You can also set the indicators for authorization checks and payroll control using the Organizational Assignment infotype (0001).
Identifying Additional Organization Assignments
Objectives
After completing this lesson, you will be able to:
- Outline the additional organizational assignments for employees
- Configure a payroll area to group employees for payroll processing
- Display elements of a payroll record
- Enable payroll processing
Additional Organizational Assignments
Payroll Area
Human Capital Management (HCM) uses the payroll areas for the following purposes:
- To group employees who should be processed by payroll on the same day
- To determine the precise date of the payroll
Employees belonging to different employee subgroups can belong to the same payroll area. For example, if the enterprise pays all of its salaried employees at the end of the month and all of its hourly-paid employees on the tenth of the following month, then it would need at least two payroll areas.
The right side of the figure Payroll Area shows the Customizing steps that you need to set up the following:
- Payroll areas
- Control record
- Payroll periods
Functions of Payroll Area
The payroll area is an organizational entity that groups employees so that you can run payroll. You group employees in the same payroll area according to the Organizational Assignment criteria. For example, you can group all employees for whom you run payroll on the same day and in the same frequency (such as monthly).
The payroll area has the following two functions that are required for payroll:
- It groups the personnel numbers to be accounted in the same period.
- It defines the exact date of the payroll period.
Personnel numbers are assigned to payroll areas in the Organizational Assignment infotype (0001). The default value that appears in the Payr. Area field may depend on the personnel area/personnel subarea/employee group/employee subgroup assigned to the employee.
How to Create a Payroll Area
Create a payroll area for a productive monthly payroll with the key ## . The name should contain your group number.
Steps
Create a payroll area.
On the SAP Easy Access screen, choose Tools→Customizing→IMG→Execute Project .
On the Customizing: Execute Project screen, choose the SAP Reference IMG pushbutton.
Choose SAP Customizing Implementation Guide→Personnel Management→Personnel Administration→Organizational Data→Organizational Assignment→Create payroll area .
Choose the
IMG - Activity pushbutton.Choose the New Entries pushbutton to create a new entry in the table and enter the following data:
Payroll area ## Payroll area text Name containing your group number ## Period Parameters 01 Run payroll Select the checkbox
Result
Payroll Control Record
You must create a control record for each payroll area. The control record controls the individual payroll stages.
The control record has the following functions:
- Determines the exact date of the current payroll period.
- Defines the past payroll for retroactive payroll.
- Locks the master data and time data during the payroll run to prevent any changes. This lock can be set for both past and present payrolls. You can still change payroll data in the future.
- Defines the earliest retroactive accounting period for the payroll area.
The different stages of payroll are as follows:
- Released for payroll
- Released for corrections
- Exit payroll
- Check payroll results
You will find the individual payroll stages in the Payroll menu option. You can start, check, correct, and exit payroll from this menu option.
Payroll Organization
You need to make certain basic Customizing settings to run payroll in the SAP system.
The Customizing settings are as follows:
- Each payroll area is assigned a period parameter and a date modifier .
Note
The date modifier is relevant only in some countries. The period parameter specifies whether payroll is run monthly, bimonthly, or weekly. Each period parameter is assigned to a time unit. The values for the time units are fixed: monthly, bimonthly, semi-monthly, weekly, fortnightly, every four weeks, or annually. - You must generate payroll periods for each combination of period parameter and date modifier assigned to a payroll area.
Note
Depending on the period parameter, all periods in the specified time interval are determined. The system determines the start date and end date of each period and calculates the payday using a rule that is also to be specified as a parameter. Payroll year and payroll period define the specific payroll dates. - You must create a control record for each payroll area. The control record controls the individual stages of payroll.
Customizing
From the IMG, choose Payroll→Payroll: <your country>→Basic Settings→Payroll Organization to access the IMG steps in Payroll Customizing for your country.
Payroll Periods
A payroll period determines the period in which a payroll result is generated. The duration of payroll periods can differ, for example, monthly, weekly, or fortnightly.
For payroll areas, you need to specify the start date and end date of the periods to determine the specific payroll dates. This data is automatically generated when you start a program.
Generation of Monthly Payroll Periods
You link payroll periods to time units that are appended to the corresponding period modifier in the Generate Payroll Periods IMG activity. In this activity, you can also specify how paydays are defined to identify the start of the fiscal year.
In addition to the start date and end date of a period and of the payday, you can define a date modifier as an additional payroll-relevant date. This is a modifier you use to link additional date types to a payroll calendar.
You can generate other date specifications for each period in the payroll calendar besides the defined date specifications for the standard payroll interval. You can use the other date specifications to store the payday, for example.
The example in the figure shows how you generate payroll periods for a monthly period modifier. Here, the start date and end date of a period coincide with the start date and end date of a calendar month. You use these settings to generate payroll periods for 60 months, that is, the start date until end of final year.
Caution
The input screen of the report changes dynamically according to country grouping.
Generation of Weekly Payroll Periods
The Payday rule and Number of days fields determine how the payday of the period is calculated.
You can enter the following possible values in the Payday rule field:
- The number of days is added to the start date of the period to calculate the payday.
- The number of days is deducted from the end date of the period.
- The number of days is added to the end date of the period.
- The number of days is used as the exact date. This is valid only for monthly payroll periods.
In the Determine period number field, you define the date of the payroll period that the system uses to determine the period number. The system uses the period number in the payroll control record to continually project the payroll periods of a year. The system starts the counting of period numbers again from one at the beginning of each fiscal year.
The example in the figure shows how you can pay the employee for the previous week’s work every Thursday (Start date: July 1, 2001; Payday period: Sunday to Saturday). The Payday rule 3 specifies that the number of days ( 5 ) is added to the end date of the period.
Generating a Calendar for Cumulations
Certain countries require the calendar for reporting purposes. Therefore, in payroll, some wage types are cumulated over several periods to obtain, for example, monthly, quarterly, or annual totals.
During calendar generation, each payroll period is assigned to a quarter, half year, or year. You must generate the calendar for each combination of period parameter and date modifier that is assigned at a lower level to a payroll area.
You can generate this cumulation calendar for several years in advance using a report in Customizing.