HR407

Canadian Payroll
 System R/3 Enterprise
 Release 6.0
 October 2009
 2009/Q4

HR407-Participant Guide

HR407-EN-C94-PART
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Notes to the user

 These materials are not a self-study program. They complement the course instructor’s
explanations. Your material includes space for recording the additional information provided by
the instructor.

 There may not be sufficient time to complete all the exercises during the course. The material
includes exercises intended as additional examples that the instructor can cover during the course.
Participants are encouraged to complete all exercises during or after the course to deepen their
knowledge of the subject matter.
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Payroll relies on inputs from a variety of sources:
 Master data infotypes
 Time infotypes
 Previous payroll results
The payroll program imports this information for each employee being processed. The data is then analyzed
by the payroll program, RPCALCK0, which uses a schema to perform specific processing steps.
The payroll program starts by creating the gross (payment) portion of payroll. Basic payments, time
payments and additional payments are totaled to create the total gross/payment amount. Subsequent to this,
deduction processing is performed. Statutory deductions, including taxes and garnishments, are processed
as well as voluntary deductions, including benefits. Deductions are analyzed for such considerations as
effects on taxability, treatment during retrocalculation and possible arrears. Ultimately, the net payment due
to the employee is established.
The payroll results are stored in the cluster table PCL2, file RU. This information is stored by personnel
number, payroll periods and status. The data is separated into a series of interrelated tables which are
structured for maximum efficiency and security.

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 A large amount of master data is required to be able to successfully process an employee for Canadian
payroll. When an employee is hired, various types of Master Data must be entered in the SAP Human
Resources system.

Basic employee data is relevant for payroll accounting and must be maintained during the employee’s
employment in order to produce accurate payroll results

The above listing are Master Data infotypes required.

You should be familiar with the master data required for payroll. By using the appropriate a personnel
action PA40 you maintain an accurate master data and avoiding error.

Easy Access Menu Path: Human Resources > Personnel Management > Administration >
HR Master Data >Display

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  Actions (0000) provides the employment status necessary for the inclusion of the employee in
the payroll run. Additionally, the hire date is read from this infotype. The hire date may be
further defined using the Date Specifications infotype (0041) if the appropriate date is not
maintained through the hiring action.

 Organizational Assignment (0001) is used to categorize the employee. Employees are assigned
to three structures within Human Resources: Organizational, Personnel, and Enterprise. The
latter two structures have the greatest implications for payroll processing.

 The Personnel Structure is used to categorize employees for payroll processing. This division is
typically handled via the employee subgroup. Employee subgroups are further defined by
assignment to employee subgroup groupings. These critical groupings control such items as:
Personnel calculation rules; Assignment of the collective agreement provision;
Permissibility of primary wage types; Allowed work schedule

 The Enterprise Structure is used to divide the company along lines of business and location. The
Enterprise Structure includes the company code, personnel area, and personnel subarea. The
company code is used to establish the permissible cost center for the employee. This element is
defined in FI/CO within a controlling area. The cost center is an essential element for the transfer
of payroll information to FI/CO.

 While each element in the Enterprise Structure can be used directly in payroll processing, the
most critical field is the personnel subarea; firstly, the tax company (used for reporting
employment taxes) is assigned at this level and secondly, various personnel subarea groupings
affect the processing of payroll. The personnel subarea groupings relevant to payroll include:
Primary wage type; Premiums; Work schedule; Time recording; Absence/Attendance types;
Holiday Calendar.

 The Organizational Assignment also includes the payroll area. The payroll area is used to
determine the data and frequency of pay for the employee. This field, which appears as a default
through the feature ABKRS but can be overwritten as necessary, is used to select employees for
the payroll run. Organizational Assignment is also one of the five primary infotypes for payroll
processing.

 Personal Data: The employee’s name is a critical element as is the social insurance number.
The system also requires a birth date on the Personal Data infotype.

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  Planned Working Time holds the connector to the generated work schedule for the employee. A
generated work schedule must exist for the entirety of the payroll period being processed as well
as the period prior and the period after. This data is analyzed by payroll for both payments and
absence valuation. Additionally, the time management status indicates whether wage types
should be made available from time evaluation processing. Planned working time is one of the
five primary infotypes for payroll.

 Basic Pay holds the primary payment information for the employee and is among the five primary
infotypes for payroll. The two fields that are mandatory for payroll processing are: Capacity
utilization level and Working hours per payroll period.

The pay scale information stored on this infotype may be used to valuate indirectly valuated wage
types.
Additionally, the wage types listed are the basis for the creation of the employees basic payment
amount and
regular hourly pay.

 Bank Details include the payment method to determine whether the employee will be paid via a
printed check or a bank transfer. The other elements required on this infotype are linked to the
payment method. Companies may allow employees to have more than one Bank Details infotype.

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  Payroll imports time data through one of two methods, either directly into the payroll program or
through time evaluation. Regardless of the method, time data is imported so that payment wage types
can be generated. The above time infotypes can be imported by the payroll program.

 Of these infotypes, Absences, Attendances and Overtime store actual time data. Substitutions are used
to specify changes to the planned working time. Also, they may be used to assign alternate payment
amounts to the wage types generated based on these time records. Employee Remuneration
Information is unique in that this time infotype directly feeds payment (wage type) information to
payroll. Time associated with this infotype is not analyzed.

Easy Access Menu Path: Human Resources > Time Management > Administration >
Time data >Display

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 Payments and deductions are stored on various infotypes for processing in payroll. The configuration of
each of these infotypes is unique, yet they share common configuration in the set up of the dialog wage
types. Payment and deduction infotypes are specified by frequency of pay.

 The Recurring Payments and Deductions Infotype (0014) is used to store amounts that must be paid or
deducted every pay period or on a specific schedule. For example, union dues might be deducted the
last pay period of the month while charitable contributions could be deducted every pay period.
 The Additional Payments and Deductions Infotype (0015) is used to store special one time payments
and deductions. These payments and deductions are paid on a fixed date. They are not linked to the
payroll period.

 The employee’s Payroll Status Infotype (0003) controls payroll processing and retroactive accounting
at the employee level.

Easy Access Menu Path: Human Resources > Personnel Management > Administration >
HR Master Data > Display

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 Other Canadian Payroll Infotypes
 The Benefits infotypes include those that are required so that the employee may enroll in benefits plans.
General Benefits Data (0171) and Adjustment Reasons (0378), and those that include the information
on the plans for which the employee is enrolled, for example, Health Plans (0167).

 Garnishments information is similarly stored on a series of infotypes, which are interrelated. The
Garnishment Document (0066), Garnishment Claim (0067) and Garnishment Adjustment (0068) are
Canadian-specific infotypes that are processed with the payroll program.

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 The Payroll Status Infotype (0003) contains employee-specific data that is relevant for payroll processing.
The Payroll Status Infotype is created by the system for each employee when a Hiring Action is processed.

 The “Accounted to” field is maintained during the payroll process. It is updated by the payroll
program RPCALCK0 with the end date of the last pay period for which payroll was processed.

 The “Earliest Master Data Change” field is maintained by the system during infotype maintenance.
When employee master data that is relevant to payroll is changed, the system stores the earliest date
from which the master data change is valid. This date is deleted once payroll has been processed.

 The “Payroll Correction” field is flagged with an “X” during payroll processing if the personnel
number is rejected. Using this indicator, the system creates a list of the personnel numbers rejected
during payroll processing. The list is referred to as Matchcode W. The payroll correction flag is deleted
once the payroll run is successful. If errors are corrected in tables, the “Payroll Correction” field is not
flagged. In this case, it is necessary to use the “forced retroactive accounting date” field on the payroll
selection screen of the payroll driver.

 The “Earliest Personal Retroactive Accounting Date” defines the date in the payroll past up to which
master data and time data changes are permissible. This date can be set manually.

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  Earliest personal retrocalculation date: This field is one of the three limits to payroll recalculation.
The others include the Hire Date and the Earliest Retrocalculation date from the payroll control record.
An employees’ data cannot be processed for any payroll period prior to the earliest personal
retrocalculation date. Additionally, the infotype fields relevant to payroll cannot be maintained prior to
this date.

 Run payroll up to: This field allows you to include an employee within the payroll run who has an
employment status other than active. This field should be maintained when offering salary continuance
(the employee receives regular pay for a specified period of time after termination of employment).

 Do not account after: This field allows special payments to be processed for employees who are no
longer active.

 Personnel number locked: This check box locks the employee from the current payroll run. A
message is displayed during processing to note that the employee has been locked and will not be
processed.

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  The payroll area, which represents a basic organizational entity within payroll accounting, has two
functions:
(1) It determines the exact pay period dates for which payroll is to be processed using the period
parameter and
the date modifier.
(2) It groups employees together for whom payroll will be processed at the same time.

 The Earliest Retroactive Accounting Period further defines the meaning of payroll past and controls the
entry or modification of master data. Master and time data relevant to payroll may not be changed or
added for records with validity dates prior to the earliest retroactive accounting period. Therefore the
earliest retroactive accounting period can be seen as a limit to the payroll past. Similarly, it is an additional
form of status control as it also limits both the ability to maintain data and the right to process payroll.
Payroll areas may not be run for payroll periods prior to the period specified in the earliest retroactive
accounting period.

IMG Path: Payroll > Payroll Canada > Basic Settings > Payroll Organization

Create Payroll Areas:

IMG Path: Personnel Management > Organizational Data > Organizational Assignment > Create
Payroll Area

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  The “Payroll Control Record” must be created for each payroll area and it has the following
organizational functions within payroll accounting:
 Controls the status of the payroll process.
 Determines the current payroll period with exact dates and defines the payroll past for retroactive
accounting recognition.
 Prevents master data and time data from being changed during the payroll run once payroll is
released. This lock applies to past and present data. Future-dated changes can still be processed.
 Specifies the earliest possible retroactive accounting period for each payroll area.

IMG Path: Payroll > Payroll Canada > Basic Settings > Payroll Organization >
Assign new payroll accounting areas to period modifier > Create control record

Transaction Code: PA03

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  During the payroll run, master data and time data changes that affect the payroll past and payroll
present are not permitted.

 The payroll program reads master data and time data infotypes. If changes were made during the
payroll run, the accuracy of the payroll results could be jeopardized. Conversely, payroll must not be
processed during master data maintenance. This is controlled by the status of the personnel control
record.

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  Payroll simulation runs have the following characteristics:

(1) They are not accounted for in the “run” field of the payroll control record.

(2) The personnel records are not locked during a simulation run.

(3) The payroll results of a simulated run are not written to the database. They can only be
reviewed through the

payroll log.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada > Payroll

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  The first step in processing payroll for a payroll area is to select “Release Payroll” from the payroll
menu.

 By releasing payroll, the pay period of the payroll control record is advanced by one to reflect the current
pay period to be processed. The master data and time data records are simultaneously locked thereby
preventing any changes from being processed for the payroll past and payroll present. Future-dated
changes can continue to be processed. This step must be executed before starting the payroll.

 Payroll can also be released from the payroll control record. The “Released for Payroll” status on the
payroll control record also has the effect of increasing the pay period of the payroll control record by one
and locking the master data and time data records.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada > Payroll

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  The next processing step is “Start Payroll”. When a live payroll is processed, the system defaults to
“Current period”. The payroll area on the Payroll Driver screen is used to select the pay period for
which the payroll program will run. The payroll program will determine if payroll should be run
retroactively for any individual within the payroll run. If there is no need for retroactive accounting,
payroll will only process for the period selected. The payroll area is called a second time in the
Selection section of the payroll driver.

 You are not required to enter the pay period. Based on the selected payroll area, the system reads the
payroll control record for the payroll area to determine the current pay period. The selection of
employees is based on the payroll area.

 Alternatively, you can enter a different pay period if you are processing a simulation run. The payroll
area, a personnel number or a personnel number range may be used in this instance to select personnel
numbers.

 If a retroactive accounting run needs to be processed that the system is unable to trigger automatically
(such as for changes to Customizing tables), you must enter the appropriate date in the “Forced
Retroactive Accounting as of” field.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada > Payroll

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  Schema: The processing steps which tell the payroll program how to run are included in the schema.
The delivered standard Canadian Payroll schema is K000.

 Display log: This standard log shows a structural view of the processing that occurred for each
employee during the payroll run. The log can be used when troubleshooting apparent errors and to
determine the effects of configuration changes on the processing of payroll.

 Time management integration log This secondary log is used to expand the details of a specific
portion of payroll processing, the portion relevant to the processing of time data and selection of time
wage types. This log is used to determine how time records were processed and which time wage types
were generated for each time record. In the Remuneration Statement parameters section, you specify
whether or not to generate the remuneration statements.

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  By executing the “Check Result” function, the “Start Payroll” function is deactivated during verification
of payroll results. The master data and time data records remain locked.

 This status is typically only used in a production environment. While in this status, payroll is remains
locked for processing. Master and time data remain locked for the payroll present and past for all
employees in the payroll area. This ensures that no changes can be made to the relevant master data while
the payroll results are being checked. If a user attempts to maintain master data for an employee within a
payroll area that is in the check payroll results status, they will receive an error message and the change
will not be allowed.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada > Payroll

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  If errors occurred during payroll processing, these errors must be corrected in order to have a
successful payroll. By selecting the “Corrections” status in the payroll menu, all the master data and
time data records assigned to the payroll area are released for maintenance.

 After the data is corrected, the payroll must be released and started again. Releasing payroll will lock
the master data records, however, the pay period will not be changed. When payroll is started, the
selection criteria “Matchcode W” is used to process the personnel numbers which were rejected
during the initial payroll processing as well as the personnel numbers which may have been updated
while payroll was in correction mode.

 Up to 99 runs can be performed. To verify how many runs have been performed, check the Run field
of the payroll control record.

 Payroll can also be set for correction from the payroll control record. The “Released for Correction”
status on the payroll control record also has the effect of unlocking the master data and time data
records and does not advance the pay period.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada > Payroll

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  “Matchcode W” is a list of all personnel numbers in the selected payroll accounting area that have
been rejected during payroll processing because of incorrect data. This means that payroll has not run
successfully for them.

 If personnel data is updated for employees who were successfully processed during payroll while
payroll is released for correction, the personnel numbers of these employees will also be added to the
‘Matchcode W’ listing.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada > Tools > Control
Record

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  The “Exit Payroll” function enables you to release personnel records for past and present
maintenance. You cannot choose this function until payroll has successfully been performed for all of
the personnel numbers assigned to the selected payroll area.

 There must be no personnel numbers listed in ‘Matchcode W’. If you choose the “Exit Payroll”
function and rejected personnel numbers are listed in ‘Matchcode W’, the system will display an error
message.

 Note: To assess the success or failure of the payroll run, when the Exit payroll menu item is selected,
the system confirms that search helps W is empty. If you attempt to perform the Exit payroll step
while employees are still assigned to the corrections status, the system displays an error message.
Alternatively, if an employee's data cannot be corrected or if payroll cannot create valid results for an
employee, the employee may be locked for the payroll run. The locking mechanism is included on the
Payroll Status infotype (0003). These employees must be processed in payroll for the program to
remove the corrections/search helps W assignment.

 After payroll has been exited, the pay period processed is now part of the payroll past. Data for the
pay period can only be changed by performing retroactive accounting in a subsequent pay period..

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  The payroll log is displayed as a tree structure. Each node within the tree structure can be expanded or
collapsed depending on the level of detail that is required.

 The headers within the structure are designed to help with troubleshooting and to facilitate navigation
within the log.

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  You may display the details of an individual processing step by opening the selected nodes and
double-clicking on each step to view the details, or you may double-click on the node to view the
sections within the node. Most nodes include three sections: input, processing, and output. The nodes
available are determined by the specific processing step within the schema. Most steps that consist of
processes that use configuration tables to specify the system reactions do not display details in the
processing section. However detailed input and output is available. These steps that rely upon
processing internal to the payroll programs show the exact processing that occurred with a line-by-line
description of the process.

 User-specific settings for the log tree can be saved and used as a variant.

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  If an error occurs when a personnel number is processed, the log is expanded at the processing step
where the error occurred and an error message is displayed.

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 SAP payroll stores the results of the payroll run in the payroll results cluster. These results are stored in
cluster PCL2. Clusters PCL1 through PCL5 are used for a variety of HR data storage processes.

The payroll clusters are designed to enable the storage of mass amounts of data and to allow quick access to
the stored data. The cluster is accessed via the index which consists of the following keys:
- Personnel number
- Sequence number
- For period for payroll
- In period for payroll
- Payroll run status

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  The SAP payroll system stores the payroll results in the cluster “RK” which is a collection of tables.

 The cluster is accessed from the payroll results menu option. This report (RPCLSTRK) enables you
to display the contents of cluster RK which contains the detailed payroll results. The available payroll
results are listed in chronological order.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada > Tools >
Display Results

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  Once a specific payroll result has been selected, an index is displayed which lists the tables which are
included in the payroll results.
 The payroll results store information on prior results, current wage types processed, limits,
accumulations, bank transfers, taxes, tax accumulations, garnishments, arrears, deductions not taken,
accruals, etc.

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 WPBP
 The Work Center Basic Pay table includes the information imported from the employee's master
data. Field data from Organizational Assignment (0001), Actions (0000), Planned Working Time
(0007), Basic Pay (0008) and Cost Distribution (0027) is included.
RT
 The Results table is offered in two views, expanded and collapsed. The RT holds the stored wage
types. This table is critical to most processes in post-payroll processing as the wage types are read
from here when filling payroll infotypes, creating the initial files for transfer to FI/CO and third-
party remittance and running standard payroll reports.
CRT
 The Cumulated Results table also stores wage types. However, while the RT stores wage types
per payroll period only, the Cumulated Results table allows the storage of wage types per calendar
periods. For example, total gross, which is stored in technical wage type /101, is stored per month,
quarter and year in the CRT.
ARRRS
 The Arrears table stores those deduction wage types for which funding was unavailable during the
current payroll run. These wage types will be deducted during the next payroll run if money is
available.
DDNTK
 The Non-effected deductions table stores those wage types for which funding was unavailable
during the current payroll run. These wage types will not be taken from the next payroll run unless
the wage types are also entered on the ARRRS table.
TCRT
 The Tax Cumulated Results Table stores those wage types which are relevant to the determination
of payroll taxes. The wage types are stored in a cumulative manner by month, quarter and year.
While this information is similar to what is held on the CRT, special fields are included
specifically for tax reporting: Tax Company and Tax Authority.
TAX
 The Tax table stores the employee's withholding information as well as the relevant tax types for
all tax authorities to which the employee is assigned.
ACCR
 The Month End Accruals table is filled when an accrued amount is generated for posting to
FI/CO.
BT
 The Payment Information table stores the information needed for producing the employee's bank
transfer or payroll cheque. This information includes the Bank Details infotype (IT0009) and the
/559 Payment wage type.
C0
 The Cost Distribution table holds the detailed breakdown of information from the Cost
Distributions infotype (IT0027). This costing information will be used when transferring data to
FI/CO.

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  The payroll past is of decisive importance for retroactive accounting recognition. It constitutes the
period between the end date of the last payroll period and the retroactive accounting limit.
 The retroactive accounting limit is based on either the “Earliest personal retroactive accounting date”
which is stored on the employee’s Payroll Status Infotype (IT0003) or the “Earliest retroactive
accounting period” which is stored on the Payroll Control Record
 If an infotype that is relevant for retroactive accounting is maintained (created/updated) and its’ validity
period coincides with the payroll past, the “Earliest master data change date” on the Payroll Status
Infotype (0003) is set to the effective date of the relevant infotype.
This results in automatic retroactive payroll accounting on the next current payroll run.

 If different dates for the earliest retroactive accounting limit are identified on an employees’ infotype
0003 Payroll Status and the Payroll Control record for that payroll area, the system will select the most
recent dates. The most recent of the two dates will be the retroactive accounting date applied.

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  Often it is necessary to alter payments or deductions retroactively after the pay period has been
“exited” or closed. To process a payment or deduction which has been omitted, create the appropriate
infotype with an effective date in the desired previous pay period.
 The system will identify that a retroactive payment or deduction is being processed and the following
warning message will be generated:

“Enter data for payroll past (retroactive accounting)”

 The “Earliest master data change” field on the Payroll Status Infotype (0003) will be updated with the
effective date of the newly created infotype. This will automatically trigger retroactive payroll
accounting and the amount will be transferred forward to the current pay period for payment or
deduction.

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  Retroactive payroll accounting is triggered by:
(1) Relevant master data or time data adjustments - These adjustments are flagged on the Payroll
Status Infotype (IT003) thereby triggering automatic retroactive payroll accounting.
(2) Table changes or changes to the schema - These changes, if required, are flagged by an entry in
the “Forced recalculation” field in the payroll driver selection screen.
 Retroactive payroll accounting does not change the previous results. During processing, the payroll
driver maintains the existing pay period results and creates new pay period results which reflect the
retroactive calculations.
 Payroll results are identified with the following statuses:
A Actual Results – used for a payroll result generated by the last payroll run, that is, the result is
current.
P Previous Results – used when a payroll result has been replaced by a new record during
retroactive accounting. It then becomes the predecessor of the current record.
O Original Results – used when a payroll result has been replaced by at least two retroactive
accounting runs, that is, the record is no longer current, nor is it the predecessor of the current
record

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  Wage types are objects in Payroll and Personnel Administration. They are used by the user or the
system to store amounts and time units for calculating pay. Wage types are categorized as follows:
model wage types, dialogue wage types or technical wage types.
 Wage type characteristics are defined for each wage type and wage types can also be assigned to
processing classes as well as cumulation classes, as required.

IMG Path: Payroll > Payroll Canada > Basic Settings > Environment for Maintaining Wage
Type’s >
Create Wage Type Catalog

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  Wage Types: Primary and Technical
There are three types of wage types utilized in the SAP Payroll system:
 Model wage types (for use in the copy tool)
 Technical or secondary wage types
 Primary wage types (customer-owned)

 Model wage types, which are delivered by SAP, are recognized by the SAP naming convention. These
wage types begin with letters, for example, M001, BE20 and MI10. These wage types include both
payments and deductions. They are used in the wage type copier when creating customer wage types.
These wage types should not be used in a productive system.

 System prompts are available to help with the wage type configuration process. Using the wage type copy
tool and the model wage types, clients should copy the wage types and configure them to meet their
specific needs. The names of the customer wage types must begin with a number.

 Using a template to keep track of Primary wage types is a Best Practice.

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  Primary wages types are defined by each individual company. These wage types are copies of the model
wage types. Within the category of primary wage types, there are several subcategories:
 Dialog wage types
 Time wage types
 Absence wage types
 Dialog wage types can be placed directly on an infotype. These wage types are normally used on the Basic
Pay, Recurring Payments and Deductions, Additional Payments and Employee Remuneration Information
infotypes. There is special configuration needed for dialog wage types to define their role in master data.
 Primary wage types also include time and absence wage types which are chosen by the system based upon
table configuration. While you can choose to allow time and absence wage types to be placed on an
infotype, typically time entries are made which are then analyzed by the payroll program. During payroll
processing time and absence wage types are then selected (generated) based on various table entries and
rules that the customer configures.

 Hint: SAP highly recommends use of the delivered wage type copy tool to copy the model wage types
into the customer name range. This helps ensure consistent configuration. You can then alter the new wage
types to meet your payroll configuration needs.

 Technical wage types are supplied by SAP, have deliberate meanings and should NOT be changed.

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  Technical or secondary wage types are categorized by the character that follows the initial slash. These
categories include:
Categories Description
/0xx Valuation bases (rates of pay)
/1xx Cumulation wage types, used to hold total values such as total gross
/2xx Average bases
/3xx Total EE deduction amounts
/4xx Total ER deduction amounts
/7xx Reportable taxable amount
/8xx Proration factors and cost accounting time values
/Nxx Tax calculated, but not taken
/Ixx Deduction from a previous period that was not reduced
/Qxx Wages that are taxable but not subject to withholding (group term life)

 Technical wage types are generated during payroll processing. The configuration of the wage types is
almost wholly controlled by SAP. However, there are some considerations for the customer. For example,
you choose which wages are included in the /101 Total Gross wage type. The reaction of this wage type in
processing is not under the customer's control.

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  Defining the dialogue wage type characteristics for an organization is the first step in customizing the
SAP payroll system.
 Wage type characteristics determine how a wage type is entered and how it is processed during payroll.
Wage type characteristics can be grouped as follows:
(1) Wage type characteristics that determine the entry of a wage type online, for example:
- Wage type permissibility
- Direct or indirect valuation
(2) Wage type characteristics that determine the processing of a wage type in payroll, for
example:
- Processing classes
- Cumulation classes

TIP - The utilization of a spreadsheet to summarize the dialogue wage types and their characteristics is
helpful. It
provides an overall summary which can be reviewed for accuracy prior to input.

© SAP AG HR407 3-9

  Permissibility per infotype is assigned on table view V_512Z. Wage types may be permitted on one or
more infotypes. While salary wage types should only be allowed on Basic Pay, a charitable contribution
may exist on Recurring Payments and deductions (IT0014) as an on going deduction as well as being
allowed on Additional Payments (IT0015) as a one-time deduction.
 For all infotypes other than basic pay, permissibility includes information on frequency. You must consider
whether the wage type is allowed more than once per pay period or multiple times within one payroll
period. Such permissibility includes the wage type in the drop-down list for the subtype of these infotypes.
 The access to the table on which permissibility per infotype is assigned is given at several locations in the
IMG. The IMG path for this access is Personnel Management→ Personnel Administration → Payroll Data
→ <Infotype name> → Wage types→ Check Wage Type Catalog → Check Entry permissibility Per
Infotype. Replace the placeholder <infotype name>, with the actual name of the infotype, for
example,Basic Pay, Recurring Payments and Deductions.

Eligibility: The employee's eligibility to receive the wage type is checked when the wage type is placed on
the infotype. This eligibility is dependent upon the employee's relationship to the Personnel and Enterprise
Structures.

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  Groupings in HR are used to influence both wage type selection and access to personnel calculation rules
for payroll processing. The personnel calculation rules link employee and employee subgroups to a set of
specific wage types and wage type rules in the processing of the payroll. These groupings are a concern
throughout payroll processing and affect all forms of wage types.
 The Employee Subgroup Grouping for PrimaryWage Types and the Personnel Subarea Grouping for
Primary Wage Types are only called when the wage type is placed on the infotype. Therefore, these
groupings are specifically relevant to dialog wage types.
 All customers must use group the Employee Subgroups for use with primary wage types. This grouping is
used to ensure that hourly employees do not receive salary wage types on Basic Pay as well as to limit
eligibility for other wage types.

Tables to view groupings: access via transaction code SM30

V_001P_ALL – Personnel Area/Subarea Groupings
V-503_ALL - Employee Group/Subgroup Groupings

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  All dialog wage types must also be assigned wage type characteristics. The characteristics are used to
define how the wage types will be treated when they are placed on an infotype. The settings for wage type
characteristics include.
 Deduction or payment
 Amount or Number/Unit to be entered on infotype
 Minimum or maximum amount or number/unit required
 Unit of measurement (for wage type entered as number/unit)
 Included in total pay as seen in master data
 Ability of the wage type value to be changed on the infotype

 Additionally, dialogue wage types are assigned a value via one of two methods, direct or indirect
valuation. In direct valuation, the amount assigned to the wage type is entered directly on the infotype. In
indirect valuation, the wage type amount is assigned by the system based on table configuration.

IMG Path: Payroll > Payroll Canada > Basic Settings > Environment for maintaining wage types
> Check wage type attributes

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  There are two wage type valuation methods.
 Direct Valuation:
The administrator manually enters the wage type amount.
 Indirect Valuation:
With indirect valuation, the amount field of the wage type is automatically populated by the system.
The wage type amount is either imported or calculated from a table. Therefore, when the valuation
tables are changed, the master records are automatically adjusted based on the begin/end dates of the
table entries. Thus, no manual updating of master records is required.

Indirect Valuation is possible for the following infotypes:

- IT0008 - Basic Pay
- IT0014 - Recurring Payments/Deductions
- IT0015 - Additional Payments/Deductions

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  There are several modules or methods to calculate wage type values and place them on an infotype. In
wage type characteristics, it is possible to configure wage types for indirect or direct valuation.
(1) Direct valuation requires the administrator to enter the wage type values manually on the infotype.
(2) Indirect valuation will automatically calculate the wage type value read from configuration and place it
on the infotype. The wage type value is imported or calculated from a customizing table in the IMG and
therefore does not need to be manually entered. When the wage type values are updated or changed in the
valuation tables, the employee master records are automatically adjusted to reflect the changes based
upon the appropriate validity
dates. Indirect valuation is possible on the following infotypes:
 BasicPay (IT0008)
 Recurring Payments and Deductions (IT0014)
 Additional Payments (IT0015).
The modules access specific tables and the module variants access specific fields of the table. The following
are examples of modules used for indirect valuation:

TARIF Automatic default of the wage type amount in Basic Pay (V_T510)
PRZNT/SUMME Various methods to calculate a wage type amount using percentages (V_T539J)
ARBPL Calculates a wage type amount based on a position (V_528B_D)
ANSAL Calculates an annual salary (V_T539J)

IMG Path: Personnel Management > Personnel Administration > Payroll Data > Basic Pay >
Wage Types >Define valuation of base wage types

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  The module TARIF, based on the variant which is set for the wage type in the Wage Type
Characteristics Table (V_T511), will calculate the amount of the wage type to be indirectly valuated
based on specific values stored in the Pay Scale Groups and Levels table (V_T510).

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  The indirect valuation module PRZNT is used to calculate the amount for a specific wage type as a
percentage of another wage type or as a percentage of multiple wage types.
 The percentage to be used is entered on Basic Pay (IT0008), Recurring Payments/Deductions (IT0014) or
Additional Payment/Deduction (IT0015).
 In the example above, the Acting Pay Bonus (WT 9001) is calculated as follows:
100% of the value of M003 + 50 % of the value of M201 + 20% of the value of M205 multiplied by the
percent which is
entered on the Additional Payment/Deduction (IT0015)

IMG Path: Personnel Management > Personnel Administration > Payroll Data > Basic Pay >
Wage Types >Define valuation of base wage types

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  The indirect valuation module SUMME is used to calculate the amount for a specific wage type as a
percentage of another wage type or as a percentage of multiple wage types.
 The percentage to be used must not be entered on Basic Pay (IT0008), Recurring Payments/Deductions
(IT0014) or Additional Payment/Deduction (IT0015).
 In the example above, the Acting Pay Bonus (WT 9000) is calculated as follows:
10% of the value of M001 is calculated and automatically entered on the employee’s Additional
Payments IT0015.

IMG Path: Personnel Management > Personnel Administration > Payroll Data > Basic Pay >
Wage Types >Define valuation of base wage types

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  Processing classes control the processing of wage types during payroll accounting. There are different
processing classes to facilitate the various processing steps performed within the payroll. During the payroll
run, SAP payroll handles a wage type in a processing step according to its’ individual specifications for a
particular processing class.
 Processing classes can be considered decision-makers in payroll. Each processing class is called during
payroll processing and the value, or specification, assigned to the wage type currently being processed is
queried and the further processing of this wage type is determined by the processing class specification.
 There are ninety-nine (99) processing classes available to control wage type processing during the various
steps of payroll accounting. SAP uses processing classes 01 - 89. Customer processing classes can be
defined in the range from 90 to 99.
 Dialogue wage types are assigned to processing classes during customization.
 To view the complete assignment of a wage type to its processing classes, use the transaction SM30 (Table
Maintenance) and go to the complete view of wage type valuation table (V_512W_O).
The payroll log shows each use of the processing classes for each decision or rule that was processed. There are
also utilities available online to help you to review the usage of wage types in the system. One program,
RPDLGA20 Wage Type Utilization, enables you to obtain an overview of how all primary and secondary /
technical wage types are coded.
 IMG Path: Payroll > Payroll Canada > Basic Settings > Environment for Maintaining Wage Types>
Processing Classes and Evaluation Classes > Maintain Processing Classes and their values

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  Cumulation classes determine where a dialogue wage type is cumulated for further processing and assign
the amount to be cumulated to a technical wage type. The technical wage types for cumulation are
identified as /1xx.


Example:
Cumulation class 01 Total gross /101
Cumulation class 02 Regular taxable income /102
Cumulation class 20 CPP pensionable earnings /120

 There are ninety-six (96) cumulation classes. The cumulation classes are assigned during the payroll
calculation and can not be modified.

IMG Path: Payroll > Payroll Canada > Cumulations > Assign Cumulations to Wage Types

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  User wage types are created by copying the SAP delivered model wage types using the wage type copy
tool.
 The copy tool copies all the existing definitions and valuations from the model wage type to the new user
wage type(s). If there are multiple copies required of this model wage type, it is possible to make
multiple copies of wage types.
 When copying a model wage type, it is highly recommended that the new user wage type commence with
a numeric value. SAP uses wage types starting with an alphabetical character for their model wage types.
 The copy tool also provides two other processes. There is the ability to delete one or multiple wage types
as well as to perform a Completeness Check. All customer wage types must be in the wage type
valuation table (T512W). The completeness check determines if there are wage types which are not
included in table T512W.

IMG Path: Payroll > Payroll Canada > Basic Settings > Environment for maintaining wage types
>
Create wage type catalogue

© SAP AG HR407 3 - 20
  After copying model wage types to user wage types, a log is displayed listing the tables which have been
updated with the new user wage types.
 If manual updates are required, the tables will be highlighted in the log.

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  The payroll system uses the personal information stored on the Canadian Tax Infotypes to calculate all
taxes based on federal and provincial requirements. Other statutory calculations, such as Workers’
Compensation, Employer Health Tax and sales tax calculations, are also based on the information stored
on the Canadian Tax Infotypes.

 As of release 4.7, the Canadian Taxation Infotype (IT0224) has been replaced by the following four
Canadian Tax Infotypes.
 IT 0461 Tax Assignment
 IT 0462 Provincial Tax
 IT 0463 Federal Tax
 IT 0464 Additional Tax Data

© SAP AG HR407 4-5

  The Tax Assignment infotype (IT0461) is the first in a series of four infotypes used to process
Canadian taxation in Payroll.
 Maintenance of a Tax Assignment Infotype is mandatory for every Canadian employee for whom
payroll is processed.
 The Tax Assignment infotype stores all employment jurisdictions for the purpose of tax calculation.
Data stored in the Tax Assignment infotype includes the employee's province of employment,
employment jurisdiction, and province of residence. The data stored in this infotype determines
which records of the Provincial Tax infotype and the Additional Tax Data infotype are utilized during
tax calculation.

© SAP AG HR407 4-6

  The Provincial Tax infotype (IT0462) is the second in a series of four infotypes used to process
Canadian taxation in Payroll.
 For every Canadian employee for whom payroll is processed, you must create a Provincial Tax
infotype record that corresponds to the province of employment stored for that employee in the Tax
Assignment infotype.
 For each province or territory, a separate subtype of the Provincial Tax infotype (0462) exists to
accommodate specific provincial and territorial withholding requirements.
 Information stored on the Provincial Tax infotype (0462) includes total personal tax credits from the
provincial or territorial Form TD1, total non-indexed amounts, and letters of waiver. For
employees whose province of employment is Quebec, the information stored on this infotype includes
data from Forms TP-1015.3 and TP-1015.R.13.1, as well as total credits, additional tax amounts and
deductions.

© SAP AG HR407 4-7

  The Federal Tax infotype (IT0463) is the third in a series of four infotypes used to process
Canadian taxation in Payroll.
 Maintenance of a Federal Tax infotype is mandatory for every Canadian employee for whom payroll
is processed.
 The Federal Tax infotype stores federal taxation information that is used to calculate federal tax
withholding. Information stored on this infotype includes total personal tax credits from the
federal Form TD1, estimated remuneration and expenses from the form TD1X, other
deductions and credits, and letters of waiver.

© SAP AG HR407 4-8

  The Additional Tax Data infotype (IT0464) is the fourth in a series of four infotypes used to process
Canadian taxation in Payroll.
 Maintenance of a corresponding record in the Additional Tax Data infotype (0464) is optional for
Canadian employees for whom payroll is processed. However, you may be required to create and
maintain this infotype for certain Canadian employees who are subject to additional provincial
exemptions.
 Like the Provincial Tax infotype (0462), corresponding subtypes exists in the Additional Tax Data
infotype (0464) for each province and territory. Depending on the subtype created, a number of
exemption codes are provided.

© SAP AG HR407 4-9

 Option 1:

 The General Tax Formula for Periodic Payments - Option 1, is the tax option defaulted in the system.
This method calculates the amount of tax based on the employee’s pay period earnings.

© SAP AG HR407 4 - 10
  A tax exemption is a deduction amount which has been defined by Canada Revenue Agency (CRA) as
tax exempt. Examples of tax exemptions are deductions for registered pension plan contributions,
registered retirement savings plan contributions and union dues.
 The tax-exempt wage types will reduce an employee’s taxable income before the annualized tax
calculation is applied. These wage types must cumulate in the technical wage type /106 - Cumulation
Class 06.

 A tax credit is a deduction amount which has been defined by Canada Revenue Agency as a tax credit
contribution. Credits are post-tax deductions. Examples of tax credits are charitable donations and
medical expenses.
 There are no pre-configured tax credit wage types in SAP Payroll; however, you can create these wage
types. These wage types must cumulate in the technical wage type /107 - Cumulation Class 07.

IMG Path: Payroll > Payroll Canada > Tax > Maintain Wage Type Cumulation / Storage

© SAP AG HR407 4 - 11
  Income tax is calculated based on taxable income, tax exemptions and tax credits. Some of the
information related to tax exemptions and tax credits is obtained from the employee’s tax infotypes.
 Tax exemptions are deducted from an employee’s taxable income prior to the application of the tax rate
(the R-Factor).
 Tax credits are factored after the annual income tax has been calculated and they are factored on the
lowest federal tax rate (R-Factor).

