VERSI

ON

PAYROLL

BASHUNDHARA PAPER MILLS

LTD.

TO-BE DOCUMENT
BPML- PAYROLL

Prepared By: Consultant

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Reviewed By: BG BPO

Date

01/02/2016

Description of change

Prepared By

Reviewed By

Version

Initial draft

1.0

Document & Version Control

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t

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Title

Insert Document Title

Start Date

11 February 2016

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New

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HR_TOBE_HR/BPML

TO-BE Approval
Function

Name

Role

Signature & Date

Prepared
By
Reviewe
d by
Approve
d By

Project Manager
Organization

Project Manager

Bashundhara
Group

Sifat Jahan Nur

Exzatech
Solutions Ltd.

Rajib Imran

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Signature & Date

Contents
1

Introduction_________________________________________________________________4

Process Design and Mapping_______________________________________________4

2.1

Key Data Structure......................................................................................... 4

2.2

Process Description........................................................................................ 4

2.3

Process Flow Chart......................................................................................... 4

2.4

Business Process Mapping............................................................................. 4

2.5

Question and Answer..................................................................................... 4

Gap Analysis_________________________________________________________________4

3.1

Gap Identified................................................................................................ 4

3.2

Question & Answer........................................................................................ 4

3.3

Fit Gap........................................................................................................... 4

Reports______________________________________________________________________4

User Role and Authorization_______________________________________________4

Process Improvement_______________________________________________________4

Conclusion___________________________________________________________________4

1 Introduction
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1 Process Design and Mapping

1.1 Key Data Structure
The Payroll System should calculate the gross salary and the deductions and the net salary of an
employee. The SAP HR Payroll component must be implemented in cooperation with project
teams implementing other areas of SAP Human Resources (HR), in particular SAP HR Personnel
Administration.
This component enables the running of the payroll for all employees in line with legal and
business requirements.
This module component integrates with other SAP HR modules such as Personnel
Administration and Personnel Time Management. It has interface to Financial Accounting for
posting the payroll results to the respective G/L Accounts.
The System calculates the gross and net pay, which comprises the individual payments and
deductions that are calculated during a payroll period, and are received by an employee.

The component uses data from other areas of SAP HR for calculating all statutory and nonstatutory additions and deductions for your employees. SAP Payroll offers a number of standard
reports used in payroll, leave, advance payments and taxation. You can exclude an employee
from the payroll run if required. Simulation of payroll and Simulation of posting to Accounting is
possible.
As an addition to regular payroll, which carries out payroll at fixed regular intervals, SAP
enables you to carry out specific off-cycle payroll activities for individual employees on any day.
SAP Payroll supports retroactive accounting. This function automatically recalculates payroll in
the event of changes to master data and time data in periods for which payroll has already been
completed.

