Payroll Challenge

[Former Member]

Hello Payroll Experts!!

I am calling it Challenge because whoever I spoke to hasnu2019t given me a clear answer, and most of the time it has been u201Cnot possibleu201D.

Logic:

1. There is a Wage Type (which is defined as neither Payment nor Deduction). Lets call it W1

2. W1 has following settings related to classes:

a. Processing Class 1: Assignment to valuation bases = 0 (Wage type is not included in a valuation basis)

b. Processing Class 20: Cumulation and storage at end of gross part = 1 (Transfer unchanged)

c. Cumulation Class 1: Total gross amount = Unchecked

d. Cumulation Class 10: Net payments/deductions = Unchecked

e. Reset all classes have either default or Zero value.

Explanation:

We are defining a Wage W1 which neither adds nor deducts the salary of an employee. However, I want W1 to be processed in Payroll and finally when I do the posting it should be able to post to respective G/L account.

Reason for activity:

Client wants to record the amount of W1 in HR, so that later a report can be generated. However, W1 is not a payment or deduction. It is a Cost (Training Cost, Visa Cost etc), which has to be linked to an employee.

I agree there is a work around to this issue; however, I am more interested in knowing if the above logic is right and will I be able to get the desired result of posting the Wage Type value to G/L Account, without making payment or deduction to employee payroll?

I hope you enjoy this case study as much as I am enjoying to research on it.

Thanks

Yash

[Former Member · Accepted solution]

If it is not a payment or deduction then why do you want to post it?

Did you talk to FI person coz these costs (Training cost or visa cost) are liability for the business and somebody needs to bear those cost. You can't really keep it open for no reason.

As well can you elaborate your sentence "Wage W1 which neither adds nor deducts the salary of an employee" ????? If you are not processing that WT then why do you want to create it this way which is not making any difference anywhere?

I think this requirement needs a revision.

Arti

[Former Member · Accepted solution]

Hi Arti

I want to post them because requirement is to post these costs from HR.

I do agree that these are business costs, and in FI "Employee as Vendor" is the easiest solution. So basically, the traditional method is posting from "Employee as Vendor" to G/L. (Please excuse me, I am not from FI/CO, so my vocabulary might be little weak there). Now, what I am trying to do is to post from "Employee HR Master Data/Payroll" to G/L. Does that makes things clear?

Now the question might be why from "Employee HR Master Data/Payroll" to G/L? So that these costs can be viewed in HR Master Data itself, without running any special report.

Thanks

Yash

[Former Member · Accepted solution]

Hi Yash,

You can create Employee as vendor in FI but I would suggest instead of using FI/CO payroll posting functionality you can do following:

1. Create WT with required charateristics and make entries on HCM side.

2. Create Manual JE's in FI for the same training cost, Visa cost and so on and that way you dont have to set up those WT's in Payroll-FI/CO Integration.

You can set up background job or LSMW each pay period for manual JE's of such cost.

I hope this helps.

Arti

[Former Member · Accepted solution]

Hi Arti

You and I are thinking on the same lines. I was also thinking of a logic where I create a WT only for recording purpose in HR and not integrate it with Payroll/FI posting; that way we can at least win half battle.

I wish it can also be integrated with Payroll posting; that way I can reduce the burden on my FI/CO fellow partner and it will look like a full-fledge solution.

Logically, I think it can still work.

1. Store the Value of WT in HR (Say WT1=5000)

2. Define the property of WT as u201CDo not add/delete WT1 in Grossu201D

3. Include WT1 in Payroll Processing as W1=Transfer Unchanged

4. At the end of Payroll Processing W1 will hold its original value; W1=5000

5. Post W1=1000 to Symbolic Account and then to G/L Account.

What do you say? May be I will try this during our realization phase. Currently I am overloaded with BBP work, and also do not have access to Test/QA Server.

I am not sure at what level you are working but I wanted to tell you u201CYou are good!u201D. Also, I believe itu2019s a blessing to have good people around you.

Thanks

Yash

[Former Member · Accepted solution]

Wonderful....

I think the charateristics you're defining would be sufficient. Just let me know if you need further help in testing the WT.

Good Luck for BBP.

Arti