Period End Closing for HCM (580)

1. Period End Closing for HCM (580) SAP Best Practices

2. Purpose, Benefits, and Key Process Steps • Purpose • The closing operations component helps you prepare and carry out the activities required for daily/month-end, quarterly -end and year-end closing in payroll. • For this purpose, the system provides a series of standard reports that can be used to generate evaluations and analyses of payroll. • For quarterly and year end closing a number of payroll tax reports can be generated using tax reporter functionality • Benefits • The system helps you to carry out the following: • Review payroll results and wage type details • Reconcile payroll postings • Execute quarterly reports and year end W-2 activities • Key Process Steps • day-end closing, month-end closing • Quarterly closing and • year-end closing.

3. Required SAP Applications and Company Roles • Required SAP Applications • SAP enhancement package 5 for SAP ERP 6.0 • Company Roles • Payroll Administrator • Human Resources Administrator • Time Administrator

4. Detailed Process Description • Daily/Month - end closing in HCM • Display payroll journal • Display wage type reporter • Run garnishments details report • Payroll reconciliation report • Tax infotype summary report • Execute payroll posting to FI • Execute third party remittance and payments to vendors • Month end Accural processing

5. Detailed Process Description • Quarterly closing in HCM • Display payroll journal • Display wage type reporter • Run garnishments details report • Payroll reconciliation report • Execute Payroll postings to FI • Form 941 • SUI Wage Reporting • Execute third party remittance and payments to vendors

6. Detailed Process Description • Year-end closing in Financial Accounting • Create Public Holiday Calendar for New Year • Carry Forward Time Quota Balances • Benefits Open Enrolment • Confirm all payroll areas for the year end • Reconciliation of W-2 against totals of 941 forms • Verify wage and benefit information • Perform W-2 simulation run • W-2 wage and tax statements • Form 940 • Workers Compensation report

7. Process Flow Diagram Period End Closing in HCM: Daily/Month End Triggering Event Updating Evaluation Reporting Payroll Administrator Payroll / Procedures Payroll Run Display Wage Type Reporter Display Payroll Journal Execute Payroll Posting in FI Run Garnishments Details Report Display Cost Center Report Execute Third Party Remittance and Payments to Vendors Payroll Reconciliation Report Tax Infotype Summary Report

8. Process Flow Diagram Period End Closing in HCM: Quarterly Triggering Event Updating Evaluation Reporting Tax Reporter Payroll Administrator Display Wage Type Reporter Display Payroll Journal Execute Payroll Posting in FI Execute Third Party Remittance and Payments to Vendors Run Garnishments Details Report Form 94I Exemption Expiration Report SUI Wage Reporting W-4 Withholding Allowances Report Payroll Reconciliation Report

9. Process Flow Diagram Period End Closing in HCM: Year End Triggering Event Updating Evaluation Posting Reporting Time Administrator Create Public Holiday Calendar Carry Forward Time Quota Balances Carry Forward Time Quota Rollover Perform W-2 Simulation Payroll Administrator Calculation and Loading of Historical Rate for Quota Payment Confirm All Payroll Areas for Year End W-2 Wage and Tax Statements – Production Run Form 940 Workers Compensation Report

10. 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