Customizing SAP Remuneration Statement Co-development with SAP

Agenda About City of Vancouver Basic Payroll Process and Challenges Options for Change New SAP Solution Overall Business Process – from Time Entry to Employee Lessons Learned Business Benefits Questions

About City of Vancouver Approximately 9,000 employees 16 different bargaining units Live with SAP since Jan 1, 1999 (Payroll, June 4, 1999) Currently on version 4.6C Implemented Financials, Materials Management and Human Resources Adding Plant Maintenance and Asset Accounting (May 26, 2003) 14 union bargaining units and 2 exempt/management staff.

About City of Vancouver (contd..) Current HR footprint Personnel Administration Organizational Management Benefits CATS Time Management Net Payroll Environmental Health & Safety HR modules being implemented 2003-2004 Qualifications Catalogue Performance Development Training and Events Management Manager’s Desk Top

Project Business Drivers Visibility and Acceptance of SAP Remuneration Statement is the only part of SAP many employees see Departments with high incidence of exception time wanted details and dates Pay advice was difficult to read and interpret Pay advice reported Year-to-Date on a ‘when earned’ rather than a ‘when paid’ basis Concerns about the security of printing and distribution

Project Business Drivers (cont..) Operational Efficiency Concerns about speed, cost and control of the outsourced printing process Employees looked to payroll administrators for explanations of their pay advice

Basic Payroll Process SAP retro payroll re-runs previous periods in current period Payroll cluster Results Table includes wage types with payroll splits like : WPBP : Work Place Basic Pay TAX1 : Master Data for Tax Calculation (IT 0224) BT : Payment Information (IT009) V0 : Variable Assignment (e.g. benefits, overtime) Payroll cluster gives no indication as to the dates attached to a specific wage type

Basic Payroll Process (contd..) SAP Time Evaluation CATS for time entry Time evaluation runs nightly Time evaluation updates balances, wage types and quota transactions in the time cluster (ZL, ZES, SALDO) ZL table includes all wage types generated for each day Integration between time and payroll Payroll reads time wage types (ZL table) from start date of the pay period up to the end date of the pay period Payroll reads ZL table as of payroll run date Payroll reads a snap shot of time data

The Problem Dates

The Work Around Previous Procedure Problems with work around Bi-Weekly Activity Report from time cluster Time entry deadlines set to avoid changes to Time Data after running payroll and before running the Activity report and remuneration statement. Pay Advice included the summary of OT activity in current period and adjustments to prior periods Problems with work around Procedure very hard to follow Two reports instead of one; didn’t always reconcile Numerous employee inquiries Employee dissatisfaction

Options 1. In-house solution – modify SAP code Required specialized consulting skills Maintenance headache with every upgrade Potential performance issues SAP changes could make solution difficult to maintain 2. Work with SAP to develop a joint solution More expensive Longer process Need SAP buy-in and City funding BUT Code change would automatically be part of future SAP releases

SAP Solution - Approach Highlighted our issue in user focus session Gathered feedback from SAP HR clients in Canada Provided details of desired solution to SAP’s development team Completed Proof of Concept with SAP Canada Convinced City Management of the value of a standard SAP solution Tried to interest other clients in sharing costs Developed Statement of Work with SAP  payment on successful completion

SAP Solution (cont..) Go-live March 28, 2003 Discussions with SAP focused on how to Load dates from ZL table  V0 split in results table Build a new rule to load the dates into V0 table Provide the ability to print V0 split on the pay advice Time needed to develop SAP solution 1 Year after raising the issue in user focus sessions 3 Months after having the statement of work ready Time needed for in-house configuration 40 days of business analyst time; 6 months elapsed 20 days of end user testing Go-live March 28, 2003

