 = Active employee
- 2 = Retiree
- 3 = Early Retiree
- 9 = Other
- 4 = Part-time work for retirees

Entries for Employment status are:

- 1 = Industrial Worker/Hourly paid worker

- 2 = Salaried Employee
- 3 = Civil Servant
- 9 = Other

Entries for Training Status are:

- 1= Trainee/apprentice
- 2 = Trained
- 9 = Other

LINK BETWEEN PLANNED WORKING TIME AND BASIC PAY

The system takes the employment percentage and the average number of working hours
from Infotype 0007 and suggests them as default values for the capacity utilization level
and the working hours per period in Infotype 0008

Employee subgroup grouping for Personnel Calculation Rule

Hourly Wage Earners

- Grouping for Personnel calculation Rule:1
o Hourly payment according to personal work schedule
o The actual working hours are used as basis

Salaried Employees
- Payment based on the number of hours worked per period taken from
Infotype 0008 (basic pay)
- The average working hours are used as the basis

The possible entries for personnel calculation rule are as follows:

- 1 = Hourly wage Earners

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 - 2 = Employees with periodic payment
Ex: Monthly Wage Earners
- 3 = Salaried Employees
- 4 = Special Payments (Public Sector for German)

ES Grouping for Collective Agreement Provision

An employee subgroup grouping for collective agreement provisions combines

subgroups which are governed by the same valid collective agreement provisions.

A provision is a specific labor law regulation within the collective agreement.

Examples
1 = Industrial workers/hourly wages

2 = Industrial workers/monthly wages

3 = Salaried employees

4 = Non pay scale employees

5 = Public servant

Customizing and Configuring

Customizing: It is modifying the SAP structure based on the customer’s requirements.

Configuring: It is working on the SAP structure which already exists.

Transaction: It is an executable R/3 process in the R/3 system such as hiring an

employee. Creating the vacancy etc.
After logon there are following levels in the R/3 system.

i) Main Menu Level

ii) Application Level
iii) Task Level

A transaction is a task performed at the task level. To execute a transaction starting at the
main menu level you either navigate through the menu or you enter the transaction code.

Transaction Code: It is a sequence of four alpha numerical characters that identify a

transaction in the R/3 system. To call a transaction you enter the transaction code in the
command level and press enter Ex: PA40 – Personnel Actions.

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 INFOTYPES

Infotype: It is a set of attributes grouped together. Infotypes are identifiable through a

four character numerical string. Infotype means information type.
Ex: Address (IT0006).
Infotype: A set of data grouped together into areas with similar content. Ex: Personal
data, planned working time, organizational assignment, basic pay.

Subtypes: Further sub division of an Infotype is a subtype and Infotype can be

subdivided into sub type.
Ex: Infotype: Address
Subtype: Permanent Address and Temporary address.

Infotype Number Ranges

0000 – 0999 – Personnel Administration and Payroll

1000 – 1999 – Personnel Planning/ Organization Management
2000 – 2999 – Time Data
4000 – 4999 – Applicant Data (Recruitment)
9000 – 9999 – Customer specific Infotypes for both PA and PD

Time Constraints

Time Constraints

1
2
3
A
B
T
Z

Meaning of values:

1 – An Infotype record must be available at all times. This record may have no time gaps.
You may not delete the record last stored in the database because all records of this
Infotype would otherwise be deleted.
Ex: Actions (0000), Org assignment (0001), Personal Data (0002)

2 – Only one record may be available at one time, but time gaps are permitted
Ex: Challenge (0004), Leave Entitlement (0005)

3 – Any number of records may be valid at one time and time gaps are permitted.

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Ex: Education (0022), 0023, 0024

A – Only one record may ever exist for this interface. It is valid from January1, 1800 to
December 31, 9999. Splitting is not permitted. Infotypes with the time constraint ‘A’ may
not be deleted.
Ex: Payroll Status (0003)

B – Only one record may ever exist for this Infotype. It is valid from Jan 1, 1800 to Dec
31, 9999. Infotypes with the time constraints ‘B’ may not be deleted. Splitting is not
permitted.
Ex: Reference personnel numbers (IT0031)

T – The time constraint varies depending on the subtype (Table T591A)

Ex: Family Member/dependents (0021), Additional Payments (0015), Recurring
payment/deductions (0014).

Z – Refers to time management infotypes. The time constraint for these infotypes
depends on the time constraint class defined in view V_T554S_1
Ex: Attendances (2002), Substitutions (2003)…etc.

Dialog Control

BADI: BUSINESS ADD IN

BADI: Similar to USER EXIT and it is Object Oriented program.

USER EXIT: User Exit is for customer enhancement when the requirements cannot be
met by the SAP original data then it is called User Exit. It is done with the help of ABAP
Programming mainly for modifications. User Exit allows develops to access and modify
program components and data objects in the standard system. It is structural
programming.

Batch Input: Interface that allows to transfer large amounts of DATA in a SAP system.

ALE (Application Link Enabler): This is Application Link Enabler that comprises the
following three layers:
- Application Services
- Distribution Services
- Communication Services

Modules in SAP HR

Personnel Administration: Executing the actions in HR by using the functionality of

personnel actions and Infotypes in SAP and maintaining the master data of personnel by
using the functionality to maintain HR master data and relevant Infotypes.

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Recruitment: Maintaining the Applicant Groups and Applicant Ranges. Creating
Advertisement Media, advertisement instrument, and transferring applicant data from
recruitment to Personnel Administration module using integration between the two
modules.
Training and Event management: Creation of Business Event Groups and Business
Event types.
Personnel Development: Creation of various appraisal models using criteria groups and
different criteria.
Payroll: Designing the payroll organization using payroll areas and control record.
Maintaining wage types for necessary allowances, deductions, and indirect valuation.
Organizing pay scale type and pay scale area.
Time Management: Creation of Holiday Calendar, creation of Work Schedules using
Daily Work Schedules, Periodic Schedules and Work Schedule groups. Creating Absence
types and Attendance Types and also using Counting Rules.
Organizational Management: Creation of organizational chart using Organizational
Units, Positions, Jobs and maintaining relationships.

RECRUITMENT

Applicant Group: It differentiates applicants according to their type of employment

contract with the company. Ex: Permanent, Temporary, Contract.
Applicant Range: It classifies the applicants according to the functional or hierarchical
criteria. Ex: Functional - Sales and Distribution, Finance, HR
Hierarchical – General manager and Manager etc

Unsolicited Application Group: It is classified according to the activity within the

company for which they are applying for.

