Payroll Verification Module: EC Payroll

The Nexus Suite Payroll Verification Module provides Organisations with a fast and simple “end to end” payroll parallel run process (pay result comparison, analysis, tracking and reporting) to ensure the integrity of your newly implemented SAP Cloud Payroll solution, all carried out within the SAP Cloud Payroll system itself.

Results from the legacy payroll system (either non-SAP or on-premise SAP payroll systems) are automatically compared with the SAP Cloud Payroll results, resulting in a comprehensive employee and pay code comparison that then forms the basis of the analysis phase of your payroll parallel process; in addition the built-in reporting capability ensures that every aspect of the verification is traceable and accessible, and can be targeted at the required audience (summarised reporting for project management, detailed reporting for analysis resources).

Payroll Verification Module: On-going benefits within an EC Payroll System

 

Context of Use:

  • Validation of SAP delivered System Updates which occur twice yearly
  • Validation of periodic customer configuration work (e.g. by internal staff or external support providers)

Reason for use:

  • Risk mitigation to highlight unexpected variations in pay introduced by system changes (SAP delivered or customer initiated)
  • Speed of use, to examine and analyse the entire workforce, in minutes
  • Audit, as all comparisons (down to individual employee and Wage Type) and reasons records for differences found are retained within the Nexus Suite Payroll Verification Module for future reference

Process to follow:

Note: unless otherwise specified all changes depicted within the following steps occur in the Employee Central Payroll Testing system

1. Apply system updates/configuration updates to the Employee Central Payroll Testing system
2. Request Employee Data copy from EC Payroll production system to EC Payroll testing system
3. Remove the latest Posting documents via transaction PCP0 which will allow payroll to be reprocessed
4. Remove the banking EFT flag against the staff using standard Employee Central Payroll utility
5. Reprocess the latest payroll in entirety
6. Execute the Payroll Verification Module comparing latest Employee Central Payroll Production system pay to Employee Central Payroll Test system pay
7. Analyse any differences or anomalies found and record their underlying reasons
8. If required, correct configuration in Employee Central Payroll Development system, transport to Employee Central Payroll Test system, and then repeat steps 5 to 7 above until payroll is correct

 

Significant Task Timelines:

  • Copy of Employee Central Payroll Production system to the Employee Central Payroll Test system for employee data: SAP Cloud Operations require a lead time of one week to plan, the copy process occurs overnight on the scheduled date
  • Removal of posting/EFT flags in Employee Central Payroll Test system: 15 minutes
  • Reprocessing Payroll in Employee Central Payroll Test system: this is dependent on company size and would be equal to the time taken to process the normal productive payroll
  • Execution of Nexus Payroll Verification comparison across entire workforce: 5 to 10 minutes

 

Some of the key business benefits delivered by the Payroll Verification Module:

  • Allows verification of payroll calculation results between nominated systems (i.e. Employee Central Payroll Production system pay to Employee Central Payroll Test system pay)
  • Provides a central repository to manage the verification process – all verification data comparison, result analysis and reporting is performed within the Nexus Payroll Verification Module
  • Verification result reporting is completely user definable and allows for the output of overview or detailed reports allowing you to create reports that are relevant to their intended audience
  • The Payroll Verification Workbench provides a full audit trail for every verification that is performed
  • Checking the impact on payroll calculations from any changes (SAP delivered or customer initiated) becomes a very simple, repeatable process and significantly reduces the risk of regression impacts that are associated with these changes; the Payroll Verification Module not only instantly identifies the impacts that may be caused by the change on the intended employee subsection, but also ensures that there is no associated regression impacts on the remaining employee base

PV Analysis

Time/Cost Savings:

  • Comprehensive testing of the payroll calculation and all its outputs would be required to be confident that there is zero impact resulting from system changes. Without the use of the Nexus Suite Payroll Verification Module this testing (when done properly) can take anywhere between 1 and 3 weeks depending on the organisation size, and will take up a great deal of time of multiple key resources (i.e. payroll processing staff!) and will still not be able to cover the entire workforce
  • The Payroll Verification Module allows for only discrepancies to be investigated, thus greatly reducing the impact on the working time and efficiency of business as usual staff