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©© 2013 SAP AG. All rights reserved.
Scenario/Processes
Payroll ServicesScenario Overview
Posting and Closing
Collecting/Transferring Payroll Input Data
Processing Payroll Calculation
Initiating Payment
Performing Statutory Reporting
Scenario Explorer
Open Legend
HR Administrator
Scenario Description
The following business roles are involved in this scenario:
Click process chevrons for details
Defining Compensation Policy
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data
The Payroll Services business scenario is designed to efficiently support the payroll process with an external payroll system. Payroll Services combines the advantages of an internal payroll – transparency, monitoring, and controlling – with the advantages of an outsourced payroll - lower costs, higher efficiency, and lower risk of liability. In the Business Process Outsourcing (BPO) scenario of Payroll Services, the payroll provider takes care of tax calculations and remittance, and initiates the salary payments to employees, thereby reducing your administrative overhead.
Additionally, Payroll Services enables you to validate a preview of all payroll input data within the payroll snapshot before it is transferred to your payroll provider. This allows you to correct the data when necessary, giving you full control over the payroll before the payroll calculation has started.
Business Value
Scenario Flow
Further Information
©© 2013 SAP AG. All rights reserved.
Scenario/Processes
The Payroll Services business scenario is designed to efficiently support the payroll process with an external payroll system. Payroll Services combines the advantages of an internal payroll – transparency, monitoring, and controlling – with the advantages of an outsourced payroll - lower costs, higher efficiency, and lower risk of liability. In the Business Process Outsourcing (BPO) scenario of Payroll Services, the payroll provider takes care of tax calculations and remittance, and initiates the salary payments to employees, thereby reducing your administrative overhead.
Additionally, Payroll Services enables you to validate a preview of all payroll input data within the payroll snapshot before it is transferred to your payroll provider. This allows you to correct the data when necessary, giving you full control over the payroll before the payroll calculation has started.
Payroll ServicesScenario Overview
HR Administrator
Scenario Description
The following business roles are involved in this scenario:
Click process chevrons for details
Open LegendOpen Legend
<Role Name><Role Name> <Role Name>
Legend
Process mainly driven by the user
Process mainly driven by the system
Manual process not supported by the system
Process that communicates with third-party software (mouse-over for details)
Process with relevance to Financials
Related scenario
Info button with more information
Close Legend
Business Value
Scenario Flow
Further Information
Posting and Closing
Collecting/Transferring Payroll Input Data
Processing Payroll Calculation
Initiating Payment
Performing Statutory Reporting
Defining Compensation Policy
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data
Scenario Explorer
©© 2013 SAP AG. All rights reserved.
Scenario/Processes
Defining Compensation Policy with Compensation Structure
Payroll Services Process Details: Defining Compensation Policy
Scenario Explorer
Process Description
Maintain compensation structure and assign compensation components
Maintain compensation components
Performed byHR Administrator
In the Work CenterCompensation
Further Information
X
i i
Click process chevrons for details
Posting and Closing
Collecting/Transferring Payroll Input Data
Processing Payroll Calculation
Initiating Payment
Performing Statutory Reporting
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data
Click here to display process variant
The HR administrator plans and designs the compensation for employees using appropriate reward strategies based on predefined compensation structures and components. The administrator sets up the compensation structures and is also responsible for changes and adjustments: adapting point- and range-based compensation structures by maintaining grades, amounts, and minimum and maximum amounts. Basic elements in compensation are compensation components, comprising:
• Salaries or wages
• Regular earnings or deductions
• One-time earnings or deductions
The HR administrator also creates point- and range-based compensation structures for all employee groups, enabling grouping of employees based on their compensation packages. Compensation structures increase transparency for your company compensation policies and allow analysis of compensation across various employee groups.
Business Value
Scenario Flow
Further InformationSee alsoCompensation BasicsCompensation Structures
©© 2013 SAP AG. All rights reserved.