Application Status

Status Text for Applicants

1 In process
2 To be hired
3 On hold
4 Rejected
5 Contract offered
6 Offer rejected
7 Invite

FEATURES IN RECRUITMENT

PRELI: Process feature for integration. Ex: Recruitment with other components like
personnel administration.

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NUMAP: Applicant number range
STATU: Consistency of overall status and vacancy assignment status whether for one
post or fir the whole organization.
APSTA: Overall status of applicant.
SHPRO: Applicant short profile.
4002: Vacancy assignment.
PACTV: Parameterization of applicant activities.
TARIF: Default Payscale Type and Area.
PRVAR: Reclassification key for Table T510R

PERSONNEL ADMISNISTRATION

Infogroup Modifier (IGMOD): The Infogroup modifier feature (IGMOD) allows you to
store the contents of variable key T588D – IGMOD according to company code,
personnel area, employee group, employee subgroup, action type and reason for action.

The standard SAP system contains one infogroup for every action. The infogroups are
generally dependent on the user group. In this case, the country grouping is used as a
value of the user group. The infogroups are set up independent of the employees control
data, i.e. the feature IGMOD has “space” as the return value.

Infogroups: The infogroups can be defined so that they are dependent on the user group
(user parameter “UGR”). If there are no entries for an infogroup for the user group or if
the user has not maintained their user group, then the infogroup is determined using the
reference user group.
In addition to this, the infogroup can be set up so that it is dependent on the employees
control data. You can do this by using feature infogroup modifier (IGMOD)

IGMOA - Infogroup Modifier for Applicants

Personnel Action: An action is a series of Infotypes Infogroup which are set in the
system and processed consecutively.
Personnel Action Infotype (0000): When you execute a personnel action, a new action
record (0000) is created for the specified personnel number. The most important
information in this Infotype is the employee status:
- Active (Inactive)
- Retired (Left the company)

Each action is assigned the three status indicators:

- STAT 1 (Customer Defined)
- STAT 2 (Employment)
- STAT 3 (Special Payment) in the customizing system.

1. Customer defined: Not used in the standard system. Can be used according to the
requirements.

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 2. Employment:
0 – Employee not with the company
1 – Employee with the company, but inactive
2 – Employee with the company, but as retiree
3 – Employee active in the company
3. Special Payment:
0 – Special payment: No entitlement
1 – Special Payment: Standard Wage types
2 – Special Payment: Special Wage Type
This special payment indicator is only relevant for the country versions of
Australia and Spain.

Features for Checking Action Sequence

The following features are available:

MSN 20: Termination/ For Withdrawal

MSN 21: For Reentry
MSN 30: Inactive Work Relationship
MSN 31: Restart Work
MSN 32: Retirement/ For Early Retirement/

To Create Personnel Actions

PM - > PA - > Customizing Procedures - >Actions - > Define Infogroup

Ex:
Menu Text User- Dependent Reaction Reference
SS Hiring for SIS SS

F3 - > Infogroup - > Enter Infogroup

SS
and new entries of series of
Infotypes.

User Infogroup N Operation Infotype S Infotype Text Subtype

group modifier
SS 0 INS 0000 ACTIONS
SS 1 INS 0001 ORG
0 ASSIGNMENT
2

The Various operations include:

COP: Copy
DEL: Delete

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DIS: Display
EDQ: Lock/Unlock
INS: Create
LIS9: Delimit
MOS: Change
INSS: Create for Actions is not converted to change.

FEATURES

ABKRS – Default value for payroll accounting area

TCLAS – Transaction class for data retention.
MOLGA – Country grouping
TARIF – Default value for Payscale type and Payscale area in the basic pay.
PERSG – Employee Group
PERSK – Employee Subgroup
DFINF – Copy default values for Infotypes
LGMST – default value for wage types for Infotype 0008 (basic pay)/ Planned
Remuneration.
PERNR – Personnel Number
ANSVH – Work Contract
MASSG – Reason for Action
BUKRS – Company Code
WERKS – Personnel Area
BTRTL – Personnel Subarea
SCHKZ – Default value for shift indicator/Default value for Work Schedule
WRKHR – Input control for working hour fields/weekly workdays
WWEEK – Default value for working week
TMSTA – Default value for Time Management Status.
NUMKR – Number Range for personnel numbers.
VTART – Defining Substitution type
VDSK1 – Organizational Key
PPMOD – Used in the transfer of payroll results to FI. Set Employee subgrouping for
account determination.
DTAKT – BACS automatic payments, sets paying house bank keys.
DATAR – Default value for Infotype 0041 Date Specifications
BAREA – Default value for Benefits area for Infotype 0171
ZLSCH – Payment method for Infotype 0009
CONTR – Default value for contract elements Infotype 0016
PACPP – Default value for follow up actions
APACT – Applicant activity type
VARIA – Definition of available variables for creating texts.
MAILS – Parameter settings for mail on applicant activity.
KOSTL – Cost center
GSBER – Business Area
ORGEH – Organizational Unit
PLANS – Position

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 STELL – Job
TRFGB – Payscale area/Geograpical area
TRFGR – Payscale Group
TRFST – Payscale Level
ANSAL – Wage type for Annual salary
PFREQ – Payment frequency for Annual Salary
PM004 – Determining the simulation variant for the payroll program.
OFFID – Advertisement
VACID – Vacancy
SPAPL – Unsolicited Application Group
PINCH – PINCH administrator groups
ABART – Employee subgroup grouping for Personnel Calculation Rule
TRMTY – Feature for termination type

TIME MANAGEMENT

Features in Time Management

SCHKZ – Shift Indicator

WRKHR – Input control for Working hours
WWEEK – Default value for working week
TMSTA – Time Management Status
VTART – Defining Substitution Type

PAYROLL

Payroll: - Payroll is used to calculate remuneration for work performed by individual

employees. Payroll is an umbrella term for a variety of work processes, such as creation
of payroll remuneration statements, bank transfer and payments by cheques.
Remuneration is calculated in two main steps: -
1) Calculation of wage elements

2) Statutory and voluntary deductions(which are country specific)

Various payments included in the calculation of remuneration include: -

 Basic pay

 Bonuses

 Vacation allowances

 Christmas bonuses

 Gratuities

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  Sick pay

 Bonuses for night work

 Over time

Various deductions include: -

 Company –owned apartments

 Company –sponsored daycare services etc.