© SAP AG HR407 4 - 12
  Whenever earnings are adjusted retroactively, the question that arises is to what pay period should the
retroactive earnings be allocated? Two options are available:
 Allocate the earnings to the retroactive pay period, that is, the pay period where the payment
originated from; or,
 to the current pay period, that is, the pay period that is currently being processed
 The general terms for these two options are the Origin Principle and the Influx Principle.
 The first option, the Origin Principle, signifies that the retroactive earnings are allocated to the pay
period where the earnings originated from. It is sometimes referred to as the ‘tax when earned’
principle.
 The second option, the Influx Principle, signifies that the retroactive earnings are allocated to the
current pay period being processed. There is an inflow of earnings and/or deductions resulting from
differences in earnings which actually originate from previous pay periods. It is sometimes referred to
as the ‘tax when paid’ principle.

© SAP AG HR407 4 - 13
  In the majority of cases, the SAP payroll system will utilize the Origin Principle when calculating
retroactive pay. Exceptions will occur when there is a cross over to a new taxation year or a change
in specific tax rates.
 Example one above is an example of a retroactive calculation within the same taxation year with no
change to the tax rate. Therefore the Origin Principle would be applied to the calculation of taxes
applicable to the retroactive payment.
 Example two above is an example of a retroactive calculation which crosses over to a new tax year.
In this case, the Influx Principle would be used.
 Example three is an example of one province which has altered its taxation rates mid-year.
Therefore retroactive payments, for employees who are residents of the province, would be
calculated using the Influx Principle. All other employees would have their retroactive payments
calculated based on the Origin Principle.

© SAP AG HR407 4 - 14
  When applying the Origin Principle, the SAP payroll system processes retroactive payments by
recalculating the gross amount, income tax, pension plan contributions (CPP/QPP), employment
insurance contributions (EI) and net pay for each retroactive pay period affected.

© SAP AG HR407 4 - 15
  The SAP payroll system applies the Influx Principle only under certain circumstances when
processing retroactive payments. This will occur when retroactive payments cross over a taxation year
or when there is a change in the tax rate during the tax year.
 The Influx Principle will process the retroactive payments with Inflow/Outflow and Transfer wage
types.
 The Outflow wage type is the difference between the original gross amount and the new gross
amount for each retroactive pay period.
 The transfer wage type is the total gross difference amount being cumulated up to the previous pay
period.
 The inflow wage type is the sum of the outflow wage type and transfer wage type from the previous
pay period. It is only generated for the current pay period when the retroactive payment is paid.

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  Every company requires a Business Number for federal tax reporting purposes.
 The province of Quebec, since it collects and administers its own taxes, also requires a business number
which is called the Quebec Taxation ID for reporting purposes.

 The format for the Canada Revenue Agency business number is as follows:
 The first nine digits are the employer identification registration number.
 RP stands for remittances for payroll taxes (the two letters identify the type of account).
 The last four digits are the company’s employment insurance rate account number.

 The format for the Revenu Québec business number is as follows:

 The first ten digits are the employer identification registration number.
 RS stands for remittances for payroll taxes (the two letters identify the type of account).
 The last four digits are the company’s employment insurance rate account number.

© SAP AG HR407 4 - 17
 A Business Number consists of the following:

CRA – 9 digit employer identification registration number plus 2 letters to identify the type of account plus
4 digits to identify the employment insurance rate account number

MRQ – 10 digit employer identification registration number plus 2 letters to identify the type of account
plus 4 digits to identify the employment insurance rate account number

 Define Registration Numbers

In this section, you configure the Business Number that has been assigned to your enterprise by the Canada
Revenue Agency. For CRA this is a 9 digit employer identification registration number. If your
enterprise operates in the province of Quebec, your Quebec Taxation ID must also be defined. For
MRQ this is a 10 digit employer identification registration number.

 Assign Account Numbers to Registration Number

For each Business Number and Quebec Taxation ID previously defined, enter the corresponding two-
letters which indicate the type of account and the four-digit account number which is the
employment insurance rate account number to complete the business number.

IMG Path: Payroll > Payroll Canada > Tax > Configure Business Numbers

© SAP AG HR407 4 - 18
  Assign Registration Numbers to Organizational Assignment (Personnel Areas)
For each business number and Quebec Taxation ID defined, assign the Personnel Areas that correspond to the
business number.

 Assign Account Numbers to Organizational Assignment (Contract)

For each business number and Quebec Taxation ID defined, assign the contract types that correspond to the
account numbers.

IMG Path: Payroll > Payroll Canada > Tax > Configure Business Numbers

© SAP AG HR407 4 - 19
  For the provinces of Manitoba, Ontario, Quebec and Newfoundland & Labrador, specific earnings are
subject to provincial health tax.

 To ensure that provincial health tax will be calculated correctly, earnings subject to provincial health tax
must be assigned to processing class 65 with the appropriate value. This processing class determines
how wage type amounts accumulate into gross wage types for health tax calculation in Canada.

IMG Path: Payroll > Payroll Canada > Tax > Maintain wage types for Health Tax earnings

IMG Path: Payroll > Payroll Canada > Basic Settings > Environment for Maintaining Wage
Types >
Processing Classes and Evaluation Classes > Maintain Processing Classes and their
values

© SAP AG HR407 4 - 20
  Employment Insurance insurable hours must be recorded properly to fulfill reporting requirements for
Human Resources Development Canada for the Record of Employment.

 In this step, you maintain the time wage types that are to store EI insurable hours. The hours of the
time wage types specified will then accumulate within wage type /223, the technical wage type that
stores EI insurable hours. These hours will then, if necessary, be reported to HRSDC for the purpose
of ROE reporting.

© SAP AG HR407 4 - 21
  For hourly paid employees, the hours of the specified time wage types cumulate under the technical
wage type for Employment Insurance insurable hours ( /223).

 For salaried employees, the technical wage type Actual Hours Worked ( /851) captures the employee’s
actual hours worked. It is these hours which cumulate under the technical wage type for Employment
Insurance insurable hours (/223).

 Insurable hour wage types which use the Average Base processing must also cumulate under the
technical wage type for Employment Insurance insurable hours (/223).

 To cumulate insurable hours, select the number box (NUM), specify a percentage in the number field
and select the check box for the technical wage type /223.

IMG Path: Payroll > Payroll Canada > Tax > Employment Insurance Settings >
Assign EI insurable hours to time wage types

© SAP AG HR407 4 - 22
  In some circumstances, the employer may file an application with Human Resources Development
Canada to obtain a reduced rate for employer contributions to Employment Insurance. The reduced rate,
if approved, may apply to all employees or specific groups of employees.
 The last four digits of a company’s Business Number/Quebec Taxation ID are the Employment
Insurance Rate account number.
 To configure the customer-specific Employment Insurance Reduced Rate for your company, the
following two steps must be completed:
 First, adjust the Employment Insurance employer contribution rate by creating your customer-specific
constant and specifying your approved rate on the Payroll Parameters table V_T511K.
 Second, assign the registration account number portion (the last 4 digits) of your Canada Business
Number and Quebec Taxation ID to your customer-specific rate constant.

IMG Path: Payroll > Payroll Canada > Tax > Employment Insurance Settings >
……Define reduced employer EI premium rate
……Assign business number to reduced employer EI premium rate

© SAP AG HR407 4 - 23
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© SAP AG HR407 5 -1
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  Payments are used to calculate gross remuneration which is the focal point of payroll accounting. Gross
remuneration is the base on which various contributions, tax, and the resulting net remuneration are
determined.
 The SAP system uses the characteristics of individual payments to divide them into categories and
assigns the payments the correct dollar value through wage types.
 There are three main categories of payments:
 Basic pay
 Recurring payments
 Additional payments

© SAP AG HR407 5 -5
  Basic pay, which is a fixed element within payroll accounting, can be:
 effected in any period
 factored
 used as a valuation base for time wage types, such as overtime and bonuses.
 The Basic Pay Infotype (0008) may be maintained either through the menu or via a personnel action
such as hiring, change of job or change in pay.
 The Basic Pay Infotype (0008) must not be delimited when an employee leaves the company. The
infotype record must continue to exist so that retroactive payroll accounting can be performed, if
necessary.
 Basic pay can be adjusted automatically through the use of pay scale reclassification or pay scale
increase.

© SAP AG HR407 5 -6
  Recurring payments are maintained through the Recurring Payments/Deductions Infotype (IT0014).
They can be processed every pay period or for a specific period of time. A payment model can also be
established for recurring payments.
 Recurring payments can have a different cost assignment. Cost assignment allows the costs of certain
payments to be assigned to a cost center other than the employee’s home cost centre.

© SAP AG HR407 5 -7
  Additional payments are maintained through the Additional Payments/Deductions Infotype (IT0015).
They are processed once on a fixed date which is determined when creating the Additional
Payments/Deductions Infotype (IT0015).
 Additional payments are similar to recurring payments. They can also be assigned to a cost centre other
than the employee’s home cost centre.

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  Allowances have specific tax implications. Processing Class 47 is used to indicate the required
processing to comply with legislation.
 The following are valid values for Processing Class 47:
 A No particular processing F Volunteer fireman allowance
 B Car allowance outside YT and NT L Lump sum payments
 C Car allowance inside YT and NT Q Force bank transfer
 D Relocation allowance S Scholarships and bursaries
 It is important NOT to change these values for allowances since these values are linked to rules that are
delivered by SAP for payroll processing.
 Payroll constants are used to store various minimums and maximums defined by the CRA. These
constants are stored in the Payroll Parameters Table (T511K).

IMG Path: Payroll > Payroll Canada > Basic Settings > Environment for Maintaining Wage Types
> Processing Classes and Evaluation Classes >Maintain Processing Classes and their
values

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  The rules KAPB, KAPC, KAPD, KAPF, KAPS (called from the rule KAP0) are used to process
allowances. The operation R51P1 within the rules generates the taxable and non-taxable amounts
which are stored in the generated wage types specified in the Wage Type Assignment Table
(V_T51P1).

IMG Path: Payroll > Payroll Canada > Tax > Allowances >
……Check processing of allowances
……Maintain wage types for allowances

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  The pre-delivered Personnel calculation rules work with processing classes and values from different
tables. This is a example of link:
Rule: KAPD indicates AMT?KTX0M0
Table T511K: contains the definition for the constant TX0M0

© SAP AG HR407 5 - 12
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  The SAP Payroll system provides three different methods of paying employees Banked Overtime
Hours.
 Banked overtime hours may be paid at the current rate of the employee.
 Banked overtime hours may be paid at the rate at which the overtime was earned.
 Banked overtime hours may be paid using an average of the rate at which the overtime was earned
and the current rate.
 The most common method is to capture banked overtime at the rate at which the overtime was earned.
For this to occur, the Payroll system uses the V0 split indicator whenever there is a chronological
change in the rate. Therefore, the banked overtime wage type has various entries that must be brought
forward every pay period.
 Another frequently used method is to pay the banked overtime at the employee’s current rate of pay.
SAP recommends that you capture these overtime hours to be banked in Time Evaluation with an
accumulator. When the employee takes leave using banked overtime hours, the number of hours taken is
transferred to payroll where wage type valuation will determine the employee’s current rate of pay. If
time evaluation is not used, a special rule within payroll is required to handle this process.

© SAP AG HR407 5 - 14
  The following wage types are required to configure banked overtime:
 Wage type to capture the overtime to be banked.
 Wage type for the retention of banked overtime.
 Wage type when using banked overtime.

© SAP AG HR407 5 - 15
  Time Wage Types that are used to bank the hours for future payment of unpaid time off are called “time
wage types to be banked”. These wage types must be configured as follows:
 Assign the time wage type to Processing Class 51 with a value of “A”. This identifies the time wage
type as the “source” wage type from which the banked overtime wage type receives the hours.
 Define the valuation basis for the time wage type to be banked on the Wage Type Valuation Table
(V_512W_B) using a Statement Wage Type and a percentage. The valuation basis indicates the rate
that will be used to pay the employee.
 Based on an organization’s requirements, more than one wage type can be derived from this time wage
type.

IMG Path: Payroll > Payroll Canada > Time Wage Type Valuation > Banked Overtime

© SAP AG HR407 5 - 16
  Banked time wage types are configured as follows:
 The banked time wage type is assigned to Processing Class 51 with a value of “1” to indicate that the
wage type is to retain the number of hours to be banked and the employee’s current rate of pay.
Therefore, the hours from the time wage type to be banked (the source wage type) are appended to
the banked wage type (the retention wage type) with its corresponding rate. This occurs in rule
KVOT within the subschema KT00 (Time Data Processing). The operation VALBS checks the
valuation base and the operation KSETI sets the rate at which the banked wage type is to be stored.
 In order to process banked overtime correctly, the banked wage types from the previous payroll
results must be verified. Therefore, the banked time wage must be assigned to Processing Class 06
with a value of “A”. This will bring forward the banked wage types from the previous pay period to
the input table (IT table) for processing. If the previous banked overtime wage type was stored at the
same rate of pay, the operation KSETI adds the hours to the previous split banked overtime entry. If
the rate of pay is different, a new split for the banked overtime is created to store the number of hours
and rate of pay.
 Other time wage types could be banked using a similar method of processing (i.e., sick pay banking etc.).

IMG Path: Payroll > Payroll Canada > Time Wage Type Valuation > Banked Overtime

© SAP AG HR407 5 - 17
  Processing Class 15 is used for special valuation processing of wage types. The value “B” in Processing
Class 15 indicates that the wage type is to be valuated using banked overtime.
 The operation KVALO determines which rate of pay is to be used for payment of wage types using
banked overtime. Operation KVALO has two parameters: 1 = rate at time of banking, 2 = Blended rate.
For payment of banked overtime to be processed at the “earned rate”, KVALO must be set to ‘1’.
 Wage types which are used to process payments using banked overtime must not be valuated using a
valuation base. Therefore the valuation basis on the Wage Type Valuation Table (T512W) is left blank.
These wage types are generated through Absence Valuation and the only value that should be available to
payroll is the number of hours/days to be paid. At the employee level, these transactions are processed
using an Absence with a subtype.
 The rules K015/K016, used to process payments using banked overtime, are located in subschema KT00
(Time Data Processing). The rule K016 specifically processes payments using banked overtime. The
operation KVALO will loop for each entry of the wage type using banked overtime as the payment
method and will decrement the hours in chronological order. If there are insufficient hours to process the
payment, an error is generated by payroll. This can be customized at each client site.

© SAP AG HR407 5 - 18
  If Time Evaluation is not utilized to store banked overtime which is to be paid at the employee’s current
rate of pay, a rule can be customized in the payroll schema.
 This requires customizing a rule within K016 for Processing Class 15 with a new value (i.e., C = take
banked overtime at the current rate). Within these rules, the value “C” indicates that all splits from the
banked overtime must be eliminated (i.e., ELIMI*), the stored rates of pay are ignored. The number of
banked overtime hours is reset (RESET X - resets the splits for hours) and the current valuation basis is
used as the rate of pay. The number of hours from the banked overtime are decreased.

© SAP AG HR407 5 - 19
  As with the configuration of wage types for banked overtime at the Earned Rate, the Blended Rate wage
types are configured using the same method. The only difference is made in Rule K015/K016.
 In rules K015/K016, the operation KVALO uses the values 1 or 2 to indicate which method of payment is
to be used for the payment of banked overtime. For the Blended Rate method, this value MUST be set
to “2”. The delivered value is “1”.

© SAP AG HR407 5 - 20
© SAP AG HR407 5 - 21
© SAP AG HR407 5 - 22
  In this step, the payroll modifier for vacationable earnings is set in the rule KMO1 - Canadian Payroll
Modifiers. The modifier KMODI 1 is used to access the table V_5KVE_V which determines, based
on provincial regulations, which wage type categories are eligible for vacation pay. The value assigned
to KMODI 1 establishes the key field for accessing the employee group specific earnings that are
eligible for vacation pay.
 The default setting for KMODI 1 in the Personnel Calculation Rule KMO1 is “01”.
 If the rule requires modification, copy the rule to a customer rule starting with the letter “Z” and then
process the changes.

IMG Path: Payroll > Payroll Canada > Vacation Pay > Accrual and Payout >Check Payroll
Modifiers for Vacation Pay Processing

© SAP AG HR407 5 - 23
  For each wage type category (specification) of processing class 67, based on provincial regulations,
the include/exclude indicator is defined to determine whether the wage type category is to be included
in the cumulation of vacationable earnings for each employee grouping.

IMG Path: Payroll > Payroll Canada > Vacation Pay > Accrual and Payout > Assign eligibility
for vacationable earnings to employee groupings

© SAP AG HR407 5 - 24
  Processing class 67 is used to identify vacationable earnings. Therefore each wage type that is
eligible for vacation pay must be assigned to an appropriate wage type category (specification) for
processing class 67.

IMG Path: Payroll > Payroll Canada > Vacation Pay > Net Advances > Vacationable earnings

© SAP AG HR407 5 - 25
  For the cumulation of vacationable earnings to be processed accurately, it is mandatory for the
Employment Jurisdiction field have a value entered on the Tax Assignment Infotype (IT0461) for
each employee.
 The Employment Jurisdiction defines which government has jurisdiction over the employment
contract.
 The amount of vacationable earnings, by pay period, is stored on the employee’s payroll results table
(RT) using the technical wage type /1VE.

© SAP AG HR407 5 - 26
  The modifiers for vacation pay processing are set in the rule KMO1 - Canadian Payroll Modifiers. For
vacation pay processing, the table which is accessed through the modifier KMODI 3 is the Vacation Pay
Accrual & Pay Out Table (T5KV1).
 The value assigned to KMODI 3 establishes the key field for accessing the employee group specific
vacation accrual and pay out data.
 The default setting for KMODI 3 in the Personnel Calculation Rule KMO1 is “01”.
 If the rule requires modification, copy the rule to a customer rule starting with the letter “Z” and then
process the changes.

IMG Path: Payroll > Payroll Canada > Vacation Pay > Accrual and Payout > Check Payroll
Modifiers for Vacation Pay Processing

© SAP AG HR407 5 - 27
  In order to define the vacation accrual / pay out policies, the following five tables must be customized:

 T5KV1 – Vacation Pay Accrual & Pay out: This is the main table that determines the groupings for
accessing tables T5KV2, T5KV3 and defines the vacation pay out indicators and percentages.

 T5KV2 – Define Wage Types for Special Events: This table defines the wage types required for
vacation pay processing.

 T5KV3 – Accrual Years for Vacation Pay Processing: This table defines the vacation accrual year
and period.

 T5KV4 – Define Absence Types Without Vacation Entitlement: This table is used to identify
absences for which there is no vacation entitlement.

 T5KV5 – Automatic Vacation Pay out on Change of Accrual Type: This table identifies the
method of vacation pay out when there is a change in the method of vacation accrual for an employee.

© SAP AG HR407 5 - 28
  In this table, groups are defined for the wage types used for special events. The following model wage
types are used to process these special events:
 M309 Vacation pay liability
 M305 Vacation pay out every pay period
 M304 Vacation pay out at end of vacation year
 M303 Vacation pay out at termination
 M302 Vacation pay out at change of accrual type

 These wage types can be the same or different for each employee group. The groups are referenced in the
Vacation Pay Accrual / Pay Out Table (T5KV1).

IMG Path: Payroll > Payroll Canada > Vacation Pay > Accrual and Payout > Configure
Generated Wage Types for Vacation Pay

© SAP AG HR407 5 - 29
  In this table, the vacation accrual reference years are defined and identified with a group number.
 If the accrual reference year period is the same for all employee groupings, only one group is required. If
they differ, multiple groups will have to be defined.
 The groups are referenced in the Vacation Accrual / Pay Out Table (T5KV1).

IMG Path: Payroll > Payroll Canada > Vacation Pay > Accrual and Payout > Define accrual
year for vacation pay

© SAP AG HR407 5 - 30
  In this step, the vacation pay process is configured for each employee grouping.
 Identify the groupings for Wage Types and Accrual Years
 Specify the percentage of vacation pay according to the company policy.
 Identify if part of the vacation pay should be paid every pay. If so, specify the percentage.
 Identify if you are using leave entitlement or quotas.
 Specify the quota/leave type which should determine the vacation year for vacation pay
processing.
 Set the appropriate indicator for vacation pay processing.
 NOTE:
The tables T5KV2 - Define Wage Types for Special Events and T5KV3 - Accrual Years for
Vacation Pay
Processing must be configured prior to configuring Table T5KV1 - Vacation Pay Accrual / Pay Out.

IMG Path: Payroll > Payroll Canada > Vacation Pay > Accrual and Payout >
Configure vacation pay accrual and payout

© SAP AG HR407 5 - 31
  This table, Vacation Absence Types Without Vacation Entitlement (T5KV4), is used to identify
absences on which vacation pay is not to be accrued.

IMG Path: Payroll > Payroll Canada > Vacation Pay > Accrual and Payout >
Configure absence types without corresponding entitlements

© SAP AG HR407 5 - 32
  Vacation pay should be paid out automatically whenever an employee transfers to a new vacation
accrual method. In this table, Vacation Pay: Automatic Payouts (T5KV5), the entries are maintained
which allow for the automatic pay out to be processed.

IMG Path: Payroll > Payroll Canada > Vacation Pay > Accrual and Payout > Configure accrual
types for automatic payouts

© SAP AG HR407 5 - 33
© SAP AG HR407 5 - 34
  When a Vacation Net Advance payment is paid to an employee, the amount is also automatically placed
into arrears. The amount will be recovered from the employee as a deduction in the pay period(s) when
the absence (vacation) is recorded in Time Management and processed in Payroll.
 In the pay period(s) when the absence is processed, the amount is evaluated, paid and taxed.
 The function KVADV within schema KAL0 processes Vacation Net Advance Pay.

© SAP AG HR407 5 - 35
  The Vacation Net Advance Pay is configured in two steps. The first step is to configure the wage types
and the second is to link the wage types.
 The following three wage types are required to process a Vacation Net Advance Pay:
 Vacation Advance Pay
 Vacation Net Advance Pay
 Vacation Advance Pay Back

© SAP AG HR407 5 - 36
  Processing Class 53 with a value 1, 2 or 3 is used to define what the number field of the advance
payment wage type represents.

IMG Path: Payroll > Payroll Canada > Vacation Pay > Net Advance >
Configure vacation net advances

IMG Path: Payroll > Payroll Canada > Basic Settings >
Environment for Maintaining Wage Types >
Processing Classes and Evaluation Classes >
Maintain Processing Classes and their values

© SAP AG HR407 5 - 37
  All earnings/base wage types (i.e., M001, M002, M003) that are to be included in the calculation of the
Vacation Net Advance Pay must be assigned to processing class 53 with a value of “A”.
 All deduction wage types that are to be included in the calculation of the Vacation Net Advance Pay
must be assigned to processing class 53 with a value of “B”.
 All taxable benefits that are to be included in the tax calculation of the Vacation Net Advance Pay must
be assigned to processing class 53 with a value of “C”.

IMG Path: Payroll > Payroll Canada > Vacation Pay > Net Advance >
Configure vacation net advances

© SAP AG HR407 5 - 38
  The second step is to link the wage types for the Vacation Advance Pay, Vacation Net Advance Pay and
Vacation Advance Pay Back using the wage type assignment indicators from the Wage Type Assignment
Table (T51P1).
 AV - Links the Vacation Advance Pay wage type to the Vacation Net Advance wage type
 AW - Links the Vacation Advance Pay wage type to the Vacation Advance Pay Back wage type.

IMG Path: Payroll > Payroll Canada > Vacation Pay > Net Advance >
Configure vacation net advances

© SAP AG HR407 5 - 39
© SAP AG HR407 5 - 40
  In this step, the payroll modifier for WCB assessable earnings is set in the rule KMO1 - Canadian
Payroll Modifiers. The modifier KMODI 2 is used to access the table V_5KVE_W which determines,
based on provincial regulations, which wage type categories are eligible as WCB assessable earnings.
The value assigned to KMODI 2 establishes the key field for accessing the employee group specific
earnings that are eligible as WCB assessable earnings.
 The default setting for KMODI 2 in the Personnel Calculation Rule KMO1 is “01”.
 If the rule requires modification, copy the rule to a customer rule starting with the letter “Z” and then
process the changes.

IMG Path: Payroll > Payroll Canada > Workers' Compensation > Determine assessable earnings

© SAP AG HR407 5 - 41
  For each wage type category (specification) of processing class 69, based on provincial regulations, the
include/exclude indicator is defined to determine whether the wage type category is to be included in the
cumulation of WCB assessable earnings for each employee grouping.

IMG Path: Payroll > Payroll Canada > Workers' Compensation >
Determine assessable earnings

© SAP AG HR407 5 - 42
  Processing class 69 is used to identify WCB assessable earnings. Therefore each wage type that is
WCB assessable must be assigned to an appropriate wage type category (specification) for
processing class 69.

IMG Path: Payroll > Payroll Canada > Workers' Compensation >
Determine assessable earnings

© SAP AG HR407 5 - 43
  For the cumulation of WCB assessable earnings to be processed accurately, it is mandatory for the
Employment Jurisdiction field to be entered on the Tax Assignment Infotype (0461) for each employee.
 The Employment Jurisdiction defines which government has jurisdiction over the employment
contract.
 The amount of assessable earnings, by pay period, is stored on the employee’s payroll results table (RT)
using the technical wage type /1Wx (x = the first letter of the province i.e. /1WO for Ontario).

© SAP AG HR407 5 - 44
  Payroll constants are delivered by SAP to store the amount for maximum WCB assessable earnings.
These constants are updated by SAP annually.

 IMG Path: Payroll > Payroll Canada > Workers' Compensation >
Verify maximum assessable earnings

© SAP AG HR407 5 - 45
  There are three components for the customization of WCB/WSIB/CSST variable rates.
 The first component is grouping the accounts into classification groups.
 The second component is assigning an organizational unit, job and/or position to the
classification group.
 The third component is assigning the rates to the accounts.

© SAP AG HR407 5 - 46
  The Classification Groups table is used to store the various classification groups within an
organization.
 A classification group is a collection of WCB/WSIB/CSST accounts from various provinces and
territories. These groups reflect the various industries that your enterprise is engaged in.

IMG Path: Payroll > Payroll Canada > Workers' Compensation > Create classification
groups

© SAP AG HR407 5 - 47
  In this step, you assign organizational units, jobs, or positions to classification groups. This
assignment does not necessarily have to be directly linked to the employee's organizational unit; it
can be stored in a parent unit anywhere in the organizational structure. In response, the system
performs a search throughout the organizational structure until an entry is found for a parent
organizational unit. Consequently, you should strive to perform the assignment at the highest
possible level of your organizational structure.
 Companies that hold only one account per province can perform the assignment of classification
groups at the highest level of their organizational structure; they do not need to maintain the
assignment for each organizational unit.

IMG Path: Payroll > Payroll Canada > Workers' Compensation >
Perform classification group assignment

© SAP AG HR407 5 - 48
  In this step, you first assign each of your WCB account numbers to the appropriate classification
group and province, then maintain the corresponding classification codes and WCB rates.
 Each individual WCB account number may be assigned to a maximum of one province. However,
any individual WCB account number can be assigned to any number of classification groups, which
enables a maximum degree of specification to be performed.

IMG Path: Payroll > Payroll Canada > Workers' Compensation > Set up WCB accounts

© SAP AG HR407 5 - 49
  In this rule, the operation KSCED is set to one of the following:
 If your organization, for WCB purposes, is classified under “Schedule 1”, premiums must be
remitted to the Workers’ Compensation Board. In this case, the operation KSCED is set to “1”.
 If your organization, for WCB purposes, is classified under “Schedule 2”, premiums are not
remitted to the Workers’ Compensation Board. In this case, the operation KSCED is set to “2”.

 When the operation KSCED is set to “2”, no WCB premium calculations are performed. Therefore
no premium amounts are stored in the wage types /4Wx in the Results Table.

IMG Path: Payroll > Payroll Canada > Workers' Compensation > Set Schedule 2 indicator

© SAP AG HR407 5 - 50
© SAP AG HR407 5 - 51
  In the first scenario, the employer advances the portion of net pay that would be paid by
WCB/CSST/WSIB and also pays the top-up to 100% of net pay. This is referred to as an automatically
approved claim.
 In the second scenario, the employee receives payment directly from WCB/CSST/WSIB. The amount
of the WCB/CSST/WSIB payment must be recorded on the employee’s master file in order to calculate
the top-up to 100% of net pay. This is referred to as an approved claim.

© SAP AG HR407 5 - 52
  To accommodate various business practices, two model absence types are delivered.
 Model Absence Type WCB/CSST/WSIB Unapproved (0250)
This unpaid absence type would be used in situations where the employer waits for the
WCB/CSST/WSIB
claim to be approved before processing the absence as a WCB/CSST/WSIB claim.
 Model Absence Type WCB/CSST/WSIB Approved (0260)
This is also an unpaid absence type and it can be used in two situations.
- The absence type can be used when the employer pays a WCB/CSST/WSIB advance to the
employee (claim is automatically approved).
- It can also be used once the WCB claim approval has been received and entered on the employee’s
master data retroactively (claim is approved).
This absence type has a Valuation Rule of 50. This valuation rule produces two Counting Classes.
- Class 50 is set as 85% - represents the Advance (i.e., the actual WCB payment percent)
- Class 51 is set as 15% - represents the Guaranteed Net (Top Up) on the net pay.
- These percentages are only for illustrative purposes. They can be modified by the clients and must
add up to 100%
IMG Path: Payroll > Payroll Canada > Absences > Assign absences to valuation classes
IMG Path: Payroll > Payroll Canada > Absences > Absence Valuation >
Create counting classes for absence evaluation

© SAP AG HR407 5 - 53
  WCB/CSST/WSIB Claim (Direct Payment) Wage Type: This wage type is used to record the
payment received from WCB/CSST/WSIB. The actual WCB payment amount must be entered on the
employee’s master data in order to calculate the top-up amount.

 WCB Advance Wage Type: This wage type is generated within the subschema KWC1 (operation
R51P1, W1). It is the amount that is calculated based on the number of hours stored in Counting Class 50
for the WCB automatically approved absence. The dollar amount here represents an advance from the
employer. It is calculated as a percentage of net pay.

 WCB Guaranteed Net Top Up Wage Type: This wage type is also generated within the subschema
KWC1 (operation R51P1, W2). It is the amount that is calculated based on the number of hours stored in
Counting Class 51 for the WCB automatically approved absence. The dollar amount here represents the
“Top Up” from the WCB Advance or Claim. This is calculated as a percentage of net pay.

© SAP AG HR407 5 - 54
  The value “1” indicates that this wage type is a user wage type which was manually entered (i.e., M030,
WCB/CSST/WSIB Claim).
 The value “2” is only used for generated wage types WCB/CSST/WSIB Advance and Top Up.
 The value “3” indicates that the wage type is a basic pay wage type and must have its amount
cumulated for the calculation of net (i.e., such as M001, M002, M003).
 The value “4” is only used and required for the /1xx technical wage types that have been delivered. No
customization at the client site is required for these wage types.

IMG Path: Payroll > Payroll Canada > Workers' Compensation > Workers' Compensation Top Up
> Wage Types > Define processing class specifications

IMG Path: Payroll > Payroll Canada > Basic Settings > Environment for Maintaining Wage Types
> Processing Classes and Evaluation Classes > Maintain Processing Classes and their
values

© SAP AG HR407 5 - 55
  Once the wage types have been assigned to the processing class, a link must be established on table
T51P1 for the WCB/CSST/WSIB Advance, Guaranteed Net (Top Up) and Regular Working Hours.
 Following is a description of the required wage type assignment indicators:
 W1 - Wage Type for Workers’ Compensation Advance Pay
 W2 - Wage Type for Workers’ Compensation Top Up
 WH - Wage Type for ‘as if working’ Gross during WCB leave

NOTE: This step is not included in the IMG menu path.

Use transaction code SM30 and go directly to table V_T51P1.

© SAP AG HR407 5 - 56
  Gross Up configuration is required in order to complete the WCB/CSST/WSIB top up process.

IMG Path: Payroll > Payroll Canada > Tax > Guaranteed Net Amounts >
Define types of guaranteed net amounts

© SAP AG HR407 5 - 57
© SAP AG HR407 5 - 58
  In order to configure the short-term / long-term disability plans, the first step is to define your plan
details.
 STD quota – This field defines the short-term disability quota.
 Illness permission – If this box is selected, the absences will be assigned to the short-term disability
plan.
 Illness quota – Selecting this field will provide a warning if you enter a short-term disability
absence on the Absence Infotype (IT2001). This warning will prompt you to verify that the related
absence linked to the quota has been entered before recording a short-term disability absence. This
will generate a warning message only.
 Related absences – This field is used to link absences if subsequent absences occur within a
predefined period of time.
 Unrelated absences – The absences are unrelated if the number of days between the occurrences is
equal to or greater then the number of days specified in the unrelated absence field.
 Working day - In this field you define the number of hours which constitute one full work day.

IMG Path: Payroll > Payroll Canada > Absences > Short/Long-Term Disability (STD/LTD)
Plans > Set up STD/LTD plans > Establish and define short/long-term disability

plans

© SAP AG HR407 5 - 59
  In this table, the company’s short-term disability plan entitlement is configured based on length of
service with the company.
 This table is read in conjunction with the Feature 07DTY – Determine date type. The date type
entered in the feature corresponds to a short-term disability date on the Date Specifications
Infotype (IT0041). This date will be used as the begin date for calculating service units for the
employee during the processing of short-term / long-term disability plans.
 Based on the employee’s determined length of service, the appropriate entitlement will be
identified and the short-term disability period fields will be populated on the absence infotype.
 The illness field stores the number of days that should elapse before the short-term disability plan
is accessed. This field should only be used if there is no quota associated with the absence being
entered.

IMG Path: Payroll > Payroll Canada > Absences > Short/Long-Term Disability (STD/LTD)
Plans > Set up STD/LTD plans > Establish and define short/long-term disability
plans

© SAP AG HR407 5 - 60
  In this table, the illness types are assigned to the short-term and long-term absence types for the
plans which were previously defined.
 The illness types are defined based on the personnel subarea grouping for absences and attendances.
An illness type may be valid for more than one personnel subarea grouping.

IMG Path: Payroll > Payroll Canada > Absences > Short/Long-Term Disability (STD/LTD)
Plans
> Set up STD/LTD plans > Establish and define short/long-term disability plans

© SAP AG HR407 5 - 61
  Two features are required in the configuration of the short-term disability plans.
 The first feature 07MSP – Sick Pay Modifier is used to assign the appropriate short-term disability
plans to an organizational unit.

IMG Path: Payroll > Payroll Canada > Absences > Short/Long-Term Disability (STD/LTD) Plans
> Set up STD/LTD plans > Assign STD/LTD plans to organizational units

© SAP AG HR407 5 - 62
  Two features are required in the configuration of the short-term disability plans.
 The second feature 07DTY – Determine Hire Date Type is used to identify the date type from
the Date Specifications Infotype (IT0041) which will be used to determine the employee’s length
of service with the company. Based on the employee’s length of company service, the appropriate
short-term disability entitlement will be calculated.
 The date type is linked to the illness type which is associated to the STD/LTD plan.

IMG Path: Payroll > Payroll Canada > Absences > Short/Long-Term Disability (STD/LTD)
Plans > Set up STD/LTD plans > Assign hire date type to organizational units

© SAP AG HR407 5 - 63
  In this step, the payroll modifier for Sick Pay Processing is set in the rule KMO1 - Canadian Payroll
Modifiers. The modifier KMODI 5 is used to access the table T5K0C to determine which STD/LTD
is to be used in payroll processing for groups of employees.
 The default setting for KMODI 5 in the Personnel Calculation Rule KMO1 is “01”.
 If the rule requires modification, copy the rule to a customer rule starting with the letter “Z” and
then process the changes.

IMG Path: Payroll > Payroll Canada > Absences > Short/Long-Term Disability (STD/LTD)
Plans
> Prepare payroll for processing pay related to STD/LTD plans >
Check absence breakdown for STD/LTD plans

© SAP AG HR407 5 - 64
  In this table, all the required information for the valuation of the short-term / long-term disability
absences is regrouped.
 1st column – Absence Valuation Grouping as per MODIF A for each employee grouping
 2nd column – STD/LTD Plan Grouping as per KMODI 5 for each employee grouping
 3rd column – Valuation rule assigned to the absence type recorded
 4th and 5th columns – validity dates
 6th column – Processing Indicator which indicates how the absence will be split. Currently ’01’
is the only valid value. It indicates the absence will be split into the specified intervals.
 7th to 12th columns – These columns store the valuation rules that apply to the short-term
disability period dates which are identified on the absence infotype (IT2001 - screen 2008). The
different valuation rules allow for the payment of the short-term / long-term disability absence at
different rates as per the company policy.

IMG Path: Payroll > Payroll Canada > Absences > Short/Long-Term Disability (STD/LTD)
Plans > Prepare payroll for processing pay related to STD/LTD plans >
Check absence breakdown for STD/LTD plans

© SAP AG HR407 5 - 65
  In this step, you create the split valuation rules to be used in STD/LTD processing. The split
valuation rules are assigned to the sick pay periods defined for your STD/LTD plans.
 SAP delivers the split valuation rules for STD/LTD 30, 31 and 39. You can use these, modify them,
or create your own.

IMG Path: Payroll > Payroll Canada > Absences > Short/Long-Term Disability (STD/LTD)
Plans > Prepare payroll for processing pay related to STD/LTD plans >
Check split payment valuation rules for STD/LTD plans

© SAP AG HR407 5 - 66
  Short-term Disability Periods: The short-term disability period dates will be automatically
populated based on the intervals identified in the short-term disability plan definition.
• The short-term disability dates may be modified. If a modification is entered, the ‘Manual Modif’
box is automatically selected to indicate that the dates are not system generated.
• The dates that are defined in the short-term disability period fields may be greater than the ‘To’
Date from the absence infotype (IT2001). The information reflects all of the dates at the point in
time when the absence is created. The absence record is only valid up to the ‘To’ date and not the
short-term disability period dates.
• If the 3rd short-term disability period expires before the ‘To’ date, a warning message is issued.
Therefore even if a ‘high date’ is entered in the ‘To’ date, the employee will not be paid after the
expiry of the short-term disability periods. In this example, the employee would not be paid after
March 11,YYYY.

