automate global hr and payroll processes [1]

8/6/2019 Automate Global HR and Payroll Processes [1]

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SAP Solution BriefSAP ERP

SAP ERP Human Capital Management

Fragmented software landscapes arecommon in todays multinational organi-zations. In some cases, they are a resultof historical reasons no one can anylonger recall. In other cases, decentral-ized decision making leads to a hetero-

geneous technology foundation thatmay meet the needs of local stakehold-ers but fails to maximize returns for theglobal organization in terms of informa-tion transparency. This is sometimesrecognized as a stumbling block forthe business and sometimes as a low-priority challenge to be dealt with atsome point in the future.

What SAP has shown over many yearsof serving a variety of HR and payroll

organizations worldwide is that consoli-dating core HR and payroll operations

on a common global platform does notneed to be an exercise of nerves, normust it disrupt business or cause anydiscontinuity to operations. A commonglobal HR and payroll environment is notonly technically feasible and operational-

ly desirable, it can be achieved with acommon global skill set that places con-trol of previously decentralized opera-tions within a single instance of SAPsoftware. It becomes accessible to allwho need it and extensible to supportnon-HR processes like financial opera-tions with relative ease. (See Figure 1.)

The payoff in these scenarios is enor-mous better workforce data, betterROI, and a surprising agility in handling

disparate legal and end-user require-ments with a single instance of SAP

HR and payroll organizations

worldwide are consolidatingcore HR and payroll opera-tions on a common globalplatform with no disruptionto their business. Key toa smooth implementation isthe know-how embeddedin HR, payroll, and financials

software from SAP.

AUTOMATE GLOBAL HR ANDPAYROLL PROCESSESINTEGRATED HR FOUNDATION FORINSIGHT INTO GLOBAL WORKFORCE

Compliance withlegal requirementsand year-end payrolland accountingrules

Automated timeand attendanceworkflows

Increasedtransparency

Multiple deploymentoptions in-house,outsource, hybrid

Increased efficiencyof HR operations

Reduced adminis-trative workload

Reduced interface and maintenance costs Single instance for multiple countries Flexible technology platform

Consistent, standard-ized processes

Global reach (languag-es, currencies, and reg-ulatory requirements)

Adherence to globalfinancial businessrequirements (chart ofaccounts, tax calcula-tions, payroll, deprecia-tion methods)

Payroll(outsourced)

Clear sourcingstrategy

Lower IT cost

Figure 1: Single Integrated Solution with Unified Global Processes

optional

Human resourcesBenefitsTime

PayrollFinancials

Automated globalHR processes

Reduced riskand increasedcompliance

One integrated systemof record for personnel,payroll, and financial data

No duplication of data Reduced exception

handling

Consistent accurate data


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fying the process across organizationaland geographical boundaries makesthe data useful. In practical terms, thismeans you can run payroll for businessunits in multiple countries from a singlesolution with a single data model. You

bypass duplicate data entry and benefitfrom a posting process that createsbalanced general ledger and other en-tries in the SAP ERP Financials solutionwithout requiring extra adjustment ormanual intervention by users to trans-form the data. This renders analysissimpler than ever before.

Comprehensive Process Steps

SAP offers a flexible way for you to get

up and running as you automate globalHR and payroll processes. A number ofoptional, implementable steps com-prise the entire process. Each step re-lies on the foundational HR compo-nents in SAP software. Each step canbe tailored to your organizations needs

technology. The benefits of the solutionarent just operational. ConsolidatingHR and payroll operations within a sin-gle platform provides decision makerswith unprecedented, detailed intelli-gence about workforce costs that is

simply unachievable in a heteroge-neous HR IT environment.

Fragmented Solutions and BrokenProcesses

HR, payroll, and finance software cer-tainly have individual stakeholders whomay be involved directly in selecting,implementing, and managing those so-lutions on an ongoing basis. Each setof stakeholders has specific needs and

priorities. The key to achieving best-in-

class HR and payroll processes is torecognize the common challenges anorganization faces in managing its laborcosts and identifying areas for improve-ment that cut across these disparatesolutions.

For example, public and private sectororganizations today universally recog-nize the need to be more agile. Neverbefore have so many organizationsworldwide shifted their sources of laborand their workforce cost structures in

order to weather economic uncertaintyand continue growing, competing, andexecuting their business strategies. Buthow does an organization truly knowthe makeup of a far-flung global work-force? How can management deter-mine the best mix of contingent andfull-time labor without clear reportingon labor costs across lines of businessand geographical boundaries?