Statutory and voluntary deductions: -

 Loans

 Tax

 Unemployment insurance

 Pension insurance

 Social insurance

Retroactive Accounting
You have completed the payroll run for this period. However, if you then change HR
master data in a period for which the payroll is already is been run, the payroll must be
run once again for this period using the current values. This is known as “retroactive
accounting”.

Payroll Prerequisites
 Wage types in master and time data, work schedules in info types.

 Administration –payroll areas, periods and payroll control records.

 Subsequent activities –bank details, cost centers, remuneration statements.

Payroll cycle

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Payroll system: - The payroll system’s primary purpose is to pay employee the correct
amount at the correct time with minimum manual interventions.
Payroll areas: - payroll area groups together employees for whom payroll is ruin at the
same time, and also to set the dates for the payroll periods. Ex: - monthly and weekly
payroll area.
Payroll periods: - a payroll period determines the period for which a payroll result is
created. The exact start date and end date of the periods must be defined for the payroll
areas.
Period Parameter: - frequency or time interval with which payroll will be run for the
payroll area. Ex: - 01 for monthly, 03 for the weekly, monthly, semi –monthly, bi –
weekly, every four weeks and manually.
Payday rule: - Determines how the period payday is calculated. The values used for the
payday rule include: -
 “1”: - the number of days is added to the start date of the period to calculate the
payday.

 “2”: - the number of days is deducted from the end date of the period.

 “3”: - the number of days is added to the end date of the period.

 “4”: - only applies to monthly periods, the number is used as the exact date.

Number of days: - the day on which the employee is made in a week. Ex: - the employee
is paid each Thursday for the preceding week (Sunday –Saturday period). The number of
days (5) is added to each period as the payday.
Payroll status in payroll control record:
 Release for payroll

 Release for corrections

 Exit payroll

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  Check payroll results

Stages of payroll
 Simulation

 Release payroll

 Start payroll

 Check payroll

 Corrections

 Exit payroll

Payroll control records

The payroll control record is created to customize each payroll area before it can be used.
The functions of payroll control record are: -
 Defines the payroll past for retroactive accounting recognition.

 Locks master data and time data 80 no changes can be made during the payroll
process.

 Defines the earliest possible retroactive accounting data for each payroll area.

The payroll period used to create the payroll control records must be 1 period before the
period in which you want to go live.
Ex: - To use the SAP payroll system to go live in period 05, 1998. You must enter period
4 as the period in the payroll control record.

Stages of Payroll
1) Payroll simulation: - simulating a payroll enables to display and print the
enumeration statement. During simulation the master data is not locked. The
results of a simulated payroll runs are not within to the database. Instead, they are
displayed in the payroll log.

2) Release payroll/released for payroll: -

o Data records are locked for changes in the past and present.

o Changes can still be made in the future.

This is executed in the menu before starting the payroll.

3) i)Start payroll (part 1): -

• Payroll period with exact data

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 • Cast payroll period +1

• Personnel number intervals

• Employees with the same payroll area in info type 0001

ii) Start payroll (part 2): -

• General program control

• Log

• Parameters for remuneration statement

Payroll log:
Display of payroll results in the tree structures is known as payroll log. The payroll log
includes table of contents. The nodes within the tree structure enable to access the
detailed information that is required. The headers within the structure are designed to
help with troubleshooting and to facilitate navigation within the log.

Match code W:
Match code W provides a list of all personnel numbers in the selected payroll area that
have been rejected by the payroll run because of incorrect data.
To display match code W: -
 Access the payroll for <country>
screen and choose tools  control record

 Enter a payroll area and chose display

 Choose Goto  incorrect persons

4) Corrections / release for corrections: -

This function is chosen to release the master data and time data records
that are assigned to the selected payroll area for correction. By setting the released
for correction status, the personnel records of the persons assigned to the payroll
area in question are released for maintenance.

In the correction un you, choose the push button ‘search helps’ and select
HKY ”W” and all of the personnel numbers requiring correction are displayed
when the multiple selection button is selected. Upto 99 corrections runs can be
performed in this step.

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 5) Check result/check payroll result: The check result function locates the data
that is related to the present and past. “Freezing” the payroll in this way enables to
check the payroll results.

6) Exit payroll/ exit payroll: The exit payroll function enables to re –release info
types or data records to maintain change I the past and present. The function
cannot be chosen until the payroll is run successfully for all of the personnel
numbers assigned to the selected payroll area (which means that match code W is
empty).

Monitoring HR processes:
Processes can be administered and maintained using transaction PUST(HR
process work bench)

Payroll driver:
The personnel numbers to be included in the payroll run are selected by specifying a
payroll area I the payroll driver selection screen. In a line run, the payroll period is
determined by the system.
The payroll driver should be started by personnel number or payroll area number.

Data Medium Exchange

DME program (Data medium exchange) is used to transfer a wage or salary. This file
contains all transfer data for the selected employees. The data medium exchange file can
be used to transfer data to the bank, or can print appropriate transfer forms.

Subsequent activities in payroll accounting:

The activities are divided into following areas:
 Per payroll period

 Annual

 Other periods

 Period –independent

The individual functions can be accessed using the push buttons in the accounting menu.

PAYROLL RESULTS

Payroll account: - The payroll account displays payroll data in a tabular form for one or
more employees over one or more payroll periods. It can be created at any time and often
as required.
Payroll journal: Payroll journal contains the payroll l data for several employees for one
period.

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Wage type statement: The wage type statement shows different wage type distributions,
which act as the basis for payroll data for the selected employees. The report shows the
current wage type values (number & amount).
Wage type distribution: Wage type distribution shows wage types over several payroll
periods without taking any retroactive accounting differences into account. The report
shows the current wage type values (number and amount).
Wage type reporter: It is flexible tool for wage type evaluation. In future, it will replace
wage type statement and the wage type distribution. The evaluation can be formatted
using the list viewer and exported to an excel file.
Human resources payroll your continent  your country  information system 
wage type  wage type reporter.
Payroll reports: There are different reports for employees, users and technicians payroll
accounts and journals are created using reports.