© SAP AG HR407 5 - 67
© SAP AG HR407 5 - 68
© SAP AG HR407 6-1
© SAP AG HR407 6-2
© SAP AG HR407 6-3
© SAP AG HR407 6-4
  Deductions from an employee’s pay are processed through payroll. This includes the automatic
processing of priorities and arrears as well as setting limits on deductions.
 Regular deductions are deductions that are taken from an employee’s pay every time the
employee’s pay is calculated.
 Deductions can also be set up to be taken at intervals by date and time period.
 Deductions can be characterized in several ways:
 Frequency
 Pay period
 Maximum amounts
 Minimum amounts

© SAP AG HR407 6-5

  Recurring deductions are additional wage elements which are not usually effected or withheld every
pay period. However, they do occur at a particular frequency. The frequency at which such
deductions are to take place can be defined.
 Additional deductions are additional wage elements which are not accounted for in every payroll
period. Unlike recurring deductions, additional deductions do not occur at a particular frequency.
They are accounted for once on a fixed date which is determined when creating the additional
deductions record.
 Recurring deductions are maintained on the Recurring Payments/Deductions Infotype (0014) and
additional deductions are maintained on the Additional Payments/Deductions Infotype (0015).

© SAP AG HR407 6-6

© SAP AG HR407 6-7
  A payment/deduction schedule (model) may be used for both payments and deductions. It defines
the pattern in which the payments or deductions are made.
 There are three questions to consider when defining the payment/deduction schedules:
 What is the payroll frequency?
 What period of time?
 In which period to take the deduction?
 The final component (How much is to be deducted?) can only be added at the employee level. The
amount to be deducted/paid is stored in the Recurring Payments/Deductions Infotype (0014).

Table access using transaction code SM30:

V_T549Q Pay Period Parameters
V_T549S Period Related Entries

© SAP AG HR407 6-8

  The payment/deduction schedule (model) incorporates the following information:
 The group of payroll accounting areas which are valid
 The time period of the deduction amount specified on the Recurring Deductions/Payments
Infotype (0014) (calendar type)
 The payroll periods when the deductions should be processed

NOTE: A payment/deduction schedule is not required for deductions that are processed every pay
period such as savings plan deductions or garnishments.

IMG Path: Payroll > Payroll Canada > Basic Settings > Payroll Organization > Generate Payroll
Periods > Generate Payroll Periods

© SAP AG HR407 6-9

  You use this report (RPUCTP10) to define the assignment of the payroll periods which you have
generated for your enterprise, to the time intervals for deductions (for example, month, quarter, half-
year or year). The system requires this assignment to be able to correctly distribute deductions to the
payroll periods
 The generation of the calendar for deductions links to the generation of the payroll periods (Report
RPUCTP00). You generate the calendar for deductions for the same period for which you have
previously generated the payroll periods.

IMG Path: Payroll > Payroll Canada > Deductions > Deduction Frequencies > Generate calendar
for
payment model
……Generate Calendar for Payment Model
……Check Calendars for Payment Model

© SAP AG HR407 6 - 10
  In this step you create all payment/deduction schedules.
 The payment/deduction schedule (model) has three modifiers:
 Date Modifier: Associates different date types within a payroll calendar. The date modifier
should match the payroll area’s date modifier.
 Period Parameter: Determines the frequency (semi-monthly, bi-weekly, weekly, etc.) for
which payroll accounting takes place. The period parameter should match the payroll area’s
period parameter.
 Calendar Type: Reflects the time period on which the deduction amounts are based
Examples
1) You wish to deduct 60.00 within one quarter for a weekly paid employee. The payment/deduction
schedule which you have defined, makes the deduction every first and last period in a month. Six
deductions of 10.00 each would be made.
2) You wish to deduct 60.00 within one month for a weekly paid employee. The payment/deduction
schedule which you have defined, makes the deduction every first and last period in a month. Two
deductions of 30.00 each would be made.
IMG Path: Payroll > Payroll Canada > Deductions > Deduction Frequencies >
Define payment/deduction schedules

© SAP AG HR407 6 - 11
  To specify the pay period(s) effected by the Payment/Deduction Schedule, the calendar year must be
identified for each payment/deduction schedule created in the previous step.
 The same pay period may be identified for a range of years (e.g. 2000-2009) or one specific calendar
year (e.g. 2009).

IMG Path: Payroll > Payroll Canada > Deductions > Deduction Frequencies > Set pay periods

© SAP AG HR407 6 - 12
  Feature MODDE defaults a different variable key for different groups of employees to determine the
payment/deduction schedule (model). The payroll area is frequently used as the key on which to make
decisions.

IMG Path: Payroll > Payroll Canada > Deductions > Deduction Frequencies >
Define employee groups

IMG Path: Payroll > Payroll Canada > Deductions > Deduction Frequencies >
Set Default Values for Payment / Deduction Schedules

© SAP AG HR407 6 - 13
  More than one payment/deduction schedule may be assigned to one deduction wage type. This
provides the flexibility of processing the deduction on different pay periods for different groups of
employees.
 The above example illustrates that for the same deduction wage type, two different payment /
deduction schedules are needed. One employee group has their deduction processed on the first pay
period of the month while the other employee group has their deduction processed on the last pay
period of the month.
Variable Key Wage Type Payment/Deduction Schedule
FEKM BE07 BM04 (Last pay period of the month)
FEKS BE07 BS03 (First pay period of the month)

© SAP AG HR407 6 - 14
  The last step is to link the variable key, the deduction wage type and the payment/deduction schedule.
This link allows the correct payment/deduction schedule to default on the Recurring Payments /
Deductions Infotype when the wage type and amount are entered at the employee level.
 The payment/deduction schedule field can be overridden.

IMG Path: Payroll > Payroll Canada > Deductions > Deduction Frequencies >
Set default values for payment / deduction schedules

© SAP AG HR407 6 - 15
© SAP AG HR407 6 - 16
  When a limit is required for an employee deduction, the limit is defined by a wage type which is tied
to the pay period deduction. The limit is referred to as the “balance”. Whenever the pay period
deduction is taken, the balance wage type is negatively adjusted until it reaches a value of zero. When
the balance is reduced to “zero”, the system will automatically terminate the deduction in the next pay
period.
 To set up deductions with balances and totals, three different wage types are required:
 The first wage type is used for the deduction amount entered in Recurring Payments/Deductions
Infotype (0014)
 The second wage type is used for the balance which is the maximum amount to be deducted. This
is entered in the Additional Payments/Deductions Infotype (0015) which is automatically presented
as a dynamic action
 The third wage type is used to store the total amount deducted. This wage type is generated within
the processing of payroll and is stored in the payroll results.

IMG Path: Payroll > Payroll Canada > Deductions > Wage Types for Deductions with Balances
and
Totals > Assign processing classes to wage types

© SAP AG HR407 6 - 17
  Processing class 50 is used by both the deduction wage type and the balance wage type. It is used
to indicate whether the wage type is the deduction or the balance. The values for processing class
50 are the following:
PRCL 50 = 1 The wage type is the deduction amount
PRCL 50 = 2 The wage type is the balance
 The wage types are linked together on table T51P1as follows:
 The balance wage type is linked to the deduction wage type
 The total wage type is linked to the balance wage type

Rules KDPM/KDPI/KDPR/KDPT process deductions with balances and totals

IMG Path: Payroll > Payroll Canada > Deductions >

Wage Types for Deductions with Balances and Totals >
Assign processing classes to wage types

© SAP AG HR407 6 - 18
 These three model SAP wage types should always be copied together as a group. When they are copied
this way, they are linked with relationships established on table V_T51P1.
 The deduction wage type (M720) is tied to the balance (goal) wage type (M721).
 The balance wage type (M721) is linked to the total wage type (M722).
These relationships are used in payroll processing to ensure the proper deduction is taken and then shut off
when the goal is reached.
Note: In more recent releases, model wage types M200, M202 and M203 have also been delivered
and can be used in the same way.
Several processing class values are preset on the SAP models M720, M721 and M722. You should verify
that they are set up accordingly:
 M720 - The Deduction:
 Processing class 05: Storing without split indicator in RT
 Processing class 20: Pass on unchanged
 Processing class 41: Summarized RT storage and cumulation
 Processing class 50: Wage type is processed as deduction

 Access Table V_T51P1 using transaction code SM30. This table links the wage types together.

© SAP AG HR407 6 - 19
  M721 - The Balance:
 . Processing class 05: Storing without split indicator in RT
 . Processing class 06: Wage type accepted from previous payroll
 . Processing class 20: Pass on unchanged
 . Processing class 41: Summarized RT storage and cumulation
 . Processing class 50: Wage type is processed as balance
 M722 - The Total:
 . Processing class 05: Storing without split indicator in RT
 . Processing class 06: Wage type accepted from previous payroll
 . Processing class 20: Pass on unchanged
 . Processing class 41: Summarized RT storage and cumulation
 Note: The totals wage type does not require a processing class 50 value.

Model wage types M720, M721 and M722 are delivered on V_T51P1 with the correct indicators set.
When you copy all three as a group, your three new wage types will all be linked the same way. This
will ensure they correctly track the deduction, balance and total at all times.

© SAP AG HR407 6 - 20
  When you enter a copy of M720 on infotype 0014, a standard SAP dynamic action will read the wage
type to which it is linked on V_T51P1 (copied from M721) and propose it on infotype 0015.
 The dynamic action is not activated by the name of the wage type, but rather by the link assigned to the
wage type on V_T51P1.
Hint: The benefit of this is that the dynamic action does not need to be edited each time you create a new
set of these three wage types.
 As long as they are linked together correctly on V_T51P1, when an infotype 0014 is created for a
deduction with a limit, this dynamic action will propose the correct corresponding wage type on
infotype 0015.

© SAP AG HR407 6 - 21
  The standard SAP dynamic action for infotype 0014 can be found on V_T588Z. You can access this table
directly via transaction SM30.
 Subroutine RPUDONU0 is used to determine the correct default wage type for infotype 0015 from the
links on V_T51P1.
 The dynamic action works both when a record is created and also if it is deleted. This ensures the two
records are displayed together when edited.

Note: For further information about dynamic actions, refer to the help documentation on each field of
V_T588Z.
Several scenarios and specific examples of other dynamic action configuration can be found in the help
documentation of the last field, Variable function part. To view this documentation, place your cursor in
the Variable function part field and press the F1 key.

© SAP AG HR407 6 - 22
  Processing class 50 is used by several rules to keep track of deductions, balances and totals for wage
types linked on V_T51P1. It is possible to view the processing of linked deductions in the payroll log
at personnel calculation rule UPDT under Gross cumulation and tax processing.

© SAP AG HR407 6 - 23
© SAP AG HR407 6 - 24
  Deductions with limits can be defined in a variety of ways:
 Percentage/Fixed Amount Limits can be defined as a percentage or a fixed amount.
 Individuals/Groups Limits can be assigned to a group or individual employees

 If a different limit is necessary for an individual employee, the group deduction limit may by
overridden by creating a Limits on Deductions Infotype record for the employee.

© SAP AG HR407 6 - 25
  Fixed value deduction limits allow for group or individual limit amounts to be based on a fixed
amount. This is set at the wage type class level.
 A rule is not necessary for the fixed value deduction limit.
Example: Charitable deduction shall not exceed $500 per year.

© SAP AG HR407 6 - 26
  Wage Type Classes allow for the grouping of wage types together for processing with limit(s).
For example, a company has three possible charity deductions. An employee can contribute to all
three, but the maximum for all charities is $100.00 per month and $500 per year.
 A number of specific limits may be assigned to a wage type class. They may be valid for
different employee groups as well as have different overlapping time intervals (i.e. $100.00 per
month not to exceed 5% of total gross in a quarter for salaried employees and $100.00 per month
not to exceed 2% of total gross in a quarter for hourly employees)
 If the wage types that belong to a wage type class need to be reduced because the specified limit
is reached, you must determine the method by which they are reduced. A reduction method is
only necessary if there is more than one wage type in a wage type class. When more than one
limit is imposed in a wage type class, the deduction amount is reduced by one of the following
methods:
- Priority: A wage type is processed according to its priority within its class.
- Equal Portions: Wage types are reduced in equal parts.
- Proportional: Wage types are reduced by their proportional factor.

© SAP AG HR407 6 - 27
  The figure displayed assumes three infotype 0014 records exist for your employee, each with one of the
three wage types belonging to the same wage type class that has a limit of $1,000. The total of the three
deductions, wage type 1 (WT1) + wage type (WT2) + wage type (WT3) is $1200. This amount exceeds
the limit of $1000 by $200. The following explains how the reduction would take place using the three
different reduction methods:
For this scenario, the reduction would take place using the three different reduction methods:
 Priority: The highest priority number assigned to a wage type will be taken first. WT1 has a sequence of
1. This means it will be the first one to be reduced out of the three wage types. And since the entire limit
excess of $200 can be taken from this first wage type, the other wage types will not need to be reduced.
 Proportional: With proportions, a factor is determined by dividing the total of the three wage types
($1200) by the limit ($1000). This results in a factor of .83 or 83%. For the reduction, only 83% of each
wage type will be taken.
 The results: WT1= $416.66, WT2 = $333.33, WT3 = 250.00. Rounding is applied to the first wage type
so the excess of $.01 is then added to the first wage type in the wage type class (WT1 = $416.67).
 Equal Portion: The total excess of $200 is divided by three (the number of wage types in the class that
the employee is assigned). Therefore, all wage types will be reduced equally by $66.66 ($200/3).
 The result will be that WT1 = $433.34, WT2 = $333.34, WT3 = 233.34 (Rounding .02). The excess is
applied to the first wage type in the wage type class. Thus, WT1 now becomes $433.32.

© SAP AG HR407 6 - 28
  In this step, the payroll modifier for limits is set in the rule KMOD - International Payroll Modifiers.
The modifier MODIF B is used to access the table V_T51D1. The value assigned to MODIF B
establishes the key field for accessing the employee group specific wage type class limits.
 The default setting for MODIF B in the Personnel Calculation Rule KMOD is “01”.
 If the rule requires modification, copy the rule to a customer rule starting with the letter “Z” and then
process the changes.

 Transaction code SM30 : Table : V_T51D1 – Limits for deduction (includes the rule for the
deduction)

IMG Path: Payroll > Payroll Canada > Deductions > Limits on Deductions > Set limit
modifier

© SAP AG HR407 6 - 29
  If the limit for a deduction is defined as a percentage of a wage type, a cumulation rule must be defined.
One or more wage types can be assigned to a cumulation rule. The wage type(s) assigned to a cumulation
rule must be set up as cumulation wage types (e.g. /101).

 The processing indicator (+, -) is used to add or subtract the value of the wage type.

 Example: Rule 0001 will apply a limit of 1% of total gross wages to the wage type assigned to the wage
type class.

IMG Path: Payroll > Payroll Canada > Deductions > Limits on Deductions >
Define rules for limits

© SAP AG HR407 6 - 30
  The first step is to create the wage type class which is required to process deductions with limits.
 Wage Type Classes allow for the grouping of wage types for processing deductions with limit(s). A
wage type class may be assigned one wage type or multiple wage types. However, a wage type can
only be assigned to one wage type class.
 If multiple wage types have been assigned to a wage type class, a reduction method is assigned to
control the order in which the wage types are to be reduced should the defined limit for the wage type
class be exceeded.

IMG Path: Payroll > Payroll Canada > Deductions > Limits on Deductions >
Set up wage type classes and attach limits

© SAP AG HR407 6 - 31
  The second step is to assign the wage type(s) to the wage type class.
 If multiple wage types have been assigned to a wage type class and the reduction rule is set to
“Reduce according to priority”, the wage types will be reduced as per the defined priority.
 A priority can be assigned twice, and if this is the case the wage types with the same priority are
accessed in the same order as their names. The same is the case when no order has been specified.

IMG Path: Payroll > Payroll Canada > Deductions > Limits on Deductions >
Set up wage type classes and attach limits

© SAP AG HR407 6 - 32
  The third step is to define the wage type class limit.
 The wage type class limits include the following:
 The value the payroll modifier MODIF B
 Validity dates
 An interval – the deduction limit can be based on a weekly / bi-weekly / semi-monthly / monthly /
annual interval. The deduction amounts for the limit are cumulated based on the assigned interval.
If the amount exceeds the limit in this time frame, it is reduced to the limit amount.
 The fixed amount or rule
 Currency
 Iteration indicator

IMG Path: Payroll > Payroll Canada > Deductions > Limits on Deductions >
Set up wage type classes and attach limits

© SAP AG HR407 6 - 33
  The employee deduction limits are entered on Deduction Limits Infotype (0165). The designated
wage type class and specific limit entered here will override the limit set for the wage type class
within customizing.
 The Deduction Limits infotype allows for the employee-specific limit to apply to any interval (e.g.
month, quarter, annual) and either a fixed dollar amount or a percentage (a rule must be specified)
regardless of the named wage type class characteristics. If an override is needed for more than one
interval of a wage type class (i.e. for both the month and year), multiple infotype 0165 records will
be required.

© SAP AG HR407 6 - 34
© SAP AG HR407 6 - 35
  SAP Payroll processes gross to net calculation by processing the current period earnings and deductions
along with the arrears from the previous pay period (table ARRRS).

 If there is insufficient net income, deductions not taken are put in the Deductions Not Taken Table
(DDNTK). Payroll will loop back, apply the configured Arrears process and update the net again. This
continues until completion, when the ARRRS table is updated for the next pay period.

 The deductions not taken will be stored in table DDNTK with the amount and origin.
Origin
A arrears
B balance
L limits on deduction
R retro calculation

© SAP AG HR407 6 - 36
  PRIORITY
If an employee has insufficient income to cover a deduction, the deduction can be placed into arrears.
During arrears processing, deductions are processed according to their assigned priority with priority
“A” being the highest and priority “Z” being the lowest.

If multiple deduction wage types are assigned the same priority level, the deductions are processed
according to the wage type name.

 ARREARS
This arrears characteristic is used to determine how the deduction wage type is to be processed if the
employee’s net income is insufficient to cover the deduction amounts.

IMG Path: Payroll > Payroll Canada > Deductions > Priorities and Arrears >
Set priorities for arrears

© SAP AG HR407 6 - 37
  In order to determine how the arrears processing of deductions is to be handled during retroactive
payroll accounting, arrears characteristics for retroactive processing must be assigned to the
deduction wage types.

 During retroactive calculations, the same deduction amount is taken as was taken in the original
payroll run, whether it would have changed retroactively or not. It is therefore necessary to determine
how the difference between the old and the new deduction amount is to be processed.

IMG Path: Payroll > Payroll Canada > Deductions > Priorities and Arrears >
Maintain arrears for retro-calculation

© SAP AG HR407 6 - 38
  In this step you can set up another arrears recovery method, a payment plan.
 A customer copy of Model wage type MD50 (which has Arrears Processing code “3”) will
automatically process and attempt collection of any deduction not taken during the specified payroll
period. This process will continue until the deduction amount is met.
 If the amount in arrears is high, this could result in the employee having no pay. A payment plan
allows the employee to reimburse large amounts in arrears according to a determined pay period
amount thereby avoiding situations where the employee has no pay.
 A payment plan for the employee consists of the following: regular installments (deductions) and a
corresponding balance and a recovery wage type linked to this balance.

© SAP AG HR407 6 - 39
 The payment plan recovery method requires four new wage types and administration involving the
employee’s Master Data record.

 MD50 The arrears wage type holds the original balance

 MD60 The recovery link wage type is entered on the Additional Payments/Deductions Infotype
(0015) as the goal (balance)

 MD70 The recovery balance wage type is used for tracking the recovery of the outstanding
balance amount

 MD 80 The deduction recovery wage type is entered on the Recurring Payments/Deductions

Infotype (0014) with the agreed upon per period amount

 MD90 The recovery total wage type is used for tracking the amount which has been recovered

The recovery link wage type (MD60) only appears in the period when arrears are changed to a payment
plan.

IMG Path: Payroll > Payroll Canada > Deductions > Priorities and Arrears >
Maintain recovery of arrears

© SAP AG HR407 6 - 40
  An absolute deduction is a deduction that is taken and remitted completely, even if the employee has an
insufficient net amount.

 This implies receipt of an advance by an employee from the employer for the difference between the
deduction and net amount.

 The advanced amount is carried forward to the next payroll period. During the next run, the payroll will
try to collect the advanced amount from the employee's net pay. If the advanced amount is available, it
will be deducted.

IMG Path: Payroll > Payroll Canada > Deductions > Priorities and Arrears >
Split absolute deductions into collected and advanced amount

© SAP AG HR407 6 - 41
  In this step you set up the arrears characteristics and link the wage types together.

 Three new wage types need to be set up and linked together:

 Advance wage type from current period (MD10)
 Advance wage type from previous period (MD20)
 Advance paid back in a later period (MD30)

IMG Path: Payroll > Payroll Canada > Deductions > Priorities and Arrears >
Split absolute deductions into collected and advanced amount

© SAP AG HR407 6 - 42
© SAP AG HR407 6 - 43
  Prior to leaving on an unpaid leave of absence, an employee may choose to prepay his/her
deductions for the duration of the leave. This eliminates the creation of arrears which have to be
collected upon the employee’s return to work.
 The amount received from the employee is placed in a prepayment deduction ‘bank’ (balance) for
the employee.
 When payroll is processed, the payroll system first tries process the deduction from the employee’s
regular pay. If there is insufficient income, the system will determine whether the employee has a
prepayment balance for deductions. If yes, the deduction amount will be deducted from the
prepayment deduction bank. If there is no prepayment deduction bank, the amount may be placed
into arrears based on the arrears configuration.

IMG Path: Payroll > Payroll Canada > Deductions > Prepaid deductions

© SAP AG HR407 6 - 44
  DED1 is the current employee deduction - either a benefit deduction or a deduction through the
Recurring Payments/Deductions Infotype (0014) or the Membership Infotype (0057).
 MP10 is the prepaid amount paid by the employee (cheque). It is entered on the Additional
Payments/Deductions Infotype (0015) as a one time entry.
 MP20 is the balance of the prepaid bank.
 MP30 is the amount of the deduction from the prepaid bank for the current pay period.
 MP40 is the trigger to reimburse the employee the sum of money remaining in the prepaid bank. It is
entered on the Additional Payments/Deductions Infotype (0015). An amount as minimal as $1.00 will
automatically trigger the reimbursement of the balance in the prepaid bank (MP20). The amount
reimbursed is the balance in the prepaid bank and not the amount entered on the Additional
Payments/Deductions Infotype.

IMG Path: Payroll > Payroll Canada > Deductions > Prepaid Deductions

© SAP AG HR407 6 - 45
  Four model wage types are delivered for the configuration of prepaid deductions. The first step is to
copy these model wage types to the customer name range.

 MP10 Prepaid deduction - payment

 MP20 Prepaid deduction - balance
 MP30 Prepaid deduction - deduction
 MP40 Prepaid Deduction - reimbursement

 The second step is to link the wage types using the wage type assignment indicators.

IMG Path: Payroll > Payroll Canada > Deductions > Prepaid Deductions >
Link prepaid deduction wage types

Transaction Code SM30: Table: V_T51P1

© SAP AG HR407 6 - 46
© SAP AG HR407 6 - 47
 Two changes to percentage deductions are possible:
 the percentage calculation basis has been changed retroactively
 the percentage rate has been modified
The determination must be made as to whether the percentage deduction amount should be calculated
using the old or the new base amount during retroactive payroll accounting.
 Processing class 83 must be maintained in order to ensure correct processing during retroactive
payroll processing. The following values are available:
 1 Take old basis, ignore the difference
 2 Take new basis to calculate deductions
 3 Take new basis if greater than old basis
 4 Take new basis if lesser than old basis
 5 Take old basis, carry base difference forward
 6 Take old basis, carry only positive base difference forward
 7 Take old basis, carry only negative base difference forward

© SAP AG HR407 6 - 48
  Base wage types (e.g. /171) are the base from which /Xnn and /Znn are derived. They are
processed according to processing class 83 in retrocalculation. If the processing class is set to a
value that indicates that the old bases are being used, the system replaces the amount of the base
wage type with the old amount and produces a new wage type which contains the difference
between the new and old amount. This new wage type is called ‘Outflow Wage Type.’
 The naming convention used for deduction base wage types:
 Outflow wage type: /Xnn where nn is the last 2 digits of the base wage type
 Inflow wage type: /Znn where nn is the last 2 digits of the base wage type
 In following periods, if the difference is carried forward, based on the processing class 83 value,
another wage type is created called the ‘Inflow Wage Type’. In the current period, the inflow wage
type is added to the base wage type.
 For the base wage type and outflow wage type, processing class 06 - ‘Enter wage type from old
payroll account in LRT (Last Results Table)’ must have the value ‘1’ - ‘Wage type will be taken
from previous payroll’.
 For the inflow wage type, processing class 06 must have the value ‘0’ - ‘Wage type will not be
transferred’.

© SAP AG HR407 6 - 49
  The above example illustrates the valuation of the base wage type /171. For the first derived
wage type, the statement WT is /X71 (outflow) and for the second derived wage type, the
statement wage type is /Z71 (inflow).
 For the valuation basis of the outflow wage type (/X71) and the inflow wage type (/Z71), the first
derived wage type Statement WT field should contain the base wage type (/171).

 PE01 Schema KDD0; Subschema KDBS

- Rule UD11 GEN NOAB – creates inflow wage types from the last results table
(LRT)
- Rule UD21 GEN NOAB – processes inflow wage types

IMG Path: Payroll > Payroll Canada > Deductions > Deduction base
……Maintain outflow/inflow wage types
……Maintain deduction base wage types

© SAP AG HR407 6 - 50
© SAP AG HR407 6 - 51
© SAP AG HR407 7-1
© SAP AG HR407 7-2
© SAP AG HR407 7-3
© SAP AG HR407 7-4
  Garnishments and family support payments are court orders that result from a judgment being
obtained against an employee debtor by his or her creditors. These garnishment orders assign a legal
responsibility either by federal law or provincial regulation to the employer.
 Garnishment and family support payments specify an amount which must be deducted from an
employee’s earnings to satisfy a debt. The employee’s permission is not required to process a
garnishment order or family support payment.
 The various categories of garnishments/family support payments are illustrated above.
 NOTE:
 A wage assignment is when an employee voluntarily assigns a portion of his/her wages to another
party.
 Wage assignments are prohibited in Quebec, Manitoba, Alberta, Prince Edward Island, and New
Brunswick.
 Wage assignments are allowed in Newfoundland, Ontario, Saskatchewan, British Columbia, the
Yukon and Northwest Territories.

© SAP AG HR407 7-5

  Three infotypes are used to administer garnishment orders in Canada.
 The Garnishment Order Infotype (0066) is used to store the master data of the garnishment
order.
 The Garnishment Debt Infotype (0067) is used to store the financial data of the garnishment
order.
 The Garnishment Adjustment Infotype (0068) is used to process adjustments once a
garnishment order has been processed in payroll.

 The Garnishment Order Infotype (0066) must first be created followed by the Garnishment Debt
Infotype (0067).
 The Garnishment Debt Infotype (0067) will automatically be presented to the end-user through a
dynamic action once the Garnishment Order Infotype (0066) has been saved.

© SAP AG HR407 7-6

  The Garnishment Order Infotype (0066) is the first infotype which must be created.
 This infotype stores the master data relevant to the garnishment order such as the case number,
jurisdiction, garnishment category, relevant dates, vendor number, remittance rule, garnishee fee.
 Upon saving the record, the Garnishment Debt Infotype (0067) will automatically be presented to
the end-user through a dynamic action.
 A garnishment order cannot be set up for a payroll in the past. When a Garnishment Order
infotype (0066) is created, the current date is defaulted into the ‘Start’ field.

© SAP AG HR407 7-7

  Depending on the garnishment category selected on the Garnishment Order Infotype (0066), the
debt type and the appropriate rule will default based on system customization. These defaults
can be overridden if necessary.
 The financial information for the garnishment order such as the initial balance (arrears) and the
amount of the ongoing payment are entered on the Garnishment Debt Infotype (0067).
 Additional information such as number of dependents and one-time garnishment can also be
stored, if required.

© SAP AG HR407 7-8

  The Garnishment Adjustment Infotype (0068) can only be accessed once a garnishment has been
processed in payroll at least once.
 The Garnishment Adjustment Infotype (0068) can be used for the following types of adjustments:
 Calculate end date (Only for status pending)
 New balance
 Refund from vendor
 Stopped payment
 Additional deduction
 Separate calculation
 Different fields are available depending on the type of Garnishment Adjustment being processed.

© SAP AG HR407 7-9

© SAP AG HR407 7 - 10
  In Canada, the laws governing the administration of garnishments vary depending on the category of
the garnishment order and the legislative authority issuing the order.
 Therefore, a garnishment order must be assigned to the appropriate jurisdiction to ensure the
garnishment order is processed correctly.

IMG Path: Payroll > Payroll: Canada > Garnishments > Master Data > Order >
Jurisdiction

© SAP AG HR407 7 - 11
  The garnishment category is used to identify the garnishment and to establish the garnishment’s
priority for processing. The lower the priority number, the higher is the garnishment priority. For
example, all Revenue Canada garnishments are processed before Family Support payments.
 The categories are also used to link many of the remittance rules and calculation rules within
garnishment processing.
 In this step, the following information is maintained:
 Garnishment categories
 Garnishment descriptions
 Default priority for processing

IMG Path: Payroll > Payroll: Canada > Garnishments > Master Data > Order > Category

© SAP AG HR407 7 - 12
  In this step, agency codes and descriptions are maintained. The agency identifies the originator of
the garnishment order.
 The agency code is a general description. The agency’s demographic information such as name,
address and telephone number can be maintained on the Garnishment Order Infotype (0066).
 The agency code is used for information purposes only. It is not used to determine the application
of any rules or limits in processing the garnishment order.

IMG Path: Payroll > Payroll: Canada > Garnishments > Master Data > Order > Agency

© SAP AG HR407 7 - 13
  In this step, you maintain the reasons for creating or changing a garnishment order. The reason
code is not used to determine the application of any rules or limits.

IMG Path: Payroll > Payroll: Canada > Garnishments > Master Data > Order > Reason
for change

© SAP AG HR407 7 - 14
 IMG Path: Payroll > Payroll Canada > Garnishments > Master Data > Debt > Wage Types

© SAP AG HR407 7 - 15
  The garnishment wage types are assigned to the garnishment debt type. The assignment of the
appropriate wage type is essential to ensure the garnishment order is processed correctly.
 The model garnishment wage types must be copied to the customer range using the wage type
copy tool and assigned to the wage type group “Garnishment Debt Group” - GR01.

IMG Path: Payroll > Payroll: Canada > Garnishments > Master Data > Debt > Wage types
>
Check Wage Type Group Garnishment Debt

© SAP AG HR407 7 - 16
  When entering a garnishment order, based on the category of the garnishment, the appropriate
debt type will be proposed. Debt types have been defined for each garnishment category.
 The debt types are further defined using characteristics and assigned to the appropriate
garnishment wage type.
 The debt type characteristics define the debt type and whether data must be entered in the
Garnishment Debt Infotype fields (0067).

IMG Path: Payroll > Payroll: Canada > Garnishments > Master Data > Debt > Debt

© SAP AG HR407 7 - 17
  The model for the relationship to other debts is used to determine how the non-exempt amount
should be distributed when an employee has more than one garnishment order which must be
processed during payroll. The non-exempt amount is the portion of the employee’s pay which is
eligible to be garnished.
 In this step, additional relationship models can be created that will identify debt priority in relation to
other existing debts. For example, if more than one garnishment order exists with the same priority,
you can specify in the relationship model whether access to the extended limit is available and also
whether the garnishment orders should be sorted according to the received date, the court order date
or whether they should not be sorted according to a date.
 SAP delivers the following models:
 Family support arrears: Relevant for determining extended limit; dates are not relevant for
sorting; weighting according to initial balance
 Family support ongoing payment: Relevant for extended limits; dates are not relevant for
sorting; weighting according to ongoing payment
 Garnishment: Sort according to received date; weighting according to number of debts
 Garnishment with access to extended limit: Sort according to received date; weighting
according to number of debts
IMG Path: Payroll > Payroll: Canada > Garnishments > Master Data > Debt >
Model for the relationship to other debts

© SAP AG HR407 7 - 18
  When defining models for the relationship to other debts, the “Special Cases” field provides the
flexibility to determine whether the garnishment order can access the extended limit. An
extended limit determines if a lower priority debt has access to the remaining non-exempt
amount that was not claimed by the higher priority debt. If a higher priority debt has a non-
exempt amount that exceeds the amount of that debt, the remaining amount should be available
to serve the lower priority debt.
 For example, a family support debt of $400 has a non-exempt amount of $500. A lower priority
debt such as a creditor debt of $800 has a non-exempt amount of $200. Normally the family
support is served and the creditor debt receives nothing. However, it can be argued that the limit
of the higher priority debt is not filled and therefore the creditor debt should receive the
unclaimed $100.
 The amount paid for a debt can never be greater than the non-exempt amount for that debt.

IMG Path: Payroll > Payroll: Canada > Garnishments > Master Data > Debt >
Model for the relationship to other debts

© SAP AG HR407 7 - 19
  The models for the gross/net are used to adjust the gross and net pay calculations that are subject to
garnishment.
 In the schema for garnishments (KGRN), gross and net calculations are determined using
processing class 80. If required, the initial calculation can be adjusted by a gross/net model. The
new results are then the basis for calculating the garnished amount.
 The models can distinguish between regular and bonus payroll runs. The models also determine the
sign of the wage type to be used in the gross/net calculation. They also specify what percentage of
the wage type amount should be used in the gross/net calculation. The system will default to 100%
if you do not maintain a percent in these models.

• Transaction Code : PE01 – KGRN

 Processing Class for wage types subject to garnishment: 80

IMG Path: Payroll > Payroll: Canada > Garnishments > Master Data > Debt >
Model for the gross / net

© SAP AG HR407 7 - 20
  In this step, special rules for calculating the limit of the non-exempt amount are established.
Special rules are used to calculate limits when the normal procedure using customization does
not meet the legislative requirements of the issuing authority. These special rules define
characteristics such as time period, amount or percentage, and whether the amount is exempt or
non-exempt. It is very unusual for special rules to be used.

IMG Path: Payroll > Payroll: Canada > Garnishments > Master Data > Debt >
Special rule

© SAP AG HR407 7 - 21
  In this step, models to define how the non-exempt amount should be calculated are defined.
Although the calculations for the non-exempt amount are provincially defined, you can further
define rules for each debt. The model will identify whether a normal rule or a special rule is to
be used.
 In a normal rule, a percentage and/or amount limit can be identified. If both are used then the
relationship between them must be established in the model as well. The model will also identify
if the amount resulting from the rule is an exempt amount or a non-exempt amount
 The SAP Payroll offers a number of models for the non-exempt amount.

IMG Path: Payroll > Payroll: Canada > Garnishments > Master Data > Debt >
Model for the non-exempt amount

© SAP AG HR407 7 - 22
  A termination model is the same as a non-exempt model, except that it is used in situations when
an employee is terminated.
 It is common to deduct a large amount of an employee’s final pay to the outstanding
garnishments. Specific instructions regarding the deduction to be take in the event of a
termination will be included in the garnishment order.

IMG Path: Payroll > Payroll: Canada > Garnishments > Master Data > Debt >
Model for the non-exempt amount

© SAP AG HR407 7 - 23
  The calculation rules combine the Gross model, the Net model, the Non-exempt model, the
Termination model and the Relationship model between debts.
 The calculation rules are defined for all jurisdictions, garnishment categories and debts.

IMG Path: Payroll > Payroll: Canada > Garnishments > Master Data > Debt >
Calculation rule

© SAP AG HR407 7 - 24
  In this step, garnishee fee rules can be defined. The garnishee fee is collected by the company for
processing the garnishment and must be paid by the employee directly out of his wages, just like
any other garnishment. Use of this rule is based on the company’s policy.
 The rule depends on the jurisdiction and the garnishment category. The following are specified
when creating the garnishee fee rule:
 fee amount
 fee unit (frequency of fee deduction)
 type of withholding (deduct fee from exempt or non exempt amount)
 If the fee is to be taken from the non-exempt amount and the limit is not large enough to satisfy both
the garnishment and the fee, the rule can specify if the garnishment should be reduced to allow the
fee or if the fee should be reduced. The fee amount that is maintained in this table can be overridden
in the Garnishment Order Infotype (0066).

IMG Path: Payroll > Payroll: Canada > Garnishments > Master Data > Garnishee fee

© SAP AG HR407 7 - 25
  In this step, default values can be maintained in order to facilitate the data entry process of
garnishments. The values will default when you create the Garnishment Order Infotype (0066) and
the Garnishment Debt (0067).
 The standard setting, when no default value is specified for the jurisdiction, is the province of
employment field of the Taxation Assignment Infotype (0461).

IMG Path: Payroll > Payroll: Canada > Garnishments > Master Data > Default values

© SAP AG HR407 7 - 26
© SAP AG HR407 7 - 27
  Garnishments are deducted from the employee’s non-exempt amount prior to the processing of
after tax deductions.
 In order to determine the gross and net garnishment amounts, wage types must be assigned to
Processing Class 80 “Use for Gross/Net and Special Treatment”. The gross and net garnishment
amounts, stored in the technical wage types /Gxx in the employee’s payroll results (Table RT),
are utilized in the processing of garnishment deductions.

IMG Path: Payroll > Payroll: Canada > Garnishments > Processing >
Check processing of wage types

© SAP AG HR407 7 - 28
  In this step, garnishment wage types are assigned the highest priority and no reduction of the
garnishment is allowed when the net amount is not sufficient to cover the garnishment.

