How to reduce Payroll closure window with SAP Payroll Control Center (Part 2 – Solutions)

By Akshay Patil – Payroll Consultant.

Following on from part 1, this blog explores some solutions to a common challenge faced by many organisations – how can HR teams ensure that the correct employee data is entered quick enough before the regular payroll closure window? These solutions enable the payroll closure window to be reduced, thereby allowing HR more time to input payroll data before any amendments can be made.

Further Solutions:

  • If the payroll team is large, the monitoring and resolutions of payroll exceptions can take up a lot of time and effort as the payroll managers, in most cases, rely on emails and individual conversations to understand the progress of exception resolution.

The manager’s role within PCC includes a very useful dashboard and progress monitoring tools. Payroll managers can dynamically change the exceptions/errors assigned to the administrators by considering the workload and the progress made by various team members.

In addition, the feature pack 4 from SAP offers individual administrators an option to look at the errors/exceptions assigned to the payroll area and pro-actively assign any unassigned issues/error to themselves.

  • A number of issues/exceptions are identified much later in the payroll process, for e.g., missing cost centers, missing GL account, overpayments recovery, and negative net pay handling. These issues/exceptions might involve a considerable amount of time and effort in co-coordinating with relevant non-payroll teams to implement a solution.

As PCC is an open framework, a lot of the validations (both master data and payroll results related) can be built in. These validations are triggered much earlier in the payroll process thus, reducing any unexpected errors once the payroll is released. E.g., any missing cost centers against employees can be identified during the validation stage instead of waiting until a posting simulation document is generated.

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  • In payroll teams where the employee attrition rate is high, a further delay is caused in the payroll processing as new members within the team need to be trained in identifying the root cause of the issue and identify appropriate solutions.

The Payroll Control Center has been designed to be an intuitive tool. In addition, it can be configured to highlight the root cause of the issue, provide further details on the possible solutions and direct the payroll administrator to the area within the system to apply corrections. Because of this, the time taken to analyse the issue and implement a solution can be reduced. In addition, the time required to train any new team members is minimum.

Conclusion:

The payroll control center does not negate the need for an effective hand off between teams in an end to end process. However, with PCC, the payroll process can be made much more efficient by reducing the payroll closure window thereby allowing various non-payroll teams more time to input transactional HR data.

In both parts of this blog series, I hope I’ve explained why organisations should keep the payroll closure window to a minimum and how this can be achieved with the SAP Payroll Control Centre. If you’d like to discuss the SAP Control Center in more detail, leave a comment down below or click here for more information.

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