Payroll Auditing and Error Corrections

Payroll Auditing and Corrections Purpose Understand key concepts : Payroll errors, Time errors, Master Data errors, Payroll Services Delivery Model (PSDM). Understand the process for correcting errors in the standard Payroll cycle. Learn tools for identifying and correcting errors. Understand and explain common errors Payroll Errors – missing infotypes, missing positions, being in the wrong payroll area, missing cost centres, missing bank info, etc Time Errors – Work Schedules (biggest error infotype 7), quota related errors, missing vacation service date Master Data Errors – Found in the Master Data Completeness check Correct errors based on the spool file findings Identifying errors transaction code SP01 - PT60 (Time Evaluation), PT_ERL00 (Time Eval Message Display)

Payroll Auditing and Corrections Key Concepts Master Data, Time, and Payroll errors. Iterative (Repetitive) Processes Accessing Spool files (SP01) Interpreting Spool File Errors Match Code W Business Process - Off Cycle Procedure Iterative Process – CATA, Time Eval (Nightly) Match code W – Indicator that identifies employees for whom payroll has been run and errors produced were identified and corrected. The process must be run repetitively until all errors are cleared otherwise an employee will be locked during payroll processing. (INFOTYPE 3) This is a payroll services process. Business Process surrounding Off Cycle

Payroll Auditing and Corrections MODULE1 - The Payroll Service Delivery Model for the “Standard” Payroll Cycle:

MODULE1 - The Payroll Service Delivery Model for the “Standard” Payroll Cycle: OBJECTIVES …. Describe the functions/activities to be performed for each step in the bi-weekly payroll cycle Review the timing/sequence in which each function/activity will be performed Display the result(s) each function/activity will generate when performed Identify the stakeholder(s) who will be responsible for the performance of each function/activity.

“Standard” Payroll Cycle Service Delivery Model 1. Record attendance and absences (‘A&A’) 2. Upload A&A to SAP, identify and correct errors 3. Run CATA Transfer to HR, retrieve spoolfiles, interpret and correct errors, and Run Time Evaluation, identify and correct errors 4A. Run Pre-Payroll Audit Reports, identify and correct errors. 4B Master Data Completeness Check 12. Run FI/CO REAL & identify and correct errors 15. Print and distribute cheques 16. Print and distribute Pay Advices Future “Standard” Payroll Cycle 11. Send tape to the bank 9. Run FI/CO, Third Party Remittance, Pre-DME Simulation and Match Code W REAL Payroll, 13. Run Third Party Remittance REAL and identify and correct errors 14. Release Third Party Remittance documents to Financials 10. Run Pre-DME and DME REAL and identify and correct errors 8. Run Payroll REAL again along with Time Evaluation and CATA, identify and correct errors (this is an iterative process which may occur several times) 7. Run FI/CO, Third Party Remittance and Pre-DME Simulation and identify and correct errors 6. Run Pay REAL, followed by CATA and Time Evaluation 5. Run Payroll Simulation, identify and correct errors Pre-Payroll Post-Payroll

Payroll Auditing and Corrections MODULE 2 - Transaction SP01

MODULE 2 - Transaction SP01 OBJECTIVES …. Provide an overview of the transaction SP01 Review the spool files that will be created during payroll cycle Demonstrate Spool File Exercise opening spool files

SP01 Transaction SP01 Output Controller: Spool Request Selection Screen Ensure that the User name is correct and the from and to dates are correct for the period you wish to review jobs for. The default are your User Name and the current date .

Spool Files This is a screen shot of all Company Codes and Payroll Areas. Your authorization will only allow you to see your particular company code.

MODULE 2 - Transaction SP01 Exercise- Using SP01 See BPP SP01

MODULE 2 - Transaction SP01 -Authorizations Process step Userid Spool title Role CATA/CAT6 BATCH_ID *CAT* Time admin Time Evaluation *TIME* Payroll simulation *PAY*SIM* Payroll Master data compl. Check *MASTER* Pre-payroll audit report *PRE*PAY* Payroll production full run *PAY*FULL* Payroll production match code W *PAY*MATCH* FICO posting simulation *FICO*SIM* 3PR posting simulation *3PR*SIM* DME bank check simulation *DME*SIM* These are the SAP jobs that will be run during the payroll cycle. The created by field is where you enter the batch_id

MODULE 3 - Time Entry and Transfer to HR OBJECTIVES …. Provide an overview of the process for entering absences and attendances through CAT2, Web GUI, and Time sheet upload and through PA Actions CATA Transfer to HR and error correction Time Evaluation and Error Correction Identify Roles and Responsibilities For school boards entering time via the various tools, reviewing the spools, and making the corrections in a timely manner. Payroll Services is responsible for running the jobs which in turn creates the spools

“Standard” Payroll Cycle Service Delivery Model Payroll Function/Activity Functional Responsibility Step #1 & 2.Record attendance and absences (A&A) via upload, CAT2, PA Actions Begin entering time DAY 1 of the payroll cycle to day 5 of the payroll cycle Time Clerks (Site and Board Office) Time Administrators(Board Office) HR Administrators (PA40 Actions) Attendance & absences recorded for each employee (positive and exception paid employees) Master Data changes