IMG Path: Payroll > Payroll: Canada > Garnishments > Processing >
Check priorities of wage types

© SAP AG HR407 7 - 29
© SAP AG HR407 7 - 30
  Remittance rules need to be assigned to every combination of jurisdiction and garnishment
category. The remittance rules must first be created in customization of Third Party Remittance.
 A remittance rule can be entered on the Garnishment Order Infotype (0066). This is not a
required field. If your company rules differ from established government rules for remitting
garnished amounts, you may enter your company rule. If there is no company rule, the system
will use the remittance rule assigned for Third Party Remittance.

IMG Path: Payroll > Payroll: Canada > Garnishments > Third Party Remittance for
Garnishments >
Assign rules for garnishments

© SAP AG HR407 7 - 31
  In this step you should check Processing Classes 73 and 78 for wage types to be remitted.
 Processing Class 73 must be maintained to define whether a wage type is to be treated positively or
negatively with respect to Third Party Remittance. For wage types that are “negative deductions”,
the value sign will need to be reversed.
 1 = Reverse sign (debit from the employee’s side)
 Processing Class 78 must be maintained to define to which HR Payee category the wage type
should be assigned (regular, tax, benefit, or garnishment).
 1 = deductions
 2 = taxes
 3 = benefits
 4 = garnishments
 7 = Creditor assignment via V0 split indicator (Type T)
This is used for multiple assignment of creditors to a single wage type.

IMG Path: Payroll > Payroll: Canada > Garnishments > Third Party Remittance for
Garnishments > Check third party processing for garnishment wage types

© SAP AG HR407 7 - 32
  The number ranges are used to determine the HR Payee for third party remittance. The
assignment of a number from the number range occurs in the background.
 There are two sets of number ranges that are maintained for garnishments:
 Number range for the vendor subgroup
 Number range for the garnishment transfer
 The Payroll system will determine which number range is to be used based on whether the
Single Cheque Indicator is selected.
 When a vendor is entered on the Garnishment Order Infotype (0066) and the single cheque
indicator is deselected, an HR payee is automatically created in the background by the number
range for garnishment transfer. This Accounts Payable vendor receives the garnished amounts.
These garnished amounts are forwarded from Third Party Remittance to the Finance
Department (FI) for payment.
 If the single cheque indicator is selected, the number range for vendor subgroup is used to
create a vendor subgroup number.

IMG Path: Payroll > Payroll: Canada > Garnishments > Third Party Remittance for
Garnishments
……Maintain number range for vendor subgroup
……Create number range for garnishment transfer

© SAP AG HR407 7 - 33
  To create the number ranges for the vendor subgroup and garnishment transfers follow these
steps:
 Select the Interval button with the pencil
 Select the Interval button with the green plus sign
 Enter the interval number (start with 01)
 Enter the From number and the To number for the number range
 Leave the Ext button unchecked (this will allow the system to assign the number range)
 Select the Insert/Enter icon at the bottom of the screen
 Save

IMG Path: Payroll > Payroll: Canada > Garnishments > Third Party Remittance for
Garnishments
……Maintain number range for vendor subgroup
……Create number range for garnishment transfer

© SAP AG HR407 7 - 34
  Two garnishment reports are available.

 Garnishment History Report: This report allows you to view the garnishment history for an
individual employee. This report can be accessed either from the Garnishment Order Infotype
(0066) or from the Payroll menu. Payroll must have been processed at least once in order to
view the history.

 Garnishment Statistics Report: This report displays a listing of employees with garnishments
and employees without garnishments.

Easy Access Menu Path: Human Resources >Payroll > Americas > Canada >
Subsequent Activities >Period Independent > Reporting >
Garnishments

© SAP AG HR407 7 - 35
© SAP AG HR407 7 - 36
  Transaction Code PE01: Subschema KBE1: reads benefit infotypes into payroll
 Transaction Code PE02: Rule KST2 determines if a taxable benefit wage type is subject to GST

© SAP AG HR407 8-1

© SAP AG HR407 8-2
© SAP AG HR407 8-3
© SAP AG HR407 8-4
© SAP AG HR407 8-5
  The benefits enrollment process allows employees to be enrolled into benefit plans as defined on their
benefit forms and processed through the benefits module.
 Before benefits integration can be configured within payroll, the Benefits module must be configured
entirely. Configuration must be complete for the following categories:
 Health Plans
 Insurance Plans
 Savings Plans
 Flexible Spending Accounts
 Credit Plans
 Miscellaneous Plans
 Stock Purchase Plans

IMG Path: Payroll > Payroll Canada > Benefit Integration > Create Wage Type Catalog

© SAP AG HR407 8-6

  The first step in customizing the benefits integration with payroll is to copy and adapt the model
benefits wage types, and assign them to the different types of benefit plans available in your
company.
 You must also define the way in which the contributions and deductions are processed to comply with
government regulations.

IMG Path: Payroll > Payroll: Canada > Benefits Integration > Create wage type catalogue

© SAP AG HR407 8-7

  The second step in Benefits Integration is to select the correct Benefit Area which is to be configured
for integration.
- If the User Parameter has already been set for BEN, this benefit area will automatically be
defaulted. No further selection is required. The transaction code to set the User Parameter is
SU3, the Parameter is BEN and the Value is 07 (for Canada).
- If an individual is configuring the benefit module for two benefit areas, each benefit area must
be set up independently. To accomplish this, select one area, configure all the related plans, then
return to the “Set Current Benefit Area” step in the IMG, and set the Current Benefit Area to the
second benefit area, then proceed to customize the benefit integration for the second benefit area.
A copy tool is available to assist with this process.

IMG Path: Payroll > Payroll: Canada > Benefits Integration > Set current benefit area

© SAP AG HR407 8-8

  In this step, the user wage types are assigned to each benefit plan. From the Benefits Wage Types
Overview screen, select the benefit plan and the “Details” button. The Benefits Wage Types Detail
screen will be presented for completion. It is only necessary to setup those wage types which are
applicable for each plan.

 Two features are used to set up STD/LTD Benefit Plans:

Transaction code : PE03: Feature 07MSP
Feature 07DTY

IMG Path: Payroll > Payroll: Canada > Benefits Integration > Define wage types for benefit
plans

© SAP AG HR407 8-9

  For each health plan, update the details maintenance screen with the following information:
 Select the “Bonus Payment” if the plan is to be included in bonus payroll runs
 Select the “Pre-deduction from Employee Leaving” if benefit deductions should be continued after
the employee leaves the organization. For example, the employee terminates his/her employment
at the end of the month of October and deductions should be made for the months of November
and December. The total amount of the deduction will processed on the employee’s last pay.
 Enter the required user wage types for the regular payroll run
 Enter the required user wage types for the bonus payroll run

IMG Path: Payroll > Payroll: Canada > Benefits Integration > Define wage types for benefit
plans

© SAP AG HR407 8 - 10
  For each insurance plan, update the details maintenance screen with the following information:
 Select the “Bonus Payment” if the deduction applies to bonus payroll runs
 Select the “Pre-deduction from Employee Leaving” if benefit deductions should be continued after
the employee leaves the organization. For example, the employee terminates his/her employment at
the end of the month of October and deductions should be made for the months of November and
December. The total amount of the deduction will processed on the employee’s last pay.
 Enter the required user wage types for the regular payroll run
 Enter the required user wage types for the bonus payroll run
 Enter the calculation base wage type if the cost of the insurance plan is based on the level of
coverage. For example, if the employee has selected life insurance equal to twice his/her annual
salary.

IMG Path: Payroll > Payroll: Canada > Benefits Integration >
Define wage types for benefit plans

© SAP AG HR407 8 - 11
 For some plans, a basis wage type and a technical basis wage type have to be specified in the wage type view
V_5UBA_WT of the Benefits Plan table T5UBA. Within Benefit Administration a Benefit salary wage type
BSAL is needed to calculate the annual salary of the employee. This salary is needed to determine coverage
levels as well as salary groups for cost, contribution, credit, and other Benefit calculations.
 This Benefit salary is estimated taking into consideration the entries in infotypes 0008 (Basic Pay), 0014
(Recurring Payments/Deductions), and 0015 (Additional Payments) for the wage types specified in table
T539J, for the module (e.g. ANSAL).
 When the Payroll processes Benefits information, it must know the exact actual salary if the employee or
employer contribution for a Benefit Plan is defined as a percentage of the actual salary. Therefore it is
necessary to define a wage type and a cumulation class in order to record the actual salary which will be
relevant for these Benefit contributions. For example, you can set up a cumulation class 02 and a wage type
/102 to collect all wages which are relevant for Benefit contributions.
 BSAL provides a more static representation of an employee's salary and does not often change whereas wage
type /102 can be different every time payroll processes.
 For this reason BSAL is preferred for insurance plans since its value as of the first of the year usually
provides the base amount used with the plan factor (i.e. coverage for the year will be 3 X BSAL). Wage type
/102 is a more dynamic calculation than BSAL.
 Some benefit plans have contributions which are a percentage of the total pay of an employee for a particular
payroll period. This total may differ from payroll run to payroll run. This allows contributions to savings
plans to based on any pay element given to an employee, not just those previously defined on T539J for
BSAL.

© SAP AG HR407 8 - 12
  For each savings plan, update the details maintenance screen with the following information:
 Select the “Bonus Payment” if the deduction applies to bonus payroll runs
 Enter the required user wage types for the regular payroll run.
 Enter the required user wage types for the bonus payroll run
 Enter the required other user wage types

IMG Path: Payroll > Payroll: Canada > Benefits Integration >
Define wage types for benefit plans

© SAP AG HR407 8 - 13
  For each spending account plan, update the details maintenance screen with the following information:
 Select the “Pre-deduction from Employee Leaving” if benefit deductions should be continued after
the employee leaves the organization. For example, the employee terminates his/her employment at
the end of the month of October and deductions should be made for the months of November and
December. The total amount of the deduction will processed on the employee’s last pay.
 Enter the required user wage types for the regular payroll run

IMG Path: Payroll > Payroll: Canada > Benefits Integration >
Define wage types for benefit plans

© SAP AG HR407 8 - 14
  For each credit plan, update the details maintenance screen with the following information:
 Select the “Pre-deduction from Employee Leaving” if benefit deductions should be continued after
the employee leaves the organization. For example, the employee terminates his/her employment at
the end of the month of October and deductions should be made for the months of November and
December. The total amount of the deduction will processed on the employee’s last pay.

IMG Path: Payroll > Payroll: Canada > Benefits Integration > Define wage types for benefit
plans

© SAP AG HR407 8 - 15
  In this step, Payment/Deduction models are assigned to the benefit plans. Each benefit plan is assigned
to the variable key from the feature MODDE and the payment/deduction model.
 If you do not assign a benefit plan to a payment/deduction model, the contributions are deducted every
pay period.
 Savings plans cannot be assigned to a deduction model because they are deducted every pay period.

IMG Path: Payroll > Payroll: Canada > Benefits Integration > Assign deduction model

© SAP AG HR407 8 - 16
© SAP AG HR407 8 - 17
  Transaction Code PE01: Subschema KNN0 – Net Payments/Deductions Transfer

© SAP AG HR407 9-1

© SAP AG HR407 9-2
© SAP AG HR407 9-3
© SAP AG HR407 9-4
  The SAP Payroll system offers a choice of direct deposit, cheque or a combination of both for an
employee.
 In order to successfully accomplish bank transfers and/or cheque processing, the data medium
exchange (DME) and the house and sending banks need to customized.

 NOTE: The SAP DME file conforms to the Canadian Payments Association (CPA) standard Layout
005 specifications.

© SAP AG HR407 9-5

  Employee direct deposit or cheque information is maintained using the Bank Details Infotype (0009)
The following are the required fields:
 Bank Detail Type: This field is used to distinguish the bank type when an employee has multiple
Bank Details Infotype (0009). Bank type “0” is always required. This represents a single bank if the
employee has one Bank Details Infotype (0009). Only one “Main Bank” Bank Details infotype is
permitted at any specified time.
 Payee: The employee’s name defaults from the Personal Data Infotype (0002).
 Postal Code/City: The address defaults from the employee’s Address Data Infotype (0006).
 Bank Country: This defaults to “Canada.”
 Bank Key: This 9 digit number identifies the employee’s bank and bank transit number.
 Bank Account: This is an employee’s personal bank account number. It is only required when
the
payment method is Transfer “T”.
 Payment Method: For direct deposit, the value is “T” and for a cheque, the value is “C”.
 Purpose: Available to add a comment (e.g. Education Fund)
 Currency: This defaults to Canadian.

© SAP AG HR407 9-6

  If an employee chooses to have multiple direct deposits, the first direct deposit entry on the Bank
Details infotype (0009) should be made for the bank type ‘Main Bank.’ This bank type is the bank
which receives the remainder of the employee’s funds after all other bank deposits have been
fulfilled.
 The other direct deposits will be assigned Bank Type “Other Bank”. A specific dollar amount
(Standard Value field) or percentage (Standard Percentage field) must be specified for any Bank
Details Infotype (0009) with Bank Type “Other Bank”.
 If an employee has more than one “other bank” type, the system will take the direct deposits in the
order the entries were made.

© SAP AG HR407 9-7

  In order to process bank data, the data medium exchange information must be customized. This
consists of creating the house bank and determining the sending bank.
 Create the House Bank – The house bank is the company’s bank. The house bank
information includes details such as Bank ID, Account ID and General Ledger (GL) account.
 If you are using the SAP Financial Accounting component, the house bank details will have
been configured by the Finance Department.
 If you are not using the SAP Financial Accounting component, the house banks and accounts
must be configured.
 The following steps must be completed to create the House Bank:
 Create the House Bank
 Create the House Bank Accounts
 Create the House Bank Account ID and assign the ID to a General Ledger Account
 Create the Data Medium Exchange (DME) specifications.

© SAP AG HR407 9-8

  Create the house bank key:
 On the initial house bank screen, enter the company code.
 Click on the New Entries button and complete required fields.
 Enter a house bank number, a country code, bank key and click on the ‘Create’ button.
 Enter the name of a contact person and telephone number.
A bank key is a 9-digit Institution Identification Number that uniquely identifies the bank.
This identification number is given by the bank and is formatted as follows:
X = Constant zero
YYY = Institution number (001-999)
ZZZZZ = Branch transit number (0001-99999)
 Complete the Data Medium Exchange information.

IMG Path: Payroll > Payroll: Canada > Direct Deposit / Data Medium Exchange >
Preliminary Programs > Set up house banks

© SAP AG HR407 9-9

  In this step you define data medium exchange date newly created house bank.

IMG Path: Payroll > Payroll: Canada > Direct Deposit / Data Medium Exchange >

Preliminary Programs > Set up house banks

IMG Path: Payroll > Payroll: Canada > Direct Deposit / Data Medium Exchange >
Preliminary Programs > Set up house banks

© SAP AG HR407 9 - 10
  Create the house bank account:
 Select Bank Accounts and click on ‘New Entries’.
 Complete the following fields: ‘Account ID’, description, currency and General Ledger Account.
 Save your data.

IMG Path: Payroll > Payroll: Canada > Direct Deposit / Data Medium Exchange >

Preliminary Programs > Set up house banks

© SAP AG HR407 9 - 11
  The sending bank is your house bank and bank account linked to the bank transfer through the
feature DTAKT. In the above example, direct deposits are processed from company house bank /
account “CIBC/PYRLL” and cheques are processed from the company house bank / account
“CIBC/CHEQ”.
 To determine the sending bank:
 Enter the house bank and account ID
 If the paying company code is different from the default company code, enter the paying
company code on the third parameter in feature DTAKT.

IMG Path: Payroll > Payroll: Canada > Direct Deposit / Data Medium Exchange >
Preliminary Programs > Determine sending banks

© SAP AG HR407 9 - 12
  For printing cheques, valid cheque lot numbers are required. The cheque lot numbers can also be
assigned to different groups of employees within a payroll area. When cheques are printed, valid
cheque numbers are assigned from the lot numbers.
 Reasons for Void Cheques must also be defined. These reasons are requested whenever a cheque is
to be voided.
 These two elements are customized in the Financial Accounting component.

IMG Path: Financial Accounting > AR and AP > Business Transactions > Outgoing Payments >
Payment Media > Check Management > Define Number Ranges for Cheques

© SAP AG HR407 9 - 13
  In order to generate the bank transfers and/or printing of cheques, the following programs must be
executed:

 The Preliminary Program DME is the first program to be executed.

 The second program is either the Create DME for direct deposits or the Print Cheque for issuing
cheques.

© SAP AG HR407 9 - 14
  A unique order of processing is used when an employee has multiple Bank Details records. Each
record processed generates a /559 Bank Transfer wage type. The wage types are assigned a unique
identifier that can be thought of as a record number. For example, if an employee has a main bank
record and two other bank records, bank transfer identifiers 01 through 03 will be assigned.
 If an employee has only one Bank Details record, the identifier 01 is assigned to the only /559 wage
type which would be generated. This identifier associates the wage type with the appropriate bank
transfer information.
 If the employee has three bank details records, one main bank and two other banks, the identifiers
will be assigned as follows:
 Identifier 01 to the first Other Bank record to be created, based on earliest validity period start date.
Should more than one Other Bank record share the same validity start date, the system will use the
first record to be created based on system time of the entry.
 Identifier 02 to the second Other Bank record based on validity date or time of record creation.
 Identifier 03 to the Main Bank record.
 Understanding the order of processing is critical to the distribution of funds. Since the Other Banks
are taken before the Main Bank, they receive priority in funds distribution.

© SAP AG HR407 9 - 15
  The first step is to execute the Preliminary Program DME. The Pre-program DME executes a program
used to extract the bank data information from the payroll cluster and create a dataset which is used as
input for cheque printing and/or direct deposit.

 When the preliminary program has run, note the number of the file created and the date which are
displayed at the bottom of the report.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada > Payroll >

Bank Transfer > Pre-program DME

© SAP AG HR407 9 - 16
  The feature ZLSCH is used to default the payment type on the Bank Infotype 0009.
 An example of one configuration of ZLSCH is shown in the graphic.

© SAP AG HR407 9 - 17
  The second step, Create DME, uses the file number and date combination from the Pre-Program
DME to create the file containing all Bank Detail data with payment method “T” (transfer).
 The file that is generated by the Create DME is downloaded and forwarded to the bank for
processing.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada > Payroll >

Bank Transfer > Create DME

© SAP AG HR407 9 - 18
  To print cheques, use the file number and date from the Pre-Program DME to create the file containing
all Bank Detail data with payment method “C” (Cheque).

 A variant can be created to store the paying company code, house bank, account ID and cheque lot
number.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada > Payroll >
Bank Transfer > Print cheque

© SAP AG HR407 9 - 19
  If the Bank Details infotype does not exist, a /559 Bank Transfer wage type will be generated for the
employee. However, the wage type will have no value. The amount due to be transmitted to the
employee will instead be stored in wage type /565 carry-over. Because the employee has a /559 wage
type, they can be identified through the zero net advices functionality. These errors should be
corrected in advance of exiting payroll.

© SAP AG HR407 9 - 20
© SAP AG HR407 9 - 21
© SAP AG HR407 10 - 1
© SAP AG HR407 10 - 2
© SAP AG HR407 10 - 3
© SAP AG HR407 10 - 4
  Payroll Accounting calculates and uses wage types as the principal organizational concept of the
payroll system. A wage type classifies personnel expenses according to tax legislation, pay scales and
other operational characteristics. Wage types can also be calculated only to supply data to cost
accounting.
 Financial accounting is responsible for the flow of payments. Payments are posted to particular
accounts depending on the type or identity of the receiver and on the due date of the payment.
Payments include expenses and liabilities.
 Cost accounting is responsible for the classification of costs according to its type and for the
assignment of these costs to cost centers or other account objects.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada >
Subsequent Activities > Per Pay Period > Evaluation >
Posting to Accounting

© SAP AG HR407 10 - 5
  Wage types are identified or configured as expenses, liabilities or both. Each wage type will have
characteristics that identify where and how the values associated with it will post to the general
ledger.
 Since multiple wage types can be mapped to the same General Ledger accounts, HR uses symbolic
accounts to cumulate totals before posting to the appropriate accounts in FI.
 To ensure this process is accurate, members of both the HR and FI teams will need to work together
in this process.

© SAP AG HR407 10 - 6
  Assign financial accounts to the symbolic accounts for financial postings without a personnel
number (account assignment type F) or for financial postings with a personnel number (account
assignment type Q).
 Assign expense (cost) accounts to the symbolic accounts which affect expenses.
 Assign technical accounts with an account assignment key to a clearing account (procedure HRA).
(This clearing account will be referred to as a document split account.) The partial totals of all
documents in a posting run are posted to the document split account.
 Assign customer accounts to the symbolic accounts required for posting personal customer accounts
(account assignment type D) or fixed customers (account assignment type DF).
 Assign vendor accounts to the symbolic accounts required for posting personal vendor accounts
(account assignment type K) or fixed vendors (account assignment type KF).
 Assign loan accounts to symbolic accounts used for loan postings (account assignment type L). This
is only relevant for running loan accounts in Financial Accounting.

© SAP AG HR407 10 - 7
  Some wage types (for example, primary wage type 2010 Wages in the example above, or secondary
wage type /559, Bank Transfer), contain information that is relevant for accounting. From the point
of view of FI, wage type 2010 contains a company-related expense (C, expense account) while the
wage type /559, Bank Transfer, contains a payable (F, financial account) amount.
 Therefore, when payroll results are posted to accounting, wage type /559, Bank Transfer, posts to a
financial account (perhaps named Wages and Salaries) as a payable amount. Wage type 2010
Wages, posts to an expense account (perhaps named Salary Expenses) as an expense amount.

© SAP AG HR407 10 - 8
  The most important step in configuration for transferring payroll results to Financial and Cost
Accounting is the preparation.
 The five-step process that will enable wage types to be mapped to the FI accounts includes:
1) List all wage types relevant for posting
2) Group wage types into categories: expenses, payables, or both
3) Designate all wage types that are employee group dependent (wage types that post against
multiple FI
accounts)
4) List all required symbolic accounts (used to group wage types according to technical posting
criteria)
5) List all financial accounts (by company code)

IMG Path: Payroll > Payroll: Canada > Posting to Financial Accounting >
Preparation

© SAP AG HR407 10 - 9
© SAP AG HR407 10 - 10
  The chart above shows the posting to accounting process using the Employee Group Account
Assignment (EGAA) Using two employees (hourly and salaried) as examples. Note the
process flow and the flexibility that the EGAA provides.
1. Read payroll result by employee
2. Feature PPMOD determines EGAA
3. Dollar amount for the wage type is stored (based on configuration of wage type
characteristics)
4. Assignment of dollars to the symbolic account and to G/L account / cost element via
account assignment
table

© SAP AG HR407 10 - 11
  The ability to designate symbolic accounts as employee-group dependent (and, therefore, all
wage types assigned to the symbolic account) enables the system to determine what wage type
amounts are to be posted to which financial accounts.
 Designation of employee-group dependency is not required if each wage type relevant to
posting has already been assigned to an employee group or there is no wage type to be posted
to different accounts based on employee characteristics.
 The feature PPMOD is used to assign a numerical value to each employee subgroup grouping
for personnel calculation rules (ABART).

IMG Path: Payroll > Payroll Canada > Positing to financial Accounting
> Activities in the HR-System
> Employee Grouping / Symbolic Accounts
> Determine Employee Grouping / Account Assignment

© SAP AG HR407 10 - 12
  In this example, the feature PPMOD is defined by the employee subgroup grouping for
personnel calculation rules (ABART).
 The feature is defined as follows:

Condition EE GroupValue Description

ABART has value 1 1 Hourly Wages
ABART has value 2 1 Hourly Wages
ABART has value 3 2 Salaried Wages
ABART has value * 1 Hourly Wages

IMG Path: Payroll > Payroll: Canada > Posting to Financial Accounting
> Activities in the HR-System > Employee Grouping/Symbolic Accounts
> Determine employee grouping /account assignment

© SAP AG HR407 10 - 13
  A symbolic account is the vehicle by which wage type values are posted to Financial Accounting.
 A symbolic account represents a “category” that describes a type of expense or liability. This HR
symbolic account is assigned to the respective FI accounts (G/L account, customer account, vendor
account).
 The symbolic accounts can also be defined as employee group dependent. If a symbolic account is
designated as employee group-dependent, all wage types related to that symbolic account will be
posted to accounts for particular employee groupings in financial accounting.
 A symbolic account has the following characteristics:
 Four-digit identifier which is customer dependent
 Description of the symbolic account
 Account assignment type - identifies the correct account (expense, customer, vendor, financial,
loan, etc) for posting
 Indicator for employee grouping for account determination (EGAA)

IMG Path: Payroll > Payroll: Canada > Posting to Financial Accounting
> Activities in the HR- System > Employee Grouping/Symbolic Accounts
> Define symbolic accounts

© SAP AG HR407 10 - 14
  Certain parameters are also maintained when a wage type is assigned to a symbolic account, for
example, the +/- sign indicates whether positive amounts from payroll are posted to the debit or
credits side of the account. You can analyze the payroll results to determine which signs should
be assigned to a specific type of wage type before it is entered in the payroll result. You can use
the processing type to assign posting characteristics of a wage type to the following business
processes:
 Posting payroll results
 Posting month end accruals
 Supplying personnel cost data to Cost Planning (Controlling)
 Additional account assignment for Cost Accounting (C1 split)
 Specify whether the wage type is posted to one or more accounts.

© SAP AG HR407 10 - 15
  In this step, wage type posting attributes are defined to determine how to post (debit/credit),
against which account, the symbolic account to be used for each posting and if it is calculated for
month-end accruals.

 Posting attributes of wage types:

 Plus/minus sign: Wage types can be stored with a plus (+) or minus (-) sign. How specific
wage types are posted depends on how they are stored during the payroll run.

 Processing of posting items: If there is no entry here, the wage type is posted as normal.

 Symbolic account: The symbolic account is used to group wage types together that are
processed in the same way for posting.

 Account assignment type: The account assignment type defaults based on the configuration
of the symbolic accounts.

 Ignore Cost Assignment: If this field is flagged, any existing differing cost assignment is
ignored when the wage type is posted

IMG Path: Payroll > Payroll Canada > Posting to Financial Accounting > Activities in
the HR-

System > Wage Type Maintenance >Define wage type posting attributes

© SAP AG HR407 10 - 16
© SAP AG HR407 10 - 17
  If you want to define standard posting dates versus dynamically assigning the date on the
payroll posting program, in this step you can generate and maintain posting dates for each
payroll period of a payroll accounting area.
 All postings are assigned to a posting run that is determined by the posting date, unless posting
for special periods.

IMG Path: Payroll > Payroll: Canada > Posting to Financial Accounting > Activities in
the HR- System
> Maintain payroll period posting date

© SAP AG HR407 10 - 18
  In this step, you define special cost assignments:

 In certain situations, all postings for a specific cost type are to be posted, irrespective of the
employee, to a particular cost center or order rather than to the usual account assignment (such
as the employee's own cost center).

IMG Path: Payroll > Payroll: Canada > Posting to Financial Accounting > Activities in
the AC- System
> Set up fixed cost postings

© SAP AG HR407 10 - 19
  In this step, you define substitute cost centers / special assignments for Controlling.
 If an account assignment object can not be posted to accounting (this may apply to temporary
objects such as orders or projects, or after a change in cost center structure), then a substitute
cost centre may be used for the posting.

IMG Path: Payroll > Payroll: Canada > Posting to Financial Accounting > Activities in
the AC- System
> Set up substitute cost centres

© SAP AG HR407 10 - 20
  You can use the Posting to Accounting: Wage Type Assignment – Display G/L Accounts report
(RPDKON00), to display the assignment of wage types to G/L accounts.

IMG Path: Payroll > Payroll: Canada > Posting to Financial Accounting >
Check consistency in Customizing

© SAP AG HR407 10 - 21
  The following activities must be performed when posting payroll results to accounting:

 Execute the posting run

 Process the posting run

 Check the posting documents

 Release the posting documents

 Post the posting run

 Check completeness of postings

 Adjustments, if required, may be processed by financial accounting

© SAP AG HR407 10 - 22
  When the posting run is created, it is given a unique number. The amounts for the posting
wage types for the specified period are selected from the payroll results for all specified
employees. They are then summarized and written to the posting document along with the
assigned account.

 The payroll run must be completed successfully for all personnel numbers whose payroll
results are to be posted.

 Employees are locked during the processing of the payroll results for payroll accounting and
posting.

 Processed payroll results for an employee are flagged. This ensures that payroll results for an
employee are only posted once. If you attempt to repeat payroll for this employee, the
employee will be rejected. If you delete the posting run, the flag is removed from the payroll
results.

 An index is created, which can be used at any time to retrieve the summarized posting
amounts.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada >
Subsequent Activities > Per Payroll Period > Evaluation
> Posting to Accounting > Execute posting run

© SAP AG HR407 10 - 23
  Enter the payroll area and the period. The sequence of evaluations for posting to accounting
should correspond to the sequence of payroll periods. It is usually sufficient to set the current
period as the payroll period.

 Alternatively, if you want to post or subsequently post individual personnel numbers, enter the
personnel numbers instead. It is recommended that the entries here correspond to those for the
corresponding payroll runs.

 In the "Document Creation" field, specify that you want to create a posting document for a live
run.

 You can only process a live posting run once per personnel number and per payroll period. If
you want to repeat a live posting run, you must first reverse the posting run.

 A simulated posting run for the same personnel numbers in the same period is permitted as
often as required.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada >
Subsequent Activities > Per Payroll Period > Evaluation >
Posting to Accounting > Execute posting run

© SAP AG HR407 10 - 24
  After creating the posting run, verification that the payroll results for all employees have been
correctly evaluated can be completed in the step “Process”.

 Options within Process include:

- Status: If the posting run has a status other than "Documents Created", an error has occurred
when creating the posting runs.

- History: Choose 'Display History'

- Attributes: Display attributes of a posting run

 The standard system only displays the posting runs that have been created and not yet posted.
You can use a filter to change the display criteria for the list of posting runs. For example, you
can display all posting runs or posting runs that have been posted and/or simulated.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada >
Subsequent Activities
>Per Payroll Period > Evaluation > Posting to Accounting >
Process posting run

© SAP AG HR407 10 - 25
  Once the run has been created and verified, it must be changed to “Released” status prior to
posting.
 Select the posting documents and click on the ‘Display Posting Documents’ icon.
 Click on the ‘Release Document’ icon.
 The posting run has “All documents Released” status. All accompanying documents have the
status Released.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada >
Subsequent Activities
> Per Payroll Period > Evaluation > Posting to Accounting >
Process posting run

© SAP AG HR407 10 - 26
  The last step is “Post Documents.”

- Call up the list of posting runs.

- Select the required posting run(s).

- Confirm the posting.

 When successful: All posting documents for the selected posting run have been transferred to
financial accounting or cost accounting, and if required, to funds management, and then posted.
The posting run has the "Posted" status. The accompanying posting documents have the
"Posted" status.

 When unsuccessful: The posting run has the "Not posted" status.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada >
Subsequent Activities > Per Payroll Period > Evaluation > Posting to Accounting > Process posting run

© SAP AG HR407 10 - 27
  The following activities are carried out in Financial Accounting after the payroll results have
been transferred to Accounting:

 Comparison of transferred and posted payables

 Check withholdings for advance payments

 Check withholdings for claims

 Clearing of cross-company code transactions: Cross-company code transactions are cleared

by balancing the document split account and the recalculation difference.

 These functions are only supported in integrated systems.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada >
Subsequent Activities > Per Payroll Period > Evaluation > Posting to Accounting >
Process posting run

© SAP AG HR407 10 - 28
© SAP AG HR407 10 - 29
© SAP AG HR407 11 - 1
© SAP AG HR407 11 - 2
© SAP AG HR407 11 - 3
  Schema – KAC0
 Operation – ACCMO with a value of 1 activates month end accrual functionality

© SAP AG HR407 11 - 4
  Month-end accruals are used when payroll periods cross two accounting periods.
 Payroll accounting is carried out in a fixed cycle. This cycle is determined by the length of the
pay periods such as semi-monthly or bi-weekly. Once the payroll run is complete, the results are
transferred to accounting where they are posted using a fixed posting date, such as the cheque
date.
 When the payroll periods and accounting periods are the same, the posting date enables you to
post the payroll results to the correct accounting period.
 When the payroll periods and the accounting periods differ, the payroll periods may cross two
accounting periods. Since the payroll results are posted using a fixed posting date, this will result
in all personnel expenses being posted to a single accounting period even though the expenses
were incurred in two different accounting periods. The month-end accrual process will allocate
the expenses to the correct accounting period. Month-End Accruals allow for the creation of an
adjustment posting to adjust regular expenses.
 Month-end accrual configuration is not required for all customers.

© SAP AG HR407 11 - 5
  In the Actual Method, the closing of the accounting period for January is after the Latest
Document Creation Date. This signals that the actual payroll results are available at the time
the payroll postings for January have to be transferred to FI/CO. The actual results are used
by the system to calculate the accrual amounts.

© SAP AG HR407 11 - 6
  Payroll results are usually posted using a fixed posting date, such as the check date, which may
or may not be suitable to FI/CO. As a result, all of the personnel expenses are assigned to a
single posting period within Financial Accounting, even though the expenses were actually
incurred in two different posting periods. This makes it difficult to make a meaningful
comparison of expenses incurred in different posting periods.
 You need to be able to split personnel expenses so that for exact periods within Financial
Accounting they can be assigned to different posting periods. The month-end accruals function
was developed to solve this problem.
 The SAP solution for month end accruals enables you to split personnel expenses for the
appropriate posting periods. You can do this by using a combination of Approach Using
Estimates and Approach Using Actual Values.

© SAP AG HR407 11 - 7
  When estimates are used, results from the last pay period provide the basis for the
calculation. The assumption made by this method is that posting estimated results from the
results of the most recent payroll run will most closely represent what the real amounts will
actually be.
 This is the case if all of the posting periods in question are still open to receiving posting
data from HR when the payroll results are posted. Otherwise, if a period closes before all
payroll results are available, the amount of personnel expenses still expected for a posting
period is estimated during an earlier payroll run. You can also set up the system so that only
the Approach Using Estimates or Approach Using Actual Values is used.
 In the Estimate Method, the closing date of the accounting period is before the Latest
Document Creation Date. As the payroll results are not available at the time of the postings
for January, the system will use an estimate based on the amounts of pay period two.

© SAP AG HR407 11 - 8
© SAP AG HR407 11 - 9
  The Actual Method allows for the actual payroll results to be posted to one of the two accounting
periods according to the posting date (normally derived from the end date of the pay period or the
cheque date).
 The month-end accrual functionality prorates and allocates the expenses to each accounting
period. The expense account for the current accounting period is credited and the expense account
for the previous accounting period is debited. A special provisional account is then used to
balance both posting documents.

© SAP AG HR407 11 - 10
  If the payroll results are not available at the time that the HR postings have to be transferred to
FI/CO, it is necessary to use an estimated value of the expenses. This estimate is based on the
payroll results of the preceding pay period.
 As the posting date for this example is in February, the expense account will be debited in
January with the appropriate amounts calculated in the month end accrual estimate. To balance
the postings in the first accounting period (January), a provisional account is credited with the
same amount that was debited to the expense account mentioned above. Then in the second
accounting period (February) when the actual payroll results are posted, the estimated postings
are reversed.

© SAP AG HR407 11 - 11
  The purpose of month-end accruals is to create adjustment postings to adjust regular expenses.
 Triggering month-end accrual computations
Maintain posting dates, define closing dates and review latest document creation dates.
 Basis for computations
Define wage types to be read and rules for estimates.
 Line item creation for month-end accruals
Maintain symbolic accounts and assign accrual accounts (usually the regular expense and liability
accounts are posted).
 Specialist functionality
This function is for special circumstances and are not usually required by most companies.

IMG Path: Payroll > Payroll: Canada > Month-End Accruals

© SAP AG HR407 11 - 12
© SAP AG HR407 11 - 13
  The posting date is the date when the Human Resources department can transfer the payroll
results to the Finance Department.
 The accounting system will use the posting date to determine the appropriate accounting period
in which to post the payroll results.
 The posting date may not be before the beginning of a pay period. To ensure correct
processing, the posting dates have to be defined ahead of time and should not be changed if
they have already been used in month-end accrual computations.

IMG Path: Payroll > Payroll: Canada > Month-End Accruals >
Triggering Month-End Accrual Computations > Maintain posting dates

© SAP AG HR407 11 - 14
  The closing date is the last date on which it is possible to transfer payroll results to the Finance
Department before they begin the month-end closing process.
 In this step you set up the closing dates for the accounting periods which trigger month-end
accruals computations.
For example:
 Your company has an internal rule stating that all transfers from HR have to be posted, at the
latest, by the fourth working day of the month. This date would be the closing date
irrespective of when the accounting department actually closes its books for the accounting
period.
 It is advisable to set the closing date slightly earlier than actually necessary (i.e., actual
month-end closing date).

IMG Path: Payroll > Payroll: Canada > Month-End Accruals >
Triggering Month-End Accrual Computations >
Define closing dates (for posting periods)

© SAP AG HR407 11 - 15
  The Latest Document Creation Date triggers whether the system will use the actual payroll results
or calculate estimates.
 The Latest Document Creation Date (LDCD) is the last day to process payroll in order to meet
your established pay day. This date must be established for every pay period.
For example -
 Your company runs a weekly payroll (Monday - Sunday). For employees to be paid on time, the
cheques have to be mailed by noon on Wednesday.
In this case Tuesday would be your “latest document creation date” as this would be the latest
point at which the payroll can be run to meet your pay day.

