In an SAP EC (Employee Central) Payroll implementation, there are several common pain points that often only get fully addressed after the system goes live. These pain points typically relate to complex and detailed payroll functionalities, such as work patterns, entitlement schemes, auto-enrolment, pro-rating, and average holiday pay. Here’s a detailed explanation of each:
1. Work Patterns
Customization and Complexity: Post go-live, organizations often find that their specific work patterns (e.g., shift work, flexible hours, part-time schedules) are not fully accommodated by the default configurations.
Integration Issues: The integration of work patterns with time and attendance systems can present challenges, especially when discrepancies in working hours or shifts are detected.
Overtime Calculation: Properly configuring and calculating overtime pay for various work patterns can be complex and may need refinement post go-live.
2. Entitlement Schemes
Complex Rules: Organizations often have complex entitlement schemes for leave, benefits, and other perks which might not be fully captured during initial setup.
Regulatory Compliance: Ensuring that entitlement schemes comply with local laws and regulations can be tricky and may need adjustments after the system is live.
3. Auto-Enrolment
Eligibility Criteria: Defining and maintaining correct eligibility criteria for auto-enrolment in various benefit schemes can be challenging.
Data Accuracy: Ensuring that employee data is accurate and up-to-date to facilitate correct auto-enrolment processes.
Data Validation Processes: Implementing robust data validation processes to ensure employee records are accurate.
Automated Updates: Setting up automated processes to update eligibility criteria as employee data changes (e.g., due to promotions, role changes).
4. Pro-Rating
Accurate Calculations: Ensuring accurate pro-rating of salaries, benefits, and leave entitlements based on part-time work or mid-period changes (e.g., new hires, terminations) can be difficult.
Configuration Complexities: Initial configurations may not fully capture all the scenarios where pro-rating is applicable, leading to errors in payroll.
5. Average Holiday Pay
Calculation Methods: Determining the correct method for calculating average holiday pay, especially for employees with variable pay, can be complex.
Data Requirements: The system requires accurate historical pay data to calculate average holiday pay correctly, which can be problematic if data is incomplete or inaccurate.
General Strategies for Addressing Post Go-live Issues
User Training and Support: Providing comprehensive training and ongoing support for HR and payroll staff to handle complex scenarios.
Regular Updates and Patches: Keeping the system updated with the latest patches and enhancements from SAP.
Continuous Improvement: Establishing a feedback loop with users to identify and address issues as they arise, ensuring continuous improvement of the payroll system.
By addressing these pain points proactively and continuously refining the system post go-live, organizations can achieve a more accurate and efficient payroll process in SAP EC Payroll.
Having implemented multiple Employee Central Payroll projects across the EMEA region,
Gavdi Group have both the knowledge and expertise to advise you on the pitfalls to avoid, whilst also enabling you to get a solid return on your Payroll investment – See case study below.
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About the author
Michelle is an accomplished Payroll Professional with over 8 years of experience in efficiently managing payroll operations for organisations across a wide variety of industries and sectors. Michelle is an SAP certified consultant with Gavdi Group for the past 2 years.
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