Payroll

This component allows you to process payroll for employees in the Company. SAP has provided with a few country specific payrolls to meet the local requirements of that particular country. For all other countries International Payroll is used, which can be customized by the company to meet their requirements. Payroll is one of the most important module in SAP HR. Listed below are the various topics that will be covered through various types of course types available in LSO   
Payroll – Definitions
Payroll - Infotypes, TC, Tables, Actions
Payroll – Paths

Basic Pay 

Steps include:
  • Assign Company Code to Fiscal Year Variant and Chart of Accounts
  • Maintain / Default Number Ranges [Personnel]
  • Define Period / Date Modifiers
  • Payroll Accounting Areas
  • Generate Payroll Periods
  • Default Payroll Area's 
  • EE Grouping for PCR & CAP
  • Pay Scale Type / Area
  • Assign Pay Scale Structure to Enterprise Structure 
  • Defaults for Pay Scale Data
  • Create Wage Type Catalog
  • Create Basic Pays Wage Types
  • Permissibility  per Infotype
  • Grouping of Primary Wage Types
  • Permissibility for each PS and ESG
  • Wage type characteristics
  • Revise Pay Scale Groups & Levels 
  • Revise Default Wage Types 
  • Enterprise Structure for Wage Type Model
  •  Valuation of Base Wage Types
  • Assign Tax Companies to PA
  • Edit SCHEMA

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Employee Remuneration Statement 

Here we deal with Info Type 2010.  We decide possible entries of different wage types for different payments.  In combination with the wage type, we can have the following options:
  • A Valuation Basis
  • Extra Pay
  • A Premium Indicator – It is used to calculate the value of the premium.  The premium rate or number is then processed in Payroll.
  • An overtime compensation type

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Factoring 

CONFIGURATION STEPS FOR FACTORING [ For LOP]

PART I – TIME DATA RECORDING AND ADMINISTRATION
Define Absence Types
Determine Entry Screen and Time Constraint Class
Define Counting Rules
Assign Counting Rules to Absence Types

PART II – TIME EVALUATION
Define Time Types
Determine Processing Type/Time Type Class for Absence
Assign Processing Type and Time Type
Define Valuation Classes for Period Work Schedule
Define Grouping (Time wage type selection rule group).
Define Processing Types
create Wage Type Catalog
Define Generation Rules
Perform Time Wage Type Selection

PART III – PAYROLL (US)
Describe Absence Valuation Rules
Assign Absences to Valuation Classes
Determine Grouping for Absence Valuation
Define Day Rules
Create Wage Type Catalog
Create Counting Class for Absence Val at T:V_T554E
Create Counting Classes for Absence Evaluation
Evaluate Absences Using ‘As If’ Principle

END-USER PART
PAYSLIP

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Additional Payments / Deduction - IT0015
Recurring Payments / Deduction - IT0014   

Steps include:  
  • Define reasons for change 
  • Create wage type catalog
  • Wage type characteristics
  • Check wage type group / text 
  • Permissibility for additional payments
  • Permissibility for each PS and ESG
  • Permissibility for additional payments
  • Define Periodicities / Deduction Periods 
  • One Time Payment/Deduction [Maintain]
  • One Time Payment/Deduction  [Display] 
  • Real Time Examples 
  • Employee Remuneration Information (IT 2010) 

IT 0014 Doc..
IT 0015 Doc..

Actions

Steps include:
  • Define Info Groups
  • Setup Personnel Actions
  • Reasons for Personnel Actions
  • Create / Default Action Menu
  • Testing the Actions
  • CREATE DYNAMIC ACTIONS

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CUMULATION WAGE TYPES

Cumulation means adding up.  Example:  Gross Salary, Net Salary, etc.  We can create our own Cumulation wage types.  A CUMULATION WAGE TYPE   is a bucket to store our different wage types. For example, the wage types those are required for arriving at net payments. CUMULATION WAGE TYPES are different buckets to hold wage types for gross, net etc.  Gross or net is identified with Cumulation wage type.  Processing Class 03 is used.

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DEDUCTIONS

We use DEDUCTIONS for specifying how we can make deductions from employees’ remunerations and how to set a limit for deductions.  We study Processing Classes 41 and 50 with respect to Deductions.

