ORGANIZING SAP PAYROLL PROCESSING

How many programs does your organization run to pay your employees? Depending on how many separate systems with which you interface, the list could be quite long. There are programs to drive the payroll, print the checks, create the bank file, post the payroll, send payments to vendors to name a few. With the introduction of SAP release 4.x came a new utility called ‘process models’ which order and organize payroll processing. Visually, the process model is a flow chart of the programs in your payroll process. Process models can be created at least for regular payrolls, off-cycle payrolls, reversals, check replacements and bonus payments. The user initiates a process directly from the process model workbench or through the off-cycle workbench. Once the process is started, containers that carry necessary output from the previous program as selection criteria for the subsequent program. For instance, if running a regular payroll, the output container for the pre-DME program would be the payment run date and payment identification. This would also be the input container for the check-printing program.

As the process is running, the user can see the status of each program by how many personnel numbers are processed and how many are incorrect. To prevent subsequent programs from running before the results of the previous program are checked, breakpoints can be sandwiched between the programs. Green lights indicate the process is finished and there were no errors. If a step does end in errors, they can be fixed and the step restarted

PROCESS MODELS

With a quick background behind us, what are the niceties of the process model?

Obvious from the nature of the model, there is connectivity to the programs. Has your payroll processor ever gone down the list of steps to running the payroll and forgotten a step? With process models there will not be a list of to-dos since the programs are linked together in the model. The process model is a to-do list in itself.   Also, there is increased automation with the process model. Because the programs are linked and the selection criteria are stored in variants and containers, the step of manually getting a variant and supplying the rest of the selection criteria is eliminated. This also eliminates possible errors in manually typing the selection criteria.   Another time-saver is the availability of the status for each step. Throughout the processing, the status of the program can be checked for incorrect personnel numbers and errors. It is obvious if there is an error when the program is done running and there is an icon other than a green light for that program. With a right click on the step of the process, the user can go to the specific spool or job related to the program or the user can display the incorrect personnel numbers related to the program.   The process model also allows parallel processing of appropriate steps. Since certain programs can be run simultaneously, the processing time will be reduced.   Another key factor is processing history. If running programs without the workbench, the history of what is run can most closely be found through the job log and the spool list. Although this will contain what programs were run and their output, it is not organized with respect to the payroll process. The job log will contain any other unrelated programs that the user has run and won’t group the programs by payroll area or process. There is only an alphabetical list of jobs run for the period of time specified. The process model will list each step in a process and its status. It is very conducive to determining where the payroll processor is in the process. If the processor has to unexpectedly leave for the day, her backup can go directly to the workbench and identify where she left off.   Breakpoints were mentioned earlier. Part of the breakpoint functionality is notification. When the process reaches a breakpoint, specific people can be notified automatically. Perhaps after the programs for third party processing are finished, accounting should be notified to run the accounts payable payment run.

Having just focused specifically on the process model workbench, what is the big picture of payroll processing? Processes have to start somewhere. As mentioned previously, the beginning is different for payrolls for mass employees than for individual processing. Processes for mass payrolls are initiated within the workbench by creating a process that executes the steps in a process model. When the processor is ready to actually run the payroll, the process must be executed. Once executed, a selection program appears where the processor enters at least the payroll area and period. These are the initial selection criteria that get passed to the first program. The selection program will be different for different processes. A regular payroll process model will use H99_Select_Pernr whereas a special payment run model will use H99_Select_Pernr_Mass_Bonus. The latter allows additional payment types (special, correction, etc.) whereas the former only allows regular payroll runs.

Individual off-cycle runs are actually launched in the off-cycle workbench. When a processor runs an off-cycle payment, reverses a payment or replaces a payment, the off-cycle information is stored in the table T52OCG. Then the follow-up program RPUOCB00 (Subsequent Processes of Off-Cycle Activities) must be run to get processes started in the process model workbench. Off-cycle processing is organized by payroll area, period and payment type. So regular off-cycle runs will be grouped by payroll area and period. Special runs like correction and special checks will be organized by payment type and date. Replacement runs will be organized by payment run date and identification. After the follow-up program is run, the off-cycle processes will automatically start in the process model workbench.

