Payroll and Post Payroll Processing with Funds and Grants Management (986)

1. Payroll and Post Payroll Processing with Funds and Grants Management (986) SAP Best Practices

2. Purpose To calculate 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 Execute and manage payroll processing which encompasses (starting payroll, payroll corrections, remuneration statements, payroll journal, garnishment reporting, wage type report) Execute bank transfer activities (Data Medium Exchange (DME) Processing and Print Check functionality Execute third party remittance for taxation, benefit vendors and garnishment processing Support management of FMLA using the FMLA workbench Full integration and payroll posting to SAP FI/CO Benefits Automated, efficient processing of employees’ payroll Automated processing of banking activities Automated processing of third party remittance Integration with SAP Financials Sample payroll forms Full integration with funds and grants management Higher duty rate assignment Special taxation treatments using contract types Automatic education premium payments based on employee education records Key process flows covered Maintain Master Data and Time Data Run US Payroll Run Simulations and production runs for FI/CO Posting and 3rd Party Remittance Pre-DME, DME Management and check processing Third Party Remittance Posting to FI/CO activities Payroll journal reporting Scenario Overview – 1 Purpose and Benefits:

3. Required SAP ECC 6.0 EhP3 Enterprise roles involved in process flows Payroll Administrator Scenario Overview – 2 SAPApplications Required:

4. Payroll Processing Run Payroll After all employee master data changes are entered into the system for the relevant payroll period, the payroll is released in order to execute and run payroll for the pay period selected. If any errors occur, they must be corrected before you can exit the payroll. Prior to exiting payroll, a simulation of the third party remittance and finance posting is recommended. DME Activities Once payroll has been run without errors, the Pre- data medium exchange (DME) program is run for all employees in order to execute a bank transfer or check payment. The DME – Payment workbench is run for employees who have elected to be paid using direct bank transfer. For employees who are paid by check, the Check payment program will need to be executed. Scenario Overview – 3 Detailed ProcessDescription:

5. Subsequent Payroll Activities Third Party Remittance Processing This business process allows you to complete three major tasks related to the final processing of a payroll run. They are: Posting financial data to the appropriate G/L and subledger accounts in FI and CO. Generating bank transfer and check payments to third parties, such as tax authorities and benefits providers Reconciling payments made in FI with payables data stored in HR. Scenario Overview – 4 Detailed ProcessDescription:

6. Subsequent Processing Posting to FI activities The payroll results contain information that is relevant for Accounting. For this reason, they must be evaluated for posting to Accounting. The Posting to Accounting component performs this task. It is the interface between Payroll and Accounting. It helps to: Group together posting-relevant information from the payroll results Create summarized documents Perform the relevant postings in the Accounting components Payroll Reporting In order to facilitate reconciliation of payroll payments various reports can be run such as the wage type reporter, payroll journal, garnishments report, and the payroll reconciliation report Scenario Overview – 5 Detailed ProcessDescription:

7. Process Flow Diagram Off-Cycle Processing Legend – Please see next page

8. Diagram Connection Legend <Function> Hardcopy / Document External to SAP Financial Actuals Business Activity / Event Budget Planning Unit Process Manual Process Process Reference Existing Version / Data Sub-Process Reference Process Decision System Pass/Fail Decision