SAP Solution - Details 1. Load dates from ZL table  V0 split in results table Table to resolve dates issue V_T51P1: Add wage types using D7 indicator for those that should print with dates. Tables to resolve other issues V_512W_D: Identify wage type groups and print conditions for pay advice (Evaluation Class 02) V_T54C4: Define New Calendar Type (K) and Assign Calendar Types to Period Parameters V_T54C6: Define “When Paid” cumulation V_ T54C3: Add wage types for K cumulation

SAP Solution - Overview Payroll Results Payroll Schema OT Bank & OT Source WT’s Update Payroll Results PRCL 51? Process Payroll custom schema Process Time custom schema Process Overtime Add WT with dates Yes ZVOT All other WT’s ZT00 Z000 Dates Required ? Add WT with no dates ZZV2 No

SAP Solution – Details (contd..) 2. Create a rule to load the dates  results table Z000 calls Schema ZT00 Schema ZT00 processes time data ZT00 calls rule ZVOT with function ZLIT Function ZLIT will import wage types from ZL table into IT table Rule ZVOT checks processing class 51 ZVOT updates payroll results with OT source and OT bank wage types For all other wage types, rule ZZV2 is called Rule ZZV2 checks D7 indicator in table V_T15P1 Rule ZZV2 determines which Wage Types should be processed with dates and adds them to the V0 cluster

SAP Solution – Details (contd..) 3. Provide ability to print V0 split on the pay advice Created new table in the remuneration statement Table RT_X includes the date of each wage type Field CDATE is available to print as part of the line layout Implemented rules to split retroactive entries from current period entries R1 rule will print current period entries only R2 rule will print retroactive adjustments only Identified Split 9 as date split Ran program RPUCRT0P to rebuild CRT with K cumulation

Demo

Demo - Overtime Paid OT Banked OT

Demo - New Pay Advice (OT) Header Paid OT in current PP Details Ending Balance Starting Balance

Demo – Retroactive Adjustment a) Reduce banked hours by 2 b) Add 2 hours to paid OT

Demo – Acting Pay Acting pay on banked OT

Demo – New Pay Advice (Retro) Retro detail with dates on paid OT Reduced Banked OT Banked OT at Acting Rate

End to End Business Process Download to UNIX Run Payroll Run Remuneration Statement Run VIPP* Print Output Files Stuff and Fold *Variable Intelligent Postscript Printware

Secondary Processing Moved printing of pay advice in house (Xerox’s Variable Intelligent Postscript Printware) Improved look multiple font sizes and shading include City logo new formatting for messages Increased security sealed window envelope security clearance for employees Reduced costs increased # lines per page duplex printing multiple pages per envelope

Secondary Processing (contd..) Moved printing of pay advice in house (contd.) Increased Accuracy Re-printing function for individual employee statements Data validation routine to verify processing accuracy Reporting on numbers of multi-page statements Improved Distribution Output split by employee groups to better manage handling

Lessons Learned - SAP Positive experience co-developing with SAP Clear statement of work minimizes cost Business involvement is critical Initial design Final look and results Should have tried harder to share costs and ideas with other SAP users Can have two Pay Advice forms Long form with all dates (used for regular payroll) Short form without dates (for major retroactive settlements) Test, test, test

Lessons Learned – Overall Mechanical processes more difficult to manage than software aspects of the project Positioning of the window in the envelope is critical to smooth processing VIPP software allows any statement to be recreated – useful for ‘snarl ups’ Useful to run the entire payroll through the full end to end process before ‘go live’

Additional Business Benefits Reduced query time for payroll administrators (~50%) Increased employee satisfaction with payroll, and with SAP Increased privacy and security in printing process End to end process from time entry to employee’s desk requires co-operation across the organization New dates feature could also be used when recording paid absences Code change will be part of standard Enterprise release

Contacts Eyad Khadra Livia Lowe eyad_khadra@city.vancouver.bc.ca (604) 871-6510 Livia Lowe livia_lowe@city.vancouver.bc.ca (604) 871-6520

COMMENTS uestions

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