To view payroll results:

Payroll results –RPCLSTR x
Remuneration statement –RPCEDT x0
Payroll journal –RPCLJN x0
Payroll account –RPCKTO x0

POSTING PAYROLL TO ACCOUNTING:

Payroll
• Calculation of wages and salaries to be paid to employees

• Calculation of deductions and amount to be transformed to an

employee. External accounting:
• Consideration of personnel expenses
Internal accounting
• Consideration of payables and resulting
• Consideration of personnel costs to cost
payments
objects or as overhead costs

Execute posting run:

• The “execute run” step evaluates the payroll results in a live run and

 Creates a posting run

 Creates posting documents

 Selects the employees evaluated

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 Run
Status

Payroll result Execute run Posting documents

Status
RPCIPE00
Selection Index

Posting run can be performed as: -

 A test run without documents (T)

 A simulation run with simulation documents(S)

 A productive run (P)

Simulation/ productive run(S)/(P): In this run, the system checks all the HR and AC
tables and the posting information in mater data to determine whether they exit and
whether they are consistent.

Test run (T): In a test run, the system checks only whether the balance of expenses and
payable is zero, as it should be.

Execute run: In execute run, the system performs the following steps:
 Generate a posting run

 Evaluates the payroll results

 Creates payroll documents

 Flags the payroll results of the evaluated employees

 Generates index information

PCPO: To access the document analysis.

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 COMPLETENESS CHECK

Reporting
Posting to accounting
Execute run

Edit run

Completeness check
Payroll
Results
Selection

Run

Status

List of unposted payroll

results
Integration with other subsequent activities accounts

POSTING TO FINANCIAL ACCOUNTING:

- Posting to accounting

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 - Payments to employee

- Posting tax payments

Posting environment
Enter posting information in master data

Run payroll

Perform posting

Postings in financial accounting

Posting process:
• Create documents

• Check documents

o Delete documents or post additional employees, if required.

• Release documents

o Double –click a line to

view background information, if required.

• Post documents

• Check completeness

Activities to be performed when posting payroll results to accounting are

• Create posting run

• Edit posting run

• Check posting run

• Check posting documents

• Release posting documents

• Post posting run

• Check completeness of postings

• Subsequent activities in financial accounting

Document analysis:

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 • Overview of posting run

• Document overview RPCIPA00

• Posting document RPCIPS00

• Payroll details

To access the document analysis, choose transaction PCPO

Data Medium Exchange

The pre program DME (data medium exchange) generates a temporary data set that is
used as input for the “create DME” program. This report create a file that complies with
the banking regulations for DME by disk and contains all payment information.

Payroll process:
The payroll process is split into two parts. The first part generates the individual and
second part, the county –specific part, determines statutory payments and deductions.

The payroll scheme comprises a series of employee –related steps:

• Read basic data

• Read payroll result from last payroll period

• Read time data

• Calculation of individual remuneration elements

• Factoring

• Calculation of statutory payments and deductions.

Change of payroll area:

The system automatically changes the payroll area as long as feature DFINF is
maintained.

Off –cycle payroll:

• The off –cycle payroll function can be used to run payroll for employees not
included in the regular payroll run

• If an employee is to receive a bonus payment, the off –cycle payroll and

payment for the employee can be processed.

• For processing absence payment in future payroll periods, the off cycle
payroll will be run.

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 • If an employee’s master or time data changed, you can trigger retroactive
accounting and perform a correction run payment.

• Advance payments

AD HOC QUERY
The Ad HOC query is a simple and powerful aid for evaluating data from human
resources management. By enabling you to choose selection fields and output fields, Ad
HOC query allows you to access data from all areas within human resources
management. The Ad HOC query can be used for both master data and recruitment.

Payscale Structure: It combines the element of a collective agreement with the primary
objective of calculating remuneration according to the collective agreement. The payscale
structure consists of:
- Payscale Type
- Payscale Area
- Payscale Group
- Payscale Level

Payscale Type: The economic area to which a collective agreement applies. Ex: Metal
Industry and Chemical Industry.
Payscale Area: The physical area of validity of a collective agreement. Ex: Chennai or
Bangalore i.e. State wise and Country wise variations.
Employee Subgroup Grouping: Grouping of employee subgroup in pay role for the
following purpose:
- Work Schedule
- Personnel Calculation Rules
- Primary Wage Type
- Collective Agreement Rules
- Time quota Types
- Account Determination

Payscale Group: The payscale group is designative by the wage type and the associated
low and high values describing an annual salary.

WAGE TYPES

Wage Type: Wage type separates Amount and Time units for various business purposes.
This also enables the system to process amounts and time units in different ways during
the payroll run.

The sap system contains the following groupings as standard:

1. Industrial worker/hourly wage earner 1

2. Industrial worker/hourly wage earner 2

24
 3. Salaried worker indicator 3

4. Non –pay scale employee indicator 4

TARIF: This feature is used to maintain default value for pay scale data. The return
value can be entered in the following format: xx / yy / z

Pay scale type

Pay scale area
Type of planned
remuneration (org
management info type 1005).

Wage Types
Sample wage type catalog:
SAP standard system Productive system

Catalog containing model wage Customer wage types with company

types to be used as examples by –specific characteristics
customer

Start with letters (Mxxx, Myyy…) Must always start with a number
(1010,1020,1030..)

Valuation of Wage Types

Direct Valuation:
 The amount that is to be used to evaluate the wage type, is entered in the info type
manually.

Indirect Valuation:
 The system automatically calculates the wage type amount and enters it in the
info type. The system imports and calculates the wage type amount from the table
and you do not have to enter it manually.

 The system can perform indirect valuation for the following info types:

o Basic pay (0008)

o Recurring payments/deductions (0014)

25
 o Additional payments (0015)

You can indirectly evaluate wage type by specifying a module name and variant.
Direct Indirect

The administrator manually The system automatically enters

enters the wage type amount in the wage type amount in the
the info type. info type.

Indirect valuation is not one of Indirect valuation is one of the

the attributes of these wage attributes of these wage types.
types.

Module for wage type characteristics (indirect valuation)

Wage type characteristics

a)TARIF b)PRZNT c)ARBPZ

Variant –indirect
Pay scale
SUMME
groups and
levels
Base wage type
valuation

Pay scale groups

and levels

Indirect valuation module table –T511V_M

TARIF Module

The “TARIF” module uses pay scale data that it takes from the pay scale groups and
levels you entered in the basic pay info type.