IMG Path: Payroll > Payroll: Canada > Month-End Accruals >
Triggering Month-End Accrual Computations >
Review latest document creation dates

© SAP AG HR407 11 - 16
© SAP AG HR407 11 - 17
  In this step, the wage types to be considered for month end accruals are determined.
 Processing class 79 determines how wage types are processed during month end accrual
computations.
 The characteristics of this processing class are:
0 Wage type not relevant for month end accrual
1 Wage type group 1 for modifier D (Month end accrual)
2 Wage type group 2 for modifier D (Month end accrual - delayed entry)

IMG Path: Payroll > Payroll: Canada > Month-End Accruals > Basis for
Computations >
Define wage types to be used

© SAP AG HR407 11 - 18
  In this step, the computation basis for the accrued amounts is determined and the rule KMOD -
Modifier “C” is used for this purpose.
 The computation basis can be set to a different value for different groups of employees. For
example, in your company, estimates for wage earners have to be done on the basis of working
hours and estimates for salaried employees have to be done on the basis of workdays days. In
this case you would set the value of the accruals basis Modifier “C” for wage earners to “S” and
for salaried employees to “A”.
 Month-end accruals can be calculated based on the following values:
A workdays (default)
K calendar days
S working hours

IMG Path: Payroll > Payroll: Canada > Month-End Accruals > Basis for
Computations >
Set up computation of part amounts belonging to each period

© SAP AG HR407 11 - 19
© SAP AG HR407 11 - 20
  In this step, month-end accrual functionality is activated.
 If the month-end accrual functionality is to be used only in some instances, this can be
controlled by setting up a decision tree within a copy of personnel calculation rule KAC0.
When month-end accrual computations are to be used, operation ACCMO=1; if month-end
accrual computations are not to be used, operation ACCMO=0.
 If month-end accrual functionality is not to be used, the schema KAC0 should be deactivated
rather than setting the switch ACCMO=0.

IMG Path: Payroll > Payroll: Canada > Month-End Accruals > Line Item Creation for
Month-
End Accruals > Activate month-end accruals and cheque processing

© SAP AG HR407 11 - 21
  In this step, symbolic accounts are defined for month-end accruals.
 The symbolic accounts have to be assigned to their respective G/L accounts in either the Expenses
(HRC) or Liabilities (HRF) tables.
 This step should be carried out in direct consultation with the team responsible for setting up the
Financial Accounting module.

IMG Path: Payroll > Payroll: Canada > Month-End Accruals >
Line Item Creation for Month-End Accruals >
Maintain symbolic accounts for month-end accruals

© SAP AG HR407 11 - 22
  Wage types have associated characteristics to identify how to post (debit/credit), to identify if the
wage type is to used for month end accruals, and the symbolic account to be used for posting.

IMG Path: Payroll > Payroll: Canada > Month-End Accruals >
Line Item Creation for Month-End Accruals >
Assign symbolic accounts to wage types

© SAP AG HR407 11 - 23
  In this step, symbolic accounts are assigned to the general ledger accounts.
 This step should be carried out in direct consultation with the team responsible for setting up
the Financial Accounting module.

IMG Path: Payroll > Payroll: Canada > Month-End Accruals >
Line Item Creation for Month- End Accruals > Assign accrual account

© SAP AG HR407 11 - 24
  In some companies, certain wage types are regularly entered delayed and are regularly paid
one period late. Month end accruals functionality may be set up to deal with the fact that in
this case very often the expenses are paid for accounting periods that differ from the
accounting periods in which they are actually incurred.
 We recommend that you carry out this step in direct consultation with the team responsible for
setting up the Financial Accounting module.

IMG Path: Payroll > Payroll: Canada > Month-End Accruals > Specialist
Functionality
> Set up delayed data entry

© SAP AG HR407 11 - 25
© SAP AG HR407 11 - 26
  VO splits – Third Party Remittance

© SAP AG HR407 12 - 1
© SAP AG HR407 12 - 2
© SAP AG HR407 12 - 3
© SAP AG HR407 12 - 4
  Third Party Remittance is the term used when payments are collected from employees and
sent to a third party. This third party may be receiving payment for employee taxes, benefit
coverage, garnishment orders, or charitable donations.
 For this transfer of payment amount to occur, specific data must pass from payroll
accounting to the financial department. The primary function of third party remittance is
to control when and how payments are made from payroll to third parties.
 Third Party Remittance process is defined as follows:
(1) Collect Data – Extract and summarize from the payroll results the amounts to
be remitted
to each HR payee and establish the due dates
(2) Update Tables – Update the remittance tables
(3) Process Posting Run – Post the results to Accounts Payable / FI using the interface to
payroll
accounting functionality
(4) Acknowledgment Run – Identify remittance items as paid
(5) Reconciliation Run – Run the reconciliation report after the remittances are paid

© SAP AG HR407 12 - 5
IMG: Payroll > Payroll Canada > Third Party Remittance > Maintain Payroll Evaluation Schema

Schema: K500

© SAP AG HR407 12 - 6
© SAP AG HR407 12 - 7
  Rules which govern the transfer of remittances must be defined. The characteristics of a rule
determine when and how payments are to be made.
 Rules should be defined for all possible date calculations and pay methods. This will make it
easier to assign rules to the HR payees.
 The characteristics of a rule are the following:
- Transfer interval
- Postponement of transfer
- Grace period number
- Grace period type
- Country
- Payment method

IMG Path: Payroll > Payroll: Canada > Third Party Remittance >
Remittance rule and accumulator maintenance > Maintain rules

© SAP AG HR407 12 - 8
  Accumulators allow SAP Payroll to cumulate remittances that are to be paid to a particular
HR Payee. If the total amount to be paid to an HR Payee exceeds the amount defined in the
accumulator, the accumulator will be processed according to the relevant rule.

IMG Path: Payroll > Payroll: Canada > Third Party Remittance > Remittance Rule
and
Accumulator Maintenance > Maintain remittance accumulator

© SAP AG HR407 12 - 9
  Once the total amount to be paid to an HR Payee exceeds a specified amount, the due date and/or
pay method will be changed according to the new rule. In this example, the due date for the
payment of federal taxes, once the limit of $100,000 or above has been reached, is changed to an
immediate payment.
 Rules can also be defined to change the payment method. For example, an HR Payee expects
payment via cheque for amounts below $5,000 and via bank transfer for amounts above $5,000.

© SAP AG HR407 12 - 10
© SAP AG HR407 12 - 11
  The HR Payee is central to Third Party Remittance functionality. The HR Payee is
defined by an HR payee type and an HR payee number. For each HR payee, the
following steps must be completed:
• Define the HR Payee (creditor) assignment
• Assign HR creditor feature – remittance rule
• Assign dependent HR Payee (creditor)
• Assign wage types to HR Payee (creditor) grouping

 NOTE: The terms HR Creditor and HR Payee are used interchangeably in the IMG.

IMG Path: Payroll > Payroll: Canada > Third Party Remittance > HR Payee
Maintenance

© SAP AG HR407 12 - 12
  The HR payee (creditor) assignment is defined as follows:
• Assign an HR payee (creditor) number
• Assign an accounts payable vendor number for the posting of payments
• Assign the company code
• Assign a vendor subgroup (optional)
• Assign an HR accumulator, if necessary
• Data at employee level - This field indicates that this HR payee (creditor)
requires employee data for
the reconciliation.

IMG Path: Payroll > Payroll: Canada > Third Party Remittance > HR Payee
Maintenance

© SAP AG HR407 12 - 13
  Once an HR payee (creditor) has been defined, a remittance rule must be assigned.
 The terms remittance rule and HR creditor feature (attribute) are also used interchangeably.

IMG Path: Payroll > Payroll: Canada > Third Party Remittance > HR Payee
Maintenance

© SAP AG HR407 12 - 14
  By defining dependent HR payees (creditors), it possible for the dependent HR payee
(creditor) to be paid when the original HR payee (creditor) is paid. In this case, the new
payment date overrides the original date.

IMG Path: Payroll > Payroll: Canada > Third Party Remittance > HR Payee
Maintenance

© SAP AG HR407 12 - 15
  All remittances that are to be remitted to an HR Payee, must be assigned to HR payee (creditor)
grouping for remittance.
 The remittances are identified by their assigned wage types.

IMG Path: Payroll > Payroll: Canada > Third Party Remittance
……HR Payee Maintenance
……Maintain HR Payees for other Remittance
……Maintain HR Payees for Memberships Remittance
……Maintain Workers Compensation Payees

© SAP AG HR407 12 - 16
© SAP AG HR407 12 - 17
  In this step Processing Classes 68, 73 and 78 are maintained for wage types to be remitted using
Third Party Remittance functionality.
 Processing Class 68 is used to define which registration number applies to the wage type during
Third Party Remittance.
 Processing Class 73 must be maintained to define whether a wage type is to be treated positively
or negatively with respect to Third Party Remittance. For wage types that are “negative
deductions”on the employee’s payroll result table, the value sign will need to be reversed.
 1 = Reverse sign (debit from the employee’s side)
 Processing Class 78 must be maintained to define the appropriate HR Payee type.

IMG Path: Payroll > Payroll: Canada > Third Party Remittance > Wage type
maintenance >
Maintain wage types for remittances

© SAP AG HR407 12 - 18
  Feature 07DPG is used to determine the Health Tax numbers for Third Party Remittance
based on the wage type.

IMG Path: Payroll > Payroll: Canada > Third Party Remittance > Wage type
maintenance >
Maintain business number assignment for health care

© SAP AG HR407 12 - 19
  Processing class 73 is used to determine if the sign, positive or negative, that is associated with
the wage type amount to be remitted should be reversed. If the wage type is stored as a negative
amount, the sign must be converted to a positive (reversed) for the remittance document to be
produced. If the wage type amount is stored as a positive value, this is not necessary.
 For example, voluntary deductions, benefits and garnishments are stored as negative amounts on
the results table. So an employee could have wage type 1401, RSPP deduction for $200 and
wage type 7235, employer medical for $35. In this instance, the specification 1 should be
assigned to processing class 73 for wage types 1401 and 7235. During the processing of third-
party remittance, the values held in the wage types will thus be converted to $200 and $35
respectively.
 All wage types eligible for remittance do not have to undergo sign conversion. For example, tax
wage type amounts, the /3XX and /4xx series of wage types, are stored on the Results Table as
positive amounts. An employee might have /401 federal total withholding for $400 and /403
state withholding for $100. In all instances, the tax wage types are stored as positive amounts.
Therefore, the processing class 73 value assigned is a blank, which stands for no conversion of
the sign.
 Processing class 78 must be maintained for all wages to be remitted. This processing class
assigns the wage types to the wage type category as seen in the configuration tables. This is not a
one-to-one relationship, however. There are more categories than processing class 78 values. The
table lists appropriate assignment of processing class 78 specification based on the category of
remittance to be produced.

© SAP AG HR407 12 - 20
  In this step Processing Classes 73 and 78 are maintained for garnishment wage types to be
remitted using Third Party Remittance functionality.
 Processing Class 73 must be maintained to define whether a wage type is to be treated
positively or negatively with respect to Third Party Remittance. For wage types that are
“negative deductions” on the employee’s payroll result table, the value sign will need to be
reversed.
 1 = Reverse sign (debit from the employee’s side)
 Processing Class 78 must be maintained to define the appropriate HR Payee type.

IMG Path: Payroll > Payroll: Canada > Third Party Remittance > Wage type
maintenance >
Check third-party remittance for garnishment wage types

© SAP AG HR407 12 - 21
© SAP AG HR407 12 - 22
  In this section you will set up number ranges for third party remittances.
 The third party remittance functionality gives two separate number range objects: 'RP_REMIT'
and RP_REMIT1'.
 These number range objects contain the following sub-objects:
Object Sub-object Description
RP_REMIT 'REM1‘ Request dates (In periods for which we remit)
RP_REMIT 'REM2‘ Posting run number
RP_REMIT 'REM4‘ Acknowledgement run number
RP_REMIT1 ' ' Remittance originator on the HR creditor level

 In all cases use the number range number 01.

IMG Path: Payroll > Payroll: Canada > Third Party Remittance > Number Range
Maintenance

© SAP AG HR407 12 - 23
  In this step you set up the number range for the remittance originator. The originator defines
where in R/3 the remittance was initiated.
 In order to run the third party remittance process correctly, you need to maintain this number
range.

IMG Path: Payroll > Payroll: Canada > Third Party Remittance > Number Range
Maintenance

© SAP AG HR407 12 - 24
 •In essence, the processing of third-party remittances is a variation of transfer to FI/CO. Data
stored in the human
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is similar into applicable
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collecting the data, formatting the data into documents and posting the data to accounting.
Processing Third Party Remittances:
Processing Third-Party Remittances
 Third party remittance provides reports that extract all relevant external payment information
fromthe
•Like SAP payrolltoresults,
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functionality, FI/CO and generates
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component involves the
transfer of financial posting data from mySAP HR to FI/CO accounts. Like the Direct
Deposit/Data Medium Exchange program, third-party remittance also generates actual physical
payments in the form of bank transfers or checks. However, third-party remittance differs from
the Transfer to FI/CO component in one critical way: It exclusively handles posting and
payment information for external payees, such as tax authorities, garnishment recipients, and
benefits providers. Third-party remittance provides reports that extract all relevant external
payment information from SAP Payroll results, posts the data to FI/CO, and generates the
external payments.

© SAP AG HR407 12 - 25
  Data Evaluation
The initial step in third-party remittance is data evaluation.

If using the newest functionality then settings must be made on table T77S0. If
using older functionality, no settings are necessary on this table.

 As of release ECC 6.0 The collection and storage steps have been combined. To use the new
functionality the following settings must be made in table T77S0.
(1) a date must be entered for the P3PR / 3PRTE main switch to express that you will use the
new method. The date format should match the format of the posting date and be set to latest
date possible 12/31/9999.
(2) ALLOWED should be entered for the country in the P3PR / TE_CA switch.
 Once these settings are confirmed, the one step collection and storage program RPURME00 can
be used.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada >
Subsequent activities > Per payroll period > Evaluation >
Third-party remittance > Evaluate remittance (New).

© SAP AG HR407 12 - 26
  The first step is the “evaluation run”. This step extracts and summarizes the data from the payroll
results, assigns the symbolic accounts, links the HR creditors and performs a balance check.
 To collect the data, execute RPCALCK0 with the schema K500 in order to create the TemSe object
files that will be used to process the Third Party Remittances.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada >
Subsequent Processing > Per Payroll Period > Evaluation >
Third Party Remittance > Evaluation Run

© SAP AG HR407 12 - 27
  The “store evaluation run” step updates the appropriate third party remittance tables (T51R*)
via the temporary sequential files (TemSe).
1. Choose the two TemSe files which were created in the first step “evaluation run” using the
schema K500.
2. Choose Execute.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada >
Subsequent Processing > Per Payroll Period >
Evaluation > Third Party Remittance >
Store Evaluation Run

© SAP AG HR407 12 - 28
 Create Posting Run (Steps the same for all releases)
 The create posting run for third-party remittance, run type TP, uses program RPURMP00. When
posting runs are created for regular transfer to FI/CO, run type PP, program RPCIPE00 is used. This
change in programs occurs for two reasons. First, a different selection screen is used. Transfer to
FI/CO selects employee data for processing using the payroll area. Third-party remittance relies on
company code, HR payee type and payment due date. Second, transfer to FI/CO reads the payroll
results directly. Third-party remittance processing reads the output files that were produced in the
data collection step.
 Contrary to the posting run selection process used in the regular transfer to FI/CO process, the third-
party remittance or TP posting runs are created and hence stored by due dates. This format allows
the vendor payments generated via payroll processing to become part of the standard process for
vendor payments in Accounts Payable. All of the information necessary to create a bank transfer or
print a check for vendor payments will be stored in the run information.
 The create posting run step must be run for every due date that was generated via the TemSe file
storage protocol. Otherwise a vendor payment, or tax transmission, could be missed. To
accommodate this requirement, the program was modified in SAP R/3 Release 4.7 to include all
payment requests up to and including the due date entered. This ensures that all payments will be
found.
 A successful third-party run will initiate a run of type TP with a status of document created. The
successful run will have attached documents in the status created.

© SAP AG HR407 12 - 29
  The documents must be released prior to attempting to post the run. Only runs with all
documents released may be posted. Only the documents that were created for live runs may be
released. Simulation documents, which result from a test run of the create posting run step for
third-party, cannot be released. When the documents are posted, line item entries are created on
the accounting documents as of the posting date that was assigned to the file. Additionally, all
data needed for the creation of the payments will be transmitted to accounts payable.

 This procedure deletes entries in the third party remittance tables.

1. Enter the correct parameters. Choose which run(s) need to be reversed. Ensure you choose
the
acknowledgement run, the posting run and the evaluation run in the appropriate order to
reverse all entries.
2. Choose Execute.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada >
Subsequent Processing > Per Payroll Period > Evaluation >
Third Party Remittance > Undo Processing Steps

© SAP AG HR407 12 - 30
© SAP AG HR407 12 - 31
© SAP AG HR407 13 - 1
© SAP AG HR407 13 - 2
© SAP AG HR407 13 - 3
© SAP AG HR407 13 - 4
  SAP delivered reports are categorized as follows:
• Samples/Templates -
Reports developed with the Forms tool that customers may modify such as the Payroll
Journal.
• Standard Reports
Reports developed with the ABAP tool such as the Pensionable & Insurable Earnings
Review
(P.I.E.R.)
• Regulatory Reports
Reports similar to the standard reports but with better graphics such as the Record of
Employment
(R.O.E.)
 SAP delivered reports are also categorized by frequency:
• Per Payroll Period
• Annual
• Period-independent

© SAP AG HR407 13 - 5
  The payroll system provides different views of payroll results.
 When the payroll process is complete, the pay results in the cluster provide a full array of data in
tables such as:
RT Results Table
CRT Cumulative Results Table
TCRT Tax Cumulative Results Table
VAC Vacation
ROE Record of Employment
ACCR Month End Accruals Table

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada > Payroll >
Remuneration Statement
Easy Access Menu Path: Human Resources > Payroll > Americas > Canada >Info System >
Payroll Results > Display Payroll Results (Cluster RK)
Easy Access Menu Path: Human Resources > Payroll > Americas > Canada >Info System >
Payroll Results > Payroll Journal

© SAP AG HR407 13 - 6
© SAP AG HR407 13 - 7
  The cost center report displays the costs incurred for each employee, per wage component, per
posting period. The cost center manager can view the totals at each level.
 You can customize the output display in a different sort order. The default sort order is:
Cost Center - Employee - Cost Element - Wage Component - Posting Date.
 You can also download the results to a worksheet format (for example, MS-Excel).
 In addition, the Payroll Administrator can:
-Invoke the reconciliation/audit report by selecting the employee or the posting date on the tree
display and selecting the option Payroll Results.
-View the time data of an employee by selecting the employee or the posting date on the tree
display and selecting the option Time Data detail.
-View the FI/CO postings of an employee by selecting the employee or the posting date on the
tree display and selecting the option FI/CO postings.
-View the payroll cluster for a selected employee by selecting the employee in the tree display.

Easy Access Menu Path: Human Resources > Payroll > Americas >
Canada >Subsequent Activities > Per Payroll Period >
Lists/Statistics > Cost Center Report - Administrator

© SAP AG HR407 13 - 8
  This report creates the international payroll account.
 Several periods can be printed out at one time. The number of periods displayed is determined by
the data selection period (for example, 'Other period', 'Current year', ...). The number of periods
per page can be set via the 'Number of columns per page' parameter.
 A detailed view (remuneration statement) can be selected for each column assigned to a period.

IMG Path: Payroll > Payroll: Canada > Forms > Payroll Account

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada >
Subsequent Activities > Per Payroll Period > Lists/Statistics >
Payroll Account

© SAP AG HR407 13 - 9
  This report creates the payroll journal based on the existing payroll results.
 The structure of the payroll journal is freely definable.
 You can find detailed information on setting up the payroll journal form in the implementation
guide.

IMG Path: Payroll > Payroll: Canada > Forms > Payroll Journal

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada >
Subsequent Activities > Per Payroll Period > Lists/Statistics >
Payroll Journal

© SAP AG HR407 13 - 10
  The required criteria for producing a remuneration statement include the following :
 Payroll area for the selection of the pay period
 Payroll area for the selection of persons (Personnel number can also be used with payroll
area).
 Special run indicators (for off-cycle runs)
 Form name
 Output language
 Output currency
Additionally, several indicators are used to specify whether retroactive accounting information
should be included in the output. The indicators include the following:
 Print current period (always or only retroactive runs)
 Print retroactive runs (include or exclude data)
 Layout of the retroactive run, if printed -combined form or separate
 Sort order if retroactive runs are included as separate forms
 The system also allows you to enter personal or general notifications for your employees. These
notifications are printed on the remuneration statement as additional information. This additional
information, for example, general information or birthday greetings, can be entered in the
Notifications infotype.

© SAP AG HR407 13 - 11
  The wage type reporter evaluates wage types from the payroll results for a selected period. This is
data from tables RT (Results Table) and WPBP (Work Place Basic Pay) for the payroll results.
Other tables and data from infotypes are not evaluated.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada >
Subsequent Activities > Per Payroll Period >
Lists/Statistics > Wage Type Reporter

© SAP AG HR407 13 - 12
  The purpose of the Payroll Audit/Reconciliation Report is twofold:
1. To ensure the integrity of the accumulated year-to-date payroll and/or wage type amounts within
the
payroll cluster results, and
2. To reconcile the payroll cluster results with the reports produced during final payroll processing,
including those results posted to Financial Accounting (FI) and Third-Party Remittance.
 SAP recommends that you use this report as part of the normal balancing and reconciliation
process. Specifically, we recommend that you perform the report either after each regular and off-
cycle payroll run or on a periodic basis (semi-monthly, monthly, or quarterly) to validate that
Financial Accounting and Third-Party Remittance have been updated correctly. The Payroll
Audit/Reconciliation Report also plays an essential role during year-end processing in ensuring the
accuracy of employees annual incomes and deductions. Nonetheless, although the report may
appear to be most useful during year-end processing, we strongly recommend that you execute the
report at least once per quarter.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada >
Subsequent Activities > Per Payroll Period > Lists/Statistics >
Audit Reporting

© SAP AG HR407 13 - 13
© SAP AG HR407 13 - 14
  The Record of Employment (ROE) is a form that each employer must complete for every employee
who stops working in insurable employment (i.e., termination, maternity leave, other unpaid leave,
short term sick leave or when requested by Human Resources Development Canada (HRDC)).
 HRDC uses the employment history information from the ROE to decide if a person qualifies for
Employment Insurance (EI) benefits, what the benefit amount should be and the eligibility period
for benefits.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada >
Subsequent Activities > Period independent > Reporting >
Record of Employment (ROE)

© SAP AG HR407 13 - 15
  The PD7A Reporting utility compiles and reports all amounts to be reported on Form PD7A. The
utility runs in parallel with Third Party Remittance functionality. Provided that your personnel
selection has been configured identically in both Third Party Remittance and PD7A Reporting, any
amounts to be reported on Form PD7A will be consolidated with amounts to be reported via Third
Party Remittance.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada >
Subsequent Activities > Period independent > Reporting >
Generate Form PD7A

© SAP AG HR407 13 - 16
  This program provides you with the necessary information for reporting to the provincial workers'
compensation boards (WCBs).
 Payroll modifier KMODI 2 determines WCB assessable earnings

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada >
Subsequent Activities > Period independent > Reporting >
Workers’ Compensation Board Reporting

© SAP AG HR407 13 - 17
  Most Human Resource data is stored in infotypes. You can report on this data using standard
reporting procedures (Ad Hoc Query or SAP Query). Payroll results, however, are stored in
cluster tables. You can only report on them using specific standard reports or reports you have
programmed yourself (that is, using the ABAP Editor).

 To evaluate payroll results in the same way as other HR data, you can set up payroll infotypes.
 Preconfigured payroll infotypes are provided or you can define you own.

© SAP AG HR407 13 - 18
  The basic principle of payroll infotypes (PIT) involves defining an infotype whose specific fields
correspond to the results of one or more wage types in Payroll. To enable the results of
(technical) wage types to be aggregated. Evaluation wage types (EWT) are defined in an
intermediate step. They are used to define the payroll infotypes.
Example:
Wage types EWT
PIT
/101 Gross/Employee Gross/ER-EWT
Gross/ER-PIT
/262 Gross/Social Contribution/ER

 Technical wage types /101 and /262 are both written to evaluation wage type Gross/ER-EWT. In
this case, the payroll infotype Gross/ER-PIT only contains this evaluation wage type.
 Like all other infotypes in Personnel Administration, payroll infotypes have three substructures
(key fields/PAKEY, administrative fields/PSHD1, infotype-specific fields/PSnnnn). The infotype-
specific fields are contained in substructure PSnnnn. In the case of payroll infotypes, however,
this structure contains additional, payroll-specific fields (sequence number, MOLGA, etc.) that are
created automatically when a payroll infotype is created. The infotype-specific fields of a payroll
infotype are contained in include CI_Pnnnn. These fields correspond to the evaluation wage types
defined in Customizing.

© SAP AG HR407 13 - 19
  You set up payroll infotypes in Customizing for HR Information Systems.

 If you want to work with preconfigured payroll infotypes, you only need to perform some of the
Customizing activities listed.

IMG: Personnel Management > Human Resources Information System > Payroll Results

© SAP AG HR407 13 - 20
  Using SAP Query and Ad Hoc (InfoSet) Query, you can also evaluate payroll results in addition
to master data, applicant data and personnel planning data. Several predefined infotypes are
available for the evaluation. The wage types required for the evaluation of payroll results are
entered in these infotypes.
 Infotype Purpose:
 0402 Payroll Results: Period Values
 0403 Payroll Results: Period Values
 0458 Monthly Cumulation of Payroll Results
 0459 Quarterly Cumulation of Payroll Results
 0460 Annual Cumulation of Payroll Results

 You can either activate these predefined infotypes or create your own infotypes using the same
structures. However, you should not plan on using infotypes 0402 and 0403 directly. You can
enhance these infotypes by using additional wage types and then activating the infotypes. This
makes the necessary data from the payroll results available on the PNP logical database.

IMG: Personnel Management > Human resources Information System > Payroll Results

© SAP AG HR407 13 - 21
© SAP AG HR407 13 - 22
© SAP AG HR407 14 - 1
© SAP AG HR407 14 - 2
© SAP AG HR407 14 - 3
© SAP AG HR407 14 - 4
  The SAP Payroll Process Models support payroll processing, error handling and unattended
operations with proactive communications and notifications for payroll operations.
 A process model defines a sequence of programs that automatically follow one another and
the process can be executed with or without interruptions at designated points.
 The process models provide:
 a single point for monitoring processes using the Process Model Workbench;
 a method for monitoring the status of employees throughout all the steps of a process; and,
 a method to repeat individual process steps

 Note: In order to be able to use the process models, a workflow user must be set up in SAP
Business Workflow

© SAP AG HR407 14 - 5
  A process model is comprised of three elements:
 Personnel number selection
The personnel number selection program transfers the personnel numbers to be processed to the
process model. Several personnel number selection programs are delivered by SAP and the
appropriate program is assigned to a specific process model.
 Process step
A process step corresponds to the processing of a program in the process model, for example
process payroll, transfer payroll results to finance.
 Breakpoint
A breakpoint specifies whether a process must be interrupted.

© SAP AG HR407 14 - 6
  A process step corresponds to the processing of a program in the process model. The process
step is assigned the following characteristics:

 Category – The category determines how the program that you have assigned to the
process model should function. The category specifies a step from a business point of view
(e.g. Process payroll, post results).
 Executable program – The name of the program that should be executed in this step.
 Selection variant - The criteria used to execute a step is defined. The selection variant is
specific to the process step of the model.
 Parallel processing - Parallel processing allows you to subdivide personnel numbers into
packet size which are then processed in parallel. This results in shorter runtimes.

© SAP AG HR407 14 - 7
  A breakpoint specifies whether a process must be interrupted. SAP delivers two types of
breakpoints.

 Unconditional breakpoint - the process is always interrupted.

 Conditional breakpoint - the process is only interrupted when it reaches a certain
percentage of incorrect personnel numbers.
 Variable breakpoint – are customer defined function modules which are programmed to
decide whether the process should be interrupted or not.

© SAP AG HR407 14 - 8
  A conditional breakpoint contains parameters that determine whether or not the process will
continue. For example, the process can continue if 80% of the employee records are correct. If
less than 80% of employee records are correct, the process is stopped.

© SAP AG HR407 14 - 9
  From the HR Process Workbench, the process begins by creating and starting a selected
process which in turn calls the personnel number selection program.
 The personnel number selection program can either be started in the background or directly
from the HR Process Workbench. It exports a workflow event and transfers the process
control to the Process Manager.
 The Process Manager processes in sequence the listed programs of the process model. The
Process Manager allows for automation of various functions during a payroll run. For
example, a payroll manager can configure the system so that it pages her/him if there is a fatal
error during the run. Or a manager can have the system flag a single employee record if there
is an exception error and automatically route the error via workflow for resolution, without
interrupting the payroll run.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada > Tools >
HR Process Workbench

© SAP AG HR407 14 - 10
  From the Process Model Workbench, the first step is to create the process.
 In the dialogue box, enter a description of your process and assign your process model. The
system will automatically assign a unique number to the process. The created process will be
displayed and assigned the status “Still to Run” (blank).

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada > Tools >
HR Process Workbench

© SAP AG HR407 14 - 11
  From the Process Model Workbench, the second step is to start the process which may be
processed immediately or in the background.
 The “Select Personnel Number” program selection screen is displayed and you can either
manually input your personnel number selection criteria or choose your customer variant.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada > Tools >
HR Process Workbench

© SAP AG HR407 14 - 12
  Processes are administered and monitored using the HR Process Workbench.
 Process: Identifies which business process is executed and comprises all the steps defined in
the process model.
 Process Step: Corresponds to the processing of a program within the the process model.
 Run: Corresponds to starting or repeating a process step. The runs in a process step are
displayed and numbered sequentially. If a process is repeated, all process steps will also be
repeated.
 Set: Corresponds to the sets of personnel numbers that are processd in each run.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada > Tools >
HR Process Workbench

© SAP AG HR407 14 - 13
  A process can be restarted at any time.
 If a process is restarted, the process manager only executes the steps for the personnel numbers
with status “incorrect” or “initial”.

Easy Access Menu Path: Human Resources > Payroll > Americas > Canada > Tools >
HR Process Workbench

© SAP AG HR407 14 - 14
© SAP AG HR407 14 - 15
 2009 Payroll Periods for Bi-Weekly Payroll Area
Payroll Area 5#

Month Pay Period Begin Date End Date

January 1 22.12.2008 04.01.2009

January 2 05.01.2009 18.01.2009

February 3 19.01.2009 01.02.2009

February 4 02.02.2009 15.02.2009

March 5 16.02.2009 01.03.2009

March 6 02.03.2009 15.03.2009

April 7 16.03.2009 29.03.2009

April 8 30.03.2009 12.04.2009

April 9 13.04.2009 26.04.2009

May 10 27.04.2009 10.05.2009

May 11 11.05.2009 24.05.2009

June 12 25.05.2009 07.06.2009

June 13 08.06.2009 21.06.2009

 2009 Payroll Periods for Bi-Weekly Payroll Area
continued
Payroll Area 5#

Month Pay Period Begin Date End Date

July 14 22.06.2009 05.07.2009

July 15 06.07.2009 19.07.2009

August 16 20.07.2009 02.08.2009

August 17 03.08.2009 16.08.2009

September 18 17.08.2009 30.08.2009

September 19 31.08.2009 13.09.2009

October 20 14.09.2009 27.09.2009

October 21 28.09.2009 11.10.2009

October 22 12.10.2009 25.10.2009

November 23 26.10.2009 08.11.2009

November 24 09.11.2009 22.11.2009

December 25 23.11.2009 06.12.2009

December 26 07.12.2009 20.12.2009

 2009 Payroll Periods for Semi-Monthly Payroll Area
Payroll Area 4#

Exercise Pay Period Begin Date End Date

January 1 01.01.2009 15.01.2009
January 2 16.01.2009 31.01.2009
February 3 01.02.2009 15.02.2009
February 4 16.02.2009 28.02.2009
March 5 01.03.2009 15.03.2009
March 6 16.03.2009 31.03.2009
April 7 01.04.2009 15.04.2009
April 8 16.04.2009 30.04.2009
May 9 01.05.2009 15.05.2009
May 10 16.05.2009 31.05.2009
June 11 01.06.2009 15.06.2009
June 12 16.06.2009 30.06.2009
July 13 01.07.2009 15.07.2009
July 14 16.07.2009 31.07.2009
August 15 01.08.2009 15.08.2009
August 16 16.08.2009 31.08.2009
September 17 01.09.2009 15.09.2009
September 18 16.09.2009 30.09.2009

October 19 01.10.2009 15.10.2009

October 20 16.10.2009 31.10.2009

November 21 01.11.2009 15.11.2009
November 22 16.11.2009 30.11.2009
December 23 01.12.2009 15.12.2009
December 24 16.12.2009 31.12.2009
 R/3 System

Release 6.0

HR407

Canadian Payroll

Exercises

_____________________________________________________________________________________
© SAP AG HR407 Exercises- Page 1

Revised 01/21/15
 Data Used in the Exercises

Data Data in Training System

Personnel areas 4000 – Caliber A Bicycle Company

Personnel subareas 4000 - Toronto
4100 - Montreal
4200 - Calgary
4300 – Vancouver
Employee K1 - Hourly union
Subgroups K4 – Salaried staff
KZ - Sales personnel
Payroll areas 4# - Semi-monthly 5# - Bi-weekly
Group 1 41 51
Group 2 42 52
Group 3 43 53
Group 4 44 54
Group 5 45 55
Group 6 46 56
Group 7 47 57
Group 8 48 58
Group 9 49 59
Group 10 40 50
Group 11 4A 5A
Group 12 4B 5B
Instructor Group 4Z 5Z
Employees Personnel number range: 407n## (## = Group
Number).

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© SAP AG HR407 Exercises- Page 2

Revised 01/21/15
 Unit: Introduction

 Set user address, defaults and user parameters

 Select your favorites and add your project IMG to your work list

Set you user address, defaults and user parameters to the following
values.
Select your favorites and add your project IMG to your worklist.

1. Set your user address to your last name and first name.

2. Set the following user default:

3. Save your entries.

4. Select your favorites.

5. Add the project IMG HR407 to your work list

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© SAP AG HR407 Exercises- Page 3

Revised 01/21/15
 Unit: Payroll Process Flow and Payroll Processing

Topic: Master Data and Time Data at Employee Level

 Hire a new employee

 Review the personnel file of the new employee
 Run payroll for the current payroll period for payroll area 4#

A new Sales Representative joined the Caliber “A” Bicycle Company

effective the first working day of the current year. Hire this new salaried
employee to be paid on a semi-monthly basis.

1. Use the Personnel Action “Hiring” to add the new Sales Representative, 4071## in
payroll area 4# (# = your group number), into the company effective the first working
day of the current year.

2. On the Actions Infotype (IT0000), use the structure search to find the correct position
number for your group ## - “Sales Representative ##” in the Sales Office 1 -
Toronto of the Caliber "A" Bicycle Company (CAB). Save your entries.

3. On the Organizational Assignment Infotype (IT0001), enter the Personnel Subarea

Toronto and change the payroll area to 4# (# = your group number, for group number
10 use ‘0’, for group number 11 use ‘A’ and for group number 12 use ‘B’). In the
Work Contract field, select ‘Full Time’. Assign a Payroll Administrator and save
your entries.

4. On the Personal Data Infotype (IT0002) fill in the required fields with your choice of
data. Enter “000000000” as the SIN number. Assign Marital Status “Married” and
save your entries.

5. Record the required spousal information on the Family/Related Person Infotype

(IT0021). Save your entries.

6. On the Address Infotype (IT0006) enter an address of your choice with the province
of residence as Ontario “ON ” and postal code “M2P 1P1”. Save your entries.

_____________________________________________________________________________________
© SAP AG HR407 Exercises- Page 4

Revised 01/21/15
 7. On the Planned Working Time Infotype (IT0007), the work schedule “NORM” will
default. Save the infotype.

8. On the Basic Pay infotype (IT0008), select pay scale type “01”, pay scale area “01”
and pay scale group “GRD01” with a pay level “03”. Enter an annual salary of
$55,000 and select enter to confirm the population of the

9. On the Bank Details Infotype (IT0009), set up the bank transfer/direct deposit to your
employee’s main bank. Select a Bank Key from the available Canadian banks, enter a
Bank Account Number (any 8 digits) and select the payment method “T” for bank
transfer. Save your entries.

10. On the Absence Quota Infotype (IT2006), set up the Vacation Entitlement to 15 days.
The quota is valid for the current calendar year. Save the infotype.

11. On the Date Specifications Infotype (IT0041), enter the employee’s hire date for date
type “01” and “44”. Save your entries.

12. Complete the Canadian Taxation Infotypes (IT0461, 0462, 0463 and 0464) for your
employee and then save each infotype.

13. The next infotype to be proposed in the hiring process is the General Benefits
Information Infotype (IT0171). This infotype needs no data entry but must be saved
for use during the benefit enrollment process. Save the infotype.

14. On the Create Adjustment Reasons Infotype (IT0378) choose the entry ‘New Hire’ for
the Adjustment Reason. Save your entry.
Note: You will be presented with a message regarding ‘deviation from end date’
for the length of the event. Select the “No” button to cancel the message.
The message may be presented twice.

15. Review your new employee’s (4071##) personnel file.

16. What infotype(s) exist for the employee that you did not create?

17. Release and run payroll for Payroll Area 4# (# = your group number, for group
number 10 use ‘0’, for group number 11 use ‘A’ and for group number 12 use ‘B’)
for the pay period 1.YYYY.