“Standard” Payroll Cycle Service Delivery Model Transaction CAT2 - Cross Application Time Sheet (CATS) is a tool used to perform the entry of time attendance and absence data Attendance & absences recorded for each employee (positive and exception paid employees) will be stored here whether they were entered directly in CAT2, using Web GUI or via the Timesheet Upload Absences entered using PA40 Actions will be made directly into HR

“Standard” Payroll Cycle Service Delivery Model Payroll Function/Activity Functional Responsibility Step #3. CATA – Transfer of CATS entries to HR and Run Time Evaluation Day 1-11 Centralized with DOF, Payroll Services Division with School Boards also performing the function on an individual, as required basis CATA Transfers attendance and absence data from CATS to HR New entries, corrections and deletions are all transferred to HR so that CATS and HR are always in sync Time Evaluation Generates attendance and absence payroll earning codes Generates errors for escalation, analysis, and resolution Time Eval will be run by Company code and Payroll Area Can be run for individual employees by board. Review Time Eval Errors

“Standard” Payroll Cycle Service Delivery Model CAT2 Entry Enter Time Data Transfer CATA CATA – Transfer from CATS to HR After the time data has been entered in CATS it needs to be transferred to HR Time Management. This is done in an automatic process that will run nightly in a batch. This can also be done manually by the time administrator role. CATA will be run by Company code and Payroll Area

“Standard” Payroll Cycle Service Delivery Model CATA Errors (sample – the attendance is colliding with an absence that already exists in HR) Initial Transfer – All new or changed (edited) entries Repeat Transfer – Entries that could not be transferred during the initial transfer that are being re-sent now that HR Master Data has been corrected

Standard” Payroll Cycle Service Delivery Model Time Evaluation Review Time Eval Errors (sample – employee was rejected because of a work schedule error. Time evaluation must be run with the log on for this employee to see exactly why the error occurred) This will have to be communicated to the time administrator. Remember, this is for the rejected entries. Time Evaluation immediately stops for an employee when it reaches an error. It will move onto the next employee. Time Evaluation errors are “stackable”. Just because you fix an error one day does not mean that when Time Evaluation resumes for an employee it will not encounter another error for that same day or on a future day.

Standard” Payroll Cycle Service Delivery Model Time evaluation could not be processed on the employee because their HR Master data was still being edited by an end user, therefore payroll processing for that employee was ceased.

MODULE 4a - Pre-Payroll Audit Report OBJECTIVES …. Provide an overview of the process for running the Pre- Payroll Audit Report Identify the spool files generated by this report Review information contained in spool Identify Roles and Responsibilities For school boards reviewing the spools, and making the corrections in a timely manner. Payroll Services is responsible for running the jobs which in turn creates the spools

Standard” Payroll Cycle Service Delivery Model Payroll Function/Activity Functional Responsibility Step #4A. Run Pre-Payroll Audit Reports Day 1 and 10 Centralized report generation with DOF, Payroll Services Division Decentralized to School Boards for report review, analysis, and error correction Identifies employees who have had time entry or actions processed. This will give you the opportunity to identify possible errors on an individual. This streamlines the error escalation, analysis, and resolution process Auditing and analysis tool

Pre-Payroll Audit Report Transaction code: ZRHRPY006 Creates the following reports: Retro-changes to HR master data - Audit Future-changes to HR master data - Audit Time entries overwritten - Audit Employees with incomplete time evaluation results - Audit Excluded employees (Locked Employees) – Information that will indicate that these EE’s are excluded from payroll Number of employees for retro-active accounting by date – Information to indicate how big you payroll will be Employees changed payroll area within the payroll period – Information to avoid complicated situation When is it run? It will be run as one of the first steps in the payroll cycle, and just before starting the payroll execution cycle

Pre-Payroll Audit Report Report 1- Retro-changes to HR master data Spool file Name PY_CCXX_PAXX_PRE_PAYROLL_AUDIT_RETRO_CHGS_TO_MD_RPT List the master data that has been added, changed or deleted retro-actively. These changes will automatically cause a retro calculation.

Report 1-Retro Changes to Master Data This report lists the master data that has been added, changed or deleted retro-actively. These changes will automatically cause a retro calculation. The report shows the employee identification, the Info Type, the date/user of the change and the fields with their values that have been changed

Pre-Payroll Audit Report Report 2- Future-changes to HR master data Spoolfile Name PY_CCXX_PAXX_PRE_PAYROLL_AUDIT_FUTURE_CHGS_TO_MD_RPT List the master data that has been added, changed or deleted for future payroll executions.

Report 2.Future changes to HR Master data This report lists the master data that has been added, changed or deleted for future payroll executions. The report shows the employee identification, the Info Type, the date/user of the change and the fields with their values that have been changed  

Pre-Payroll Audit Report Report 3- Time entries overwritten Spool file Name PY_CCXX_PAXX_PRE_PAYROLL_AUDIT_TIME_ENTRIES_OVERWRITTEN_RPT List the time data that has been added or changed during the selected period.

Report 3- Time Entries Overwritten This report lists the time data that has been added or changed during the selected period. The report shows the employee identification, the Info Type, the date/user of the change and the fields with their values that have been changed

Pre-Payroll Audit Report Report 4- Employees with incomplete time evaluation results Spoolfile Name PY_CCXX_PAXX_PRE_PAYROLL_AUDIT_TIME_EVAL_INCOMPLETE_RPT List the employees that either had an error executing time evaluation or don’t have up-to-date time evaluation results.