007 sap hcm payroll overview

8/13/2019 007 SAP HCM Payroll Overview

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SAP HCM Payroll (PY)

For the End User


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Overview of Payroll

Lesson Map

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essonO

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NNPC Payroll Business

Process

Lesson 1

Overview and PayrollProcedures

Lesson 2

Payroll


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Overview of Payroll

Lesson Objectives

By the end of this Lesson, you will be able to

discuss theory around the following:

Describe the NNPC Payroll Business Processes Describe the Payroll procedure

Run a payroll for your employees and create a remuneration

statement

LessonOne-Two


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Payroll Administration

Process Overview 1

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Payroll Administration

Process Steps 1 to 3

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Payroll Run

Process Overview 2

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Payroll Run

Process Overview 3

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Payroll Run

Process Overview 4

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Payroll Run

Process Overview 5

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Payroll Run


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Payroll Run


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Payroll Run


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Payroll Run


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Overview of Payroll

Lesson Map

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essonTwo

Lesson 2

Payroll

Overview and

Payroll Procedures

NNPC Payroll

ProcessLesson 1


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Overview of Payroll

Payroll Accounting 2

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Broadly speaking, Payroll Accounting is the calculation of payment forwork performed by each employee. More specifically, payroll accounting

comprises a number of work processes, including the generation of

payroll results and remuneration statements, bank transfers, and check

payments.

Payroll Accounting also includes a number of subsequent activities, for

example:

Transfer of payroll results to Accounting

Various evaluations, such as evaluating the payroll account

Transfer of payments to third parties, such as taxes


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Overview of Payroll

Payroll Procedure 3

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Overview of Payroll

Payroll Procedure 4

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The calculation of payment comprises two main steps:

1. Calculation of remuneration elements

2. Statutory and voluntary deductions (country-specific)

Both the remuneration elements and the statutory and voluntary

deductions consist of individual payments and deductions that

are calculated for an employee during a payroll period. These

payments and deductions are included in the payment

calculation by means of different wage types.

The employee is usually paid by bank transfer or check and the

payment amount is printed in a form for the employee.


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Overview of Payroll

Payroll Procedure 5

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Overview of Payroll

Payroll Procedure 6

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The remuneration elements for an employee are formed fromindividual wage and salary types that are used during a payroll

period. Payments such as basic pay, various bonuses, and gratuities

are included in the remuneration calculation.

Deductions can be made for items such as a company-owned

apartment, company-sponsored day care, or similar benefits.

Different factors determine whether such benefits increase or reduce

the taxable income.

This is determined by country-specific regulations and, in some

countries, the philosophy of the company.

An employee's remuneration consists of all wage types calculated

for him or her during a payroll period.


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Overview of Payroll

Payroll Procedure 7

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Overview of Payroll

Payroll Procedure 8

LessonTwo

Voluntary and statutory deductions, such as tax and social security

contributions, are taken from the gross calculation to determine the

payment amount.

Different gross values, such as total gross amount and gross tax

amount, are used to calculate the deductions. For this reason,different totals are formed during the payroll run,

and these totals are used for subsequent processing.


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Overview of Payroll

Payroll Procedure 9

LessonTwo


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Overview of Payroll

Payroll Procedure 10

LessonTwo

Payroll Areas are used to group employees for whom a payrollprocess is started at the same time. A payroll area also determines

the exact date of the payroll run. If a company wants to start payroll

processing or to pay some of its employees monthly, others weekly,

at least two payroll areas are needed - one for monthly payment

and one for weekly payment.

The payroll area is used as a selection criterion for many steps in

payroll processing, e.g. for the payroll run, salary statements and

reporting. Additional selection criteria can be used to further reduce

the number of employees for one payroll run, e.g. cost centre,

employee group (these selection criteria should be used mainly for

simulation as the payroll

control record is ignored).


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Overview of Payroll


LessonTwo

If you want to start payroll from the menu, first specify the country,then call up the control record for the relevant payroll area. Here

you carry out the required steps in preparation for the payroll run.


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Overview of Payroll


LessonTwo


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Overview of Payroll


LessonTwo

During the payroll run, master data and time data changes that affect

the payroll past and payroll present are not permitted. The payroll

program reads the master data and time data infotypes, which

means that changes affected during the payroll run could jeopardize

the accuracy of the payroll results. It also means that you must not

run the payroll during master data maintenance. This is controlled by

the payroll control record.


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Overview of Payroll


LessonTwo

The relationship between the menu and payroll control record is asfollows:

Function in Menu Status of Payroll control record

Release Payroll Release for payroll

Start payroll The payroll program is started and the status

of the payroll control record remains released

for payroll.

Check result Check payroll result

Corrections Release for correction

Exit payroll Exit payroll


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Overview of Payroll


LessonTwo

Payroll accounting is usually performed separately for different

employee groups.

The payroll period is not always the same for all employees. For

example, you run payroll for one group at the end of the month for

the current month, while for another group, you run payroll on a

weekday for the previous week.

Pay for Period and Pay Date determine the Payroll Area.

Employees included in a payroll run at the same time and for the

same payroll period are grouped into one payroll area.


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Overview of Payroll


LessonTwo

Payroll areas facilitate the following functions in Payroll Accounting:

Personnel numbers that are to be included in the same payroll

run are grouped together.

The payroll period and pay dates are defined using specific dates

in a payroll calendar.

Personnel numbers are assigned to a payroll area in the

Organisational Assignment infotype (0001). It is possible to have a

default value for the payroll area entered in the corresponding field.