Indirect valuation using the TARIF module

26
 Module Variant Employee Pay scale Pay scale Wage Amount
subgroup group level type
grouping for
CAP

Pay scale A X X (x) - X

Pay scale B X X (x) X X

Pay scale C X X - X X

Pay D X - - x X
scale

X = required entry
- = entry must not exist
(x) = entry can exist

The module TARIF has four variants (A-D):

 A: valuation is based on pay scale and group

 B: valuation is based on pay scale and group/level and specific wage type

 C: valuation does not depend on pay scale level

 D: valuation does not depend on pay scale group or level

PRZNT and SUMME Module

These two modules can be used for indirect valuation. The system calculates certain wage
types as a percentage o other wage types. You can link the wage type to be valuated with
several base wage types in the base wage type valuation table.

20% enter in basic pay info type

Wage type 1

30% Wage wage type

4Wage type 2 type 4 10%
27

Wage type 3
 20%

SUMME: You must define which wage types the system is to use to calculate the
percentage bonus (SUMME). Unlike the PRZNT module you enter the percentage value
in the SUMME module in the table as a fixed value, and it is therefore linked to the type.

ARBPL Module
Indirect valuation using positions
The indirect valuation module ARBPL uses the object type and the position number
entered in info type 0001 to calculate the wage type amount.
If module ARBPL is used with variants (position) to valuate, the system bases its
calculation on the position entered in the organizational assignment info type (0001) and
country grouping in the “position” table. You can enter a payment for the position in this
table.

Reduction method: the values are defined as follows

Blank or 1: no reduction
2: reduction using the capacity utilization level stored in info type 0008
3: reduction in accordance with the relationship between the individual standard weekly
working time, and the standard weekly working time.
4: reduction based on the relationship between the individual hours per week taken from
info type 007 and the individual standard weekly working time.
5: reduction in accordance with the relationship between the individual weekly working
times minus the standard weekly working time, and the standard weekly working time.
6: reduction based on the relationship between the hours per week taken from info type
0007 minus the standard weekly working time, and the individual standard weekly
working time.

Rounding type:
A =amount is rounded down
B=amount is rounded up/down
C=amount is rounded up

Rounding divisor: Values 0.99999

Ex: 100 mean that the amount should be rounded up to whole dollar, DM 80 on.
Can be overwritten: Determines whether you can overwrite the wage type amount in the
info type.

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 INDIAN PAYROLL INFOTYPES

0580 – Previous employment tax details

0581 – Housing (HRA/CLA/COA)
0582 – Exemptions
0583 – Car and conveyance
0584 – Income from other sources
0585 – Section 80 Deductions
0586 – Section 80C deductions
0587 – Provident Fund Contribution
0588 – Other statutory deductions

Wage Types

BAS – Basic Salary

CAR – Car Maintenance Allowance
CCA – City Compensatory Allowance
COA – Company Owned Accommodation
CLA – company leased accommodation
DRV – driver allowance
EDU – educational allowance
ELA – electricity allowance
FMA – fuel maintenance allowance
HMA – house maintenance allowance
HRA – house rent allowance
LOC – location allowance
LUN – lunch allowance
MDA – medical allowance
MDR – medical reimbursement
OTH – other allowance
PRA – personal allowance
SPL – special allowance
TRN – transport allowance
WSH – washing allowance

Additional Payments

ATB – Attendance Bonus

BDA – b’day/marriage gift
BON – bonus payment
EXG – ex-gratia payment
GRT – gratuity
LEA – leave encashment

29
LEV – E/L encashment (regular)
MDR – medical reimbursement
MTE – maternity expenses
NIT – night shift allowance
NOT – notice pay negetive
OTA – overtime hours
PTX – P tax arrears wage type
SAF – safety incentive
RNA – rent advance
SCH – scholarship
SPZ – special allowance (reimb)
TEL – telephone reimbursement
TRF – tax refund
TUT – tuition fees
ATB – attendance bonus recovery
BUS – bus deduction
CAN – canteen deduction
EXL – excess leave deduction
LON – loan deduction for Apr-Jun
MRE – MED ADVANCE RECOVERY
VTO – voluntary tax

Indian Payroll Schema

XIN0 - Initialisation of payroll
INBD - Read basic data
XPR0 - Import previous result current period
XLR0 - Import last payroll results
XT00 - General processing of time data
INLN - Loan accounting
INAP - Import further paym./deducs. off
INAL - Period factoring and storage
INBS - Save tables for iteration
INBL - Import saved tables
INDD - Processing deductions and storage
INN1 - Gross to net calculation
INA9 - Cumulation of net amount/payment amount
XDNT - Deductions not taken during loop?
INNR - Retroactive accounting - India
INRR - Recovery of Rounded Off Amount
XNN0 - Net benefits/deductions and transfer
INBT - Income Tax Bank Transfer
INE0 - Final processing
US PAYROLL

US Payroll Infotypes

30
The Infotypes used for US payroll are:

Basic Infotypes

0001,0002,0006,0009,0021,0004,0028,0027,0031,0016,0034,0032,0030,0035,
0040,0054,0003,0008,0014,0015,0011,0045,0037,0057,0025,0024,0022,0023,0077.

Other US exclusive Infotypes include:

0076 – Workers compensation

0094 – Residence status
0161 – Creating IRS mandate for an employee
0165 – Limits on deductions
0194 – Garnishment document
0195 – Garnishment order
0216 – Garnishment adjustment
0206 – Default for the residence tax area
0207 – Residence tax area
0208 – Work tax area
0209 – Unemployment tax area
0234 – Withholding overrides
0235 – Other taxes
0218 – Notifications
0267 – The one-time payment off-cycle Infotype
0402 – 0403 – payroll results Infotypes
0415 – Export status
0416 – Time quota compensation Infotype
0446 – 0457 – US tax payroll Infotypes
0458 – Monthly cumulations
0459 – Quarterly cumulations
0460 – Annual cumulations
0496 – 0501 – US Benefits Payroll Infotypes
0506 – Tip indicators
0579 – External wage components
0610 – Assignment of EEO and AAP categories to jobs
0655 – Printing remuneration statement
1612 – Assignment of worker’s company codes to org units
1613 – Assignment of worker’s company codes to positions
2010 – Employee remuneration information

US Forms in Payroll

SECA – State Employment Contribution Act

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FUTA – Federal Unemployment Tax Act

SUI – State Unemployment Insurance

FORM 940 – Used to report an employer’s annual federal unemployment tax liability

FORM 941 – The employer’s quarterly federal tax return

FORM 944 – A tax form used exclusively by businesses with very low federal tax
liability as a replacement for the quarterly form 941

FORM 8109 – Explains which businesses with tax liability under $200,000 per year can
use to make their regular federal tax deposits.