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1.2

Process Description

When you access Payroll, the payroll driver calls the accompanying payroll schema, which
consists of a sequence of functions. For each activity, the individual functions import data from
internal tables and payroll relevant files.
Payroll performed as follows:
1. The system updates the databases and imports the master data relevant to payroll.
2. If Off-Cycle Payroll is to take place, the system deletes the internal table IT.
3. The system imports the last payroll result.
4. The system calculates the gross wage and considers the shift schedule, shift change
compensation, and valuation bases. Any master data relevant to payroll is included in the
calculation at this point.
5. The system calculates the partial period factors, lump sums and salary elements, and
cumulates the gross results.
6. The system calculates the net remuneration and performs retroactive accounting if
specific master data has been changed in previous payroll periods.
The status of the Payroll Control Record is automatically updated with every step that is carried
out during payroll.
1. You release one or several Payroll Areas for payroll.
The system increases the period number in the payroll control record of the respective
payroll area by 1. You cannot change the master for the personnel numbers belonging to
this payroll area if it affects the payroll past or present. Changes affecting the future are
still possible.
2. You run payroll.
The system calls up a country-specific payroll program. It determines the current payroll
period from the payroll control record and performs payroll using the values you entered
in the payroll program.
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In general, you do not carry out these steps on-line but rather as a background job.
3. You check whether payroll has run correctly, or determine where errors have occurred.
If the payroll has run with errors, the system displays error messages indicating where the
errors have occurred. If desired, you can obtain a detailed payroll log. However, we
recommend that you only create a payroll log if you simulate the payroll run.
If necessary, you can set the status of the payroll to Check Payroll Results during this
phase. This way you make sure that no changes are made to payroll-relevant data which
could affect the payroll past or present. In addition, the payroll area in question is locked
for payroll. However, during this phase you can simulate the payroll for individual
employees to understand exactly how the errors originated, by means of the payroll log.
If you want to carry out a spot check on the payroll results after a successful payroll run,
there is a report available which reads the stored payroll results. The report allows each
employee to see the contents of all internal tables containing payroll results. This allows
you to check all partial results for a payroll run. In this way you can determine whether
the system ran the payroll in accordance with your expectations, for example, for an
employee for whom you made complex changes to the master data.
4. You correct master or time data for personnel numbers which contain errors, and which
the payroll program could not process.
During the payroll run, the System flags the Payroll Correction field in the Payroll Status
infotype (0003) for all rejected personnel numbers. When you correct master or time data
for a personnel number, this field is also flagged. These personnel numbers are grouped
together in a list under Matchcode W (Payroll Correction Run). In a payroll correction
run, that is a payroll run with matchcode W, payroll only takes place for the corrected
personnel numbers.
5. You release payroll again.
The payroll period does not change.
6. You perform a payroll correction run.
If there are a lot of employees stored in Matchcode W (Payroll Correction Run), you
carry out this step as a background job in the same way that you carried out the Start
Payroll step. If you only have to run payroll again for a few employees, you can carry out
this step on-line.
7. You simulate the posting to Accounting.
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Under certain circumstances errors can occur, which mean you must change the payrollrelevant master and time data again. If, for example, a cost center was entered for some
employees and it has been deleted in the interim, the system will note this as an error
during the posting simulation. Then set the payroll status to Release for Correction once
again, and correct the master data for the employees in question. This will cause these
personnel numbers to be automatically stored in Matchcode W (Payroll Correction Run).
Next, carry out another payroll correction run and simulate the posting to Accounting
again.
8. You exit payroll. The personnel numbers for the payroll area can be processed again.
You can only exit payroll when the payroll has run successfully for all personnel numbers
in the selected payroll area. This means that payroll is finished for all of the personnel
numbers in the payroll area, including the rejected personnel numbers, and the payroll
period is complete.

SAP HR Payroll supports retroactive accounting. This function automatically recalculates payroll
in the event of changes to master data and time data in periods for which payroll has already
been completed.
During Payroll the master data for the personnel numbers to be included in the payroll run cannot
be changed for the past or present, for example.
You should not perform payroll, when master data is being processed for the personnel numbers
for which payroll should be run.

1.2.1.1 Compensation Structure

Compensation structure of an employee is to be maintained in several infotypes to figure out the
correct calculation and disbursement of the salary and the benefits.
The following infotypes will be used to achieve the desired results.
Basic Pay (Infotype 0008)
In the infotype Basic Pay (0008) we will store the employees basic pay.

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Pay Scale Type

The pay scale type is the area of economic activity like a line of business for which a pay scale
is valid. The LOB may be determined at an enterprise or trades union level, and often applies to a
whole industry, for example, the education and training, or the software business.
Only one Pay Scale Type will be defined,

Pay Scale Area

The pay scale area is the geographical area in which a pay scale or collective agreement is
valid. The combination of Pay scale types and Pay scale areas are used to create various
valid combinations of pay scales. The following Pay Scale Areas have been identified

Existing
Payscal
e Area
ID
C1
C2
C3
D1
D2
D3
E1
E2
E3

Payscale Area Description

BPML - Directors Rem
BPML - Staff Salary
BPML - Worker Salary
BPML 3-Directors Rem
BPML 3-Staff Salary
BPML 3-Worker Salary
BPML 2-Directors Rem
BPML 2-Staff Salary
BPML 2-Worker Salary

The default values for pay scale types and groups are linked to the personnel sub area.
These default values are suggested when we create a record in infotype 0008 Basic Pay.