18. Exit payroll.

19. Review the payroll results for employee 4071##.

_____________________________________________________________________________________
© SAP AG HR407 Exercises- Page 5

Revised 01/21/15
 Unit: Payroll Process Flow and Processing Payroll

Topic: Payroll log, payroll results cluster

 Hire a new employee

 Run payroll for the current pay period for payroll area 5#
 Correct errors found using the payroll log
 Run payroll for Matchcode ‘W’
 Check payroll results
As a new member of the payroll department for the Caliber “A” Bicycle
Company, you need to understand the various processes that occur during
payroll processing. During the payroll run, a new employee was hired
with incorrect data. This error is preventing payroll from being
successfully completed.

1. Hire a new Hourly Union employee, 4072## in payroll area 5# (# = your group
number, for group number 10 use ‘0’, for group number 11 use ‘A’ and for group
number 12 use ‘B’) using the Hiring action with an effective date of January 1,
YYYY as the date of hire.

2. On the Actions Infotype (IT0000), use the structure search to find the correct position
number for your group ## - “Skilled Worker ##” in the Final Assembly Plant of the
Montreal Production Site of the Caliber “A” Bicycle Company (CAB). Save your
entry.

3. On the Organizational Assignment Infotype (IT0001), enter the Personnel Subarea

“Montreal” and change the payroll area to 5# (# = your group number, for group 10
use ‘0’, for group numbers 11 and 12 use ‘A’ and ‘B’). In the Work Contract field
select ‘Full Time’. Assign a Payroll Administrator and save your entries.

4. On the Personal Data Infotype (IT0002) populate the required fields with your choice
of data. Enter “000000000” as the SIN number. Assign Marital Status “Single” and
save your entries.

5. On the Address Infotype (IT0006) enter an address of your choice with the province
of residence as Quebec “QC ” and postal code “H2P 1P1”. Save your entries.

_____________________________________________________________________________________
© SAP AG HR407 Exercises- Page 6

Revised 01/21/15
 6. On the Planned Working Time Infotype (IT0007), the work schedule “NORM” will
default. Save the infotype.

7. Skip Basic Pay Infotype (IT0008).

8. On the Bank Details Infotype (IT0009) select the payment method “C” for cheque and
save your entry.

9. On the Absence Quota Infotype (IT2006), set up the Vacation Entitlement to 15 days.
The quota is valid for the current calendar year. Save the infotype.

10. On the Date Specifications Infotype (IT0041), enter the employee’s date of hire for
date type “01” and “44”. Save your entries.

11. Complete the Canadian Taxation Infotypes (IT0461, 0462, 0463 and 0464) for your
employee and then save each infotype.

12. The next infotype to be proposed in the hiring process is the General Benefits
Information Infotype (IT0171). This infotype needs no data entry but must be saved
for use during the benefit enrollment process. Save the infotype.

13. On the Create Adjustment Infotype (IT0378) choose the entry ‘New Hire’ for the
Adjustment Reason. Save your entry.
Note: You will be presented with a message regarding ‘deviation from end date’
for the length of the event. Select the “No” button to cancel the message.
The message may be presented twice.

14. Release and run payroll for payroll area 5# (# = your group number, for group number
10 use ‘0’, for group number 11 use ‘A’ and for group number 12 use ‘B’) for pay
period 1.YYYY (YYYY = current year).

Note: Verify that you are working in the correct Payroll Area.

15. What is the result of this payroll run in the payroll log?

16. Set payroll for Corrections.

17. What procedure is to be followed to correct the error?

_____________________________________________________________________________________
© SAP AG HR407 Exercises- Page 7

Revised 01/21/15
 18. Correct the employee’s Basic Pay data. When creating the Basic Pay Infotype
(IT0008) use the pay scale type “02”, pay scale area “02”, pay scale group “H001”
and level “03”. Select enter to confirm the population of Hourly Rate and Annual
Salary fields. Save your entries.

19. Re-run payroll.

20. Exit Payroll.

21. Check the payroll results for the employee 4072##

_____________________________________________________________________________________
© SAP AG HR407 Exercises- Page 8

Revised 01/21/15
 Unit: Wage Types

Topic: Maintaining Wage Types

 Copy Model Wage Types as Company Specific Wage Types

 Verify the characteristics of your Wage Types
 Assign your Company Specific Wage Types to your employee

The Caliber “A” Bicycle Company has identified a model wage type with
the characteristics required to accurately process a Bonus Payment for
their Sales Representatives. A model wage type has also been identified
to handle Miscellaneous Deductions. As part of the required payroll
configuration, copy the model wage types, rename them, and assign them
to the Sales Representatives for processing.

1. Copy model wage types M254 (Bonus/Discretionary) and M520 (Miscellaneous

Deduction) to your company specific wage types 90## and 91##.

2. Check the Wage Type Characteristics for the new user wage types.

3. What are the differences in the characteristics of the two wage types that were copied?

4. What are the differences in the cumulation classes?

5. Access the personnel file for employee 4071##. Create an Infotype Additional
Payments/Deductions (IT0015) for wage type 90## (Bonus/Discretionary) in the
amount of $750.00. The date of origin will default to the end of the pay period
2.YYYY. Save your entry.

Create another Infotype Additional Payments/Deductions (IT0015) for wage type

91## (Miscellaneous Deduction) in the amount of $50.00. Save your entry.

6. Release and run payroll for Payroll Area 4# (# = your group number, for group
number 10 use ‘0’, for group number 11 use ‘A’ and for group number 12 use ‘B’) for
pay period 2.YYYY.

_____________________________________________________________________________________
© SAP AG HR407 Exercises- Page 9

Revised 01/21/15
 7. Exit payroll.

8. Review the payroll results for employee 4071## .

_____________________________________________________________________________________
© SAP AG HR407 Exercises- Page 10

Revised 01/21/15
 Unit: Taxes

Topic: Tax Calculations

 Review the tax calculations

In this step you will review the tax, QPP and EI calculations for your
employee.

1. Release and run payroll for Payroll Area 5# for pay period 2.YYYY.

2. Exit payroll.

3. Review the payroll results for employee 4072## for period 2.YYYY and list the
technical wage types which were generated for the tax calculations.

Wage Type Description Amount

_____________________________________________________________________________________
© SAP AG HR407 Exercises- Page 11

Revised 01/21/15
 Wage Type Description Amount

_____________________________________________________________________________________
© SAP AG HR407 Exercises- Page 12

Revised 01/21/15
 Unit: Payments

Topic: Allowances

 Copy Model Wage Types

 Maintain Links between Wage Types
 Run payroll

The Caliber “A” Bicycle Company provides employees relocated from

another province a $1,000 Relocation Allowance.

In this step a new hourly employee will be hired in the province of B.C
and a Relocation Allowance will be processed for his/her relocation from
Alberta.

1. Use the Personnel Action “Hiring” to add the new ‘Robotics Specialist’, 4073##,
into the company effective the beginning of pay period 3 of the current year.

2. On the Actions Infotype (IT0000), use the structure search to find the correct position
number for your group ## - “Robotics Specialist ##” in the Vancouver Production
Site of the Caliber “A” Bicycle Company (CAB). Save your entry.

3. On the Organizational Assignment Infotype (IT0001), enter the Personnel Subarea

“Vancouver” and change the payroll area to 5# (# = your group number, for group 10
use ‘0’, for group numbers 11 and 12 use ‘A’ and ‘B’). In the Work Contract field
select ‘Full Time’. Assign a payroll administrator and save your entries.

4. On the Personal Data Infotype (IT0002) fill in the required fields with your choice of
entries. Enter “000000000” as the SIN number. Assign Marital Status "Married" and
save your entries.

5. Record the required spousal information on the Family/Related Person Infotype

(IT0021). Save your entries.

_____________________________________________________________________________________
© SAP AG HR407 Exercises- Page 13

Revised 01/21/15
 6. On the Address Infotype (IT0006) enter an address of your choice with the province
of residence as British Columbia “BC” and postal code V2P 1P1. Save your entries

7. On the Planned Working Time Infotype (IT0007), the work schedule “NORM” will
default. Save the infotype.

8. On the Basic Pay Infotype (IT0008), select pay scale type “02”, pay scale area “04”
and pay scale group “H003” with a pay level “03”. Select enter to confirm the
population of the Hourly Rate and Annual Salary fields. Save your entries.

9. On the Bank Details Infotype (IT0009), set up the bank transfer/direct deposit to your
employee’s main bank, select a Bank Key from the available Canadian banks, enter a
Bank Account Number (any 8 digits) and select the payment method “T” for bank
transfer. Save your entries.

10. On the Absence Quota Infotype (IT2006), set up the Vacation Entitlement to 15 days.
The quota is valid for the current calendar year. Save the infotype.

11. On the Date Specifications Infotype (IT0041), enter the employee’s date of hire for
date type “01” and “44”. Save your entries.

12. Complete the Canadian Taxation Infotypes (IT0461, 0462, 0463 and 0464) for your
employee and then save each infotype.

13. The next infotype to be proposed in the ‘Hiring’ process is the General Benefits Data
Infotype (IT0171). This infotype needs no data entry but must be saved for use during
the benefit enrollment process. Save the infotype.

14. On the Create Adjustment Infotype (IT0378) choose the entry ‘New Hire’ for the
Adjustment Reason. Save your entry.
Note: You will be presented with a message regarding ‘deviation from end date’
for the length of the event. Select the “No” button to cancel the message.
The message may be presented twice.

15. Copy model wage types M206 (Relocation Allowance – Taxable) and M207
(Relocation Allowance – Non Taxable) to your company specific wage types 93##
and 94##.

16. Access the personnel file for employee 4073##. Create an Infotype Additional
Payments/Deductions (IT0015) for wage type 93## in the amount of $1,000. The date
of origin defaults to the end of pay period 3.YYYY.

_____________________________________________________________________________________
© SAP AG HR407 Exercises- Page 14

Revised 01/21/15
 17. Release and run payroll for Payroll Area 5# for pay period 3.YYYY.

18. Exit payroll.

19. Review the payroll results for employee 4073##. How were the wage types 93## and
94## processed?

_____________________________________________________________________________________
© SAP AG HR407 Exercises- Page 15

Revised 01/21/15
 Unit: Payments

Topic: Banked Overtime

 Process attendances and an absence using banked overtime for your

employee

 Run payroll

The Caliber “A” Bicycle Company allows their hourly employees to bank
overtime. The rate at which the overtime is banked is the rate at which the
overtime was earned.

In this step you will process a Banked Overtime Attendance for employee
4072##, process a Change of Pay, process a second Banked Overtime
Attendance and an Absence for Time off in Lieu of Overtime.

1. Enter a Banked Overtime Attendance for 6 hours from 17:00 to 23:00 for employee
4072## effective the first day of pay period 4.YYYY. Save your entries.

2. Process a “Change of Pay” effective two days after the beginning of pay period
4.YYYY. On Infotype 0008 (Basic Pay) select pay scale type “02”, pay scale area
“02” and pay scale group “H003” and level “03”. Select enter to confirm the
population of Hourly Rate and Annual Salary fields. Save your entries.

3. Enter a second Banked Overtime Attendance for 5 hours from 17:00 to 22:00 effective
four days after the beginning of pay period 4.YYYY. Save your entries.

4. Release and run payroll for Payroll Area 5# for pay period 4.YYYY.

5. Review the payroll log. How were the 11 hours of overtime stored within payroll?

6. Exit payroll.

7. Enter an Absence of 7.5 hours for Time off in Lieu of Overtime effective the first
working day of pay period 5.YYYY for employee 4072##.

_____________________________________________________________________________________
© SAP AG HR407 Exercises- Page 16

Revised 01/21/15
 8. Release and run payroll for Payroll Area 5# for pay period 5.YYYY.

9. Exit payroll.

10. Review the payroll results for employee 4072##.

11. How were the 7.5 hours of Time off in Lieu of Overtime paid to the employee?

_____________________________________________________________________________________
© SAP AG HR407 Exercises- Page 17

Revised 01/21/15
 Unit: Payments (OPTIONAL)

Topic: Advance Vacation Pay

 Process an Advance for Vacation Pay

 Process a Vacation Absence
 Run Payroll

The Caliber “A” Bicycle Company allows their hourly employees to

receive vacation pay in Advance.

In this step you will process an Advance for Vacation Pay for employee
4073## for the current pay period.

You will also process a Vacation Absence.

1. Create an Additional Payments/Deductions Infotype (IT0015) for wage type M306 for
employee 4073## effective pay period 6.YYYY. Enter 5 days in the number field.
Save your entries.

2. Release and run payroll for Payroll Area 5# for pay period 6.YYYY.

3. Exit payroll.

4. Review the payroll results for employee 4073##.

5. Create a Vacation Absence for employee 4073## effective the first five working days
of pay period 7.YYYY.

6. Release and run payroll for Payroll Area 5# for pay period 7.YYYY.

_____________________________________________________________________________________
© SAP AG HR407 Exercises- Page 18

Revised 01/21/15
 7. Exit payroll.

8. Check the payroll results for pay period 7.YYYY for employee 4073##.

9. What wage types related to Advance Vacation Pay were processed?

This exercise is optional. If not completed: Release Period, Run Payroll, Exit pay.

_____________________________________________________________________________________
© SAP AG HR407 Exercises- Page 19

Revised 01/21/15
 Unit: Payments

Topic: Workers’ Compensation Top-up

 Process Workers’ Compensation Absences

 Run Payroll

The Caliber “A” Bicycle Company pays employees on Workers’

Compensation a Top-up to 100% of net pay.

In this step you will process a Workers’ Compensation Absence for

employee 4072## for the current pay period.

1. Create an Absence (IT2001) with a subtype of 0260 (WCB/WSIB/CSST Approved)

for employee 4072## effective the first five working days of pay period 8.YYYY.

2. Release and run payroll for Payroll Area 5# for pay period 8.YYYY.

3. Exit payroll.

4. Review the payroll results for employee 4072##.

_____________________________________________________________________________________
© SAP AG HR407 Exercises- Page 20

Revised 01/21/15
 Unit: Payments

Topic: Short-Term Disability

 Process Short-Term Disability Absences

 Run Payroll

The Caliber “A” Bicycle Company pays employees on Short-Term

Disability a percentage of their regular pay that is based on their length of
service with the company.

In this step you will process a Short-Term Disability Absence for

employee 4072 ##.

1. Create an Absence (IT2001)with a subtype of 0201 (Short-Term Disability) for

employee 4072## effective from the first day of Pay Period 9 to the last day of Pay
Period 10.

2. Release and run payroll for Payroll Area 5# for pay period 9.YYYY.

3. Exit payroll.

4. Review the payroll results for employee 4072##.

5. What wage types related to the Short-Term Disability Payment were generated during
payroll processing for employee 4072##?

6. Release and run payroll for Payroll Area 5# for pay period 10.YYYY.

7. Exit payroll.

8. Review the payroll results for employee 4072##.

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© SAP AG HR407 Exercises- Page 21

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 9. What wage types related to the Short-Term Disability Payment were generated during
the payroll process for employee 4072##?

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© SAP AG HR407 Exercises- Page 22

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 Unit: Deductions

Topic: Deduction Schedule Elements and Wage Types

 Copy a Model Wage Type

 Create a Payment/Deduction Schedule
 Assign the Payment/Deduction Schedule to a Specific Wage Type
 Add the Wage Type as a Recurring Payment / Deduction on Infotype
0014
 Run payroll

The Club Memberships for your employees are to be deducted the last
pay period of the month. It is necessary to configure a deduction schedule
and assign it to the Club Membership Wage Type. A Recurring Payment /
Deduction Infotype (IT0014) is then created with the specific wage type
assigned to your employee and the Payment/Deduction Schedule will
default based on your configuration.

1. Copy wage type M530 to your user wage type 95##.

2. Create a new payment / deduction schedule by copying the SAP Model “BS03”. Use
‘PM##’ (## = Group Number) for the name and include your group number (##)
within the description. Save your entries.

3. Record the following information about PM##:

4. Set the pay periods for payment / deduction model PM##. Set pay periods using the
current year. Select the last period for all months.

5. View the feature “MODDE”. Do NOT change this feature. Record the following
information about the feature:
5.1 On what decision is this feature is based?

5.2 What is the operation (and result) of this feature specific to your Payroll Area?

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© SAP AG HR407 Exercises- Page 23

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 6. Use the entry “FEKS M530” as a model to copy and add an entry for your user wage
type 95##. The values maintained will appear as defaults when the Recurring
Payments/Deductions Infotype (0014) is created.

7. Assign the wage type 95## to employee 4071## on the Recurring Payments /
Deductions Infotype (IT0014). Enter the effective date as the first day of pay period
3.YYYY and an amount of your choice. Ensure that the defaulted payment model is
PM##.

8. Release and run payroll for Payroll Area 4# for pay period 3.YYYY.

9. Check the results for pay period 3.YYYY for employee 4071## and answer the
following question.

9.1 Was the Club Membership Deduction deducted this period? Why / Why
not?

10. Exit payroll.

11. Release and run payroll for payroll area 4# (# = your group number) for pay period
4.YYYY.

12. Check the results for pay period 4.YYYY for employee 4071## and answer the
following question.

12.1 Was the Club Membership Deduction deducted this period? Why / Why
not?

13. Exit payroll.

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© SAP AG HR407 Exercises- Page 24

Revised 01/21/15
 Unit: Deductions

Topic: Deductions with Balances and Totals at the

Employee Level

 Assign a deduction with balances and totals for a deduction wage type
at the employee level.
 Add the Wage Type as a Recurring Payment / Deduction on Infotype
0014

The fund raising campaign was very successful at Caliber “A” Bicycle
Company. The contribution pledge for your employee requires a limit of
$100.00.

1. Copy the following Model wage types to your user wage types and add your own
description.
M720 to 92#A “Deduction w/Balance – Grp ##”
M721 to 92#B “Deduction Balance – Grp ##”
M722 to 92#C "Deduction Total – Grp ##”
(# = your Group Number, for group 10 use ‘0’, for group number 11 use ‘A’ and for
group number 12 use ‘B’) Save your entries.

2. Maintain the link between wage type 92#A and 92#B and between wage type 92#B
and 92#C.

3. Create a Recurring Payment / Deduction on Infotype (IT0014) for employee 4071##.

Assign wage type 92#A using the first day of payroll period 5.YYYY as the effective
date and an amount of $40.00. Save your entries.

4. The system will automatically bring up the Additional Payment / Deduction Infotype
(IT0015). Wage Type 92#B will default. Enter a limit of $100.00 in the amount field.
Save your entry.

5. Release and run payroll for pay period 5.YYYY for payroll area 4# (# = your group
number, for group 10 use ‘0’, for groups 11 and 12 use ‘A’ and ‘B’).

6. Exit payroll.

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© SAP AG HR407 Exercises- Page 25

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 7. Display the payroll results for pay period 5.YYYY for employee for 4071## and list
the three wage types that are related to the deduction.

8. Release and run payroll for payroll area 4# for the next two pay periods 6.YYYY and
7.YYYY. Review the results.

9. Exit payroll.

10. Release, run and exit payroll for pay period 7.YYYY.

11. Display the payroll results for pay period 7.YYYY for employee for 4071##.

12. Was wage type 92#A taken for all periods? Why / Why not?

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© SAP AG HR407 Exercises- Page 26

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 Unit: Deductions

Topic: Limits on Deductions

 Copy Model Wage Types

 Assign a limit for a deduction wage type at the wage type level
 Add the Wage Type as a Recurring Payment / Deduction on Infotype
0014
The CAW Union defines their Membership Dues to be $30.00 per pay
period with a monthly limit of 1% of gross earnings. To achieve this, you
must configure the deduction limits for the Union Dues wage type.

1. Copy model wage type M500 (Union Dues) to your user wage type 89## (## = your
group number).

2. Create a Limit Rule ‘LR##’ (## = your group number) to be 1% of Gross Earnings
and save your entries.

3. Create a Wage Type Class ‘WC##’ (## = your group number) and save your entries.

4. Select the wage type class ‘WC##’ and go to the Wage type classification detail level.
Create an entry for your wage type 89## and save your entries.

5. Create a wage type class limit for wage type class ‘WC##’. Use the modifier ‘B’ value
(01) for payroll defined in rule KMOD, the number 001, validity date 01.01.1990 to
12.31.9999, a monthly interval and the rule LR##. Save your entries.

6. Create a Membership Dues Infotype (IT0057) for the ‘CAW Union’ for employee
4073##. Use the first day of pay period 11.YYYY as the effective date.

7. Release and run payroll for Payroll Area 5# for pay period 11.YYYY.

8. Exit payroll.

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© SAP AG HR407 Exercises- Page 27

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 9. Display the payroll results for employee 4073## for pay period 11.YYYY.
10. What happened to your wage type 89## during payroll processing? Why?
11. Verify the entry in the table DDNTK of the Payroll Results.

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 Unit: Deductions

Topic: Priorities and Arrears Processing

 Create a wage type that requires the creation of arrears

 Assign the new wage type to an employee
 Setup an Arrears Recovery Plan for the employee

The business practice at the Caliber “A” Bicycle Company is to establish

a payment plan for an employee upon return from a leave of absence to
recover the deduction amounts that are in arrears.

1. Copy the following Model wage types and modify the text to include your Group ##
number:
MD50 to wage type 9D## (## = your group number)
MD60 to wage type 9E## (## = your group number)
MD70 to wage type 9F## (## = your group number)
MD80 to wage type 9G## (## = your group number)
MD90 to wage type 9H## (## = your group number)

2. Ensure that the appropriate links are set.

3. Create an Additional Payment / Deduction Infotype (0015) for employee 4072## for
wage type 9D## in the amount of $7,000.00. Ensure that the default date proposed is
the last day of pay period 12.YYYY.

4. Release and run payroll for payroll area 5# for pay period 12.YYYY.

5. Exit payroll.

6. Review the results for pay period 12.YYYY for employee 4072##.

7. How much was deducted for wage type 9D## for employee 4072##?

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© SAP AG HR407 Exercises- Page 29

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 8. Check the Deductions not Taken Table (DDNTK) within the cluster. What amounts
were not taken?

9. What other table contains the same amount as the Deductions not Table (DDNTK)?

10. Create an Additional Payment / Deduction Infotype (IT0015) for employee 4072## for
Wage Type 9E## with the total amount to be recovered (amount in Arrears). Ensure
that the default date proposed is the last day of pay period 13.YYYY.

Create a Recurring Payment/Deduction Infotype (IT0014) for wage type 9G## in the
amount of the $100.00 effective the first day of pay period 13.YYYY.

NOTE: A second Additional Payment/Deduction Infotype (IT0015) will be

proposed. Do not complete this Infotype 0015. Cancel the transaction using the
red ‘X’ icon.

11. Release and run payroll for payroll area 5# for pay period 13.YYYY.

12. Exit payroll.

13. Review the payroll results for employee 4072##.

14. What wage types related to the recovery were generated during payroll?

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© SAP AG HR407 Exercises- Page 30

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 Unit: Deductions

Topic: Absolute Deductions (OPTIONAL)

 Create an absolute deduction

The Caliber “A” Bicycle Company employees have an agreement with

management that in the event an employee may not have sufficient funds
to cover a specific deduction, the employer will advance any difference.

1. Create an additional payment in the Additional Payment / Deduction Infotype

(IT0015) for employee number 4071## using the model wage type Deduction with
Advance (MD00) in the amount of $4,000.00. The effective date is the last day of pay
period 8.YYYYwhich will default as the Date of Origin.

2. Release and run payroll for payroll area 4# for pay period 8.YYYY.

3. Exit payroll.

4. Review the results for employee 4071## for pay period 8.YYYY.

5. What wage type is generated in payroll to identify the employer advance for the
balance of this deduction?

6. Release and run payroll for payroll area 4# for pay period 9.YYYY.

7. Exit payroll.

8. Review the results for employee 4071## for pay period 9.YYYY.

9. What wage type is generated in payroll to identify the remaining amount to be repaid?

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© SAP AG HR407 Exercises- Page 31

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 10. Release and run payroll for payroll area 4# for pay period 10.YYYY using payroll
variant HR407-##.

11. Exit payroll.

12. Review the results for employee 4071## for pay period 10.YYYY.

13. Which wage type still appears for the advance? What does it represent?

This exercise is optional. If not completed, please: Release Period, Run Payroll, Exit
pay.

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© SAP AG HR407 Exercises- Page 32

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 Unit: Deductions

Topic: Prepaid Deductions

 Create an unpaid absence for an employee who has a deduction which

requires the creation of arrears if there is insufficient net income.
 Enter a payment for prepaid deductions
 Reimburse the employee the outstanding amount of his prepaid
deductions, if any, upon return from his/her leave of absence.
The business practice at the Caliber ‘A’ Bicycle Company is for
employees to prepay the deductions they wish to continue during a period
of unpaid leave of absence.

1. Create a Recurring Payment /Deduction Infotype (IT0014) for employee 4071## for
wage type MD06 in the amount of $110.00 effective the first day of pay period
11.YYYY.
2. Release and run payroll for payroll area 4# for pay period 11.YYYY.

3. Exit payroll.

4. Review the results for pay period 11.YYYY for employee 4071##.

5. Create a leave of absence (IT2001) using the subtype “Time off – unpaid” for
employee 4071## for the period June 16th to July 15th.
6. Create an Additional Payment / Deduction Infotype (IT0015) for employee 4071## for
wage type MP10 in the amount of $300.00. Ensure that the default date proposed is
the last day of pay period 12.YYYY.

7. Release, run and exit payroll for payroll area 4# for the next two pay periods
12.YYYY and 13.YYYY.

8. Review the results for pay periods 12.YYYY and 13.YYYY for employee 4071##.
9. Which wage types were generated during payroll processing?

10. Process a reimbursement for prepaid deductions for employee 4071## by creating an
Additional Payment / Deduction Infotype (IT0015) for wage type MP40 in the amount

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© SAP AG HR407 Exercises- Page 33

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 of $1.00. Ensure that the default date proposed is the last day of pay period
14.YYYY.

11. Release, run and exit payroll for payroll area 4# for pay period 14.YYYY.

12. Exit payroll.

13. Review the results for pay period 14.YYYY for employee 4071##.

14. Which wage type was generated during the payroll process?

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© SAP AG HR407 Exercises- Page 34

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 Unit: Garnishments

Topic: Garnishment Infotypes, Processing, Output

 Complete a Hiring Action for a new employee with an existing

garnishment
 Create the required garnishment infotypes for the employee due to a
Family Support Deduction Notice

Many different garnishment categories and orders are currently

administered by the Caliber “A” Bicycle Company. The newly hired
employee has a garnishment order attached to his file.

1. Use the Personnel Action “Hiring” to hire the new Shop Floor Manager, 4074##,
into the company effective the first day of pay period 15.YYYY of the semi-monthly
payroll area.

2. On the Actions Infotype (IT0000), use the structure search to find the correct position
number for your group Shop Floor Manager ## under the Caliber “A” Bicycle
Company’s (CAB) Warehouse and Production Division. Save your entry.

3. On the Organizational Assignment Infotype (IT0001), enter the Personnel Subarea

Calgary, change the payroll area to 4# (# = (# = your group number, for group 10 use
‘0’, for group number 11 ‘A’ and for group number 12 use ‘B’). In the Work Contract
field select ‘Full Time’. Assign a payroll administrator and save your entries.

Note: When prompted to “Delimit the vacancy for the position”, cancel the request
using the red  icon.

4. On the Personal Data Infotype (IT0002), fill in the required fields with your choice of
data. Enter “000000000” as the SIN number and save your entries.

5. On the Address Infotype (IT0006) enter an address of your choice with the province
of residence as Alberta “AB”and postal code “T2P 1P1. Save your entries.

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© SAP AG HR407 Exercises- Page 35

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 6. On the Planned Working Time Infotype (IT0007), the work schedule “NORM” will
default. Save the infotype.

7. On the Basic Pay Infotype (IT0008), select pay scale type “01”, pay scale area “03”,
pay scale group “GRD01’ with a pay level ‘04’. Enter an annual salary of $60,000 and
select enter to confirm the population of the Annual Salary field. Save your entries.

8. On the Bank Details Infotype (IT0009), select the payment method ‘C’ for cheque and
save your entry.

9. On the Absence Quota Infotype (IT2006), set up the Vacation Entitlement to 15 days.
The quota is valid for the current calendar year. Save the infotype.

10. On the Date Specifications Infotype (IT0041), enter the employee’s date of hire for
date type “01” and “44”. Save your entries.

11. Complete the Canadian Taxation Infotypes (IT0461, 0462, 0463 and 0464) for your
employee and then save each infotype.

12. The next infotype to be proposed in the hiring process is the General Benefits
Information Infotype (IT0171). This infotype needs no data entry but must be saved
for use during the benefit enrollment process. Save the infotype.

13. On the Create Adjustment Reasons Infotype (IT0378) choose the entry ‘New Hire’ for
the Adjustment Reason. Save your entry.

Note: You will be presented with a message regarding ‘deviation from end date’ for
the length of the event. Select the “No” button to cancel the message. The
message may be presented twice.

14. Create the Garnishment Infotype(s) to record the Family Support Deduction received
for employee 4074## effective the first day of pay period 15.YYYY.

The garnishment order states that an ongoing payment $600 per month as well as an
initial balance of $3,240.00 (arrears deduction) must be made. The payment must be
forwarded as a single cheque by the 1st of every month to Family Court. Use vendor
number 20016.

15. Release and run payroll for Payroll Area 4# for pay period 15.YYYY.

16. Exit payroll.

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© SAP AG HR407 Exercises- Page 36

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 17. Review the payroll results for employee 4074##.

18. What wage types were generated during payroll processing for garnishments?

19. What additional table(s) can be reviewed for detailed garnishment information?

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© SAP AG HR407 Exercises- Page 37

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 Unit: Benefits Integration

Topic: Wage Type Assignment, Benefit Enrollment

 Assignment of the appropriate wage types

 Enroll an employee into a benefit plan

The Caliber “A” Bicycle company offers Medical, Dental, Life insurance
and an RRSP Plan to its employees. It is the responsibility of the payroll
department to ensure that the appropriate wage types are available for use
with the benefit infotypes. The payroll department also works closely
with the benefit administrators to ensure that all benefits will be
processed properly during payroll processing.

1. Enroll employee 4074## in the Medical and Dental plans. The enrollment should be
effective for the first day of pay period 16.YYYY. Once completed, confirm that the
benefit infotypes were created in the personnel file for this employee.

2. Release and run payroll for payroll area 4# for payroll period 16.YYYY.

3. Exit payroll.

4. Review the payroll results for employee 4074##.

5. What benefit deduction wage types were generated?

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© SAP AG HR407 Exercises- Page 38

Revised 01/21/15
 Unit: Bank Transfer

Topic: Direct Deposit Data, Cheque Printing

 Perform a bank transfer

 Create Direct Deposit Records for an employee
 Generate a cheque

Funds must be transferred from the company bank account to pay the
employees. At the Caliber “A” Bicycle Company, the employees have
their choice of a payment method. Some employees are paid by cheque
and others have electronic transfers directly into their bank accounts.
Process both types of payment for the employees in your payroll
accounting area.

1. Create a new Bank Details Infotype (IT0009) with a Bank Type “1” (Other Bank) for
employee 4071## with the effective date of the first day of pay period 17.YYYY.
Choose a Bank Key from the available Canadian Banks and enter an account number
in the Bank Account field. This employee wishes to deposit 40% of his net pay into
this account. Make the required entry and save your entries.

2. Release and run payroll for Payroll Area 4# for pay period 17.YYYY.

3. Exit payroll.

4. Run the Preliminary DME for payroll area 4# for payroll period 17.YYYY. Do not
select a payment method. Record the DME run identifier.

5. Perform the bank transfer using the DME run identifier recorded after the Pre-
Program DME.

6. Generate a cheque using the DME run identifier recorded after the Preliminary DME.
Enter the following information: Company Code “4000”, House Bank “CTYBK”,
Acct ID “PYRLL”. Enter the Check Lot # for your group ##.

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© SAP AG HR407 Exercises- Page 39

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 Unit: Integration to Accounting

Topic: Posting payroll results to accounting

 Transfer payroll results to FI

The payroll process has been completed and the payroll results must be
posted to accounting for the payroll accounting area. In order to post to
accounting, a posting run must be executed to create the documents. The
documents are verified and then posted.

1. Release, run and exit payroll for payroll area 4# for pay period 18.YYYY.

2. Perform the transfer to accounting using a simulation run for all employees in payroll
area 4# for pay period 18.YYYY, posting according to the period definition.

3. Verify that all employees have processed successfully. If there are errors, identify the
wage type and verify the posting attributes for the wage type.

4. Perform the transfer to accounting again using a simulation run for all employees in
payroll area 4#, for pay period 18.YYYY, posting according to the period definition and
verify. If error free, process the trasfer for a live production run.

5. Display the posting run documents.

6. Release the accounting documents.

7. Post the accounting run.

8. Display the accounting documents

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© SAP AG HR407 Exercises- Page 40

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 Unit: Third Party Remittance

Topic: Transfer third party remittance to accounting

 Transfer payroll results to accounting for third party remittance

The payroll process has been completed and the payroll results have been
posted to accounting for the payroll accounting area. The Caliber “A”
Bicycle Company must now send the appropriate payments to the
accounting department for the creditors to be paid.

1. In order for the new wage types that were assigned to your employees in the deduction
section of the exercises to be paid using Third Party Remittance, you must assign the
wage types to an HR payee. Verify that the wage type 92#A, has been added to the
HR creditor grouping for United Way.

2. Check the processing class for your wage type 92#A and ensure that the correct
processing classes are assigned.

3. Execute the Evaluation Run for Third Party Remittance for pay period 18.YYYY and
record the number of the TemSe objects.

4. Store the Evaluation Run in the Third Party Remittance tables. This step is necessary
in order for the posting to take place.

5. Create the posting run for Third Party Remittance first in test mode for payroll area
4#, for pay period 18.YYYY, for company code 4000, effective October 15, YYYY.
If error free, process the transfer for a live production run.

6. Process the Third Party posting run by first releasing the accounting documents and
then posting the documents to Financial Accounting..

7. Post the accounting run.

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© SAP AG HR407 Exercises- Page 41

Revised 01/21/15
 Unit: Payroll Reporting

Topic: R/3 Standard Payroll Reports

 Work with the Remuneration Statement

 Work with the Payroll Journal

After each payroll run, the employee receives a statement showing his/her
earning and deductions. The payroll department also needs to keep a
payroll journal for all employees in the payroll area.

1. Process the Remuneration statements for your employees in payroll area 4# for pay
period 18.YYYY.

2. Process the Payroll Journal for your employees in payroll are 5# for pay period
13.YYYY.

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© SAP AG HR407 Exercises- Page 42

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 R/3 System

Release 6.0

HR407

Canadian Payroll

Solutions

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© SAP AG HR407 Solutions- Page 1

Revised 01/21/15
 Data Used in the Exercises

Data Data in Training System

Personnel areas 4000 – Caliber A Bicycle Company

Personnel subareas 4000 - Toronto
4100 - Montreal
4200 - Calgary
4300 - Vancouver
Employee K1 - Hourly union
Subgroups K4 – Salaried staff
KZ - Sales personnel
Payroll areas 4# - Semi-monthly 5# - Bi-weekly
Group 1 41 51
Group 2 42 52
Group 3 43 53
Group 4 44 54
Group 5 45 55
Group 6 46 56
Group 7 47 57
Group 8 48 58
Group 9 49 59
Group 10 40 50
Group 11 4A 5A
Group 12 4B 5B
Instructor Group 4Z 5Z
Employees Personnel number range: 407n## (## = Group
Number).

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© SAP AG HR407 Solutions- Page 2

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 Unit: Introduction

 Set user address, defaults and user parameters

 Select your favorites and add your project IMG to your worklist

Set you user address, defaults and user parameters to the following
values.
Select your favorites and add your project IMG to your worklist.

1. Set your user address to your last name and first name.
SAP Easy Access Menu: System > User profile > Own data
Select the Address tab
Change “Student ##” to your last name and complete the first name field

2. Set the following user default:

SAP Easy Access Menu: System > User profile > Own data
Select the Default tab and make the following entries:
Date format DD.MM.YY or your choice

3. Save your entries .

4. Select your favorites.

From the SAP Standard Menu, open the Human Resources menu, select your
frequently used transactions and click on the icon “Add to Favorites” .

Repeat the process for each transaction.

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© SAP AG HR407 Solutions- Page 3

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 5. Add the project IMG HR407 to your worklist
SAP Easy Access Menu: Tools > Customizing > IMG > Execute Project

Click on the icon “Add to worklist” .

Select the project “HR407 – Canadian Net Payroll” and click on the copy
button .
Select the project HR407 by highlighting the line and click on the icon
“Display Project” .

If the split screen view is active and you wish to remove it:

Go back one screen, select “Settings” from the Main Menu Bar > User
specific and deselect the “Split Screen” check box and
enter .

You will be returned to the main Customizing: Execute Project Screen

Highlight the project HR407 line and select display .

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© SAP AG HR407 Solutions- Page 4

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 Unit: Payroll Process Flow and Payroll Processing

Topic: Master Data and Time Data at Employee Level

 Hire a new employee

 Review the personnel file of the new employee
 Run payroll for the current payroll period for payroll area 4#

A new Sales Representative joined the Caliber “A” Bicycle Company

effective the first working day of the current year. The new salaried
employee will be paid on a semi-monthly basis.

