used to calculate the remuneration for work done for each employee. SAP
Payroll delivers powerful and efficient gross-to-net, net-to-gross,
regular and off-cycle payroll processing. SAPís complex Payroll process
handles everything including vacation policies, compensation programs,
work schedules, Holidays, overtime pay etc.
(Employee Self Service) function allows
employees to view, create and maintain data anytime, anywhere, via
Web-based technology and interactive voice response functionality. ESS
is an effective means for providing real-time access and data
maintenance capabilities to the source or owner of the data. It has the
ability to offload much of the data entry and related customer service
activities that may be typically performed in an organizationís human
resources, payroll, benefits and purchasing departments.
Payroll accounting calculates the payment of work done by an employee.
Payroll function does the following:
Compute employees gross salary
Make necessary deductions
Calculate Net salary
Generate Checks or direct deposits.
Payroll components include:
Payroll area - groups employees based on the
frequency of their paydates. eg. Z1 for salaried staff paid monthly.
Control Record - It determines the current payroll
period for a payroll area.
Period Modifier - Period in which payroll
accounting is carried out. eg. 10 - for monthly pay periods.
Date Modifier - Distinguishes periods with same
frequency but different date. Eg. 10 - for monthly pay period but
with the pay date being 5th of every month.
Payroll Calendar - Generating calendars for
cumulating wage types to get monthly, quaterly or yearly sum totals.
Payscale type - used for segregation of employees
payscales based on the type of union contracts in a company. Eg. 10
- non union workers 20 - collective agreement for secretaries
Payscale area - Differentiates payscales based on
geographical area. Eg. 10 - California.
Payscale group - Differentiates employees payscales
based on functionality. Eg. GR01 - grouping for junior clerks, GR02
- for senior clerks.
Wage types - The payments and deductions for an
employee are coded as wage types. Eg. A001 - salary payment, B001 -
Payroll Infotypes: Payroll data is stored in various infotypes,
which includes, 0001, 0007, 0008, 0009, 0207, 0208, 0209, 0210, 0234.
These infotypes maintain personal details, payment and deduction info,
benefits data, garnishment data, tax data, etc.
Payroll Process involves:
Maintaining payroll related infotypes
Periodic payroll run
Transferring data to FI/CO
Transferring third party remittance data to Accounts Payable