SAP Time Consulting and Integration with Payroll

Time Management has a major role in providing payroll with the necessary information to generate payments to employees and calculations for benefits. Payroll will be processed using integrated data received from the Payroll, Human Resources, Benefits and Time Modules of SAP.

At most institutions, time will be entered through CATS (Cross Application Time Sheet), ESS (Employee Self Service), MSS (Manager Self Service), and third party clocking systems . The differing third party systems on campus will interface to SAP through CATS to provide a common point of entry in the SAP system. After entered time has been released, approved, and transferred, Time Evaluation prepares the information for payroll and stores it in the time data cluster.

The process of Time Evaluation involves several key steps that integrate closely with payroll:
• Time Evaluation will calculate overtime for all employees in the system. Based on rules determined by the type of employee, SAP will calculate overtime based on 40 hours per week and/or 8 hours in a day.
• Time Evaluation will convert each type of attendance, absence, or overtime into wage types to be processed by payroll. One type of attendance or absence may generate different wage types depending on criteria defined by the Enterprise and Organizational Structures. Furthermore, attendance and absence types can be broken up into multiple wage types to represent different types of pay. For example, a 2nd Shift employee may have an attendance type of 2nd Shift that becomes two wage types, one for regular rate of pay and another for the 2nd Shift premium. In the area of generating wage types for processing Time Evaluation has a great amount of flexibility to meet most enterprise business needs and to ease reporting requirements.
• Time Evaluation will keep track of certain Time Types that will be used to determine if an employee is eligible for certain types of pay and how much they should receive.
• The Time Evaluation process is an important line of defense in catching errors prior to reaching payroll. This is accomplished by reviewing errors generated by the time driver and also through a series of reports to ensure all time has been entered, approved, and evaluated.

Payroll will be processed using data from all modules within SAP for different payroll areas. The Time Evaluation Process, which includes Time Transfer and Time Evaluation, will be scheduled to run on a nightly basis. However, as the time entry cut-off date passes the Time Evaluation Process will be run on demand. At that time, units missing time entry and errors remaining must be corrected for the payroll process to continue. When all locations have completed time input and error correction, payroll will be released for processing. When in the released status, data will be locked for all current and past period data changes, but not for future periods. At this time payroll will start performing the payroll calculations. During this time central time administrators will use standard SAP reports to determine the completeness and accuracy of time entry and the resulting output from payroll.

Retroactivity in payroll is triggered by many things including master data changes and changing time entries. It must also be noted though, that certain activities within time will also cause retro activity even though they do not directly impact pay. Examples of time data changes that could trigger Retroactivity are:
• Changes to an employee’s work schedule or FTE on Infotype 0007.
• Changes to an employee’s time entry in a past period.
• An update to an employee’s quota in a past period.
If the effective date goes back to a prior point in time or pay period, Time Evaluation will automatically recalculate and any retroactive pay that is due will be calculated by the system and the payment will be included in the next regular payroll cycle.

There are certain wage types that can be entered directly in CATS for flat payments, however they are not processed through Time Evaluation and are sent directly to payroll for processing via Infotype 2010.

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