Scenario/Processes
Defining Compensation Policy with Compensation Structure
Payroll Services Process Details: Defining Compensation Policy
Scenario Explorer
Process Description
Maintain compensation structure and assign compensation components
Maintain compensation components
Further Information
X
i i
Click process chevrons for details
Posting and Closing
Collecting/Transferring Payroll Input Data
Processing Payroll Calculation
Initiating Payment
Performing Statutory Reporting
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data
Click here to hide process variant
Defining Compensation Policy without Compensation Structure
i
The HR administrator plans and designs the compensation for employees using appropriate reward strategies based on predefined compensation structures and components. The administrator sets up the compensation structures and is also responsible for changes and adjustments: adapting point- and range-based compensation structures by maintaining grades, amounts, and minimum and maximum amounts. Basic elements in compensation are compensation components, comprising:
• Salaries or wages
• Regular earnings or deductions
• One-time earnings or deductions
The HR administrator also creates point- and range-based compensation structures for all employee groups, enabling grouping of employees based on their compensation packages. Compensation structures increase transparency for your company compensation policies and allow analysis of compensation across various employee groups.
Performed byHR Administrator
In the Work CenterCompensationBusiness Value
Scenario Flow
Further InformationSee alsoCompensation BasicsCompensation Structures
©© 2013 SAP AG. All rights reserved.
Scenario/Processes
Payroll Services Process Details: Preparing Payroll Process
Scenario Explorer
Process Description
In the Work CentersPayroll Processing Compensation
Further Information
Click process chevrons for details
Defining Compensation Policy
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data
Preparing PayrollProcess
Check mapping tables
Schedule future payroll processes
X
i i
The HR administrator schedules regular payroll runs according to the payroll periods (for example, bi-weekly, semi-monthly) of the different payroll groups. Depending on the planned payroll run date, the administrator creates the payroll periods, plans the payment dates, the payroll period start and end dates, and the cut-off dates – the latest dates that payroll-relevant data must be entered in the ByDesign system to ensure its inclusion in the payroll run.
The HR administrator is also responsible for smooth communication between the ByDesign system and the payroll provider system. This role includes ensuring that the mapping tables of pay types to provider pay types, time types to provider times types, and time account pay types to provider time account types are correctly maintained and up-to-date in the ByDesign system.
Performed byHR Administrator
Business Value
Scenario Flow
Further Information See alsoPayroll Run Quick Guide
Posting and Closing
Collecting/Transferring Payroll Input Data
Processing Payroll Calculation
Initiating Payment
Performing Statutory Reporting
©© 2013 SAP AG. All rights reserved.
Scenario/Processes
Payroll Services Process Details: Defining Employees’ Compensation
Scenario Explorer
Process Description
Click process chevrons for details
Preparing Payroll Process
Maintaining Employees’ Payroll Data
Defining Employee Compensation with Compensation Structure
X
Assign compensation structure and grade to employees
Maintain compensation according to compensation structure
Maintain deductions
i i i
Click here to display process variant
The HR administrator maintains all employee salary changes and adjusts the assignment of compensation structures and grades: adding new compensation components or maintaining amounts for earnings or deductions as required.
In the Work CenterCompensation
Further Information
Business Value
Scenario Flow
Further Information See alsoSynchronize Employee Data
Posting and Closing
Collecting/Transferring Payroll Input Data
Processing Payroll Calculation
Initiating Payment
Performing Statutory Reporting
Defining Compensation Policy
Performed byHR Administrator
©© 2013 SAP AG. All rights reserved.
Preparing Payroll Process
Posting and Closing
Collecting/Transferring Payroll Input Data
Processing Payroll Calculation
Initiating Payment
Performing Statutory Reporting
Defining Compensation Policy
Scenario/Processes
Payroll Services Process Details: Defining Employees’ Compensation
Scenario Explorer
Process Description Further Information
Click process chevrons for details
Maintaining Employees’ Payroll Data
Defining Employee Compensation with Compensation Structure
X
Assign compensation structure and grade to employees
Maintain compensation according to compensation structure
Maintain deductions
i i i
Click here to hide process variant
Defining Employee Compensation without Compensation Structure
i
The HR administrator maintains all employee salary changes of employees and adjusts the assignment of compensation structures and grades: adding new compensation components or maintaining amounts for earnings or deductions as required.
