Westernacher

Payroll Adapter

In companies with multiple national and international subsidiaries, centralized payroll runs using SAP-HR, or they may be implemented only with difficulty.

• specific collective agreements for the various subsidiaries
• country-specific accounting rules
• subsidiary-specific SAP add-ons

As a result, integrating payroll information from decentralized systems into a central SAP system can sometimes be too costly.
In these cases, a “Payroll Adapter,” which integrates all essential payroll information for the subsidiaries into the parent company’s SAP system, is extremely useful.

The solution: the Westernacher Payroll Adapter

The Payroll Adapter automatically integrates the results of your (SAP and non-SAP) subsidiaries’ payroll and runs into your central SAP system at personal number level. All popular transfer methods (file transfer, IDoc, direct ALE-interconnection) are supported.

The Payroll Adapter uses freely-definable, sender-specific cumulation and conversion rules to automatically create the payroll results clusters. (similar to payroll account transfer).

The Payroll Adapter automatically transfers all the essential Basic Pay components from the results data to the master data areas (and to Infotypes 8, 14 and 15 in particular), thus making it available for further evaluations (e.g.,: SAP Compensation Management, Personal Cost Planning).

The results data is integrated into the system in compliance with SAP-HR standard, making it available to all other SAP functions (e.g. consolidated transfer to FI/CO), HR standard evaluations or for the integration into the Business Warehouse.

Application scenario 1

Problem:

A group wants to create a standardized HR reporting system for all its subsidiaries, but is balking at the costs involved in processing all payroll systems using a centralized system.

Solution:

Payroll continues to be run on the subsidiary’s decentralized system, while the Payroll Adapter ensures the complete SAP-compliant integration of information from the decentralized payroll, which then runs into the group’s reporting system.

Application scenario 2

Problem:

A parent company wants a subsidiary to be modeled in the group’s SAP system as a company code. However, integrating the subsidiary’s personnel accounting in the group’s HR system would involve considerable time and effort.

Solution:

Payroll continues to be run on the subsidiary’s decentralized system. Then, in addition to the HR reporting functions mentioned in Scenario 1, the Payroll Adapter ensures the complete SAP-compliant integration of payroll. It then runs into the operative Financial Accounting components (FI, CO, BW) of the group’s system.

Application Scenario 3

Problem:

A parent company wants one of its subsidiaries to be integrated very quickly into the group’s SAP-HR system. While the personnel administration can be easily integrated, different provisions in collective agreements or country- specific factors make integrating payroll more difficult.

Solution:

Payroll will continue to be run on the subsidiary’s decentralized system for the time being, while the Payroll Adapter ensures that the payroll information is integrated into the productive Organizational Management and Personal Administration subcomponents. This lays the foundations for the staggered modeling of payroll runs in the group system.

Summary: The Payroll Adapter

• Offers automatic integration of major payroll components of all subsidiaries into one central SAP-system

• Is a very cost-effective solution, since additional customizing of subsidiary-specific SAP settlements is not necessary

• Ensures all decentralized personnel costs are verified in a standardized manner before being transferred to FI/CO as well as into a Data Warehouse

• Is based on a modular concept and therefore can be applied to different application scenarios (pages to be continued)