1. © 2006 Nova Scotia Government All rights reserved. Post Payroll Activities

2. © 2006 Nova Scotia Government All rights reserved. Post Payroll Activities u Purpose Understand key concepts Review the Post Payroll PSDM Understand the Processes involved in Post-Payroll Activities Learn tools for identifying and correcting errors. Review the Off-Cycle Process

3. © 2006 Nova Scotia Government All rights reserved. Post Payroll Activities u Key Concepts Steps in The Post – Payroll Cycle DME- Bank File Transfer. FI/CO Postings Third Party Remittances Canada Savings Bonds Business Process - Off Cycle Procedure

4. © 2006 Nova Scotia Government All rights reserved. Post Payroll Activities MODULE1 - Post-Payroll Steps in The Payroll Service Delivery Model

5. © 2006 Nova Scotia Government All rights reserved. MODULE1 - Payroll Service Delivery Model Steps for Post Payroll Activities : OBJECTIVES …. Describe the functions/activities to be performed for each step in the post payroll cycle Review the timing/sequence in which each function/activity will be performed Display the result(s) each function/activity will generate when performed Identify the stakeholder(s) who will be responsible for the performance of each function/activity.

6. © 2006 Nova Scotia Government All rights reserved. “Standard” Payroll Cycle Service Delivery Model 1. Record attendance and absences (‘A&A’) 2. Upload A&A to SAP, identify and correct errors 3. Run CATA Transfer to HR, retrieve spoolfiles, interpret and correct errors, and Run Time Evaluation, identify and correct errors 4A. Run Pre-Payroll Audit Reports, identify and correct errors. 4B Master Data Completeness Check 12. Run FI/CO REAL & identify and correct errors 15. Print and distribute cheques 16. Print and distribute Pay Advices Future “Standard” Payroll Cycle 11. Send tape to the bank 9. Run FI/CO, Third Party Remittance, Pre-DME Simulation and Match Code W REAL Payroll, identify and correct errors 13. Run Third Party Remittance REAL and identify and correct errors 14. Release Third Party Remittance documents to Financials 10. Run Pre-DME and DME REAL and identify and correct errors 8. Run Payroll REAL again along with Time Evaluation and CATA, identify and correct errors (this is an iterative process which may occur several times) 7. Run FI/CO, Third Party Remittance and Pre-DME Simulation and identify and correct errors 6. Run Pay REAL, followed by CATA and Time Evaluation and identify and correct errors 5. Run Payroll Simulation, identify and correct errors Pre-Payroll Post-Payroll

7. © 2006 Nova Scotia Government All rights reserved. STEP 9 - Post Payroll Simulations OBJECTIVES …. Provide an overview of FICO Simulation Provide an overview of 3PR Simulation Provide an overview of Pre-DME Simulation Review the spool files that will be created during payroll cycle

8. © 2006 Nova Scotia Government All rights reserved. Post Payroll Steps Payroll Function/ActivityFunctional Responsibility Step #9- FICO Simulation Run on DAY 10 u Central Payroll Process u Decentralized to boards for review and error correction

9. © 2006 Nova Scotia Government All rights reserved. FICO Simulation Simulates the following to enable error identification, analysis, and resolution before the functions are performed for real: Creation of a journal entry form document and posting log Postings to GL accounts – FI/CO Creation of vendor pay files - Third Party Creation of a file for direct deposit and cheque payments – Direct Deposit

10. © 2006 Nova Scotia Government All rights reserved. Post Payroll Steps Payroll Function/ActivityFunctional Responsibility Step #9- Third Party Remittance Simulation Run on DAY 10 u Central Payroll Process u Decentralized to boards for review and error correction

11. © 2006 Nova Scotia Government All rights reserved. Third Party Remittance Simulations 3PR simulation is executed to ensure all 3PR remittance can be processed. The job spool file needs to be verified for errors. Usually there will be no errors.