Business Value
Scenario Flow
Further Information See alsoSynchronize Employee Data
Performed byHR Administrator
In the Work CenterCompensation
©© 2013 SAP AG. All rights reserved.
Scenario/Processes
Payroll Services Process Details: Maintaining Employees’ Payroll Data
Scenario Explorer
Process Description Further Information
Click process chevrons for details
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data
Maintain payroll group assignment
Maintain payment data
Maintain tax and/or social insurance data
X
i i i
X
During the payroll hire process, the HR administrator maintains employees’ payroll data, such as the payroll group assignment, payment information, and additional information for further bank accounts. According to country-specific regulations, tax and/or social insurance data for employees is also maintained.
In the Work CenterPersonal AdministrationBusiness Value
Scenario Flow
Further Information See alsoSynchronize Employee Data
Posting and Closing
Collecting/Transferring Payroll Input Data
Processing Payroll Calculation
Initiating Payment
Performing Statutory Reporting
Preparing Payroll Process
Defining Compensation Policy
Performed byHR Administrator
©© 2013 SAP AG. All rights reserved.
Scenario/Processes
Payroll Services Process Details: Collecting & Transferring Payroll Input Data
Scenario Explorer
Process Description Further Information
Click process chevrons for details
Posting and Closing
Processing Payroll Calculation
Initiating Payment
Performing Statutory Reporting
XCollecting Payroll Input Data and Transferring Data usingFile Download and Automated Upload
View warnings and error messages from provider. Update/resend snapshot as necessary
Transfer data file to payroll provider
Create and download data file
Check and correct snapshot data. Recreate snapshot as necessary
Create snapshot
iiiii
Click here to display process variants
X
The Business Process Outsourcing (BPO) scenario for a regular payroll run in the ByDesign
environment begins with the collection of all new or changed payroll, compensation, and time data into a payroll snapshot, which is then systematically validated for inconsistencies. Errors in the snapshot data are identified by the ByDesign system for the HR administrator to view and correct, followed by re-creation of the snapshot as required. Once the snapshot data is complete and accurate, an XML file is created, downloaded, and transferred to a third-party payroll provider .
The different variants in this process are dependent on how the data are brought into the payroll provider’s system. In all variants, it is essential that the complete process of snapshot creation and transfer to the provider is repeatable.
In the Work CenterPayroll ProcessingBusiness Value
Scenario Flow
Further Information
See alsoExpense Report Notification to Payroll ProcessingPayroll Processing with DATEV (DE only)
Defining Compensation Policy
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data
Performed byHR Administrator
©© 2013 SAP AG. All rights reserved.
Collecting Payroll Input Data and Transferring Data usingFile Download and Automated Upload
Scenario/Processes
Payroll Services Process Details: Collecting & Transferring Payroll Input Data
Scenario Explorer
Process Description Further Information
Click process chevrons for details
X
Click here to hide process variants
Collecting Payroll Input Data and Exporting Data via Automated Messaging (currently not supported)
Collecting Payroll Input Data and Exporting XML Data Converted to Exceli
i
View warnings and error messages from provider. Update/resend snapshot as necessary
Transfer data file to payroll provider
Create and download data file
Check and correct snapshot data. Recreate snapshot as necessary
Create snapshot
iiiii
The Business Process Outsourcing (BPO) scenario for a regular payroll run in the ByDesign
environment begins with the collection of all new or changed payroll, compensation, and time data into a payroll snapshot, which is then systematically validated for inconsistencies. Errors in the snapshot data are identified by the ByDesign system for the HR administrator to view and correct, followed by re-creation of the snapshot as required. Once the snapshot data is complete and accurate, an XML file is created, downloaded, and transferred to a third-party payroll provider .
The different variants in this process are dependent on how the data are brought into the payroll provider’s system. In all variants, it is essential that the complete process of snapshot creation and transfer to the provider is repeatable.
Business Value
Scenario Flow
Further Information
See alsoExpense Report Notification to Payroll ProcessingPayroll Processing with DATEV (DE only)
Defining Compensation Policy
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data
Posting and Closing
Processing Payroll Calculation
Initiating Payment
Performing Statutory Reporting
Performed byHR Administrator
In the Work CenterPayroll Processing
©© 2013 SAP AG. All rights reserved.