1. Use the Personnel Action “Hiring” to add the new Sales Representative, 4071##,
into the company effective the first working day of the current year.
Human Resources > Personnel Management > Administration > HR Master
Data > Personnel Actions
Make the following entries on the Personnel Actions screen:
Personnel No.: 4071## (## - your group number)
From: the first day of pay period 1.YYYY (semi-
monthly pay period schedule)
Select the “Hiring” action
Personnel Area: 4000
Employee Group: 1
Employee Subgroup: KZ
Select the Execute icon

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© SAP AG HR407 Solutions- Page 5

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 2. On the Actions Infotype (IT0000), use the structure search to find the correct position
number for your group ## - “Sales Representative ##” in the Sales Office 1 -
Toronto of the Caliber "A" Bicycle Company (CAB). Save your entries.
Place your cursor in the Position field
Click on the drop down list icon
Select structure search tab
Expand the Caliber “A” Bicycle Company folder
Expand the Sales and Marketing (CAN) folder
Expand the Sales Office 1 – Toronto folder
Select the Sales Representative ## position
Save your entry using the save icon

3. On the Organizational Assignment Infotype (IT0001), enter the Personnel Subarea

Toronto and change the payroll area to 4# (# = your group number, for group 10 use
‘0’, for group number 11 use ‘A’ and for group number 12 use ‘B’). In the Work
Contract field, select ‘Full Time’. Assign a Payroll Administrator and save your
entries.
Personnel Subarea: 4000
Payroll Area: 4#
Work Contract: (FT) Full-time
Payroll Administrator: Donna Smith
If you receive a “Delimit” Vacancy message, select “Yes”.

4. On the Personal Data Infotype (IT0002) fill in the required fields with your choice of
data. Enter “000000000” as the SIN number. Assign Marital Status “Married” and
save your entries.
Birth date: DD/MM/YYYY of your choice
SIN: 000000000
Marital Status: Married
Save your entries

5. Record the required spousal information on the Family/Related Person Infotype

(IT0021). Save your entries.
Birth date: DD/MM/YYYY of your choice
First Name: Your choice

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 6. On the Address Infotype (IT0006) enter an address of your choice with the province
of residence as Ontario “ON ” and postal code “M2P 1P1”. Save your entries.

Province: ON

Postal Code: M2P 1P1

Save your entries

7. On the Planned Working Time Infotype (IT0007), the work schedule “NORM” will
default. Enter and save the infotype.

8. On the Basic Pay infotype (IT0008), select pay scale type “01”, pay scale area “01”
and pay scale group "GRD01" with a pay level “03”. Enter an annual salary of
$55,000 and select enter to confirm the population of the Annual Salary field. Save
your entries.
Pay Scale Type: 01
Pay Scale Area: 01
Pay Scale Group: GRD01
Pay Scale Level: 03
Annual Salary: $55,000.00
Save your entries

9. On the Bank Details Infotype (IT0009), set up the bank transfer/direct deposit to your
employee’s main bank. Select a Bank Key from the available Canadian banks, enter a
Bank Account Number (any 8 digits) and select the payment method “T” for bank
transfer. Save your entries.
In the Bank Key field, click on the drop down list (or select F4).
Press Continue in the selection criteria dialogue box.
Select a any Canadian bank and press .
Maintain Bank Account Number: enter any 8 digit number
Payment Method: ‘T’ (Bank Transfer)
Save your entries

10. On the Absence Quota Infotype (IT2006), set up the Vacation Entitlement (ID#30) to
15 days. The quota is valid for the current calendar year. Save the infotype.
Effective Dates: from January 1, YYYY to December 31, YYYY

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 Category: 30 – Vacation
Quota Number: 15 days
Deduction From: January 1, YYYY
Deduction To: December 31, YYYY
Save your entries

11. On the Date Specifications Infotype (IT0041), enter the employee’s hire date for date
type “01” and “44”. Save your entries.
Date Type 01: employee’s date of hire
Date Type 44: employee’s date of hire
Save your entries

12. Complete the Canadian Taxation Infotypes (IT0461, 0462, 0463 and 0464) for your
employee and then save each infotype.
IT 0461 - Province of Employment: ON
Employment Jurisdiction: ON
Province of Residence: ON
IT 0462 – Verify the provincial tax credits
IT 0463 – Verify the federal tax credits
Press Continue in the Display Logs pop-up box
IT 0464 - Leave as is and save

13. The next infotype to be proposed in the hiring process is the General Benefits
Information Infotype (IT0171). This infotype needs no data entry but must be saved
for use during the benefit enrollment process. Save the infotype.
Save your entries

14. On the Create Adjustment Reasons Infotype (IT0378) choose the entry ‘New Hire’ for
the Adjustment Reason. Save your entry.
Adjustment Reason: New Hire
Save your entries
Select NO
Note: You will be presented with a message regarding ‘deviation from end date’
for the length of the event. Select the “No” button to cancel the message.
The message may be presented twice.

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 15. Review your new employee’s (4071##) personnel file.
Human Resources > Personnel Management > Administration > HR Master
Data > Personnel File
Enter personnel number
Select display icon
Use the Next Record icon to review the infotypes
Exit and return to the main menu

16. What infotype(s) exist for the employee that you did not create?
Payroll Status Infotype (IT0003) and Additional Actions Infotype (IT0302)

17. Release and run payroll for Payroll Area 4# (# = your group number, for group 10 use
‘0’, for group number 11 use ‘A’ and for group number 12 use ‘B’) for the pay period
1.YYYY.

The first step is to set the Payroll Area you wish to Run:
Human Resources > Payroll > Americas > Canada > Settings > Set Payroll
Area
Enter your new payroll area in the pop up dialogue box and continue

Release and run payroll:

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section and select the Execute icon .

18. Exit payroll.

Human Resources > Payroll > Americas > Canada >Payroll > Exit Payroll
Exit Payroll: Select ‘YES’ in the dialogue box.

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 19. Review the payroll results for employee 4071##.
Human Resources > Payroll > Americas > Canada >Tools > Display Results
Enter the Personnel Number 4071## and enter
Double click on the Payroll Results for 01.YYYY

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 Unit: Payroll Process Flow and Processing Payroll

Topic: Payroll log, payroll results cluster

 Hire a new employee

 Run payroll for the current pay period for payroll area 5#
 Correct errors found using the payroll log
 Run payroll for Matchcode ‘W’
 Check payroll results
As a new member of the payroll department for the Caliber “A” Bicycle
Company, you need to understand the various processes that occur during
payroll processing. During the payroll run, a new employee was hired
with incorrect data. This error is preventing payroll from being
successfully completed.

1. Hire a new Hourly Union employee, 4072## in payroll area 5# (# = your group
number, for group 10 use ‘0’, for group number 11 use ‘A’ and for group number 12
use ‘B’) using the Hiring action with an effective date of January 1, YYYY as the
date of hire.

Human Resources > Personnel Management > Administration > HR Master

Data > Personnel Actions
Make the following entries on the Personnel Actions screen:
Personnel No.: 4072## (## - your group number)
From: effective January 1st, YYYY
Select the “Hiring” action
Personnel Area: 4000
Employee Group: 1
Employee Subgroup: K1
Select the Execute icon

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 2. On the Actions Infotype (IT0000), use the structure search to find the correct position
number for your group ## - “Skilled Worker ##” in the Final Assembly Plant of the
Montreal Production Site of the Caliber “A” Bicycle Company (CAB). Save your
entry.
Place your cursor in the Position field
Click on the drop down list
Select structure search tab
Expand the Caliber “A” Bicycle Company folder
Expand the Operations (CAN) folder
Expand the Production (CAN) folder
Expand the Montreal Production Site (CAN) folder
Expand the Final Assembly Montreal Plant
Select the Skilled Worker ## position
Save your entry using the save icon

3. On the Organizational Assignment Infotype (IT0001), enter the Personnel Subarea

“Montreal” and change the payroll area to 5# (# = your group number, for group 10
use ‘0’, for group number 11 use ‘A’ and for group number 12 use ‘B’). In the Work
Contract field select ‘Full Time’. Assign a Payroll Administrator and save your
entries.
Personnel Subarea: 4100
Payroll Area: 5#
Work Contract: (FT) Full-time
Payroll Administrator: Donna Smith
If you receive a “Delimit Vacancy” message, select “YES”.

4. On the Personal Data Infotype (IT0002) populate the required fields with your choice
of data. Enter “000000000” as the SIN number. Assign Marital Status “Single” and
save your entries.
SIN: 000000000
Marital Status: Single

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 5. On the Address Infotype (IT0006) enter an address of your choice with the province
of residence as Quebec “QC ” and postal code “H2P 1P1”. Save your entries.

Province: QC

Postal Code: H2P 1P1

Save your entries

6. On the Planned Working Time Infotype (IT0007), the work schedule “NORM” will
default. Enter and save the infotype.

7. Skip the Basic Pay Infotype (IT0008) by selecting the next record icon.

8. On the Bank Details Infotype (IT0009) select the payment method “C” for cheque and
save your entry.
Payment Method: C (cheque)
Save your entry

9. On the Absence Quota Infotype (IT2006), set up the Vacation Entitlement to 15 days.
The quota is valid for the current calendar year. Save the infotype.
Effective Dates: from January 1, YYYY to December 31, YYYY
Category: 30 – Vacation
Quota Number: 15 days
Deduction From: January 1, YYYY
Deduction To: December 31, YYYY
Save your entry

10. On the Date Specifications Infotype (IT0041), enter the employee’s date of hire for
date type “01” and “44”. Save your entries.
Date Type 01: employee’s date of hire
Date Type 44: employee’s date of hire
Save your entries

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 11. Complete the Canadian Taxation Infotypes (IT0461, 0462, 0463 and 0464) for your
employee and then save each infotype.
IT 0461 - Province of Employment: QC
Employment Jurisdiction: QC
Province of Residence: QC
IT 0462 – Verify the provincial tax credits
IT 0463 – Verify the federal tax credits
Press Continue in the Display Logs pop-up box
IT 0464 - Leave as is and save
Save your entry

12. The next infotype to be proposed in the hiring process is the General Benefits
Information Infotype (IT0171). This infotype needs no data entry but must be saved
for use during the benefit enrollment process. Save the infotype.

13. On the Create Adjustment Infotype (IT0378) choose the entry ‘New Hire’ for the
Adjustment Reason. Save your entry.
Adjustment Reason: New Hire
Save your entry
Note: You will be presented with a message regarding ‘deviation from end date’
for the length of the event. Select the “No” button to cancel the message.
The message may be presented twice.

14. Release and run payroll for payroll area 5# (# = your group number, for group 10 use
‘0’, for group number 11 use ‘A’ and for group number 12 use ‘B’) for pay period
1.YYYY (YYYY = current year).

The first step is to set the Payroll Area you wish to Run:
Human Resources > Payroll > Americas > Canada > Settings > Set Payroll
Area
Enter your new payroll area in the pop up dialogue box and continue

Release and run payroll:

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll

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 Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

15. What is the result of this payroll run in the payroll log?
The payroll log displays the error “Division by zero not performed”. An
error occurred during payroll processing for employee 4072##. The error
was caused due to a missing Basic Pay Infotype (IT0008).

16. Set payroll for Corrections.

Human Resources > Payroll > Americas > Canada >Payroll > Corrections
Select ‘YES’ in the dialogue box

17. What procedure is to be followed to correct the error?

Create the Basic Pay Infotype (IT0008) for the employee.

18. Correct the employee’s Basic Pay data. When creating the Basic Pay Infotype
(IT0008) use the pay scale type “02”, pay scale area “02”, pay scale group “H001”
and level “03”. Select enter to confirm the population of Hourly Rate and Annual
Salary fields. Save your entries.
Human Resources > Personnel Management > Administration > HR Master
Data > Maintain
Personnel No.: 4072##
Infotype Selection: Basic Pay (IT0008)
Select the create icon
Effective Date: employee’s date of hire
Pay Scale Type: 02
Pay Scale Area: 02
Pay Scale Group: H001
Pay Scale Level: 03
Save your entries.

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 19. Re-run payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources >Payroll > Americas > Canada > Payroll > Start Payroll
Verify that the payroll area is correct and select the Execute icon

20. Exit Payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.
21. Check the payroll results for the employee 4072##
Human Resources > Payroll > Americas > Canada >Tools > Display Results
Enter the Personnel Number 4072## and enter

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 Unit: Wage Types

Topic: Maintaining Wage Types

 Copy Model Wage Types as Company Specific Wage Types

 Verify the characteristics of your Wage Types
 Assign your Company Specific Wage Types to your employee

The Caliber “A” Bicycle Company has identified a model wage type with
the characteristics required to accurately process a Bonus Payment for
their Sales Representatives. A model wage type has also been identified
to handle Miscellaneous Deductions. As part of the required payroll
configuration, copy the model wage types, rename them, and assign them
to the Sales Representatives for processing.

1. Copy model wage types M254 (Bonus/Discretionary) and M520 (Miscellaneous

Deduction) to your company specific wage types 90## and 91##.
IMG Path: Payroll > Payroll Canada > Basic Settings > Environment for
Maintaining Wage Types > Create Wage Type Catalogue
Select the ‘Copy’ radio button in the Wage Type Maintenance dialogue box
Select the Continue button
Enter the following data:
Original Wage Type: M254 Customizing Wage Type: 90##
Original Wage Type: M520 Customizing Wage Type: 91##
Select both entries to be copied
Remove the ‘Test Run’ indicator
Select the ‘COPY’ button
Review the table entries created and then return to the main menu

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 2. Check the Wage Type Characteristics for the new user wage types.
IMG Path: Payroll > Payroll Canada > Basic Settings > Environment for
Maintaining Wage Types > Check Wage Type Attributes
Select both wage types 90## and 91##
Select the details icon to display the wage type characteristics.
Select the Next Entry icon and review the characteristics of wage type
91##

3. What are the differences in the characteristics of the two wage types that were copied?
Wage type 91## is a deduction and wage type 90## is a payment

4. What are the differences in the cumulation classes?

Main Menu Bar: Systems > Services > Table Maintenance > Extended
Table Maintenance
Table View: Enter * 512 * > click on the drop down list and select
V_512W_D > display
Select: Country Grouping 07
Select: Edit Everything
Select the wage types and the details icon to view the cumulation classes
Use the up and down arrows to navigate between the cumulation classes

Wage Type 90## cumulates into: (Your can update yours if not the same)
01 - Total gross wage type /101
03 - Non-periodic taxable income wage type /103
18 – Non-exempt CPP earnings wage type /118
19 – Non-exempt QPP earnings wage type /119
20 - CPP Pensionable Earnings wage type /120
21 - QPP Pensionable Earnings wage type /121
22 - Employment insurance earnings wage type /122
53 - Non-periodic taxable income QC wage type /153

Wage type 91## cumulates into:

10 – Net payments/deductions wage type /110
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 5. Access the personnel file for employee 4071##. Create an Infotype Additional
Payments/Deductions (IT0015) for wage type 90## (Bonus/Discretionary) in the
amount of $750.00. The date of origin will default to the end of the pay period
2.YYYY. Save your entry.
Human Resources > Personnel Management > Administration > HR Master
Data > Maintain
Enter Personnel No.: 4071##
Infotype Selection: Additional Payments/Deductions (IT0015)
Subtype: 90##
Select: Create icon
Amount: $750.00
The date of origin will default to the last day of the pay period. Save your
entries.

Create another Infotype Additional Payments/Deductions (IT0015) for wage type

91## (Miscellaneous Deduction) in the amount of $50.00. Save your entry.
Human Resources > Personnel Management > Administration > HR Master
Data > Maintain
Enter Personnel No.: 4071##
Infotype Selection: Additional Payments/Deductions (IT0015)
Subtype: 91##
Select: Create icon
Amount: $50.00
The date of origin will default to the last day of the pay period. Save your
entries.

6. Release and run payroll for Payroll Area 4# (# = your group number, for group 10 use
‘0’, for group numbers 11 and 12 use ‘A’ and ‘B’) for pay period 2.YYYY.

The first step is to set the Payroll Area you wish to Run:
Human Resources > Payroll > Americas > Canada > Settings > Set Payroll
Area
Enter your new payroll area in the pop up dialogue box and continue

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 Release and run payroll:

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon

7. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

8. Review the payroll results for employee 4071## .

Human Resources > Payroll > Americas > Canada >Tools > Display Results
Enter the Personnel Number 4071## and enter .

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 Unit: Taxes

Topic: Tax Calculations

 Review the tax calculations

In this step you will review the tax, QPP and EI calculations for your
employee.

1. Release and run payroll for Payroll Area 5# for pay period 2.YYYY.

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

2. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

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 3. Review the payroll results for employee 4072## for period 2.YYYY and list the
technical wage types which were generated for the tax calculations.
Human Resources > Payroll > Americas > Canada >Tools > Display Results
Enter the Personnel Number 4072## and enter
Select pay period 2.YYYY – double click to open
Select the Results Table (RT) – double click to open

Wage Type Description Amount

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 Unit: Payments

Topic: Allowances

 Copy Model Wage Types

 Maintain Links between Wage Types
 Run payroll

The Caliber “A” Bicycle Company provides employees relocated from

another province a $1,000 Relocation Allowance.

In this step a new hourly employee will be hired in the province of B.C
and a Relocation Allowance will be processed for his/her relocation from
Alberta.

1. Use the Personnel Action “Hiring” to add the new ‘Robotics Specialist’, 4073##, into
the company effective the beginning of pay period 3 of the current year.
Human Resources > Personnel Management > Administration > HR Master
Data > Personnel Actions
Make the following entries on the Personnel Actions screen:
Personnel No.: 4073## (## - your group number)
From: the first day of pay period 3.YYYY (bi-weekly
pay period schedule)
Select the Hiring action
Personnel Area: 4000
Employee Group: 1
Employee Subgroup: K1
Select the Execute icon

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 2. On the Actions Infotype (IT0000), use the structure search to find the correct position
number for your group ## - “Robotics Specialist ##” in the Vancouver Production
Site of the Caliber “A” Bicycle Company (CAB). Save your entry.
Place your cursor in the Position field
Click on the drop down list
Select structure search tab
Expand the Caliber “A” Bicycle Company folder
Expand the Operations (CAN) folder
Expand the Production (CAN) folder
Expand the Vancouver Production Site folder
Select the Robotics Specialist ## position
Save your entry using the save icon

3. On the Organizational Assignment Infotype (IT0001), enter the Personnel Subarea

“Vancouver” and change the payroll area to 5# (# = your group number, for group 10
use ‘0’, for group number 11 use ‘A’ and for group number 12 use ‘B’). In the Work
Contract field select ‘Full Time’. Assign a payroll administrator and save your
entries.
Personnel Subarea: 4300
Payroll Accounting Area: 5#
Work Contract: (FT) Full-time
Payroll Administrator: Donna Smith
A Delimit Vacancy pop-up message will be displayed.
Select: Yes

4. On the Personal Data Infotype (IT0002) fill in the required fields with your choice of
entries. Enter “000000000” as the SIN number. Assign Marital Status "Married" and
save your entries.
SIN: 000000000
Marital Status: Single
Save your entries

5. On the Address Infotype (IT0006) enter an address of your choice with the province
of residence as British Columbia “BC” and postal code V2P 1P1.

Save your entries

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 6. On the Planned Working Time Infotype (IT0007), the work schedule “NORM” will
default. Enter and save the infotype. Save your entry

7. On the Basic Pay Infotype (IT0008), select pay scale type “02”, pay scale area “04”
and pay scale group “H003” with a pay level “03”. Select enter to confirm the
population of the Hourly Rate and Annual Salary fields. Save your entries.
Pay Scale Type: 02
Pay Scale Area: 04
Pay Scale Group: H003
Pay Scale Level: 03

8. On the Bank Details Infotype (IT0009), set up the bank transfer/direct deposit to your
employee’s main bank, select a Bank Key from the available Canadian banks, enter a
Bank Account Number (any 8 digits) and select the payment method “T” for bank
transfer. Save your entries.
In the Bank Key field, select the drop down menu (or select F4).
Press Continue in the search criteria box.
Select a Canadian bank.
Bank Account Number: Enter any 8 digit number
Payment Method: ‘T’ (Bank Transfer)

9. On the Absence Quota Infotype (IT2006), set up the Vacation Entitlement to 15 days.
The quota is valid for the current calendar year. Save the infotype.
Effective Dates: from: First Day of Pay Period 3.YYYY
To: December 31, YYYY
Category: 30 Vacation
Quota Number: 15 days
Deduction From: First Day of Pay Period 3.YYYY
Deduction To: December 31, YYYY

10. On the Date Specifications Infotype (IT0041), enter the employee’s date of hire for
date type “01” and “44”. Save your entries.

Date Type 01: employee’s date of hire

Date Type 44: employee’s date of hire
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 11. Complete the Canadian Taxation Infotypes (IT0461, 0462, 0463 and 0464) for your
employee and then save each infotype.
IT 0461 - Province of Employment: BC
Employment Jurisdiction: BC
Province of Residence: BC
IT 0462 – Verify the provincial tax credits
IT 0463 – Verify the federal tax credits
Press Continue in the Display Logs pop-up box
IT 0464 - Leave as is and save

12. The next infotype to be proposed in the ‘Hiring’ process is the General Benefits Data
Infotype (IT0171). This infotype needs no data entry but must be saved for use during
the benefit enrollment process. Save the infotype.

13. On the Create Adjustment Infotype (IT0378) choose the entry ‘New Hire’ for the
Adjustment Reason. Save your entry.
Adjustment Reason: New Hire
Save your entry
Note: You will be presented with a message regarding ‘deviation from end date’
for the length of the event. Select the “No” button to cancel the message.
The message may be presented twice.

14. Copy model wage types M206 (Relocation Allowance – Taxable) and M207 (Relocation
Allowance – Non Taxable) to your company specific wage types 93## and 94##.
IMG Path: Payroll > Payroll Canada > Basic Settings > Environment for
Maintaining Wage Types > Create Wage Type Catalogue
Select the ‘Copy’ radio button in the Wage Type Maintenance dialogue box
Select the Continue button
Enter the following data:
Original Wage Type: M206 Customizing Wage Type: 93##
Original Wage Type: M207 Customizing Wage Type: 94##
Select the entries to be copied
Remove the ‘Test Run’ indicator
Select the ‘COPY’ button
Review the table entries created and then return to the main menu
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 15. Access the personnel file for employee 4073##. Create an Infotype Additional
Payments/Deductions (IT0015) for wage type 93## in the amount of $1,000. The date of
origin defaults to the end of pay period 3.YYYY.
Human Resources > Personnel Management > Administration > HR Master
Data > Maintain
Enter Personnel No.: 4073##
Infotype Selection: Additional Payments/Deductions (0015)
Subtype: 93##
Select: Create icon
Amount: $1,000.00
The date of origin will default to the last day of the pay period. Save your
entries.

16. Release and run payroll for Payroll Area 5# for pay period 3.YYYY.

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

17. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

18. Review the payroll results for employee 4073##. How were the wage types 93## and
94## processed?
Human Resources > Payroll > Americas > Canada >Tools > Display results
Enter the Personnel Number 4073## and enter
Select pay period 3.YYYY – double click to open
Select the Results Table (RT) – double click to open
Wage Type 93## was reduced to $350.00 and is the taxable portion of the
relocation allowance.
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 Wage Type 94## was generated in the amount of $650.00 which is the limit
defined by the Canada Customs and Revenue Agency as a non-taxable relocation
allowance.

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 Unit: Payments

Topic: Banked Overtime

 Process attendances and an absence using banked overtime for your

employee

 Run payroll

The Caliber “A” Bicycle Company allows their hourly employees to bank
overtime. The rate at which the overtime is banked is the rate at which the
overtime was earned.

In this step you will process a Banked Overtime Attendance for employee
4072##, process a Change of Pay, process a second Banked Overtime
Attendance and an Absence for Time off in Lieu of Overtime.

1. Enter a Banked Overtime Attendance for 6 hours from 17:00 to 23:00 for employee
4072## effective the first day of pay period 4.YYYY. Save your entries.
Human Resources > Time Management > Administration > Time Data >
Maintain
Personnel No.: 4072##
Period Date: From - first day of pay period 4.YYYY
To - first day of pay period 4.YYYY
Infotype Selection: Attendance (IT2002)
Subtype: Banked Overtime Hours (0802)
Select: Create icon
Time: From - 17:00 To - 23:00
Attendance Hours: 6
Save your entries

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 2. Process a “Change of Pay” effective two days after the beginning of pay period
4.YYYY. On Infotype 0008 (Basic Pay) select pay scale type “02”, pay scale area
“02” and pay scale group “H003” and level “03”. Select enter to confirm the
population of Hourly Rate and Annual Salary fields. Save your entries.
Human Resources > Personnel Management > Administration > HR Master
Data > Maintain
Personnel No.: 4072##
Infotype Selection: Basic Pay (IT0008)
Select the create icon
Effective Date: Two days after the beginning of pay period
4.YYYY
Pay Scale Type: 02
Pay Scale Area: 02
Pay Scale Group: H003
Pay Scale Level: 03
Save your entries

3. Enter a second Banked Overtime Attendance for 5 hours from 17:00 to 22:00 effective
four days after the beginning of pay period 4.YYYY. Save your entries.
Human Resources > Time Management > Administration > Time Data >
Maintain
Personnel No.: 4072##
Period Date: From - four days after the beginning of pay
period 4.YYYY
To - four days after the beginning of pay
period 4.YYYY
Infotype Selection: Attendance (IT2002)
Subtype: Banked Overtime Hours (0802)
Select: Create icon
Time: From - 17:00 To - 22:00
Attendance Hours: 5
Save your entries

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 4. Release and run payroll for Payroll Area 5# for pay period 4.YYYY.

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

5. Review the payroll log. How were the 11 hours of overtime stored within payroll?
Using the Payroll Log, drill down as follows:
Successful personnel numbers – select personnel number 4072##
Select Pay period 4.YYYY
Select Final Processing
Select EXPRT RK
Select Output
The banked overtime attendance for 6 hours is stored under wage type M192
with a rate of $21.75
The banked overtime attendance for 5 hours is stored under wage type M192
with a rate of $34.00

6. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

7. Enter an Absence of 7.5 hours for Time off in Lieu of Overtime effective the first
working day of pay period 5.YYYY for employee 4072##.
Human Resources > Time Management > Administration > Time Data >
Maintain
Personnel No.: 4072##
Period Date: From - first day of pay period 5.YYYY
To - first day of pay period 5.YYYY
Infotype Selection: Absence (IT2001)
Subtype: Time Off in Lieu of Overtime (0215)
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 Select: Create icon
Absence Hours: 7.5 hours
Save your entries

8. Release and run payroll for Payroll Area 5# for pay period 5.YYYY.

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

9. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

10. Review the payroll results for employee 4072##.

Human Resources > Payroll > Americas > Canada >Tools > Display Results
Enter the Personnel Number 4072## and enter
Select pay period 5.YYYY – double click to open
Select the Results Table (RT) – double click to open

11. How were the 7.5 hours of Time off in Lieu of Overtime paid to the employee?
Wage type M190 was generated for 6 hours and paid at the rate of $21.75.
These hours were reduced from the 6 hours previously stored in wage type
M192 at the rate of $21.75.

Wage type M190 was generated for 1.5 hours and paid at the rate of $34.00.
These hours were reduced from the 5 hours previously stored in wage type
M192 at the rate of $34.00.

There are now 3.5 hours remaining in wage type M192 at the rate of $34.00.

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 Unit: Payments (OPTIONAL)

Topic: Advance Vacation Pay

 Process an Advance for Vacation Pay

 Process a Vacation Absence
 Run Payroll

The Caliber “A” Bicycle Company allows their hourly employees to

receive vacation pay in Advance.

In this step you will process an Advance for Vacation Pay for employee
4073## for the current pay period.

You will also process a Vacation Absence.

If you the Instructor mention to skip Please: Release Period, Run Payroll, Exit pay.

1. Create an Additional Payments/Deductions Infotype (IT0015) for wage type M306 for
employee 4073## effective pay period 6.YYYY. Enter 5 days in the number field.
Save your entries.

Human Resources > Personnel Management > Administration > HR Master

Data > Maintain
Enter Personnel No.: 4073##
Infotype Selection: Additional Payments/Deductions (IT0015)
Subtype: M306
Select: Create icon
Number/Unit: 5 days
Save your entries

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 2. Release and run payroll for Payroll Area 5# for pay period 6.YYYY.

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

3. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

Review the payroll results for employee 4073##.

Human Resources > Payroll > America > Canada >Tools > Display Results
Enter the Personnel Number 4073## and enter
Select pay period 6.YYYY – double click to open
Select the Results Table (RT) – double click to open

What wage type has been generated for the Advance Vacation Pay?
Wage type M307, Vacation Net Advance Pay.
Was an entry created in the Arrears Table?
Yes, for wage type M308, Vacation Advance Payback.

4. Create a Vacation Absence for employee 4073## effective the first five working days
of pay period 7.YYYY.
Human Resources > Time Management > Administration > Time Data >
Maintain
Personnel No.: 4073##
Period Date: From - first day of pay period 7.YYYY
To - fifth day of pay period 7.YYYY
Infotype Selection: Absence (IT2001)
Subtype: Vacation (0100)
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 Select: Create icon
Save your entries

5. Release and run payroll for Payroll Area 5# for pay period 7.YYYY.

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

6. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

7. Check the payroll results for pay period 7.YYYY for employee 4073##.
Human Resources > Payroll > Americas > Canada >Tools > Display Results
Enter the Personnel Number 4073## and enter
Select pay period 7.YYYY – double click to open
Select the Results Table (RT) – double click to open

8. What wage types related to Advance Vacation Pay were processed?

M308, Vacation Advance Pay Back, was generated as a deduction to recover
the advance that was paid in pay period 6.YYYY.

If you the Instructor mention to skip Please:

Release Period, Run Payroll, Exit pay:

6.YYYY AND 7. YYYY

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 Unit: Payments

Topic: Workers’ Compensation Top-up

 Process Workers’ Compensation Absences

 Run Payroll

The Caliber “A” Bicycle Company pays employees on Workers’

Compensation a Top-up to 100% of net pay.

In this step you will process a Workers’ Compensation Absence for

employee 4072## for the current pay period.

1. Create an Absence (IT2001) with a subtype of 0260 (WCB/WSIB/CSST Approved)

for employee 4072## effective the first five working days of pay period 8.YYYY.
Human Resources > Time Management > Administration > Time Data >
Maintain
Personnel No.: 4072##
Period Date: From - first day of pay period 8.YYYY
To - fifth day of pay period 8.YYYY
Infotype Selection: Absence (IT2001)
Subtype: WCB/WSIB/CSST Approved (0260)
Select: Create icon
Absence Hours: 37.5 hours
Save your entries

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 2. Release and run payroll for Payroll Area 5# for pay period 8.YYYY.

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

3. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

4. Review the payroll results for employee 4072##.

Human Resources > Payroll > Americas > Canada >Tools > Display results
Enter the Personnel Number 4072## and enter
Select pay period 8.YYYY – double click to open
Select the Results Table (RT) – double click to open

What wage types related to Workers’ Compensation are in Table RT for employee
4072##?
M400, WCB/WSIB/CSST Advance, was generated during payroll processing
and is the 85% advance from the employer that will be recovered from
WCB/WSIB/CSST.

M401, Guaranteed Net, was generated during payroll processing and is the
15% Net Top-Up paid by the employer.

The employee’s net pay is equal to 100% of normal net earnings when
working.

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 Unit: Payments

Topic: Short-Term Disability

 Process Short-Term Disability Absences

 Run Payroll

The Caliber “A” Bicycle Company pays employees on Short-Term

Disability a percentage of their regular pay that is based on their length of
service with the company.

In this step you will process a Short-Term Disability Absence for

employee 4072 ##.

1. Create an Absence (IT2001)with a subtype of 0201 (Short-Term Disability) for

employee 4072## effective from the first day of Pay Period 9 to the last day of Pay
Period 10.
Human Resources > Time Management > Administration > Time Data >
Maintain
Personnel No.: 4072##
Period Date: From: The first day of Pay Period 9
To : The last day of Pay Period 10
Infotype Selection: Absence (IT2001)
Subtype: Short-Term Disability Absence (0201)
Select: Create icon
Save your entries
Acknowledge message by selecting green check to continue.

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 2. Release and run payroll for Payroll Area 5# for pay period 9.YYYY.

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

3. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

4. Review the payroll results for employee 4072##.

Human Resources > Payroll > Americas > Canada >Tools > Display results
Enter the Personnel Number 4072## and enter
Select pay period 9.YYYY – double click to open
Select the Results Table (RT) – double click to open

5. What wage types related to the Short-Term Disability Payment were generated during
payroll processing for employee 4072##?
Wage type 1030, STD pay 100%, was generated during payroll processing for
the first short-term disability period of 5 days / 37.5 hours.
Wage type 1031, STD pay 75%, was generated during payroll processing for
the second short-term disability period of 5 days / 37.5 hours ( possible only
30 hours if Holiday occurred in this scenario).

6. Release and run payroll for Payroll Area 5# for pay period 10.YYYY.

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

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 Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

7. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

8. Review the payroll results for employee 4072##.

Human Resources > Payroll > Americas > Canada >Tools > Display results
Enter the Personnel Number 4072## and enter
Select pay period 10.YYYY – double click to open
Select the Results Table (RT) – double click to open

9. What wage types related to the Short-Term Disability Payment were generated during
the payroll process for employee 4072##?
Wage type 1031, STD pay 75%, was generated during payroll processing for
the balance of the second short-term disability period of 5 days / 37.5 hours.
Wage type 1039, STD pay 0%, was generated during payroll processing for
the balance of the short-term disability which falls in the third short-term
disability period which is unpaid.

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 Unit: Deductions

Topic: Deduction Schedule Elements and Wage Types

 Copy a Model Wage Type

 Create a Payment/Deduction Schedule
 Assign the Payment/Deduction Schedule to a Specific Wage Type
 Add the Wage Type as a Recurring Payment / Deduction on Infotype
0014
 Run payroll

The Club Memberships for your employees are to be deducted the last
pay period of the month. It is necessary to configure a deduction schedule
and assign it to the Club Membership Wage Type. A Recurring Payment /
Deduction Infotype (IT0014) is then created with the specific wage type
assigned to your employee and the Payment/Deduction Schedule will
default based on your configuration.

1. Copy wage type M530 to your user wage type 95##.

IMG Path: Payroll > Payroll Canada > Basic Settings > Environment for
Maintaining Wage Types > Create Wage Type Catalogue

Select the ‘Copy’ radio button in the Wage Type Maintenance dialogue box
Select the Continue button
Enter the following data:
Original Wage Type: M530 Customizing Wage Type: 95##
Select the entry to be copied
Remove the ‘Test Run’ indicator
Select the ‘COPY’ button
Review the table entries created and then return to the main menu.

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 2. Create a new payment / deduction schedule by copying the SAP Model “BS03”. Use
‘PM##’ (## = Group Number) for the name and include your group number (##)
within the description. Save your entries.
IMG Path: Payroll > Payroll Canada > Deductions > Deduction Frequencies
> Define Payment/Deduction Schedules
Select: Payment Model BS03
Select: The copy icon
Payment Model: Change name to PM##
Save your entries

3. Record the following information about PM##:

Date Modifier: Standard modifier 01
Period Parameter: Semi-monthly 02
Calendar Type: Semi-monthly L

4. Set the pay periods for payment / deduction model PM##. Set pay periods using the
current year. Select the last period for all months.
IMG Path: Payroll > Payroll Canada > Deductions > Deduction Frequencies>
Set Pay Periods
Payment Model: Enter your PM## and continue
Select: New Entries button
From and To Fields: Enter the current year
Select: Last button
Save your entries

5. View the feature “MODDE”. Do NOT change this feature. Record the following
information about the feature:
IMG Path: Payroll > Payroll Canada > Deductions > Deduction Frequencies>
Define Employee Groups
5.1 On what decision is this feature is based?
ABKRS Payroll Accounting Area

5.2 What is the operation (and result) of this feature specific to your Payroll Area?
It assigns the default payment/deduction schedule.

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 6. Use the entry “FEKS M530” as a model to copy and add an entry for your user wage
type 95##. The values maintained will appear as defaults when the Recurring
Payments/Deductions Infotype (0014) is created.
IMG Path: Payroll > Payroll Canada > Deductions > Deduction Frequencies>
Set Default Values for Payment/Deductions Schedules

First look if your new Wage Type is there: FEKS - 95##. Copy tool did insert
yours because the model wage type wage already in that table.

Therefore: Update the Payment model for your new PM##.

If it is not there:
Select: Entry ‘FEKS M530’ and copy the entry using the
copy icon
Wage Type: Enter your wage type 95##
Payment Model: Enter your payment model PM##
Save your entries

7. Assign the wage type 95## to employee 4071## on the Recurring Payments /
Deductions Infotype (IT0014). Enter the effective date as the first day of pay period
3.YYYY and an amount of your choice. Ensure that the defaulted payment model is
PM##.
Human Resources > Personnel Management > Administration > HR Master
Data > Maintain
Personnel No.: 4071##
Infotype Selection: Recurring Payment/Deduction (IT0014)
Subtype: 95##
Select: Create icon
Effective Date: The first day of pay period 3.YYYY
Amount: $100.00
Press ENTER to see the Payment model field populate. Ensure your payment
model PM## is defaulted
Save your entries

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 8. Release and run payroll for Payroll Area 4# (# = your group number) for pay period
3.YYYY.

Set the Payroll Area you wish to Run:

Human Resources > Payroll > Americas > Canada > Settings > Set Payroll
Area
Enter your new payroll area in the pop up dialogue box and continue

Release and run payroll:

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

9. Check the results for pay period 3.YYYY for employee 4071## and answer the
following question.
You may check your payroll results using either the payroll log or the payroll
cluster.
Human Resources > Payroll > Americas > Canada >Tools > Display results
Enter the Personnel Number 4071## and enter
Select pay period 3.YYYY double click to open
Select the Results Table (RT) – double click to open

9.1 Was the Club Membership Deduction deducted this period? Why / Why
not?
No, the wage type 95## was not deducted because pay period 3.YYYY
is the first pay period of the month.

10.. Exit payroll.

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 Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

11. Release and run payroll for payroll area 4# (# = your group number) for pay period
4.YYYY.

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

12. Check the results for pay period 4.YYYY for employee 4071## and answer the
following question.
Human Resources > Payroll > Americas > Canada >Tools > Display results
Enter the Personnel Number 4071## and enter
Select pay period 4.YYYY double click to open
Select the Results Table (RT) – double click to open

12.1 Was the Club Membership Deduction deducted this period? Why / Why
not?
Yes, wage type 95## was deducted because pay period 4.YYYY is the
last pay period of the month.

13. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

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 Unit: Deductions

Topic: Deductions with Balances and Totals at the

Employee Level

 Assign a deduction with balances and totals for a deduction wage type
at the employee level.
 Add the Wage Type as a Recurring Payment / Deduction on Infotype
0014

The fund raising campaign was very successful at Caliber “A” Bicycle
Company. The contribution pledge for your employee requires a limit of
$100.00.

1. Copy the following Model wage types to your user wage types and add your own
description.
M720 to 92#A “Deduction w/Balance – Grp ##”
M721 to 92#B “Deduction Balance – Grp ##”
M722 to 92#C "Deduction Total – Grp ##”
(# = your Group Number, for group 10 use ‘0’, for group 11 use ‘A’ and for group 12
use ‘B’). Save your entries.
IMG Path: Payroll > Payroll Canada > Basic Settings > Environment for
Maintaining Wage Types > Create Wage Type Catalogue
Select the ‘Copy’ radio button in the Wage Type Maintenance dialogue box
Select the Continue button
Enter the following data:
Original Wage Type: M720 Customizing Wage Type: 92#A
Original Wage Type: M721 Customizing Wage Type: 92#B
Original Wage Type: M722 Customizing Wage Type: 92#C
Select the entries to be copied
Remove the ‘Test Run’ indicator
Select the ‘COPY’ button
Review the table entries created and then return to the main menu
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 2. Maintain the link between wage type 92#A and 92#B and between wage type 92#B
and 92#C.
IMG : Payroll > Payroll Canada >Deductions > Prepaid Deductions>Link
Prepaid deduction wage type

Ensure that the following links have been copied. If they have not been
copied, create the links.
Indicator Wage Type Wage Type
10 92#A Donation – United Way > 92#B Donation Balance
11 92#B Donation Balance > 92#C Donation Total

3. Create a Recurring Payment / Deduction on Infotype (IT0014) for employee 4071##.

Assign wage type 92#A using the first day of payroll period 5.YYYY as the effective
date and an amount of $40.00. Save your entries.
Human Resources > Personnel Management > Administration > HR Master
Data > Maintain
Personnel No.: 4071##
Infotype Selection: Recurring Payment/Deduction (IT0014)
Subtype: 92#A
Select: Create icon
Effective Date: The first day of pay period 5.YYYY
Amount: $40.00
Save your entries

4. The system will automatically bring up the Additional Payment / Deduction Infotype
(IT0015). Wage Type 92#B will default. Enter a limit of $100.00 in the amount field.
Save your entry.
Amount: $100.00
Save your entry

5. Release and run payroll for pay period 5.YYYY for payroll area 4# (# = your group
number, for group 10 use ‘0’, for group 11 use ‘A’ and for group 12 use ‘B’).

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

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 Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

6. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

7. Display the payroll results for pay period 5.YYYY for employee for 4071## and list
the three wage types that are related to the deduction.
Human Resources > Payroll > Americas > Canada >Tools > Display results
Enter the Personnel Number 4071## and enter
Select pay period 5.YYYY double click to open
Select the Results Table (RT) – double click to open

92#A Deduction $40.00 –

92#B Balance $60.00
92#C Total $40.00 –

8. Release and run payroll for payroll area 4# for pay period 6.YYYY. Review the
results.

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

9. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

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 10. Release and run payroll for payroll area 4# for pay period 7.YYYY.

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

11.. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

12. Display the payroll results for pay periods 6.YYYY and 7.YYYY for employee
4071##.
Human Resources > Payroll > America > Canada >Tools > Display results
Enter the Personnel Number 4071## and enter

Select pay period 6.YYYY double click to open

Select the Results Table (RT) – double click to open

Select pay period 7.YYYY double click to open

Select the Results Table (RT) – double click to open

13. Was wage type 92#A taken for all periods? Why / Why not?

Pay period 6.YYYY Wage Type 92#A $40.00 was deducted

Pay period 7.YYYY Wage Type 92#A $20.00 was deducted

For pay period 7.YYYY, wage type 92#A was deducted for $20.00 since the
total amount of $100.00 was reached.

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 Unit: Deductions

Topic: Limits on Deductions

 Copy Model Wage Types

 Assign a limit for a deduction wage type at the wage type level
 Add the Wage Type as a Recurring Payment / Deduction on Infotype
0014
The CAW Union defines their Membership Dues to be $30.00 per pay
period with a monthly limit of 1% of gross earnings. To achieve this, you
must configure the deduction limits for the Union Dues wage type.

1. Copy model wage type M500 (Union Dues) to your user wage type 89## (## = your
group number).
IMG Path: Payroll > Payroll Canada > Basic Settings > Environment for
Maintaining Wage Types > Create Wage Type Catalogue
Select the ‘Copy’ radio button in the Wage Type Maintenance dialogue box
Select the Continue button
Enter the following data:
Original Wage Type: M500 Customizing Wage Type: 89##
Select the entry to be copied
Remove the ‘Test Run’ indicator
Select the ‘COPY’ button
Review the table entries created and then return to the main menu

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 2. Create a Limit Rule ‘LR##’ (## = your group number) to be 1% of Gross Earnings
and save your entries.
IMG Path: Payroll > Payroll Canada > Deductions > Limits on Deductions >
Define Rules for Limits
Select: New Entries and enter the following and save your entries

Rule Number Wage Type Percent Proc Ind

LR## 001 /101 1.00 +

3. Create a Wage Type Class ‘WC##’ (## = your group number) and save your entries.
IMG Path: Payroll > Payroll Canada > Deductions > Limits on Deductions >
Set-Up Wage Type Classes and Attach Limits
Select: New Entries and enter the following and save your entries

Wage Type Class Wage Type Class Text Reduction

WC## Your choice 1

4. Select the wage type class ‘WC##’ and go to the Wage type classification detail level.
Create an entry for your wage type 89## and save your entries.
Select: Wage Type Class WC##
Select: Wage Type Classification folder on the left
Select: New entries, enter the following and save your entries

Wage Type Start Date End Date Priority Arrears

89## 01.01.1990 31.12.9999 1 Blank

5. Create a wage type class limit for wage type class ‘WC##’. Use the modifier ‘B’ value
(01) for payroll defined in rule KMOD, the number 001, validity date 01.01.1990 to
12.31.9999, a monthly interval and the rule LR##. Save your entries.

Select: Wage Type Class WC##

Select: Wage Type Class Limits folder on the left
Select: New entries - enter the following and save your entries

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 Pay Seq Start Date End Date Interval Amount Curr Rule Iteration
No
01 001 01.01.1990 31.12.9999 M Blank CAD LR## Blank

6. Create a Membership Dues Infotype (IT0057) for the ‘CAW Union’ for employee
4073##. Use the first day of pay period 11.YYYY as the effective date.
Human Resources > Personnel Management > Administration > HR Master
Data > Maintain
Personnel No.: 4073##
Infotype Selection: Membership Fees (IT0057)
Subtype: CAW – Canadian Auto Workers (0001)
Select: Create icon
Effective Date: The first day of pay period 11.YYYY
Wage Type: Enter wage type 89##
Membership Fee: $30.00
Save your entries

7. Release and run payroll for Payroll Area 5# for pay period 11.YYYY.

Set the Payroll Area you wish to Run:

Human Resources > Payroll > Americas > Canada > Settings > Set Payroll
Area
Enter your new payroll area in the pop up dialogue box and continue

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

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 8. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

9. Display the payroll results for employee 4073## for pay period 11.YYYY.
Human Resources > Payroll > Americas > Canada >Tools > Display results
Enter the Personnel Number 4073## and enter
Select pay period 11.YYYY – double click to open
Select the Results Table (RT) – double click to open

10. What happened to your wage type 89## during payroll processing? Why?
The amount for Wage Type 89## was reduced and deducted for $25.50 for
the pay period. The monthly limit is 1% of gross pay which is $2,550.00.

11. Verify the entry in the table DDNTK of the Payroll Results.
An entry was made in the amount of $4.50 with the origin “Limit on
Deductions”.

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 Unit: Deductions

Topic: Priorities and Arrears Processing

 Create a wage type that requires the creation of arrears

 Assign the new wage type to an employee
 Setup an Arrears Recovery Plan for the employee

The business practice at the Caliber “A” Bicycle Company is to establish

a payment plan for an employee upon return from a leave of absence to
recover the deduction amounts that are in arrears.

1. Copy the following Model wage types and modify the text to include your Group ## number:
MD50 to Wage Type 9D## (## = your group number)
MD60 to Wage Type 9E## (## = your group number)
MD70 to Wage Type 9F## (## = your group number)
MD80 to Wage Type 9G## (## = your group number)
MD90 to Wage Type 9H## (## = your group number)

IMG Path: Payroll > Payroll Canada > Basic Settings > Environment for
Maintaining Wage Types > Create Wage Type Catalogue
Select the ‘Copy’ radio button in the Wage Type Maintenance dialogue box
Select the Continue button
Enter the following data:
Original Wage Type: MD50 Customizing Wage Type: 9D##
Original Wage Type: MD60 Customizing Wage Type: 9E##
Original Wage Type: MD70 Customizing Wage Type: 9F##
Original Wage Type: MD80 Customizing Wage Type: 9G##
Original Wage Type: MD90 Customizing Wage Type: 9H##
Select the entries to be copied

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 Remove the ‘Test Run’ indicator
Select the ‘COPY’ button
Review the table entries created and then return to the main menu

2. Ensure that the appropriate links are set.

IMG Path: Payroll > Payroll Canada >Deductions > Priorities and Arrears
> Maintain Recovery of Arrears > Select Maintain Links
between Wage Types
Ensure that the following links have been copied. If they have not been
copied, create the links.
Indicator Wage Type Wage Type
10 9G## Deduction Recovery > 9F## Recovery Balance
11 9F## Recovery Balance > 9H## Recovery Total
12 9D## Arrears Deduction > 9E## Recovery Link
13 9E## Recovery Link > 9F## Recovery Balance

3. Create an Additional Payment / Deduction Infotype (0015) for employee 4072## for
wage type 9D## in the amount of $7,000.00. Ensure that the default date proposed is
the last day of pay period 12.YYYY.
Human Resources > Personnel Management > Administration > HR Master
Data > Maintain
Enter Personnel No.: 4072##
Infotype Selection: Additional Payments/Deductions (IT0015)
Subtype: Arrears Deduction (9D##)
Select: Create icon
Amount: $7,000.00
The date of origin will default to the last day of the pay period.
Save your entries

4. Release and run payroll for payroll area 5# for pay period 12.YYYY.

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

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 Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

5. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

6. Review the results for pay period 12.YYYY for employee 4072##.
Human Resources > Payroll > Americas > Canada >Tools > Display results
Enter the Personnel Number 4072## and enter
Select pay period 12.YYYY – double click to open
Select the Results Table (RT) – double click to open

7. How much was deducted for wage type 9D## for employee 4072##?
Wage Type 9D# was deducted for $____________- .

8. Check the Deductions not Taken Table (DDNTK) within the cluster. What amounts were
not taken?
An entry in the amount of $_____________ was placed in the Deductions not
Taken Table (DDNTK).

9. What other table contains the same amount as the Deductions not Table (DDNTK)?
The Arrears Table (ARRRS) also contains entries.

10. Create an Additional Payment / Deduction Infotype (IT0015) for employee 4072## for
Wage Type 9E## with the total amount to be recovered (amount in Arrears). Ensure
that the default date proposed is the last day of pay period 13.YYYY.
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 Human Resources > Personnel Management > Administration > HR Master
Data > Maintain
Enter Personnel No.: 4072##
Infotype Selection: Additional Payments/Deductions (IT0015)
Subtype: Recovery Link (9E##)
Select: Create icon
Amount: Enter the amount from the Arrears
Table for your employee 4072##
The date of origin will default to the last day of the pay period 13.YYYY.
Save your entries

Create a Recurring Payment/Deduction Infotype (IT0014) for wage type 9G## in the
amount of the $100.00 effective the first day of pay period 13.YYYY.

NOTE: A second Additional Payment/Deduction Infotype (IT0015) will be

proposed. Do not complete this Infotype 0015. Cancel the transaction using
the red ‘X’ icon.

Human Resources > Personnel Management > Administration > HR Master

Data > Maintain
Enter Personnel No.: 4072##
Infotype Selection: Recurring Payments/Deductions (IT0014)
Subtype: Recovery Deduction (9G##)
Select: Create icon
Effective: First day of pay period 13.YYYY
Amount: $100.00
Save your entries

NOTE: Cancel the additional payment/deduction infotype (IT0015) that is

automatically presented.

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 11. Release and run payroll for payroll area 5# for pay period 13.YYYY.

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

12. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

13. Review the payroll results for employee 4072##.

Human Resources > Payroll > Americas > Canada >Tools > Display results
Enter the Personnel Number 4072## and enter
Select pay period 13.YYYY – double click to open
Select the Results Table (RT) – double click to open

14. What wage types related to the recovery were generated during payroll?
Wage Type 9E##, Recovery Link, in the amount of $_________
Wage Type 9F##, Recovery Balance, in the amount of $_________
Wage Type 9G##, Deduction Recovery, in the amount of $_______ –
Wage Type 9H##, Recovery Total, in the amount of $_______ -

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 Unit: Deductions

Topic: Absolute Deductions (OPTIONAL)

 Create an absolute deduction

The Caliber “A” Bicycle Company employees have an agreement with

management that in the event an employee may not have sufficient funds
to cover a specific deduction, the employer will advance any difference.

This exercise is optional. If not completed, please: Release Period, Run Payroll, Exit
pay. For pay periods 8, 9 and 10.

1. Create an additional payment in the Additional Payment / Deduction Infotype

(IT0015) for employee number 4071## using the model wage type Deduction with
Advance (MD00) in the amount of $4,000.00. The effective date is the last day of pay
period 8.YYYYwhich will default as the Date of Origin.
Human Resources > Personnel Management > Administration > HR Master
Data > Maintain
Enter Personnel No.: 4071##
Infotype Selection: Additional Payments/Deductions (IT0015)
Subtype: MD00
Select: Create icon
Amount: $4,000.00
The date of origin will default to the last day of the pay period.
Save your entries

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 2. Release and run payroll for payroll area 4# for pay period 8.YYYY.

Set the Payroll Area you wish to Run:

Human Resources > Payroll > Americas > Canada > Settings > Set Payroll
Area
Enter your new payroll area in the pop up dialogue box and continue

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

3. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

4. Review the results for employee 4071## for pay period 8.YYYY.
Human Resources > Payroll > Americas > Canada >Tools > Display results
Enter the Personnel Number 4071## and enter
Select pay period 8.YYYY – double click to open
Select the Results Table (RT) – double click to open

5. What wage type is generated in payroll to identify the employer advance for the
balance of this deduction?
Wage Type MD10, Advance for Actual Period, was generated in the amount
of $______________.

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 6. Release and run payroll for payroll area 4# for pay period 9.YYYY.

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

7. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

8. Review the results for employee 4071## for pay period 9.YYYY.
Human Resources > Payroll > Americas > Canada >Tools > Payroll Result >
Display
Enter the Personnel Number 4071## and enter
Select the Execute icon
Select pay period 9.YYYY – double click to open
Select the Results Table (RT) – double click to open

9. What wage type is generated in payroll to identify the remaining amount to be repaid?
Wage Type MD20, Advance from Previous Period, was generated in the
amount of $___________.

Wage Type MD30, Advance Pay Back, was generated in the amount of
$___________ - .

10. Release and run payroll for payroll area 4# for pay period 10.YYYY.
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 Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

11. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

12. Review the results for employee 4071## for pay period 10.YYYY.
Human Resources > Payroll > America > Canada >Tools > Display results
Enter the Personnel Number 4071## and enter
Select pay period 10.YYYY – double click to open
Select the Results Table (RT) – double click to open

13. Which wage type still appears for the advance? What does it represent?
Wage Type MD30, Advance Pay Back, was generated in the amount of
$______ - .
The amount will vary based on your employee’s salary.

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 Unit: Deductions

Topic: Prepaid Deductions

 Create an unpaid absence for an employee who has a deduction which

requires the creation of arrears if there is insufficient net income.
 Enter a payment for prepaid deductions
 Reimburse the employee the outstanding amount of his prepaid
deductions, if any, upon return from his/her leave of absence.
The business practice at the Caliber ‘A’ Bicycle Company is for
employees to prepay the deductions they wish to continue during a period
of unpaid leave of absence.

1. Create a Recurring Payment /Deduction Infotype (IT0014) for employee 4071## for
wage type MD06 in the amount of $110.00 effective the first day of pay period
11.YYYY.

Human Resources > Personnel Management > Administration > HR Master

Data > Maintain
Enter Personnel No.: 4071##
Infotype Selection: Recurring Payments/Deductions (IT0014)
Subtype: Deduction with Arrears (MD06)
Select: Create icon
Effective: First day of pay period 11.YYYY
Amount: $110.00
Save your entries

2. Release and run payroll for payroll area 4# for pay period 11.YYYY.

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 Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

3. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

4. Review the results for pay period 11.YYYY for employee 4071##.
Human Resources > Payroll > Americas > Canada >Tools > Display results
Enter the Personnel Number 4071## and enter
Select pay period 11.YYYY – double click to open
Select the Results Table (RT) – double click to open

5. Create a leave of absence (IT2001) using the subtype “Time off – unpaid” for employee
4071## for the period June 16th to July 15th.

Human Resources > Time Management > Administration > Time Data >
Maintain
Personnel No.: 4071##
Period Date: From:- June 16th of the 20xx
To: July 15th of the 20xx
Infotype Selection: Absence (IT2001)
Subtype: Time-off Unpaid (0211)
Select: Create icon
Save your entries

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 6. Create an Additional Payment / Deduction Infotype (IT0015) for employee 4071## for
wage type MP10 in the amount of $300.00. Ensure that the default date proposed is the
last day of pay period 12.YYYY.

Human Resources > Personnel Management > Administration > HR Master

Data > Maintain
Enter Personnel No.: 4071##
Infotype Selection: Additional Payments/Deductions (IT0015)
Subtype: Prepaid Deduction – Payment (MP10)
Select: Create icon
Effective: Last day of pay period 12.YYYY
Amount: $300.00
Save your entries

7. Release, run and exit payroll for payroll area 4# for the next two pay periods
12.YYYY and 13.YYYY.

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

8. Review the results for pay periods 12.YYYY and 13.YYYY for employee 4071##.
Human Resources > Payroll > Americas > Canada >Tools > Display results
Enter the Personnel Number 4071## and enter
Select pay period 12.YYYY – double click to open
Select the Results Table (RT) – double click to open

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 9. Which wage types were generated during payroll processing?
In pay period 12.YYYY, wage type MP20, the Prepaid Deduction Balance,
was generated with a balance of $190.00 and wage type MP30, the Prepaid
Deduction, was generated for $110.00 which is equal to the MD06 deduction
amount.

In pay period 13.YYYY, wage type MP20, the Prepaid Deduction Balance,
was generated with a balance of $80.00 and wage type MP30, the Prepaid
Deduction, was generated for $110.00 which is equal to the MD06 deduction
amount.

10. Process a reimbursement for prepaid deductions for employee 4071## by creating an
Additional Payment / Deduction Infotype (IT0015) for wage type MP40 in the amount
of $1.00. Ensure that the default date proposed is the last day of pay period
14.YYYY.
Human Resources > Personnel Management > Administration > HR Master
Data > Maintain
Enter Personnel No.: 4071##
Infotype Selection: Additional Payments/Deductions (IT0015)
Subtype: Prepaid Deduction – Reimbursement (MP40)
Select: Create icon
Effective: Last day of pay period 14.YYYY
Amount: $1.00
Save your entries

11. Release, run and exit payroll for payroll area 4# for pay period 14.YYYY.

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

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 12. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

13. Review the results for pay period 14.YYYY for employee 4071##.
Human Resources > Payroll > Americas > Canada >Tools > Display results
Enter the Personnel Number 4071## and enter
Select pay period 14.YYYY – double click to open
Select the Results Table (RT) – double click to open

14. Which wage type was generated during the payroll process?
Wage type MP40, the Prepaid Reimbursement, was generated in the amount of
$80.00 which was the balance owing to the employee.

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 Unit: Garnishments

Topic: Garnishment Infotypes, Processing, Output

 Complete a Hiring Action for a new employee with an existing

garnishment
 Create the required garnishment infotypes for the employee due to a
Family Support Deduction Notice

Many different garnishment categories and orders are currently

administered by the Caliber “A” Bicycle Company. The newly hired
employee has a garnishment order attached to his file.

1. Use the Personnel Action “Hiring” to hire the new Shop Floor Manager, 4074##, into
the company effective the first day of pay period 15.YYYY of the semi-monthly
payroll area.

Human Resources > Personnel Management > Administration > HR Master

Data > Personnel Actions
Make the following entries on the Personnel Actions screen:
Personnel No.: 4074## (## - your group number)
From: the first day of pay period 15.YYYY
Select the Hiring action
Personnel Area: 4000
Employee Group: 1
Employee Subgroup: K4
Select the Execute icon

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 2. On the Actions Infotype (IT0000), use the structure search to find the correct position
number for your group Shop Floor Manager ## under the Caliber “A” Bicycle
Company’s (CAB) Warehouse and Production Division. Save your entry.
Place your cursor in the Position field
Click on the drop down arrow
Select structured search tab
Expand the Caliber ‘A’ Bicycle Company folder
Expand the Operations (CAN) folder
Expand the Production (CAN) folder
Expand the Warehouse Calgary Facility folder
Select the Shop Floor Manager ## position
Save your entry using the save icon

3. On the Organizational Assignment Infotype (IT0001), enter the Personnel Subarea

Calgary, change the payroll area to 4# (# = your group number, for group 10 use ‘0’,
for group number 11 use ‘A’ and for group number 12 use ‘B’). In the Work Contract
field select ‘Full Time’. Assign a payroll administrator and save your entries.
Personnel Subarea: 4200
Payroll Area: 4#
Contract: Full-time
Payroll Administrator: Donna Smith

Note: When prompted to “Delimit the vacancy for the position”, cancel the request
using the red  icon.

4. On the Personal Data Infotype (IT0002), fill in the required fields with your choice of
data. Enter “000000000” as the SIN number and save your entries.

5. On the Address Infotype (IT0006) enter an address of your choice with the province
of residence as Alberta “AB”and postal code “T2P 1P1. Save your entries.
Province of Residence: AB
Postal Code: T2P 1P1

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 6. On the Planned Working Time Infotype (IT0007), the work schedule “NORM” will
default. Enter and save the infotype.

7. On the Basic Pay Infotype (IT0008), select pay scale type “01”, pay scale area “03”,
pay scale group “GRD01’ with a pay level ‘04’. Enter an annual salary of $60,000 and
select enter to confirm the population of the Annual Salary field. Save your entries.
Pay Scale Type: 01
Pay Scale Area: 03
Pay Scale Group: GRD01
Pay Scale Level: 04
Annual Salary: $60,000.00

8. On the Bank Details Infotype (IT0009), select the payment method ‘C’ for cheque and
save your entry.
Payment Method: C (cheque)
Save your entry

9. On the Absence Quota Infotype (IT2006), set up the Vacation Entitlement to 15 days.
The quota is valid for the current calendar year. Save the infotype.
Effective Dates: from August 1, YYYY to December 31, YYYY
Category: 30 – Vacation
Quota Number: 15 days
Deduction From: August 1, YYYY
Deduction To: December 31, YYYY

10. On the Date Specifications Infotype (IT0041), enter the employee’s date of hire for
date type “01” and “44”. Save your entries.
Date Type 01: employee’s date of hire
Date Type 44: employee’s date of hire

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 11. Complete the Canadian Taxation Infotypes (IT0461, 0462, 0463 and 0464) for your
employee and then save each infotype.
IT 0461 - Province of Employment: AB
Employment Jurisdiction: AB
Province of Residence: AB
IT 0462 – Verify the provincial tax credits
IT 0463 – Verify the federal tax credits
Press Continue in the Display Logs pop-up box
IT 0464 - Leave as is and save

12. The next infotype to be proposed in the hiring process is the General Benefits
Information Infotype (IT0171). This infotype needs no data entry but must be saved
for use during the benefit enrollment process. Save the infotype.

13. On the Create Adjustment Reasons Infotype (IT0378) choose the entry ‘New Hire’ for
the Adjustment Reason. Save your entry.
Adjustment Reason: New Hire
Save your entry

Note: You will be presented with a message regarding ‘deviation from end date’ for
the length of the event. Select the “No” button to cancel the message. The
message may be presented twice.

14. Create the Garnishment Infotype(s) to record the Family Support Deduction received
for employee 4074## effective the first day of pay period 15.YYYY.

The garnishment order states that an ongoing payment $600 per month as well as an
initial balance of $3,240.00 (arrears deduction) must be made. The payment must be
forwarded as a single cheque by the 1st of every month to Family Court. Use vendor
number 20016. The received date for the garnish order should be todays date.
Human Resources > Personnel Management > Administration > HR Master
Data > Maintain
Enter Personnel No.: 4074##
Infotype Selection: Garnishment Order CA (IT0066)
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 Select: Create icon
Effective: First day of pay period 15.YYYY
Case Number: Your choice
Reason: Initial Order
Jurisdiction: Alberta
Vendor: 20016
Ensure the single cheque indicator is selected
Save your entries
The Garnishment Debt Infotype (IT0067) will automatically be presented to
you.

Debt FA: Initial Balance $3,240.00

Debt FO: Ongoing Payment $600.00
Unit: 4 – Monthly
Save your entries

15. Release and run payroll for Payroll Area 4# for pay period 15.YYYY.

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

16. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.
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 17. Review the payroll results for employee 4074##.
Human Resources > Payroll > Americas > Canada >Tools > Display results
Enter the Personnel Number 4074## and enter
Select pay period 15.YYYY – double click to open
Select the Results Table (RT) – double click to open

18. What wage types were generated during payroll processing for garnishments?
/G00 Garnishment Net $________
/G01 Garnishment Gross $________
/G03 Garnishment Sum $________–
MG10 Garnishment Balance $________–
MG20 Garnishment Ongoing Payment $________–

19. What additional table(s) can be reviewed for detailed garnishment information?
GRORD Garnishment Order
GRDBT Garnishment Debt
GRREC Garnishment Record

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 Unit: Benefits Integration

Topic: Wage Type Assignment, Benefit Enrollment

 Assignment of the appropriate wage types

 Enroll an employee into a benefit plan

The Caliber “A” Bicycle company offers Medical, Dental, Life insurance
and an RRSP Plan to its employees. It is the responsibility of the payroll
department to ensure that the appropriate wage types are available for use
with the benefit infotypes. The payroll department also works closely
with the benefit administrators to ensure that all benefits will be
processed properly during payroll processing.

1. Enroll employee 4074## in the Medical and Dental plans. The enrollment should be
effective for the first day of pay period 16.YYYY. Once completed, confirm that the
benefit infotypes were created in the personnel file for this employee.
Human Resources > Personnel Management > Benefits > Enrollment
Date: Using the change date icon , enter the first day of
pay period 16.YYYY
Personnel No.: Enter employee No. 4074## and click on the “Select”
button
Select: New Hire Offer and click on the “Get Offer” button
Procedure: Place cursor on the benefit plan and doubleclick
You will be presented with a selection screen. Choose
the correct option and dependent coverage.
Click on the Accept button
Repeat procedure for each benefit plan.

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 Select the benefits:
Benefits: Dental Option 1 Employee only
Medical No deductible Employee only
Basic Life 2 x salary
LTD Coverage 1
Saving plan RSP $45.00

Execute enrollment: Click on the enroll button – review the

confirmation of selected actions screen and click on the
Enroll button .
You will be presented with a message “Enrollment
completed successfully” – click on the continue button.

Benefit overview: Click on the Overview button and using the

tabs, review the benefit plans and costs.

2. Release and run payroll for payroll area 4# for payroll period 16.YYYY.

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

3. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

4. Review the payroll results for employee 4074##.

Human Resources > Payroll > Americas > Canada >Tools > Display results
Enter the Personnel Number 4074## and enter
Select pay period 16.YYYY – double click to open
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 Select the Results Table (RT) – double click to open

5. What benefit deduction wage types were generated?

BE02 RRSP Employee Deduction
BE09 Health Employee Deduction
BE10 Dental Employee Deduction

BR02 RRSP Employer Matching Contribution

BR09 Health Employer Contribution
BR10 Dental Employer Contribution
BR12 Group Life Insurance Employer Contribution
BR21 Long-Term Disability Employer Contribution

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 Unit: Bank Transfer

Topic: Direct Deposit Data, Cheque Printing

 Perform a bank transfer

 Create Direct Deposit Records for an employee
 Generate a cheque

Funds must be transferred from the company bank account to pay the
employees. At the Caliber “A” Bicycle Company, the employees have
their choice of a payment method. Some employees are paid by cheque
and others have electronic transfers directly into their bank accounts.
Process both types of payment for the employees in your payroll
accounting area.

1. Create a new Bank Details Infotype (IT0009) with a Bank Type “1” (Other Bank) for
employee 4071## with the effective date of the first day of pay period 17.YYYY.
Choose a Bank Key from the available Canadian Banks and enter an account number
in the Bank Account field. This employee wishes to deposit 40% of his net pay into
this account. Make the required entry and save your entries.
Human Resources > Personnel Management > Administration > HR Master
Data > Maintain
Personnel No. Employee 4071##
Infotype Selection: Bank Details (IT0009)
Select: Create icon
Effective Date: First day of pay period 17.YYYY
Bank Details Type: Other
Bank Key: Select the drop down list
Press Continue in the search criteria box.
Select a Canadian bank.
Bank Account Field: enter any 8 digit number
Payment Method: ‘T’ (Bank Transfer)
Standard Percentage: 40
Save your entries
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 2. Release and run payroll for Payroll Area 4# for pay period 17.YYYY.

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

3. Exit payroll.

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

4. Run the Preliminary DME for payroll area 4# for payroll period 17.YYYY. Do not
select a payment method. Record the DME run identifier.
Human Resources > Payroll > Americas > Canada >Payroll > Bank Transfer
> Pre-Program DME
Payroll Period Enter Payroll Area 4#
Selection Enter Payroll Area 4#
Additional Data Deselect the test check box and select the “Set flag for
transfer”
Select Execute icon

Record the PRE-PROGRAM IDENTIFIER that is noted at the bottom of the

screen once the pre-program DME has been performed.

5. Perform the bank transfer using the DME run identifier recorded after the Pre-
Program DME.
Human Resources > Payroll > Americas > Canada >Payroll > Bank Transfer
> Create DME
Program Run Date Using the pull down list select your program run
identifier. This will automatically populate the fields
Program Run Date and Identification Feature.
Select Execute icon

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 Once the DME has been created, select the Print Preview button to view your
documents.

Select each document and review the information using the display icon.

6. Generate a cheque using the DME run identifier recorded after the Preliminary DME.
Enter the following information: Company Code “4000”, House Bank “CTYBK”,
Acct ID “PYRLL”. Enter the Check Lot # for your group ##.
Human Resources > Payroll > Americas > Canada >Payroll > Bank Transfer
> Print Cheque
Program Run Date Using the pull down menu select your program run
identifier. This will automatically populate the fields
Program Run Date and Identification Feature.
Enter Paying company code 4000
House Bank CTYBK
Account ID PYRLL
Cheque Lot # Your group number

Select Execute icon

Once the Print Cheque has been created, select the Print Preview button to
view your documents.

Select each document and review the information using the display icon.

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 Unit: Integration to Accounting

Topic: Posting payroll results to accounting

 Transfer payroll results to FI

The payroll process has been completed and the payroll results must be
posted to accounting for the payroll accounting area. In order to post to
accounting, a posting run must be executed to create the documents. The
documents are verified and then posted.

1. Release, run and exit payroll for payroll area 4# for pay period 18.YYYY.

Human Resources > Payroll > Americas > Canada >Payroll > Release Payroll
Select ‘YES’ in the dialogue box

Human Resources > Payroll > Americas > Canada >Payroll > Start Payroll
Verify that the payroll accounting area is correct in both the payroll period
and selection section, select the Display Log check box and select the Execute
icon .

Human Resources >Payroll > Americas > Canada > Payroll > Exit Payroll
Select ‘YES’ in the dialogue box.

2. Perform the transfer to accounting using a simulation run for all employees in payroll
area 4# for pay period 18.YYYY, posting according to the period definition.
Human Resources > Payroll > Americas > Canada >Subsequent Activities >
Per Payroll Period > Evaluation > Posting to Accounting > Execute Posting
Run

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 Payroll Period Payroll Area 4#
Selection Payroll Area 4#
Type of Document Select ‘S’ for a simulation run
Output Log Select check box
Execute

3. Verify that all employees have processed successfully. If there are errors, identify the
wage type and verify the posting attributes for the wage type.
Browse through the log
Identify the amount for the balance that has not cleared for the employee
Verify the payroll results for the employee and identify the wage type that has
not been posted
Verify the configuration for the posting attributes for the wage type
IMG Path: Payroll > Payroll Canada > Posting to Financial Accounting >
Activities in the HR-System > Wage Type Maintenance > Define
wage type posting attributes
Select New Entries Enter your wage type 95##
Start Date 01/01/1900
End Date 31/12/9999
Select Posting a wage type on the menu on the left side
Select New Entries Enter No 1
V +
Symbolic Account 07D9
End Date (31/12/9999)
Save your entries

4. Perform the transfer to accounting again using a simulation run for all employees in
payroll area 4#, for pay period 18.YYYY, posting according to the period definition and
verify. If error free, process the trasfer for a live production run.
Human Resources > Payroll > Americas > Canada >Subsequent Activities >
Per Payroll Period > Evaluation > Posting to Accounting > Execute Posting
Run
Payroll Period Payroll Area 4#
Selection Payroll Area 4#

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 Type of Document Select ‘S’ for a simulation run or “P” for a live
production run
Output Log Select check box
Execute

5. Display the posting run documents.

From the SAP Easy Access Menu, select Process Posting run.
Select your document and click on the display “Display Settlement
Documents” icon to view details.
Select your document and click on the “Display Line Items” icon . Double
click on any line to view additional information.
Go back to the previous screen.

6. Release the accounting documents.

From the Posting to Accounting: Document Overview screen, select your
document and click on the “Release Document” icon .
To release the documents, select YES.
Go back one screen to the Display Posting Run screen.

7. Post the accounting run.

To post, select your posting run and click on the “Post Documents” icon .
Click on post IMMEDIATELY.
Go back one screen to the Display Posting Run screen.

8. Display the accounting documents.

From the menu bar, click on Edit and select “Filter > Delete Filter”.
Select your posted document run and click on the “Display Settlement
Document” icon .
Select your document, click on “Go To” from the menu bar and select
“Accounting Documents”.
Select an accounting document to view.

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 Unit: Third Party Remittance

Topic: Transfer third party remittance to accounting

 Transfer payroll results to accounting for third party remittance

The payroll process has been completed and the payroll results have been
posted to accounting for the payroll accounting area. The Caliber “A”
Bicycle Company must now send the appropriate payments to the
accounting department for the creditors to be paid.

1. In order for the new wage types that were assigned to your employees in the deduction
section of the exercises to be paid using Third Party Remittance, you must assign the
wage types to an HR payee. Verify that the wage type 92#A, has been added to the
HR creditor grouping for United Way.

From the IMG Menu Path: Payroll > Payroll Canada > Third Party
Remittance > HR Payee Maintenance > Maintain HR payees for other
remittance

Select HR Payee 70000001 United Way

Double Click Wage types for HR Creditor grouping from the menu on the
left and hit the enter key when presented with the dialogue box

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 2. Check the processing class for your wage type 92#A and ensure that the correct
processing classes are assigned.

From the IMG Menu Path: Payroll > Payroll Canada > Third Party
Remittance > Wage Type Maintenance > Maintain Wage Types for
Remittances
Select Your wage type 92#A and verify the following processing
classes
Processing class 68 should be blank
Processing class 73 should have a value of 1
Processing class 78 should have a value of 1

3. Execute the Evaluation Run for Third Party Remittance for pay period 18.YYYY and
record the number of the TemSe objects.
Human Resources > Payroll > Americas > Canada >Subsequent Activities >
Per Payroll Period > Evaluation > Third Party Remittance > Evaluation Run
Payroll Period Payroll Area 4#
Selection Payroll Area 4#
Payroll Schema K500
Display Log Select check box
Test Run Indicator Remove (if selected)
Select Execute icon
Record the two file numbers HR_CALCU_*.

4. Store the Evaluation Run in the Third Party Remittance tables. This step is necessary
in order for the posting to take place.
Human Resources > Payroll > Americas > Canada >Subsequent Activities >
Per Payroll Period > Evaluation > Third Party Remittance > Store the
evaluation run
Import Cumulated Remittance: Using the pull down list icon , select
your file number previously recorded
Import Individual Remittance: Using the pull down list icon , select
your file number previously recorded
Parameters: Select Production Mode radio button if
you do not wish to do a test run

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 Select: Execute icon

Display dialog summarized appears. Green check to see report

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 Unit: Payroll Reporting

Topic: R/3 Standard Payroll Reports

 Work with the Remuneration Statement

 Work with the Payroll Journal

After each payroll run, the employee receives a statement showing his/her
earning and deductions. The payroll department also needs to keep a
payroll journal for all employees in the payroll area.

1. Process the Remuneration statements for your employees in payroll area 4# for pay
period 18.YYYY.
Human Resources > Payroll > Americas > Canada > Payroll > Remuneration
Statement
Your payroll area and payroll form will default. Select the execute button.

2. Process the Payroll Journal for your employees in payroll are 5# for pay period
13.YYYY.
Human Resources > Payroll > Americas > Canada > Payroll > Subsequent
Activities > Per Payroll Period > Lists / Statistics > Payroll Journal
Select Payroll Period button – your payroll area – select the execute
button

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