This depends on the assignment of the employee to thepersonnel subarea and employee group/employee subgroup

grouping.

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Overview of Payroll


LessonTwo

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Overview of Payroll


LessonTwo

The personnel numbers to be included in the payroll run areselected by specifying a payroll area in the payroll driver selection

screen. The payroll period is transferred directly from the payroll

control record to the payroll program.

In a live run, the system determines the payroll period. The last

period to be included in a payroll run is stored in the payroll controlrecord for each payroll area. The current payroll period is the last

period to be included in a payroll run, plus one.

Hint: Payroll driver should be started by Personnel Number or

Payroll Area only. Even if using Personnel Number, include the

appropriate Payroll Areas in the selection area.

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Overview of Payroll


LessonTwo

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Overview of Payroll


LessonTwo

The payroll log has a table of contents in the form of a tree structure.

You can access specific detailed information from the nodes in the

tree structure. Detailed headers enable you to search successfully

for errors and facilitate navigation within the log information. If

required, you can show or hide individual tree structure nodes.

Note: The log is temporary and is available only as long as you are

viewing it. If you exit the log, you have to re-run the payroll to

reproduce it.

Results are stored in the system, but the processing steps are not.

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Overview of Payroll


LessonTwo

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Overview of Payroll


LessonTwo

During the payroll run, the system recognizes any errors in masterdata and time data. This could mean that data is missing or

incorrect. Payroll can be run successfully for error-free personnel

numbers. A correction indicator is assigned in the Payroll Status

infotype (0003) to personnel numbers with errors. This

infotype acts as a payroll administrator for the individual employee.

The personnel numbers with errors are listed in the payroll log. You

can also call up and print these personnel numbers using the control

record.

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Overview of Payroll


LessonTwo

Once these errors have been corrected, you can repeat the payrollrun. This time run payroll using the Search Help (Payroll correction

run-code W). This ensures thatonly the personnel numbers that

have a correction indicator assigned to them in the Payroll Status

infotype (0003) are selected.

Overview of Payroll


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Overview of Payroll


LessonTwo

Overview of Payroll


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Overview of Payroll


LessonTwo

The SAP system enables you to create remuneration statements foryour employees. The remuneration statement clearly lists all

payments and deductions used in the payroll run for an employee.

The remuneration statement is usually created after a payroll run

and before the wage or salary is transferred to the bank.

Alternatively, you could use an Employee Self Service for the

remuneration statement.

The Employee can review the remuneration statement on a regular

basis to determine if there are any errors in the data. This is made

easier through Employee Self-Services (ESS).

Overview of Payroll


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Overview of Payroll


LessonTwo

Overview of Payroll


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Overview of Payroll


LessonTwo

When you have run payroll successfully, you need to carry out anumber of subsequent activities.

Depending on the country requirements, these are divided into the

following areas.

Per payroll period, such as cost accounting, FI, and taxinformation.

Annual, such as tax reporting.

Other periods, such as quarterly reports.

Period-independent, such as management requested statistics.

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Overview of Payroll


LessonTwo

All subsequent activities take place when the payroll run,remuneration statement, and wage and salary transfer activities are

complete.

By keeping informed and keeping the organization informed of any

changes, the employee is assured that the pay check delivered is

as accurate as possible.

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Overview of Payroll

Roles and Responsibilities 1

Lesson

Two

Role Responsibility

Salary

Administration

Officer

Request, print and analyse reports on any wage types

and payroll information .

Load/monitor the incoming interface (Pension fund,

Cooperative Societies, Insurances etc.

Personnel

Information Officer

Creates/maintains specific

earning/deductions/allowances on the system bychoosing relevant wage types Request, print and

analyse reports on any wage type and payroll

information.

File source . Ensure all relevant beneficiary

/application forms are completed for employee Benefit.

Capture the approved changes to the master data

records received

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Overview of Payroll

Roles and Responsibilities 2

Lesson

Two

Role Responsibility

Deputy Manager Payroll and

Advances

The Accountant payroll receives all the

variances in writing from the Salary

Administration Officer and sends it to the

Deputy Manager Payroll and Advances

Accountant Payroll must inform compensationsection(Payroll) with regard to any

General Ledger / Vender account

changes or additions.

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Overview of Payroll

Policies & Procedures

Lesson

Two

Refer to NNPC Corporate Policy and Procedures Guide (CPPG)

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Overview of Payroll

Terminology 1

LessonTwo

Terminology Description

Payroll Area A payroll area represents an Organisational

Unit used for running payments. All

employees who have payroll run at the same

time are assigned to the same payroll area.

Pay Date Date on which your Salary is paid into your

bank account

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Overview of Payroll

Terminology 2

LessonTwo

Terminology Description

Payroll Status Release Payroll

Start Payroll

Release corrections

Exit PayrollSubsequent Activities All payments activities that need to happen

after payroll has run example:

Payments, to 3rd parties: Pension, Medical

and Garnishee Order

Overview of Payroll


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Overview of Payroll

Supporting Documentation

Less

onTwo

Legislation - Nigerian National Petroleum corporation Decree 1977

- Nigerian Personal Income Tax Act, 1993

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Overview of Payroll

Summary of Lesson

You have now completed this Lesson and would have

learnt the following theory:

Describe the NNPC Payroll Business Processes

Describe the Payroll procedure

Run a payroll for your employees and create a remuneration

statement

LessonOne-Tw

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007 sap hcm payroll overview

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