CUSTOMIZING PROCESS MODELS FOR YOUR ORGANIZATION

With the big picture in mind, how do you incorporate the off-cycle workbench, subsequent processing and the process model workbench into your payroll processing? There are two key components to recognize: how the existing processing can be restructured and improved and how the process models can be created to meet and exceed the needs of the payroll department. Here are some key questions to ask yourself and your payroll department. Think of the answers to these questions within the framework of improving your processing and incorporating the payroll tools SAP delivers.

How many persons are available and needed for processing payroll in the department? Which payroll employees’ talents and abilities are best suited for the different roles in processing the payroll? In other words, what are your resources?   Where does the process begin and end? For instance, are time and master data entered in distributed centers? Is the main portion of the payroll processed centrally? Are the checks printed in different locations? Are the distributed centers staffed deeply enough that someone can run the off-cycle payrolls related to their employees? Perhaps the distributed centers could run the off-cycles and the main payroll could run the batch process in the process model.   How often do the checks and advices need to be processed? Twice a day, once a day? Most likely, the less times the batches of results have to be processed, the more efficient the processing.   What processing records are kept currently? Is there a log of payrolls processed and can it be revised to keep less detail? If a processing log is kept, it could be reorganized to model the steps in your processes.   Which programs can be included in the process model? SAP has designated many programs that can be used in process models – some lesser-used ones may not be available for the process model. Perhaps the benefit of having other programs in a model outweighs the work to maintain a customer version of the programs.   How many processes are needed? At a minimum, a different process will be needed for regular mass payrolls, off-cycle payrolls and replacement checks. Models can also be created for mass bonus payments and voids if needed. Where should breakpoints be placed? The most obvious place for breakpoints is to stop the process before production runs occur so that the results of the simulation can be reviewed. Are there other strategic places where breakpoints can be used? On the other hand, is it necessary to have as many breakpoints as originally envisioned? Who should be notified at the occurrence of breakpoints? How are you going to set up each of the variants for the process models? One possible scenario is to start the name of the variant with the name of the model.

What else can you ask yourself and the members of your department which will lead to better organization? The needs of each payroll department will differ according to its environment. Spending some time pondering the answers to these questions may allow you to incorporate the payroll processing tools in your processing and improve the efficiency of the process. Of course, there isn’t one ideal plan the fits the needs of all payroll organizations.

AVOIDING PROBLEMS

Although the process models can bring organization and efficiency, there are some avoidable problems that may occur.

SAP delivers standard examples of process models that can be copied and modified to suit your payroll’s needs. Be careful to copy the SAP delivered model for the correct process. Each model is connected to a selection program and is assigned to a type of process (e.g. regular or off-cycle). Double-check the attributes of the model to ensure it is assigned to the correct selection program and model type. If either of these is incorrect, the process most likely will not start.   As more processes are started in the workbench, the time it takes to refresh the list increases. Once processes are finished and correct, they can be at least closed. A filter can be applied to limit the number of processes viewed in the workbench and reduce the refresh time.   For some, the process model workbench can be visually deterring especially if the model contains many steps. Be sure to number the steps to be visually logical within the workbench. Also, use descriptive text to explain each step. If you need to download or print the spool in a certain step, include that in the text for the step. Perhaps a step is Execute Posting. The text could be changed to Execute Posting (D) to indicate that the file should be downloaded.   As mentioned previously, the names of the variants must be customized and transported. With some careful thought, the variant names can be created to avoid having to create transports at the last minute. For instance, it may be more useful to have a separate variant name for each combination of program and model rather than the same variant for the same program across several models. Then if you have to change the selection criteria for a program related to two different process models, you have the complexity to be able to change the selection criteria for the program related to a specific model. If the variant name were the same for both models, the change to the variant would affect both models.   The process model workbench uses elements of the SAP Workflow module. If you create and execute a process and it never starts, check whether the generic workflow user is unlocked.   Lastly, if there is more than one payroll processor, thought must be given to the security for viewing jobs and spools. If one person starts the process and another ends it, it will be necessary for the second person to be able to view the jobs and spools of the previous person.

Upon review of your payroll organization, the payroll tools can probably add efficiency and more order to the processing of your payroll. Rather than simply connecting the existing programs together in a process, use the tools to discover ways to help your organization.