Payroll Administration (Basic Setting)

Payroll Administration (Basic Setting)

Contents
Payroll Administration (Basic Setting) .........................................................................................1
Payroll Administration Basic Setting ....................................................................................2
1 Purpose ...............................................................................................................................2
2 Personal Data Payroll .....................................................................................................2
2.1 Bank Details ..................................................................................................................2
2.1.1 Create Bank Connection Types ............................................................................2
2.1.2 Define Payment Methods ......................................................................................3
2.1.3 Determine Default Payment Method ..................................................................10
2.1.4 Activate IBAN .......................................................................................................12
3 Organizational Data .........................................................................................................12
3.1 Set up Organizational Assignment ...........................................................................12
Define Employee Attributes................................................................................................12
3.1.1 Payroll Organisation ............................................................................................15
3.1.2 Check Default Payroll Area .................................................................................19
3.1.3 Generate Payroll Periods ....................................................................................25
3.1.4 Generate calendar for comulations and Deduction .........................................30
Prerequisites ....................................................................................................................30
Example ............................................................................................................................30

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Payroll Administration (Basic Setting)

Payroll Administration Basic Setting

This tutorial is based on a model company GIS (Global Integrated Solutions) delivering a standard
configuration for Personnel Management using the most commonly used settings. Customers can extend
the Customizing to meet their specific needs.

Purpose

This configuration guide provides the information you need to configure this building block manually.

Personal Data Payroll

2.1 Bank Details

2.1.1 Create Bank Connection Types
We are maintaining the bank connection types for GIS as under.
.
SubType

Bank Connection Type Text

Time Constraint

Main Bank

Other Bank

Travel Expenses

Main Bank for Off-Cycle

Other Bank for Off-Cycle

Procedure
To add entries, access the activity using the following navigation option:
IMG Path

Personnel Management Personnel Administration Personal

Data Bank Details Create Bank Connection Types

Transaction Code

SPRO

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Payroll Administration (Basic Setting)

On the Change View "Subtype Characteristics": Overview screen, choose the New entries
pushbutton

.
Enter the following values
Save the entries by clicking
the icon

2.1.2 Define Payment Methods

Use
We use two payment methods, Bank Transfer (T) & Cheque (C)), at GIS.
For our understanding, we will proceed to maintain payment method Cheque in the following steps

Procedure
Access the activity using one of the following navigation options:
IMG Path

Personnel Management Personnel Administration Personal

Data Bank Details Define Payment Method

Transaction Code

FBZP

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Payroll Administration (Basic Setting)

On the Customizing: Maintain Payment Program screen, choose the Pmnt methods in company
codes pushbutton.

On the Change View Payment Method in Country": Overview screen, select payment method C to be
configured, for example.

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Payroll Administration (Basic Setting)

Country PK Currency
In order to define setting for currency (PK) and payment method C, please Double click on Currency
Allowed while being on the same window.

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Payroll Administration (Basic Setting)

On the next window, click on New Entries.

Maintain the currency PKR for country Pakistan

While saving it following prompt for customizing request appears,

Press enter to save and data is maintained,

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Payroll Administration (Basic Setting)

Permitted Destination (Country)

In this step, we will define permitted destination /Country where this payment method Cheque is allowed
to use.
While staying on same screen, now double click on permitted destinations (Countries)

Select permitted Destinations , click New Entries and on next screen enter the Country key PK for
Pakistan

Save the entries. Our required parameters regarding payment method Cheque are configured.

In the same fashion we can customize any other payment method such as Bank Transfer (T)
As per our requirement, both payments method are configured.

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Payroll Administration (Basic Setting)

Maintenance of Company Code Data for payment methods (Bank Transfer & Cheque)
In this step .we will define relevant setting for company code data maintenance with respect to Payment
methods at GIS.
Now go back to main screen (FBZP)

On the next screen, select new entries.

In order to maintain relevant company code data for payment method ,please click on the
pushbutton New Entries and fill in the required fields

Press enter and entries are maintained.

