Payroll Posting Outsourcing Solution

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Payroll Posting Outsourcing Solutions- ADP Posting Interface to FICO -

- Whitepaper -

Author: Andreas Mau andreas@kdssc.com

Klaus-Dieter Spatz klaus@kdssc.com

KDS Software & Consulting, Inc3715 Jefferson Court

Redwood City, CA 94062

NOTICEKDS Software & Consulting, Inc., reserves the right to claim the following document asintellectual property. No part of this document may be reproduced or transmitted in anyform or for any purpose without the express permission of KDS Software & Consulting,Inc.. The information contained herein may be changed without prior notice.

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Table of Contents1 PAYROLL POSTING OUTSOURCING SOLUTION ..................................................... 3

1.1 Description .................................................................................................................. 31.2 Customer Priorities...................................................................................................... 4

2 DEFINITION AND SPECIFICATIONS........................................................................... 5

2.1 Definition ..................................................................................................................... 52.2 Specifications .............................................................................................................. 5

2.2.1 Key features......................................................................................................... 52.2.2 General Features ................................................................................................. 62.2.3 System Requirements......................................................................................... 6

2.3 Application................................................................................................................... 62.3.1 Description ........................................................................................................... 62.3.2 Shortcomings of the SAP Business Process Outsourcing for Payroll .......... 72.3.3 Solution ................................................................................................................ 8

2.4 Performance.............................................................................................................. 102.5 Reliability ................................................................................................................... 102.6 Durability ................................................................................................................... 112.7 Simplicity and Aesthetics........................................................................................... 11

3 SERVICEABILITY AND MAINTENANCE ................................................................... 12

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1 Payroll Posting Outsourcing Solution

1.1 Description

Currently SAP does not provide an outsourcing interface for payroll posting to FICO. Theapplication introduced in this whitepaper can handle the complexity of a generic postinginterface to FICO. This inherently applies to all third party posting requirements or partialpayroll outsourcing.

The application integrates non SAP payroll systems with SAP FICO. The following featuresare available

BasicSupports all vendors like ADP, ProBusiness, and other vendors

Integrates in a familiar SAP way via standard HCM FI/CO process

Simple installation

Uses SAP standard symbolic account configuration

Custom OptionsOptional Grid/Tree view

Multiple Outsourcing Provider Interface for subsidiaries with different implementations

Custom Notifications

Project Services Interface to WBS element assignments

Overrides for incoming cost centers

Public Sector: Funds/Grants assignments

Public Sector: Distribution of liabilities according to Expenses possible

This solution does not require any modification to the current SAP Payroll Posting andOutsourcing applications. All components developed in this custom solution are standalone orinterfaced with SAP applications via standard interfacing and service methods. Theapplication seamlessly integrates with any partial SAP Payroll implementation.

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1.2 Customer Priorities

Here a comprehensive list of high customer priorities for Payroll Posting Outsourcing Solution:

1. Easy to use applications

2. Fast determination of payroll postings and their distribution

3. Ability to monitor posting details

4. Ability to extend the use of existing SAP components rather than solution replacements

5. Efficient performance

6. Standard look and feel of resulting applications

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2 Definition and Specifications

2.1 Definition

The scope of the payroll posting outsourcing solution is to allow generic interfacing with thecurrently existing SAP Payroll and FICO modules as well as utilizing parts of SAP’s ABAPinfrastructure to support the data traffic in all processes.

Fig. 1.: Component diagram of a Payroll Posting Outsourcing Solution

2.2 Specifications

2.2.1 Key features Integrates all non SAP payroll systems with SAP FICO ADP, ProBusiness, and other vendors Integrates in a familiar SAP way via standard HCM FI/CO process

FICO Payroll PostingOutsourcing

Solution

ConfigurationAdd-On OptionsPosting ReportingCustom NotificationsCost AssignmentOverrides

PayrollOutsourcing

Service Providerfor Subsidiary A

PayrollOutsourcing

Service Providerfor Subsidiary B

Payroll OutsourcingService Provider for

Subsidiary Z

Configuration,Payroll Data

FICO IncomingPayroll Posting

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Simple installation Uses SAP standard symbolic account configuration Seamless integration of traditional SAP Payroll Posting and custom add-on Posting

Outsourcing Optional custom extensions

2.2.2 General Features define cost accounting assignments storage for incoming posting documents utilize cost accounting entities like cost center, fund, grant, profit center, etc. as balance

base custom notification options for pre-/post-processing Configuration:

o Custom overrides for account assignmentso SAP standard account assignments

2.2.3 System Requirements SAP HR release 4.6C, 4.70, ERP2003, ERP2004, ERP2005, or higher

2.3 Application

2.3.1 DescriptionThe following application will be provided with the Payroll Posting Outsourcing Solution

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Fig. 2.: Data flow diagram of the Payroll Posting Outsourcing Solution

2.3.2 Shortcomings of the SAP Business Process Outsourcing for PayrollThe SAP system supports payroll outsourcing for net payroll on a complex level but only forno solution for complete payroll outsourcing. For example you want to outsource your entirepayroll to a provider and only import the final FICO posting results. In such a case SAP doesnot provide a solution that can store the incoming posting documents.

As a supervisor you only want to have a list of all incoming posting items and see the totalbalance before posting to FICO. The custom solution proposed here will allow this in an easyway.

PayrollResults

Payroll PostingOutsourcingApplication

/KDSSC/…

Add-OnOptions

ReportingPosting Data

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2.3.3 Solution

Fig. 3.: Selection Screen

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Fig. 4.: Posting Details

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Fig. 5.: Summary view

2.4 Performance

The application will perform very fast. Only in the case that massive incoming posting dataneeds to be analyzed will performance be impacted.

2.5 Reliability

To approach software reliability1 we utilize the best engineering methods to improve softwarereliability of our solutions. Before the deployment of software solutions, testing, verificationand validation will be performed. Software testing in form of unit and acceptance tests is used

1 According to ANSI, Software Reliability is defined as: the probability of failure-free software operation for aspecified period of time in a specified environment. Software Reliability is an important attribute of softwarequality, together with functionality, usability, performance, serviceability, capability, installability, maintainability,and documentation. Software Reliability is usually hard to achieve, because the software complexity tends to behigh.

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to minimize the possibility of defect occurrences after release and therefore improve oursoftware reliability. After deployment of our software solutions, field data will be gathered andanalyzed to improve the software and provide updates as necessary.

2.6 Durability

We achieve software durability2 through an pragmatic approach that combines object orientedtechniques (OOTs) with formal description techniques (FDTs). OOTs help system analystsand designers to bring modularization and structure to the programs to permanently commitdata changes. The main focus of FDTs is to ensure the correctness of the final system by theprovision of extensive validation and verification methods.

2.7 Simplicity and Aesthetics

It is a requirement that the solution will be easy to use and to maintain. There should be nospecial knowledge needed to run the application. All of this should ultimately lead to a gooduser-perceived quality of the solution.

2 In computer science, durability is the property that guarantees that transactions that are successfullycommitted will survive permanently and will not be undone by system failure.

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3 Serviceability and Maintenance

As defined in the Solution Definition and Specifications above various tables are to be createdto allow proper configuration of the solution.

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