Having a comprehensive end-to-end

process that starts with data entry byemployees and HR staff for payroll andextends to financials operations is theprerequisite for enabling strategic work-force decision making. Eliminating re-dundant data throughout the processmakes the process more efficient. Uni-

SAP has shown over manyyears of serving a variety ofHR and payroll organizations

worldwide that consolidatingcore HR and payroll opera-tions on a common globalplatform does not needto cause any discontinuityto operations.

Figure 2: Automated Global HR and Payroll Processes Across the Enterprise

Payroll

Finance

Manager

Humanresources

Employee

Createplans

Planenrollment

Calculategross/net

Evaluatetime

Analyze labor costs

Entertime

Scheduledclose

Transfer tofinancials

Vice presidentHR

PayrollBenefits

administrationTime

managementGeneral ledgerand controlling

Vice president HR Payroll managerHR administrator Controller


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and legal requirements. And each stepaddresses the needs of stakeholdersfrom different teams across your orga-nization, from benefits administrationand payroll to accounting. (See Figure2.) The key implementable steps are

described below.

Benefits AdministrationIn this implementation step, you createthe benefits plans your employees mayenroll in and can configure the payroll-relevant processes, including payrolldeductions. You can include self-servicefunctionality to allow employees to enterand update their information online akey advantage for reducing administrationcosts and an attractive option for

shared-services environments.

Time ManagementWhen you implement time manage-ment, you can define payroll-relevantshifts and time schedules, working cal-endars, and vacation allowances. Aswith the benefits functionality, this in-cludes self-service functionality to letusers enter the time they worked aswell as their absences and breaks.They can allocate the time they workedto any number of relevant projects with-

in the HR software or within other soft-ware. For example, staff can allocatetime worked to project tracking soft-ware or cost allocations software serv-ing your financial operations. With thetime evaluation function supported inthe SAP software, you can dynamicallygenerate a variety of payroll-relevanttime codes to be used in determiningemployee pay.

Labor CostsSAP provides a wealth of reportingtechnology as well as content, with keyperformance indicators related to theworkforce available to all users of SAPsoftware for HR and payroll. Using tech-nologies such as SAP BusinessObjectsXcelsius Enterprise software, you canemploy powerful analytical tools anddashboards to deliver real-time informa-tion about labor costs to decision

makers around the world in a visuallycompelling format. (See Figure 3.) Agiledecision making becomes possiblewhen executives can review the driversof workforce-related expenses, observehow they can change over time, anddevelop an anticipatory sense of howthey will continue to fluctuatein the future.

Find Out MoreTo find out more, call your SAP

representative or visit us online atwww.sap.com/hcm.

PayrollThe payroll engine is a multinationalsolution that integrates directly with theHR software from SAP allowing usersto enter HR information that becomesimmediately available to the payroll pro-gram for gross-to-net calculations. Thepayroll software can be integrated withSAP ERP Financials as well, which facil-itates the efficient transfer of payroll re-sults for the general ledger, controlling

and bank transfer activities, and otheroperational purposes.

General Ledger and Period-End ClosingA variety of processes are run periodi-cally to generate internal and externalreports from SAP ERP Financials, manyof which rely on accurate data fromthe SAP software for HR and payroll.Configuring these aspects of SAP ERPFinancials allows you to handle tasksrapidly that would previously have required

extensive data transformation andmanual intervention.

Figure 3: Real-Time,Relevant Information

for Decision Makers


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QUICK FACTS www.sap.com/contactsap

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other Business Objects products and services mentioned hereinas well as their respective logos are trademarks or registeredtrademarks of SAP France in the United States and in other countries.

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SummaryHR and payroll organizations worldwide are consolidating core HR and payroll operationson a common global platform with no disruption to their business. Key to a smoothimplementation is the know-how embedded in HR, payroll, and financials software from SAP.

Business Challenges Unify fragmented software landscapes

Achieve transparency of information globally Consolidate core HR and payroll operations on a common global platform Gain control of previously decentralized operations

Key FeaturesFlexible, optional implementation steps Automate global HR and payroll processes

rapidlyStrong HR foundation Configure HR and payroll processes based on HR components

in SAP softwareCompliance with legal requirements Build support for legal compliance right into

the implementationFulfillment of stakeholder needs Address the needs of stakeholders from different

teams across your organization, from benefits administration and payroll to accounting

Business BenefitsBetter workforce data through consolidation of HR and payroll operations on a

single platformReduced administration costs through implementation of self-service functionalityBetter handling of disparate legal and end-user requirements by running business

processes on a single instance of SAP technologyEfficient transfer of payroll results through integration with the SAP ERP Financials

solution

For More InformationFor more information, call your SAP representative or visit us online atwww.sap.com/hcm.

automate global hr and payroll processes [1]

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