Scenario/Processes
Processing Payroll: Gross-to-NetCalculation Performed by Payroll Provider
Payroll Services Process Details: Processing Payroll Calculation
Scenario Explorer
Process Description
In the external payroll provider system
Further Information
Click process chevrons for details
Validate payroll results. Update snapshot when necessary
Run payroll
ii
X
Click here to display process variant
Performed byPayroll Provider
The payroll provider processes payroll and checks payroll results for completeness and correctness. The provider ensures that the calculation of tax and social insurance contributions meets the relevant country-specific regulations.
If the payroll results are not correct because of invalid data sent to the provider from the ByDesign system, this data must be corrected and a snapshot of the data re-created. A new data file is then created in the ByDesign system and transferred to the payroll provider.
Business Value
Scenario Flow
Further InformationSee alsoQuick Guide for Work (in Payroll Processing)
Defining Compensation Policy
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data
Posting and Closing
Initiating Payment
Performing Statutory Reporting
Collecting/Transferring Payroll Input Data
©© 2013 SAP AG. All rights reserved.
Scenario/Processes
Payroll Services Process Details: Processing Payroll Calculation
Scenario Explorer
Process Description Further Information
Click process chevrons for details
The payroll provider processes payroll and checks payroll results for completeness and correctness. The provider ensures that the calculation of tax and social insurance contributions meets the relevant country-specific regulations.
If the payroll results are not correct because of invalid data sent to the provider from the ByDesign system, this data must be corrected and a snapshot of the data re-created. A new data file is then created in the ByDesign system and transferred to the payroll provider.
In the external payroll provider system
Performed byPayroll Provider
Processing Payroll : Gross-to-Net Calculation Using Automated Messaging
(currently not supported)
Business Value
Scenario Flow
Further InformationSee alsoQuick Guide for Work (in Payroll Processing)
Processing Payroll: Gross-to-NetCalculation Performed by Payroll Provider
Validate payroll results. Update snapshot when necessary
Run payroll
ii
X
Click here to hide process variant
Posting and Closing
Initiating Payment
Performing Statutory Reporting
Collecting/Transferring Payroll Input Data
Defining Compensation Policy
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data
©© 2013 SAP AG. All rights reserved.
Defining Compensation Policy
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data
Scenario/Processes
Payroll Services Process Details: Initiating Payment
Scenario Explorer
Process Description Further Information
Click process chevrons for details
Processing Payroll Calculation
Initiating Payments
Transmit bank transfer file
Create bank transfer file
ii
X
Click here to display process variants
The payroll provider initiates salary payments to the employees. How this process is done is provider-dependent. In this scenario, one example of a possible payment initiation process performed by the provider is illustrated. Three alternative variants to this example process are also shown.
In the external payroll provider system
Performed byPayroll Provider
Business Value
Scenario Flow
Further InformationSee alsoQuick Guide for Work
Posting and Closing
Performing Statutory Reporting
Collecting/Transferring Payroll Input Data
©© 2013 SAP AG. All rights reserved.
Defining Compensation Policy
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data
Processing Payroll Calculation
Initiating Payments
Transmit bank transfer file
Create bank transfer file
ii
X
Click here to hide process variants
Posting and Closing
Performing Statutory Reporting
Collecting/Transferring Payroll Input Data
Scenario/Processes
Payroll Services Process Details: Initiating Payment
Scenario Explorer
Process Description Further Information
Click process chevrons for details
The payroll provider initiates salary payments to the employees. How this process is done is provider-dependent. In this scenario, one example of a possible payment initiation process performed by the provider is illustrated. Three alternative variants to this example process are also shown.
In the external payroll provider system
Performed byPayroll Provider
Business Value
Scenario Flow
Further Information
Check Printing and Dispatch
Bank Transfer via Customer
Bank Transfer to Employees from Provider’s Bank Account
See alsoQuick Guide for Work
©© 2013 SAP AG. All rights reserved.