IRS (Internal Revenue Service) – IRS is a United Sates government agency tasked with
collecting yearly state and income tax from working residents and businesses. Most
citizens pay income tax to the IRS annually through in some cases quarterly prepayments
are required for freelancers and businesses that exceed a given income threshold. The IRS
is a part of the department of the treasury.

W-2 FORM – The form that an employer must send to an employee and the IRS at the
end of the year. The W-2 form reports an employee’s annual wages and the amount of
taxes withheld from his or her paycheck.

W-3 FORM – W-3 form is a transmittal form which is sent to the Social Security
Administration (SSA) showing total earnings, social security wages, medi-care wages
and withholding for all employees for the pervious year.

W-4 FORM – A form completed by an employee to indicate his or her tax situation
(exemptions, status, etc) to the employer. The W-4 form tells the employer the correct
amount of tax to withhold from an employee’s paycheck.(Federal Employee Withholding
Allowance Certificates.)

W-5 Filing Status: The EIC status field is only available on the federal subtype of
Infotype 0210. If an employee turns in a form W-5 (Earned Income Credit Advance
Payment Certificate), you should enter the information from here.

Payroll Driver

Report RPCALC(X)0 can calculate periodic payments and also off-cycle payroll runs.

Payroll Schema: The payroll schema contains calculation rules to be used by the payroll
driver during payroll. Country specific schemas, which are based on schema X000.

A schema consists of the following parts:

32
 - Initialization
o The system performs the following steps:
 Updates the databases
 Imports required Infotypes

- Gross calculation of pay

o The system performs the following steps:
 Processes basic data and time data
 Queries off-cycle payroll run
 Reads payroll account of the last period accounted
 Processes time data and calculates the individual gross values
 Performs factoring

- Net calculation of pay

o The system performs the following steps:
 Calculates net remuneration
 Performs bank transfers

Payroll Results

PCL1 – PCL1 file contains primary information, in other words, data from the master
data and time recording systems.

PCL2 – PCL2 file contains secondary information, in other words, derived data and all
generated schemas.

Pnnnn (nnnn = number of the Infotype) – The Pnnnn files contains data that has been
entered in the respective Infotypes for an employee.

Internal Tables

Internal tables store data during payroll.

The important internal tables are:

Input Table (IT): Table IT contains data that can be edited. The table exists only during
processing.

Output Table (OT): Table OT contains the results of an activity. These results are written
to the input table for further processing. The table exists only during processing.
Results Table (RT): Table RT contains the results of the period for which payroll has
been run. The system saves this data in the PCL2 file in cluster RX.

33
Control Record

The control record contains the following information:

- Payroll Area
- Payroll Status
- Payroll Period

Report RPUCTP00: This report is used to generate the payroll periods for every period
parameter that you have assigned to payroll area.

Tables

T549Q – PAYROLL PERIODS

T549S – PERSONNEL DATE SPECIFICATIONS PER PAYROLL PERIOD

Transaction Codes for Payroll

PC00_M99_CLSTR – Display Payroll Results

PC00_M99_CALC – Payroll Driver (International)
PC00_M99_ABKRS – Specify a Payroll Area
PC00_M99_CLSTPC – Display PC cluster: Personal Calendar
PC00_M99_TLEA – Leave Overview
PC00_M99_TLEA 30– Batch-Input: Annual Leave
PC00_M99_CPRC – Access Payroll Calendar
PC00_M99_MOLGA – Specify a Personnel Country Grouping
PC00_M99_DLGA20 – Use of wage types in payroll
PC00_M99_UDIR – Restore the Payroll Results Directory
PU00 – Delete Personnel Data
PU01 – Delete Current Payroll Result
PU03 – Change Payroll Status
PU22 – Archive Data
PU30 – Wage Type Copier
PU95 – Edit Wage Type Groups and Logical Views
PU96 – Edit Wage Type Groups
PU97 – Edit Logical Views
PU98 – Assign Wage Types to Wage Type Groups
PUOC_XX (XX-Country Code) – Off-cycle workbench
PEST – Maintenance of Process Model
PUST – HR Process Workbench

Pay Scales

PC00_M99_U510 – Simple Std. Pay increase for indirectly valuated WTS

34
PC00_M99_IRTF – Enhanced Std pay increase (Indirect and Direct WTS) with Batch
Input
PC00_M99_ITUM – Payscale Reclassification acc. to Age or Payscale Membership
Period

Third Party

PC00_M99_URMA – Acknowledgment Report for Third Party Remittance

PC00_M99_URMU – Update of Remittance Tables from Temse-Object.

Forms

PC00_M99_CEDT – Remuneration Statement

PDF7 – Delete Form in Customer Client
PDF8 – Copy Form from SAP Client to Customer Client
PDF9 – Copy From Within Customer Client
PC00_M99_CLGA00 – Wage Type Statement
PC00_M99_CLGV00 – Wage Type Distribution
PC00_M99_CKT0 – Payroll Accounts
PDF0 – Conversion Report for Remuneration Statement Forms
PDFA – Conversion of Payroll Journal Forms

Transfer Activities

PC00_M99_CIPE – Posting to Accounting: Create Posting Run

PC00_M99_DKON – Posting to Accounting: Wage Type Assignment – Display G/L
Accounts
PC00_M99_CIPC – Posting to Accounting: Search for Payroll Results not Posted
PC00_M99_URMR – Reconciliation of Transfers
PC00_M99_URMW – Maintain Wage Types according to Assignment to HR Creditors
PC00_M99_URMD – Undo Third-Party Remittance
PC00_M99_URMP – Create Third-Party Remittance Posting Run
PC00_M99_CML10 – Cash Breakdown List
PC00_M99_CDTA – Preliminary Program Data Medium Exchange for Several
Payment Runs.

Tools

PE01 – Schemas
PE02 – Rules
PE03 – Features
PE04 – Functions and Operations
PE51 – Call the Form Editor
PU12 – Interface Toolbox
PDSY – HR Documentation Maintenance

35
Off-Cycle Activities

The off-cycle activities component comprises the following areas:

- Off-Cycle Workbench: This provides a uniform user interface for all off cycle
activities.
- Off-Cycle subsequent Processing: Depending on the function that you have
executed, the system still has to carry out various subsequent activities. Ex: A
Remuneration Statement.

