Off-Cycle Payroll Processing (577)

1. Off-Cycle Payroll Processing (577) SAP Best Practices

2. Purpose, Benefits, and Key Process Steps • Purpose • To complete processing of employee Off-cycle Payroll • Run payroll for payments including bonuses and other one-time payments, advance payments (multiple pay periods), and absence payments (days within a payroll period) • Execute a correction payroll when changes have been made to an employee's master data • Process payroll data for a check that was manually created outside of the system • View an employee's payroll history • Replace payments • Reverse payments • Adjust W2 data of individual employee during the year end process • Benefits • Ability to reissue, void, or create payments in a single workbench • Automated, efficient processing with complete history of employee’s payroll • Execute subsequent payroll processing using the delivered OC process models • Key Process Steps • Reversal / Void • Check Replacement

3. Required SAP Applications and Company Roles • Required SAP Applications • SAP enhancement package 5 for SAP ERP 6.0 • Enterprise roles involved in process flows • Payroll Administrator

4. Detailed Process Description • Off-Cycle Workbench Processing • History Tab • The History tab allows you to view an employee’s pay results for a given payment in the remuneration format. When you choose the History tab it shows at a summary level the payment date, amount, and other information related to that specific pay. If you click on the blue box with an ‘I’ in it, this will give you detailed information on the check/bank information. If the payment has been reversed or replaced, it will show you the reason and by whom it was reversed or replaced. If it was replaced it will show the check number that replaced it. In addition, there is an icon displayed in the case of it being a replacement or reversed result. At the bottom of the history tab is the remuneration statement button, which submits RPCEDTXX that then allows a more detailed view of the pay information. • Replace Payment Tab • The Replace Payment tab is where you go to replace a transfer or a check with a check. A big part of the replacement process is the check management this was discussed earlier in the configuration section above. When you go the replace payment tab only payments that are processed will be shown. If it is a check there must be a check number entry in PAYR. If direct deposit the BT must be date and time stamped.

5. Detailed Process Description • Off-Cycle Processing • Payroll Tab • On demand bonuses are created when employees need to receive a special payment prior to or separate from the next regular payroll run. • On demand regular payrolls can be used to prepay an employee for the next period, or to pay an employee for a previously exited period. • Processing Payments for Individual Absences in Advance or Pay in Advancer • Occasions arise where you would like to retroactively adjust an employee's payroll results, but without including any master data changes in the adjustment that would also affect the employee's payroll results. This need is met by year-end adjustments run from the Off-Cycle with Reason code 0110 Year-End Adjustments.

6. Detailed Process Description • Off-Cycle Processing • Reversal Tab • The Reverse Payment tab is there to allow the reversal/void of a payment. Depending on the status of third party remittance, the payment will be processed as either a “void” or an “out of sequence reversal”. • Check Number Assignment Tab • The Assign Check Number tab is used for when a manual payment is made. On this tab, you can assign the check number that is associated with that payment. The payment must have a payment method of ‘M’ to be displayed on this tab. • Authorized manual checks are checks that are processed by SAP, but are printed or hand written outside of the system.

7. Detailed Process Description • Off-Cycle Processing • Subsequent Processing • The system uses this function to further process the results of an off-cycle payroll, a replaced payment or a reversed payroll result • Once you have made a bonus payment using the Off-Cycle Workbench, not all necessary steps have been concluded. A further remuneration statement must be issued, the necessary checks must be printed or the transfers must be made and the payroll results must be posted to Accounting. Further steps may also be necessary, depending on the business processes in your enterprise • You start subsequent processing by running one or several batch reports. The batch report ensures that the system runs all necessary subsequent programs in sequence • In a process model, you define which subsequent programs are run, and in what order. On the selection screen of the report for the batch subsequent processing, you specify which process model the report is to use. • Model Off-Cycle process models are delivered with the SAP Best Practices for HCM.

8. Process Flow Diagram Off-cycle Processing Off-Cycle Workbench History Tab Payroll Tab Subsequent steps for running the Off-Cycle Payroll Processing One-Time Payments Processing Year-End Adjustment Processing Payments for Pay Periods in Advance Processing a Regular Off-Cycle Payroll (On-Demand) Processing Non-Authorized Manual Checks Running a Correction Payroll Replacement Tab Reverse Payment Tab Assign Check Number Tab Subsequent Processing Check Results Payroll Administrator Payroll and Post Payroll Processing (566)

9. 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