Scenario/Processes
Payroll Services Process Details: Performing Statutory Reporting
Scenario Explorer
Process Description
For this statutory process, the payroll provider:
Performs statutory reporting for tax and social insurance
Prints forms for employees (for example, remuneration statements)
Prints forms for authorities (for example, contribution statements)
Transfers data to authorities according to country-specific regulations
Further Information
Click process chevrons for details
Initiating Payment
Performing Statutory Reporting
Run required statutory reports for tax and social insurance
Create formsTransmit data to authorities
iii
X
In the external payroll provider system
Performed byPayroll Provider
Business Value
Scenario Flow
Further InformationSee alsoProducing Statutory Reports
Processing Payroll Calculation
Collecting/Transferring Payroll Input Data
Posting and Closing
Defining Compensation Policy
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data
©© 2013 SAP AG. All rights reserved.
Scenario/Processes
Payroll Services Process Details: Posting and Closing
Scenario Explorer
Process Description
The HR administrator extracts payroll posting data from the payroll provider system and posts payroll results generated by the provider into General Ledger. In a final step, he closes the payroll period.
In the Work CenterPayroll Processing General Ledger
Further Information
Click process chevrons for details
Performing Statutory Reporting
Posting and Closing
Extract payroll posting data from provider system
Upload data into General Ledger
Close payroll period
iii
X
Business Value
Scenario Flow
Further InformationSee alsoTransferring Payroll Results to Accounting
Initiating Payment
Processing Payroll Calculation
Collecting/Transferring Payroll Input Data
Performed byHR Administrator
Defining Compensation Policy
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data
©© 2013 SAP AG. All rights reserved.
Initiate
Maintaining Employee Compensation
Maintaining Employee Payroll Data
Payroll Services Business Value
Scenario Explorer
Overview
This scenario is ideal for HR executives in midsize companies who need to set up and manage scalable, accurate, and efficient payroll processes in a country-compliant manner.
You can deploy workforces regionally or internationally, control payroll costs, perform company-wide compensation planning, and improve the accuracy of your company’s time reporting.
SAP Business ByDesign integrates compensation planning and time recording into payroll processing and allows for accounting records to be updated.
Support for global payroll outsourcing so that payroll is run accurately, on time, and in compliance with country regulations
Recording functions that are integrated with project management and financials to simplify resource allocations, payments, and profitability analysis
Automated payroll processing that reduces the costs of HR services
Tight integration of outsourced payroll for optimized collaboration and efficient communication with payroll provider
Key Benefits
Run
Collecting/Transferring Payroll Input Data
Processing Payroll Calculation
Initiating Payment
Settle
Performing Statutory Reporting
Post to Ledger
Business Value
Scenario/Processes
Scenario Flow
Further Information
©© 2013 SAP AG. All rights reserved.
Initiating Payment
Collecting/Transferring Payroll Input Data
Processing Payroll Calculation
Payroll Services Scenario Flow Variant: Payroll Services
Legend
Work center in which process is performed
Business document flow
Process related to Financials
Related scenarios
Process mainly driven by the user
• Process variant1
• Process variant 2
Scenario Explorer
Work Center
Additional Application
• File Download and Transfer to Provider
• Using XML Data File with Excel Conversion
• Automated Messaging
• Salary Payments on Behalf
• Check Printing• Bank Transfer File• Salary Payments from
Payroll Provider Bank
• Gross-to-Net Calculation by Payroll Provider
• Gross-to-Net Calculation via Automated Messaging
Defining Compensation Policy
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data
Workforce Administration
Time and Labor Management
Expense Reimbursement
Preparing Payroll Process
Performing Statutory Reporting
Posting and Closing
Financial Closing
Compensation
Organizational Management/
Payroll Processing
Payroll Processing
Personnel Administration
External Payroll
Processing
Payroll Processing
General Ledger
External Payroll
Processing
External Payroll
Processing
Process communicating with third-party software
• With Compensation Structure
• Without Compensation Structure
• With Compensation Structure
• Without Compensation Structure
Business Value
Scenario/Processes
Scenario Flow
Further Information
©© 2013 SAP AG. All rights reserved.
Payroll ServicesFurther Information
Scenario Explorer
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Further Information
Business Value
Scenario Flow
Scenario/Processes