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Payroll Administration (Basic Setting)

Payment Method in country-A cross check

Remaining on the same screen "Maintenance of Company Code Data for a Payment Method, please click
the push button Payment method in country

It will lead us to the Change View "Payment Method/Country": Details screen, where both the currency
allowed for country (PKR) and permitted Destination (PK) are already maintained.
.

and

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Payroll Administration (Basic Setting)

Go back and save the process. While saving it following prompt for customizing request appears, press
enter to continue and data would be saved

We can see both the entries Bank Transfer (T) and Cheque (C) are maintained as shown below.

2.1.3 Determine Default Payment Method

Use
In this activity, you can define a payment method which is later proposed as default for certain countries
and infotypes when you create bank details.

Procedure
Access the activity using one of the following navigation options:
IMG Path

Personnel Management Personnel Administration Personal

Data Bank Details Determine default payment method

Transaction Code

PE03
(Enter ZLSCH as feature, select the Decision tree radio button and
choose Display.)

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Payroll Administration (Basic Setting)

On the Process feature ZLSCH: decision tree screen, the system displays the following values. If
these values do not exist, create the following entries

Table View
To change from the tree view to the table view, choose PView Table Maintenance.

Save your entries. Activate

the feature.

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2.1.4 Activate IBAN

In this activity, you activate the IBAN field in IT 0009 (Bank Details Infotype).

Procedure
Access the activity using one of the following navigation options:
IMG Path

Personnel Management Personnel Administration Interfaces

and Integration Use of IBAN in Personnel Management

Transaction Code

OOIF

On the HR: Switch for IBAN Functionality change view, create the following settings:
Group

Sem.Abbr.

Value. Abbr.

Description

ADMIN

IBAN

Activate IBAN Function for HR

Save your entries.

SAP will display a message in the status bar that the data was saved.

Organizational Data

3.1 Set up Organizational Assignment

Define Employee Attributes
In this activity, we will maintain the employee attributes for Company (GIS)

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.Procedure
Access the activity using following navigation option:
IMG Path

Personnel Management Personnel Administration

Organizational Data Organizational Assignment Define
employee attributes

Transaction Code

SPRO

On the pop-up window enter your Country Grouping (PK) and click on Enter to continue.

On the 'Change View "Employee Subgroup Grouping f. Activities/Employment/Train" screen, check that
the following values exist:

EEGrp

Name of
Employee
Grp

Employee
Subgroup

Name of EE
Subgroup

Activity
Status

Employment
Status

Training
Status

Management

PM

Permanent

Management

CT

Contract

NonManagement

PM

Permanent

NonManagement

CT

Contract

NonManagement

TR

Trainee

NonManagement

IN

Intern

NonManagement

SC

SubContractor

NonManagement

AT

Apprentice

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When you save, you get again a change request box. You can use the same request or make a new one
by clicking

and maintain the new name for the customizing request.

Press enter to continue

SAP will display a message in the status bar that the data was saved.

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Payroll Administration (Basic Setting)

3.1.1 Payroll Organisation

In order to define setting for payroll Run we have to carry out following sequential activities

Period Parameters
Let us define the period parameters valid in Customizing for Payroll under Basic Settings -> Payroll
Organization -> Define Period Parameters.

Assign Period Parameters to Country Grouping Codes

You have defined period parameters for your country under Basic Settings -> Payroll Organization ->
Assign Period Parameters to Country Grouping Codes. Or (SM30------ V_T549R_CUST)

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Payroll Administration (Basic Setting)

Select new entries and make the following entry

While saving it following prompt for customizing request appears, press enter to continue and data
would be saved

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Payroll Administration (Basic Setting)

Date Modifier
Payroll area is defined by 2 parameters - Period Parameter & Date Modifier.it is used to store pay dates.
It defines various date specifications for the payment days with the same periodicity
Example
When 2 groups of employees are paid in the same manner (for example, monthly payments), but on
different dates (ex: 5th and 10th of the month), then 1 single payroll area is created, with the same period
parameter, but with 2 date modifiers. The date modifier indicates on which relative date the payroll needs
to be paid out.
Navigation Path
Define period parameters for country (PK) under Basic Settings -> Payroll Organization -> Define
Date Modifiers. Or (SM30------ V_T549L)

