Running Payroll


After completing this lesson, you will be able to:

  • Run a payroll simulation

SAP Payroll

SAP Payroll is very country-specific and customer-specific. Therefore, the following only explains the global concept of the payroll.

Payroll is the calculation of payment for work performed by each employee.

Payroll comprises a number of work processes, including the generation of payroll results and compensation statements, bank transfers, and check payments.

Additional subsequent activities include, for example, the transfer of payroll results to Financial Accounting (FI), the execution of the Data Medium Exchange (DME) file, and other evaluations such as running the payroll account and payroll journal.

Calculation of Payroll

The calculation of remuneration comprises two main steps:

  • Calculation of compensation elements (the gross amount).
  • Calculation of statutory and voluntary deductions (the net amount).

These payments and deductions are included in the payment calculation using different wage types. These wage types must be configured country-specific and customer-specific.

Wage Types

Employee compensation elements consist of individual wage and salary types processed during a payroll period. Wage types are mostly configured for master data and time management, examples of which are shown in the figure below:

Payments such as basic pay, various bonuses, and gratuities are included in the compensation calculation. An employee’s remuneration consists of all wage types calculated for the employee during a payroll period.

Statutory and Voluntary Deductions

Voluntary deductions are generally made for items such as charitable contributions, company-sponsored day care, or similar benefits. Various factors, such as the legal requirements of a country, determine whether the benefits increase or decrease the taxable income. Statutory deductions are made for pension contributions and taxes, for example.

Different gross values, for example, the total gross amount and the 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.

Overview of the Payroll Process

Each payroll is run by a unique country code, for example, 01 for Germany, and 10 for the USA. The country code also determines the screens to view or maintain personnel data in the correct formats, for example IT0006 Addresses or IT0009 Bank Detail, where the infotypes contain the country specific fields.

During a payroll run, no changes can be made to master data or time data affecting the payroll past or present.

Watch the video to learn the structured process of payroll processing, including releasing payroll, making corrections, and exiting payroll.

The payroll program reads the master data and time data infotypes. Changes made during the payroll run could affect the accuracy of the payroll results. It is important that maintenance is locked whilst the payroll is running, which is controlled by the payroll control record transaction PA03.

Incorrect Personnel Numbers

During a payroll run, the system may find errors in master data and time data. While the payroll is run successfully for error-free personnel numbers, a correction indicator is assigned in IT0003 Payroll Status to personnel numbers with errors. This infotype represents the control record at the employee level.

You can view the personnel numbers with errors using the payroll log record. Reasons for errors in the payroll run include mandatory infotypes (for example IT0001 Organizational Assignment or IT0008 Basic Pay) are missing, or the wage type configuration is not correct.

You can also view these personnel numbers using the payroll control record (transaction PA03).

Once the errors have been corrected, you can use the search help (payroll correction run) to run the payroll again for the personnel numbers that have a correction indicator assigned to them in the IT0003 Payroll Status.

You must exit the payroll after it has been run successfully for all personnel numbers. The end of a payroll is a requirement for many follow up processes which are very country and customer-specific.

Subsequent Activities in Payroll Accounting

After exiting payroll, a number of subsequent activities have to be performed.

Depending on the country requirements, these activities are divided into the following areas:

  • Per payroll period
  • Annually
  • Other periods
  • Period-independent

All subsequent activities take place after the payroll run, for example, the remuneration statement, and wage and salary transfers are complete.

Simulate a Payroll Run

Business Example

You need to simulate a payroll run to ensure that Lars Becker is paid the correct salary. You will then view the remuneration statement to confirm correct information.

Simulate an international payroll for the relevant period.

Learn how to simulate an international payroll run.


  1. Navigate to the Payroll driver (international) screen. From the SAP Easy Access screen, choose Human ResourcesPayrollInternationalPayrolldouble-click on PC00_M99_CALC_SIMU - Simulation. You can also enter PC00_M99_CALC_SIMU in the Command field or select the link if you have saved it as a favorite.

  2. In the Payroll Period section, enter the specific payroll period.

  3. Default is Current Period, leave as is, or enter Other Period if necessary.

  4. In the Selection section, add any Personnel Numbers.

  5. Enter the Payroll Area again.

  6. In the General program control section, ensure that the defaulted Payroll schema is correct. If not, select the correct schema from the drop-down list. Note that X000 is an SAP example Payroll schema. Every customer needs to configure their own country and customer-specific schema for payroll.

  7. Ensure Test run (no update) check box is checked.

  8. In the Log section, select the Display Log check box.

  9. In the Remuneration statement parameters section, select Layout for remun.statement radio button.

  10. Select the variant name.

  11. View the simulated payroll by choosing Execute for the Display Log Tree screen.

  12. Choose Form to view the simulated remuneration statement.

  13. Choose Back to return to the Display Log Tree screen.

  14. Choose Back. In the Exit log display dialog box, choose Yes.

  15. Choose Exit to return to the SAP Easy Access screen.

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