U000 – US ACCOUNTING SCHEMA FOR RPCALCU0

UIN0 - US Payroll: Initialization of payroll

UBD0 - Basic data processing
UPR0 - Read previous result of current period
XLR0 - Import previous payroll results
UMO0 - Determine payroll modifiers
UT00 - Gross compensation and time evaluation
UAP0 - Process add. payments and deductions
UAL0 - Proration and cumulation gross
UTBS - Save tables for iteration
UTBL - Load saved tables
UDD0 - Process deductions, Benefits
UTX0 - Calculate taxes
UGRN - Calculate garnishments
UNA0 - Calculate net
UDNT - Deductions not taken during loop?
UGRR - Garnishment Retroactive
URR0 - Retroactive accounting
UNN0 - Net processing
UACO - Month end accruals
UEND - Final processing

Schema ULK9: It is used or executed when employee data is transferred from Non-SAP
to SAP System.

GARNISHMENTS

Garnishments: A garnishment is a legal procedure authorizing a deduction from an

employee’s earning to satisfy a debt.
Ex: For child and spousal support and federal and state tax levies.

The Garnishment Process

36
 Garnishment
Document
(0194)

Court -> Garnishment Request

Garnishment
Order (0195)

Payroll run

Payment to
creditor

Final Payroll Processing

Contains the following features:

- Direct deposit of employee pay
- Third party remittances
- Earnings statements
- Postings to financial accounting/controlling including month-end accruals

Posting to Accounting

Posting to accounting provides the necessary data for the following components in
financial accounting:
- General Ledger Accounting (FI-GL)
- Accounts Payable (FI-AP)
- Accounts Receivable (FI-AR)
- Special Ledger (FI-SL)
- Funds Management (FI-FM)

Components on Posting to Accounting

- Posting from HR system

- Posting to AC system
- Posting posting documents

Central objects in posting to Accounting

- Posting runs
- Posting Documents

37
 While posting to accounting, wage type /559 bank transfers, is posted to payables
account. The wage type MA10 standard pay is posted to an expenses account

Payroll Results Adjustments (Infotype 0221)

Subtype YANA (Adjustments, no tax calculation) and YAWA (adjustments without tax
calculation)
Subtype TCRT allows you to adjust employee and employer taxes in table TCRT.

Benefits Integration to Payroll

401 (K) Nondiscrimination Testing: This can be used to alert you to potential year-end
problems. The 401 (K) non-discrimination test identifies the number and identify HCE
(Highly Compensate Employees) within the company.

ERISA 5500 Testing: The ERISA 5500 form is used to determine whether employee
benefit plans are operated according to governmental regulations. Program RPSBENU2
assists in the completion of ERISA 5500.

TIME MANAGEMENT ASPECTS IN PAYROLL

- XT00 (X=Country Indicator) is used to process Time Management aspects within

payroll.

- Selecting time wage types for overtime, bonuses and hourly wages, that is, day
processing of time data using schema TC00 (time type selection: International) or
TC04 (time wage type selection: international for time recording without clock
times).

- Time wage types such as hourly wages, overtime wages and bonuses form the
specifications for the financial valuation of work performed further on in gross
payroll.

Time management

The first action in payroll that is relevant to absence processing is function MOD
in schema XT00. only use schema XT00, personal calculation rule XMOD, and
so on. Function MOD determines the table entries the system accuses to valuate
absences. MOD calls personnel calculation rule XMOD which uses operation
MODIF A to determine employee grouping for absence valuation.

Personnel Calculation Rules

38
X010 – Form Valuation Bases
X013 – Form Valuation Bases
X012 – Calculate Valuation Bases for alternative payment
X015 – Valuation of time wage types

WAGE TYPES

M001 – Hourly Rate

M002 – Payscale Salary
M003 – Pay Period Salary
M004 – Pension/Retiree Pay
M005 – Lead Premium
M006 – Shift Premium
M010 – Salary
M110 – Salary
MM00 – Overtime Base
MQ20 – Overtime Bonus 50%
MQ30 – Overtime Bonus 100%
MQ40 – Sunday Bonus 50%
MQ50 – Public Holiday Bonus 100%
MQ70 – Night Shift Bonus
TB01 – Hourly Rate

Recurring Payments/Deductions (Infotype 0014): You can enter default cost assignment
settings for recurring payments/deductions for the application component controlling
(CO). You can store a different cost center and company code combination than the one
in the organizational assignment Infotype (0001), the additional payments will then be
changed to this cost center. Select edit -> Maintain Cost assignment.

The standard system contains amongst others the following wage types:

- Subtype M110 : Vacation Allowance

- Subtype M120 : Holiday Bonus
- Subtype M130 : Standard Special Payment

Additional Payments (Infotype 0015): In the Infotype Additional Payments (0015), you
can enter an amount/or value and a unit of measurement in a wage type. These are always
paid or deducted in a certain period during payroll. Additional payments are wage
elements which are not paid or deducted in every payroll period in contrast to recurring
payments and deductions which are paid or deducted within a defined periodicity.

Integration between Time Evaluation and Payroll

The tables that represent the integration between time evaluation and payroll:

- Table ZL : Contains the time wage types

39
 - Table C1 : Contains the data relevant for cost assignment
- Table ALP : Contains the information necessary for a different payment

Wage types from Basic Pay

ME10: The standard hourly wage is referenced to valuate time tickets for hourly wage
earners.
MC10: Is used in the standard system for monthly wage earners.

Wage Types on Time Tickets

There are two methods of valuating a time ticket in payroll:

- The time tickets are paid at a piece work rate

- The time tickets are paid at an average rate.

Wage type ML01 is used for piece work payment in the standard system, while payment
at an average rate is indicated by wage type ML02.

Factoring (or) Partial Period Remuneration

If an employee did not work for the whole payroll period, then a partial remuneration is
calculated during the payroll run. Factoring is used in the following cases:
- To reduce payments
- To calculate remuneration for an exact period

Partial period factor can be calculated using different method:

- Payment method
- Deduction method
- Hybrid of payment and deduction methods
- PWS method
- All or nothing method

UK PAYROLL INFOTYPES

40
0065 – Tax data
0069 – National insurance
0070 – Court orders
0071 – Pension funds
0077 – Additional personal details
0084 – Sickness Pay control
0085 – Work incapacity periods
0086 – SSP/SMP Exclusions
0222 – Company cars
0225 – Company cars
0442 – Company car

UK Payroll Schemes

Pension – CIMPS Schemes

COMPS Schemes
COSR Schemes

CIMPS Scheme: Contracted-In Money Purchase Schemes (CIMPS). CIMPS is a defined

contribution approved ‘occupational pension scheme’.