Select new entries and make the following entry

While saving it following prompt for customizing request appears, press enter to continue and
data would be saved

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Payroll Administration (Basic Setting)

Create Payroll Area:

Payroll areas allow grouping together of employees for whom payroll is run at the same time. Payroll
areas will also be used to set the dates for the payroll period. Personnel numbers will be assigned

to payroll areas in the Organizational Assignment info-type (0001). GIS follows payroll cycle
based on calendar months

Procedure
Access the activity using one of the following navigation options:
We have defined the payroll areas for our system in Customizing for Payroll under Basic Settings ->
Payroll Organization -> Check Payroll Area or
in Customizing for Personal Administration under Organizational Data -> Organizational Assignment
-> Create Payroll Areas.. Or (T.code SM30------ V_T549A)

The following Payroll Areas have been suggested for Global Integrated Solutions (GIS):
Period
Payroll

Payroll Area

Period

Area

Text

Parameter

Parameter
Text

Z1

Payroll Area for HO,

Peshawar & Lahore
Office

01

Monthly

Z2

Payroll Area for Plant

01

Z3

Turnover Payroll area

Z4

Non Payroll Area Blank

Monthly

Payroll
Relevant

Date

Select

00

Select

00

Modifier

. On the Change View Payroll Areas: Overview screen, choose the New Entries button and enter the
following values: When you save, you get again a change request box. You can use the same request or
make a new one by clicking

and maintain the new name for the customizing request

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3.1.2 Check Default Payroll Area

After defining payroll areas, you can specify default values for the payroll accounting area for your
employees. When an employee's organizational assignment is maintained, the correct payroll area is
proposed as default in the Organizational Assignment (0001) Infotype .The ABKRS feature is used to
define these defaults.

Procedure
Access the activity using following navigation option:
IMG Path

Personnel Management Personnel Administration

Organizational Data Organizational Assignment Check Default
Payroll Area

Transaction Code

SPRO

On the Process feature ABKRS: decision tree screen, the system displays the following values:
TCLAS Transaction Class for Data Retention.
Select TCLAS and choose the change /Sub-tree button. Make the following entries:

Employee Grp

Management (M)
Management (M
Non-Management
Non-Management

Employee Sub
Grp
Permanent (PM)
Contract (CT)
Permanent (PM)
Contract (CT)

Default Payroll
Areas

Default Payroll Areas Text

Z1

HO, Lahore & Peshawar

office

Z1

HO, Lahore & Peshawar

office

Z1

HO, Lahore & Peshawar

office

Z1

HO, Lahore & Peshawar

office

Non-Management

Sub-Contract (SC)

Z4

Payroll Area for Plant

Non-Management

Trainee (TR)

Z2

Payroll Area for Plant

Non-Management

Internee (IN)

Z2

Payroll Area for Plant

Non-Management

Apprentice (AT)

Z2

Payroll Area for Plant

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Payroll Administration (Basic Setting)

Please maintain the above values as under;

And so on

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Table View for feature ABKRS

To change from the tree view to the table view, choose PView Table Maintenance.

Note : We can check wether feature data/values contain any error through icon
(Tree & Table)

Now Save the entries and then Choose Activate

in both type of views

.SAP will display a message in the status bar that

the Feature was generated.

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Check Payroll area

In this activity, we will check whether payroll areas and the respective payroll control record for GIS
are maintained properly and everything functional in there.

SAP IMG Path

Personnel Management Personnel Administration

Organizational Data Organizational Assignment Check
payroll area

Transaction Code

SPRO

Select the first activity check payroll Area and click choose button

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While saving it following prompt for customizing request appears,

Press enter to continue and data would be saved

Payroll Control Record

Let us access Payroll Control Record through following path
SAP IMG Path

Personnel Management Personnel Administration

Organizational Data Organizational Assignment Check
payroll area----Payroll Control Record

Transaction Code

SPRO

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Select the 2nd activity create Control Record and click choose button

Enter the Payroll area Z1, click the Create button and maintain the following entries.