12. © 2006 Nova Scotia Government All rights reserved. Post Payroll Steps Payroll Function/ActivityFunctional Responsibility Step #9- Pre-DME Simulation, Run DME REAL Run on DAY 10 u Central Payroll Process u Decentralized to boards for review and error correction

13. © 2006 Nova Scotia Government All rights reserved. Pre-DME Simulation What is DME? The Data Medium Exchange (DME) Engine enables you to define file formats that meet the requirements of your financial institution. By doing so, you model an externally defined bank format in the SAP system, which allows you to send or receive data in the form of DME files in this format.

14. © 2006 Nova Scotia Government All rights reserved. Step 10 – DME

15. © 2006 Nova Scotia Government All rights reserved. Pre-DME Simulation  is executed to ensure all payments can be processed.  Creates job spool file to be verified for errors.  Usually errors will be caused by missing or incomplete master data.

16. © 2006 Nova Scotia Government All rights reserved. Step 10 - Run DME REAL -The system evaluates the payment data for the payment run you entered, and creates a DME file (bank file). -The DME file contains all bank transactions and has the same format as the file used by the bank for your country. -The system also creates the DME accompanying sheet and the payment summary for this DME file.

17. © 2006 Nova Scotia Government All rights reserved. Post Payroll Activities- DME REAL  Demonstration- Transaction FDTA Use the transaction Data medium exchange management (FDTA) to search for specific data medium exchange transfer data

18. © 2006 Nova Scotia Government All rights reserved. Post Payroll Processes Demonstration- View the Cheque Register The Cheque Register - Used to obtain a full overview of all check information stored in the system

19. © 2006 Nova Scotia Government All rights reserved. Step 11 – Bank Transfer u The process of actually sending the DME file to the bank – The file must be in a format approved by the bank u For School Boards – There are multiple DME files produced – Files are sent to a secure server – Files are picked up by Payroll Services and sent via BMO’s secure Website to the bank

20. © 2006 Nova Scotia Government All rights reserved. Post Payroll Activities Payroll Function/ActivityFunctional Responsibility Step #12- Run FI/CO REAL & identify and correct errors Run on DAY 15 u Central Payroll Process u Payroll Services to initiate error correction

21. © 2006 Nova Scotia Government All rights reserved. Step 12 – Run FI/CO REAL & Review Posting Documents 1). What is FI/CO REAL? After payroll exit, the payroll results need to be posted to financial accounting to expense the wages and salaries, and to post the remittances and net payments as payables. 2). How to access the output. The posting documents can be accessed using transaction PCP0.

22. © 2006 Nova Scotia Government All rights reserved. Step 12 – Run FI/CO REAL & review posting documents 3). Common Errors? - Errors that may occur during FI/CO posting REAL are closed posting period, inactive GL account or cost center. No other errors should occur. 4). How to correct common errors - Financial department need to keep the posting period open until Payroll has finished posting and/or re-activate GL accounts or cost centers. - Any other error would result in excluding the employee from FICO posting.

23. © 2006 Nova Scotia Government All rights reserved. Step 12 – Run FI/CO REAL & Review Posting Documents  Posting documents can be accessed using transaction PCP0. EXERCISE - Using transaction PCPO.

24. © 2006 Nova Scotia Government All rights reserved. Post Payroll Activities Payroll Function/ActivityFunctional Responsibility Step #13- Run Third Party Remittance REAL and identify and correct errors Run on DAY 15 u Central Payroll Process u Decentralized to boards for review and error correction

25. © 2006 Nova Scotia Government All rights reserved.  Step 13 – Run Third Party Remittance Real This business process allows you to complete three major tasks related to the final processing of a payroll run. They are:  Posting financial data to the appropriate G/L and subledger accounts in FI and CO.  Generating bank transfer and cheque payments to third parties, such as tax authorities and benefits providers  Reconciling payments made in FI with payables data stored in HR.