Pay Scale Group and Pay Scale Level

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Pay scale groups and pay scale levels are the criteria used to classify data for job
evaluations and indirect valuations. Pay scale levels are subdivisions of pay scale groups.
Pay scale groups here will be used to map Grades, which correspond to employee
subgroups

Bank Details (Infotype 0009)

In the infotype Bank Details (0009) we enter the payee of the net pay from the payroll and
the bank details. When we create a new record, the Employees name will be taken from
the infotype Personal Data (0002) for the payees name. The postal code and/or the city will
be taken from the infotype Addresses (0006).

Recurring Payments and Deductions (Infotype 0014)

Recurring Payments and Deductions represent additional wage/salary elements that are not
always paid or deducted in every payroll period, but are paid and deducted at specified
intervals unlike those of Additional Payments.
The infotype Recurring Payments and Deductions (0014) is subdivided into different
subtypes. Each subtype represents a wage type.
In conjunction with the Wage type we must either maintain the field Amount or the fields
Number and Unit. The system checks the combination that we have entered.

Additional Payments (Infotype 0015)

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In the infotype Additional Payments (0015), we will enter an amount and/or a value and a
unit of measurement for a wage type that are always paid or deducted in a specific period
during payroll accounting.
The infotype Additional Payments (0015) is subdivided into different subtypes. Each
subtype represents a wage type.

Cost Distribution (Infotype 0027)

In the infotype Cost Distribution (0027) we will determine how costs for an employee are
to be distributed to different cost centers. At any one time we will execute up to 25 different
cost centers with the appropriate percentage.

Subtypes are used to differentiate between costs that have been distributed

Company Loans (Infotype 0045)

In the infotype Company Loans (0045), we enter the master data for employer loans. This
infotype contains the data on the following: Loan conditions, approval, loan status. Payroll
uses the data from the infotype Company Loans to calculate the loan deductions and the
interest as well as the tax. The infotype Company Loans (0045) is subdivided into loan
types. A subtype represents each loan type.

Personal IDs (Infotype 0185)

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In infotype 0185, we will enter data defining the details of the employees membership in
Gratuity Trust. This is also used to capture the employees.
Housing (HRA/CLA/COA) (Infotype 0581)
This is used to determine

Whether the employee avails of HRA, lease or self-lease depending on his eligibility
as per his pay scale grouping for allowances

Whether the HRA is to be taxed or not based upon the submission of rent receipts

Whether the employee stays in a metro or non-metro city for the computation of
taxability.

Whether any amount is due to or from the employee based on the difference in his
eligibility and the lease rent paid by the company

Car & Conveyance (Infotype 0583)

This infotype is used to determine

The type of conveyance availed by the employee

Additional data relating to vehicle provided to the employee or used by the employee
Drivers provided to estimate the perquisite value for taxability.

Provident Fund Contribution (Infotype 0587)

This infotype is used to capture the details relating to.

The PF trust that the employee belongs to.

The pension trust that the employee belongs to.

Voluntary PF contribution by the employee as a percentage of PF wages or as a fixed

amount.

Employers contribution to PF and its basis.

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Whether the employer contributes towards pension component or the entire

contribution I towards PF.

Existing Process flows:-

1.3 Process Flow Chart

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1.4 Business Process Mapping

1.5 Question and Answer

2 Gap Analysis
2.1 Gap Identified

2.2 Question & Answer

2.3 Fit Gap

3 Reports
4 User Role and Authorization
5 Process Improvement
6 Conclusion
Personal Area:Personal Sub area:Basic pay:
Recur. Payments/Deduction
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Off-Cycle Payments

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