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Time Quota Compensation 

Define Time Quota Compensation Methods
Create Wage Type Catalog
Check Wage Type Group ‘Time Quota Compensation’
Check Wage Type text
Check Permissibility for Each Infotype
Check Wage Type Characteristics
Define Employee Subgroup Grouping for Primary Wage Type
Define Personnel Subarea Grouping for Primary Wage Type
Specify Wage Types Permitted for Each PSG and EGS
Assign Wage Type to the Quotas to be Compensated
Create a Deduction Rule (Exclusively for this):
Assign Deduction Rule to Compensation Method
END USER PART

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INFO TYPES required for US PY - Link
MID-YEAR GO LIVE – US PAYROLL - Link
Off Cycle PY - Link
VALUATION BASES - Link
POSTING TO FICO - Link

Indian Payroll 

Other Exercises : 

Absence Valuation
Basic Pay - IT 0008
Control Record
Cumulation classes & Evaluation class 
Factoring & Pro-ration
Income Tax
Legacy Data Transfer 
One Time Pay/ Ded [Maintain] - IT  0015
Payroll Journal 
Payroll Structure - Part B
Processing Classes PCR’s
PY Area & Control Area 
Recurring Pay/Deductions [Display] (IT0014) 
Recurring Pay/Deductions (IT0014) 
Third-Party Sick Pay Solution 
Wage Type Create
Wage type Reporter 
Wage type Valuation 
Additional Payments - IT0015 & IT 2010
Changing WAGE TYPE text 
Creation of Wage Types 
Display Pay Results 
Garnishments 
Indirect Valuation Annual Salary - IT 0008
One Time Pay/Ded  [Display] - IT 0015 
Pay Scale Structure 
Payroll Structure - Part A
Payroll Run 
Processing Classes
Rates of Pay 
Recurring Pay/Ded [Maintain] (IT0014)
Salary Component - Wage Types
US Payroll Constants 
Wage type permissibly
Wage Type Characteristics 

Important Infotypes Payroll [US]

Personnel Administration 

- Addresses (Infotype 0006)
- Bank Details (Infotype 0009)
- Challenge (infotype 0004)
- Personal Data (Infotype 0002)
- Family/Related Person (Infotype 0021)
- Internal Medical Service (Infotype 0028)

Organizational Data

- Cost Distribution (Infotype 0027)
- Organizational Assignment (infotype 0001)
- Reference Personnel No. (Infotype 0031)
- Reference Personnel No. Priority (IT 0121)

Actions 

- Actions (Infotype 0000)

Authorization Administration

- Test Procedures (Infotype 0130)

Contractual and Company Agreements

- Company Instructions (infotype 0035)
- Corporate Function (infotype 0034)
- Internal Control (Infotype 0032)
- Works Councils (infotype 0054)
- Communication (Infotype 0105)
- Objects on Loan (Infotype 0040)
- Contract Elements (Infotype 0016)
- Powers of Attorney (infotype 0030)

Evaluation Bases

Date Specifications (infotype 0041)
Monitoring of Tasks (Infotype 0019)

Loans

- Company Loans (Infotype 0045)

General Payroll Data

- Payroll Status (Infotype 0003)
- Basic Pay (Infotype 0008)
- Appraisals (Infotype 0025)
- Employee Remuneration Info Infotype (2010)
- Time Quota Compensation Infotype (0416)
- Additional Payments (Infotype 0015)
- Membership Fees (Infotype 0057)
- Notifications Infotype (0128)
- Standard Wage Maintenance (Infotype 0052)
- Recurring Payments/Deductions (Infotype 0014)

Insurance

Insurance (Infotype 0037)


Country-Specific Functions:

Saudi Arabia

Infotypes:
  • Labor Office SA Infotype 
  • Previous Employer/Pension Amend. SA Infotype 
  • Occupational Hazards SA Infotype 
  • Social Insurance Infotype 

- Payroll schema specific to Saudi Arabia - Details
- Islamic Hijri Calendar
- Visa Management
- Bonus Payment
- Sanction Violations
- Social Insurance
- End of Service
- Reporting and Forms for Saudi Arabia

United Arab Emirates