26. © 2006 Nova Scotia Government All rights reserved. Third Party Remittances

27. © 2006 Nova Scotia Government All rights reserved. Post Payroll Activities Payroll Function/ActivityFunctional Responsibility Step #14- Release Third Party Remittance documents to Financials u Central Payroll Process u Decentralized to boards for review and error correction

28. © 2006 Nova Scotia Government All rights reserved. Step 14- Release Third Party Remittances  Two Step Process  Process third-party remittance posting run - check and release documents.  Once all documents are released, post the entire run to FI. DEMO- Show 3PR Document

29. © 2006 Nova Scotia Government All rights reserved. Post Payroll Activities Payroll Function/ActivityFunctional Responsibility Step #14B- Run FICO/3PR/DME Completeness Checks u Central Payroll Process

30. © 2006 Nova Scotia Government All rights reserved. Post Payroll Activities- FICO Completeness Check  Transaction Code -ZRHRPY024 This report verifies that all payroll results are posted for a specific payroll period and/or payroll area, for on-cycle and/or off-cycle payroll runs. List all payroll runs that are either not posted or posted with an error.

31. © 2006 Nova Scotia Government All rights reserved. Post Payroll Activities- 3PR Completeness Check  Transaction Code - ZRHRPY022  You can use this program to check remittance in three different ways and provides the following lists:  Employees and payroll results that have not been evaluated  All payee items that have been evaluated but not posted to FI  All posting runs in transaction PCP0 that have not been released.

32. © 2006 Nova Scotia Government All rights reserved. Post Payroll Activities- DME Completeness Check  Transaction Code -ZRHRPY023 This report will produce an output list for the following discrepancies:  Payroll results not processed by DME  Payroll results processed more than once by DME  DME results not posted  DME results not transferred to the bank  No cheque created for DME results

33. © 2006 Nova Scotia Government All rights reserved. Post Payroll Activities Payroll Function/ActivityFunctional Responsibility Step #15- Print Cheques u Central Payroll Process u Decentralized to boards for printing

34. © 2006 Nova Scotia Government All rights reserved. Step 15- Print Cheques  Hard Copy Cheque files are produced  Board accesses cheque spoolfiles with SP01  Board prints cheques to printer at the board site

35. © 2006 Nova Scotia Government All rights reserved. Post Payroll Activities Payroll Function/ActivityFunctional Responsibility Step #16- Print Pay Advices u Central Payroll Process u Decentralized to boards for printing

36. © 2006 Nova Scotia Government All rights reserved. Step 16 - Print Pay Advices  Pay Advice files are created, sorted, and sent to Queen’s Printer  For some boards, pay advices are printed at Queen’s Printer, and picked up by courier for distribution  For other boards, they will access their PDF files on a secure server, and print them at the board site. They are then picked up by courier for distribution

37. © 2006 Nova Scotia Government All rights reserved. Canada Savings Bonds  HR Payroll functionality enables your enterprise to deduct amounts from the earnings of employees who participate in the Canada Savings Bonds program.  After each payroll run, the Canada Savings Bonds report is executed. This report reads savings bonds deduction data from employee payroll results and generates files that contain the data required by the Bank of Canada.  The report then downloads an identical data file to the location you designated prior to running the report.  The downloaded data file is submitted to the Bank of Canada.  The Bank of Canada can administer the savings bonds accounts of your employees in accordance with the data submitted by your enterprise.

38. © 2006 Nova Scotia Government All rights reserved. Post Payroll Activities- Off-Cycles Payroll Function/ActivityFunctional Responsibility The Off-Cycle Process u Central Payroll Process u Decentralized to boards for printing

39. © 2006 Nova Scotia Government All rights reserved. “Off-Cycle” Payroll Cycle Service Delivery Model 1. Correct data for the employee with whom there is a problem 2. Run CAT6 if required & run Time Evaluation 3. Run Pay Simulation & review the results to ensure the pay is now correct 4. Issue an off-cycle request including, e.g., name of employee, employee ID #, reason for request, and expected pay result 6. Enter the pay area and execute the follow-up activities, i.e., FI/CO & 3 rd Party Remittance Real, bank/cheque file creation 7. Documents posted, i.e., 3PR and FI/CO “Off-Cycle” Payroll Cycle “Off-Cycle” Payroll Cycle 5. Via off-cycle workbench, off-cycle payroll started & result produced and reviewed against expected results – results accepted when there is a match 8. Pay employee (cheque or bank transfer)