At the bottom of the new screen you will notice

.Now payroll area is functional.

Similarly we can create payroll Controll record for remaining payroll areas of GIS.

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3.1.3 Generate Payroll Periods

In this IMG activity we generate date specifications for payroll periods. We must specify the period start
and end dates of the periods as well as the payment dates for each payroll accounting period parameter
assigned to a Payroll accounting area.
You generate these specifications automatically upon starting the program. You want to generate the
payroll periods for a monthly period parameter from 2015 through 2020. Each period must correspond to
a calendar month and the payment date must be three days before the end of the period

In order to executing the payroll processing the RPUCTP00 report should be used to generate the
Payroll periods. The Period parameters to be used should be 01. This report would be used to
generate the date specifications for a selected period for the payroll periods that is to be valid in your
system. For each period parameter that is assigned to a payroll area.

Example
We want to define the payroll periods for the years 2015 to 2020 for the period parameters 01
(Monthly) and the date modifier 00 (Standard modifier). The payment day should be three days
before the end of the payroll period. The system calculates the period number independent of the end
date of the period.
Make the following entries:
Period parameter
Date modifier

01
00 or ' '

Start date

01.10.2015

End year

2020

Start of fiscal year

0101

Payment day rule

Number of days

Determine period number

Note: Check Carry out table changes. Table data is actually changed if the field is flagged;
otherwise this is only a test run.

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Access the Customizing activity using one of the following navigation options:
Call the following transaction SE38 in SAP Easy Access Menu

Press enter and on the next window enter your Program RPUCT00 and click on Execute pushbutton

Or follow the IMG path (Personnel Management Personnel Administration Organizational Data
Organizational Assignment Generate payroll Periods

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Generate Payroll Period

Maintain the values as under:

Execute the activity and we will get the following screen which shows that payroll periods are
generated

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Check dates of Payroll Period

Go back and select the second activity and press
of above generated payroll periods

button to check the relevant dates

On the pop-up window enter your Period Parameters 01

and click on Choose to continue.

Dates are shown in the above figure

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Check date of payday

Go back and select the second activity and press

of our generated payroll periods

button to check the relevant dates

We will get following data about the date of payday for the payroll periods

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3.1.4 Generate calendar for comulations and Deduction

Each payroll period can be assigned to several different time intervals (or calendar types). For every
calendar type (for example, quarter) for every payroll period in the system, you must clearly define

In which concrete Cumulation interval (for example, in which quarter) wage types from this period
should be cumulated

To which concrete time interval (for example, which quarter) deductions should be assigned

You use report RPUCTP10 to define the assignment of the payroll periods, which you have
generated for your enterprise, for time intervals for comulations and deductions (for example, month,
quarter, half-year or year). The system needs this assignment

to be able to calculate cumulations correctly

to be able to distribute deductions to the payroll periods correctly

You define the date in the payroll period which this assignment should affect when generating the
calendar for cumulations and deductions. In this way you, for example, determine in which month
wage types should be cumulated from a weekly payroll period, of which one half is in one month and
the other in the following month.

Prerequisites
In the previous step of the Implementation Guide (IMG), we have already used report RPUCTP00
(Generation of Payroll Periods) to generate the payroll periods and payment days for our
company/enterprise Global Integrated Solution (GIS)

Example
You want to define the calendar for cumulations and deductions for the years 2000 to 2005 for the period
parameter 01 (monthly) and the date modifier 00 (standard modifier). The end date of the period should be
the basis for the assignment of payroll periods to the time intervals.
Make the following entries:
Period parameter

01

Date modifier

00 or ' '

Start year

2015

End year

2020

Start of fiscal year

0101

Determine the period number

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Payroll Administration (Basic Setting)

Note: Check Carry out table changes. Table data is actually changed if the field is flagged; otherwise
this is only a test run.

Execute the process and you will get the following screen

It is all done.
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