1. Customizing SAP Remuneration Statement
Co-development with SAP

2. 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

3. About City of Vancouver
Approximately 9,000 employees
16 different bargaining units
Live with SAP since Jan 1, (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.

4. 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
Qualifications Catalogue
Performance Development
Training and Events Management
Manager’s Desk Top

5. 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

6. 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

7. 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

8. 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

9. The Problem
Dates

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. Demo

19. Demo - Overtime
Paid OT
Banked OT

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

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

22. Demo – Acting Pay
Acting pay on banked OT

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

24. 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

25. 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

26. 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

27. 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

28. 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’

29. 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

30. Contacts Eyad Khadra Livia Lowe eyad_khadra@city.vancouver.bc.ca
(604)
Livia Lowe
(604)

31. COMMENTS
uestions

32. Thank you for attending!
Please remember to complete and return your evaluation form following this session.
Session Code: 2205