COMPS Scheme: Contracted-Out Money Purchase Scheme (COMPS). COMPS will

provide a pension to the member that is based on the performance of the underlying
investments.

COSR Scheme: Contracted-Out Salary Related Scheme (COSR). It is the salary related
pension scheme that has contracted out of the state second pension (S2P). to qualify as
COSR scheme, the scheme must satisfy prescribed requirements, set out in the pension
schemes Act 1993.

Employee FTE: An employee’s FTE (Full-Time Equivalent) represents the percentage of

the employee’s work schedule compared to a 40hr/week schedule. Ex: An employee who
works 40 hr per week is 100% FTE, while an employee who works 20 hours per week is
50% FTE. An employee’s FTE determines how many leave hours are accrued. If an
employee’s FTE changes, you will need to change the employee’s FTE and work
schedule in OWLS (Online Work Leave System).

Schema and Rules in Payroll Calculation (GB)

Schema YG00 – YG99

Rules YG00 – YG99

Schema/Rule

41
YG00 – UK core template – run to calculate payroll

YG99 – UK template payroll schema – net retro differences in tax/ NI not bought
forward. Run to calculate payroll for leavers notified after cut-off.

Subschema

YG01 – Time management

ZG04 Generates wage types 1072 on which SMP is paid
ZG05, ZG06 offset 1072 against wage type 1070 (OMP)
YG02 – Hourly rates to 4 decimal places
YG03, YG04 – Reconvert 4 decimal place wage types to 2, before gross to net
YG05 – Part period factoring
ZG00 Calculate part period factors
ZG01 Set part period factors to zero if negative.
ZG07, ZG08 set part period factor to zero, if wage type 1005
entered.
YG06 - net transfers
ZG02 create wage types 5000 and 5001 with employee
BACS/cheque payments
ZG03 Store employee’s current hourly rate in RT for pay slip.

Note: In UK, the fiscal year starts on 06th April

PAYE – Pay As You Earn

SAYE – Save As You Earn
WTC – Working Tax Credit
SSP – Statutory Sick Pay
SMP – Statutory Maternity Pay
OSP – Occupational Sick Pay
OMP – Occupational Maternity Pay
OPP – Occupational Paternity Pay
SAP – Statutory Adoption Pay
OAP – Occupational Adoption Pay

Wage Types

1000 – Basic pay

1001 – Basic pay
1002 – Basic pay
1003 – Red circle supplement
1004 – Basic pay adjustment
1005 – Basic pay override
1006 – Basic hours
1010 – Permanent health insurance

42
1050 – Basic rate
1060 – Basic hours

BACS (Bankers Automated Clearing System): BACS is a payment system similar to

direct debit systems, BACS has been at the center of the payments industry, for many
years, providing world leading electronic payment services that deliver greater efficiency
and economy to banks and businesses. The two services it provides, direct debit and
BACS direct credit, give consumer safe and efficient payments.

LGART – Wage types

BETRG – Amount
ANZHL – Number
TXCOD – Tax code
TAXBAS – Tax basis
P45TX – Prev taxable
P45PY – Prev tax paid
NICAT – NI category
SCREF – Scheme reference
PCTEE – Employee percentage
PCTER – Employer percentage
PCEES – Employee AVC percentage

SWITZERLAND PAYROLL INFOTYPES (CH)

0036 – Social insurance

0038 – Tax
0039 – Additional organizational assignment
0046 – Pension fund
0048 – Residence status
0278 – PF basic data
0279 – Individual values for PF
0021 – Suppl. Switzerland

LOGICAL DATABASES

Logical databases are special ABAP programs that provide data for processing by queries
or programs. Logical databases provide a particular view of the database table in the SAP
system.

Infosets

43
Infosets are special view of logical databases. An infoset determines which fields of a
logical database can be reported on by queries. Infosets are assigned to user groups.
Infosets are structured according to field groups. Field groups in HR correspond to
infotypes.

Logical Databases in HR

PNP or PNPCE
PCH
PAP

The following assignments between components are logical databases apply:

- HR administration: PNP or PNPCE

- Time Management: PNP or PNPCE
- Payroll PNP or PNPCE
- Recruitment: PAP
- Personnel Development: PCH
- Organizational Management: PCH
- Training and Event Management: PCH

SOLUTION MANAGER

Solution Management

Solution management is the strategy, and the SAP Solution Manager is the technical
infrastructure to realize it. The solution manager brings a new era of solution
management covering all relevant aspects for implementation, operations and continuous
improvement.

SAP Solution Manager

It is a platform that provides integrated content, tools and methods needed to implement,
support, and operate an SAP solution during all phases of the life cycle. The SAP
solution manger is the driver for the problem resolution process within the customer’s
organization and between the customer and SAP Active Global Support. The SAP
Solution Manager encompasses three key areas: Operations, Monitoring and Support.

Benefits of Solution Manager in Implementation

- Central point of access and support of key implementation activities

- Process-driven blueprint, configuration and testing approach
- Automated customizing synchronization across all SAP components

44
 - Standard business process scenarios, along with the corresponding
implementation content, are provided through the business process repository.
- Central repository to store project documentation
- Project monitoring/ reporting capability

ASAP METHODOLOGY

Implementation Roadmap

- Project Preparation
- Business Blueprint
- Realization
- Final Preparation
- Go Live and Support

1. Project Preparation: Planning and preparation of the SAP project

2. Business Blueprint: Finalizing the project scope, defining and documenting all
business requirements, both financial and technical.
3. Realization: Configuring and testing the system to ensure that it meets the
specified business requirements, developing training materials.
4. Final Preparation: End-user training, and preparation of the live system.
5. Go Live and Support: Ongoing support and continuous improvement activities
after going live.

BUSINESS PROCESS REPOSITORY

The business process repository is a package of reusable, user defined business process
content consisting of:

- Scenario documentation
- Transaction assignments
- IMG assignment
- Configuration guides
- Preconfigured processes delivered via BC sets
- Predefined test cases

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