- SAP HR Tutorial
- SAP HR - Home
- SAP HR Overview
- SAP HR - Introduction
- SAP HR - Maintaining Relationships
- SAP HR - Time Constraints
- SAP HR - Maintaining Infotypes
- Personal Administration
- SAP HR - Personnel Administration
- SAP HR - Master Data
- SAP HR - Infotypes
- SAP HR - Personnel Actions
- SAP HR - Changing Infotypes
- Time Management
- SAP HR - Time Management
- SAP HR - Work Schedules
- SAP HR - Public Holiday Calendar
- SAP HR - Attendance Absences
- SAP HR - Benefits
- SAP HR - Payroll Management
- SAP HR - Basic Pay Infotypes
- Primary and Secondary Wage Types
- SAP HR - Payroll Process
- SAP HR - Gross Pay
- SAP HR - Payroll Cycle
- SAP HR - Universal Work List
- SAP HR Useful Resources
- SAP HR - Quick Guide
- SAP HR - Useful Resources
- SAP HR - Discussion
- Selected Reading
- UPSC IAS Exams Notes
- Developer's Best Practices
- Questions and Answers
- Effective Resume Writing
- HR Interview Questions
- Computer Glossary
- Who is Who
SAP HR - Gross Pay
In SAP HR system, a gross salary is known as an agreed compensation that an organization agrees to pay to an employee on a monthly basis for the work that he does for that company in that specific period.
You can define net salary as gross salary minus all the deductions that are made because of statutory compliances of a country and organization such as EPF, ESI, Income Tax, etc. It includes other dues like home loans, car loans and advance salary taken, which you owe to the company and any legal dues that an employee has to pay.
CTC or Cost to Company is defined as gross salary + Benefits, Perks and is called as total Cost to company.
Consider the following example −
|Basic Salary||INR 12000|
|House Rent Allowance||INR 5000|
|Conveyance Allowance||INR 1000|
|Magazine Allowance||INR 500|
|Education Allowance||INR 500|
GROSS SALARY INR 19000
|Provident Fund||INR 1440|
|Income Tax||INR 310|
|Loan Deduction||INR 1080|
|Total Deductions||INR 2830|
NET SALARY INR 16170
|Leave Travel Allowance||INR 10000 per annum|
|Medical Reimbursement||INR 10000 per annum|
|Premium for mediclaim||INR 1500 per annum|
|PF contribution||INR 16332 per annum|
CTC (Cost to Company) INR 2, 65,832 annually (i.e. CTC = Monthly Gross Salary × 12 + Annual benefits)
Bonuses and Recurring Payments
For recurring payment/deductions, an Infotype 0014 is used. Recurring payments and deductions are the payment types that are not deducted or paid in every payroll.
To execute the recurring payment, below information is required
Wage type − It requires wage type to process the payment.
Number/Unit − This depends on the wage type and the system checks the combination entered.
Currency − The currency varies as per the company code. The system automatically suggests the currency to be used as per the company code.
First payment date and interval/unit − This determines the recurring payment to be made and it automatically identifies when the payments are to be made. When there is no entry for this field, by default, the system makes payment as per wage type in each payroll period.
Payroll Cycle & Time Management Data
To use all the features in SAP HR system, you need to store master data for all employees in SAP Human Resource system.
|007||Planned Working Time|
Note that it is important to map the user ID to the employee in intype 105.
|301||Time Sheet Default Values|
During payroll run in the Payroll Status Infotype (0003), the system also flags the payroll correction field for all the rejected personnel numbers. In case you correct the master or the time data for a personnel number, this field is also flagged.
All personnel numbers for which the master data is corrected are grouped again in a list - Matchcode W. The next step is the payroll correction run, which involves payroll run for this matchcode W (only for corrected personnel numbers).
This is used to determine the current payroll period from the payroll control record and performs payroll using the values you entered in the payroll program.
You have to check if the payroll process has completed successfully or any errors have occurred. When the payroll runs with errors, system displays error messages. You can get a descriptive payroll log.
You can put the payroll status to check the payroll results during this phase. This way you make sure that no changes are made to the payroll-relevant data which could affect the payroll past or present.
You can put a check on the results of payroll run after completion.
You can also get a report that tells you the stored payroll result. Using this report, each employee can see the contents of all internal tables that has payroll results and you can also check all partial runs.
Payroll is normally integrated to these systems - FI/CO, Benefits, Time Management and Expenses.
Integration with FICO and Infotype
Following are the key activities in SAP FI/CO that can be integrated with payroll.
Defining organizational accounting structure.
Creation of General Ledger G/L accounts.
Defining automatic account assignments.
Defining primary cost elements.
Infotype 0001 master code assignment and organizational assignment.
Infotype 0027 Cost centers and cost Distribution.
Infotype 2002 for cost distribution and activity allocation and for time management.
Integration with Time Management
Organization Management − Organization Administration Organizational Reporting
Integration with benefits and payroll