40. © 2006 Nova Scotia Government All rights reserved. Off-Cycle Payroll Payroll Function/ActivityResults Generated Functional Responsibility 1.Correct employee data errors u Incorrect data related to an employee or a group of employees that will have a negative impact on an employee’s pay (e.g., will not be paid, will be paid but an incorrect amount, and/or will not be paid on time) is corrected Decentralized to School Boards

41. © 2006 Nova Scotia Government All rights reserved. Off-Cycle Payroll Payroll Function/ActivityResults Generated Functional Responsibility 2.Run CAT6 and Time Evaluation as required u Generates attendance and absence payroll earning codes u Generates errors for escalation, analysis, and resolution Decentralized to School Boards

42. © 2006 Nova Scotia Government All rights reserved. Off-Cycle Payroll Payroll Function/ActivityResults Generated Functional Responsibility 3.Run Payroll Simulation and review results u Identifies payroll errors requiring escalation, analysis, and resolution - begins the day data entry for the new pay period begins u As it is a simulation, it is important to note that pay results are not produced Decentralized to School Boards

43. © 2006 Nova Scotia Government All rights reserved. Off-Cycle Payroll EXERCISE- DEMO Payroll Simulation- Offcycle Reasons

44. © 2006 Nova Scotia Government All rights reserved. Off-Cycle Payroll Payroll Function/ActivityResults Generated Functional Responsibility 4.Issue “off-cycle” request u Formal request for an “off- cycle” payroll cycle to be performed for one or more employees is made Decentralized to School Boards

45. © 2006 Nova Scotia Government All rights reserved. Off-Cycle Payroll Payroll Function/ActivityResults Generated Functional Responsibility 5.Off-cycle payroll started and results produced reviewed against expected results u Off-cycle process initiated u Results produced and compared to School Board’s expected results u Results accepted when the results produced equal the results expected Centralized with DOF, Payroll Services Division

46. © 2006 Nova Scotia Government All rights reserved. Off-Cycle Payroll Payroll Function/ActivityResults Generated Functional Responsibility 6.Run FI/CO and Third Party Remittance REAL and create bank/cheque file u A journal entry form and posting log are created and released u Vendor pay file created and saved to SAP data tables u Bank/cheque file(s) created Centralized with DOF, Payroll Services Division

47. © 2006 Nova Scotia Government All rights reserved. Off-Cycle Payroll Payroll Function/ActivityResults GeneratedFunctional Responsibility 7.Post FI/CO and Third Party Remittance documents u Postings made to GL accounts u Data taken from data tables and posting documents created in the form of financial journal entries for each School Board Centralized with DOF, Payroll Services Division

48. © 2006 Nova Scotia Government All rights reserved. Off-Cycle Payroll Payroll Function/ActivityResults Generated Functional Responsibility 8.Pay employee(s) via hard copy cheque u Employee paid u Hard copy cheque produced and distributed Decentralized to School Boards

49. © 2006 Nova Scotia Government All rights reserved. Off-Cycle Payroll Options  You can carry out a regular on demand payroll run for an individual employee independently of the payroll area. This is necessary, for example, if an employee was hired shortly before the payroll date and his or her data could not be entered on time.  You can carry out an immediate correction run if, for example, an employee’s master data was changed.  You can carry out an additional payment run if, for example, an employee’s master data was changed.

50. © 2006 Nova Scotia Government All rights reserved. Off-Cycle Payroll Options Reason 1- Regular Payroll On Demand Use  You can use this function to run regular payroll on demand for a specific employee for a payroll period.  You conduct this payroll run independently of the regular payroll run

51. © 2006 Nova Scotia Government All rights reserved. Off-Cycle Payroll Options Reason 1- Payroll On Demand Example 1- An employee is hired shortly before the payroll date. The employee’s data cannot be processed in time for it to be included in the regular payroll run. You can use the Off- Cycle Workbench to run regular on demand payroll for the employee, even if the regular payroll run for the payroll area has already taken place. You do not have to wait until the next regular payroll run for the whole payroll area. Example 2- You have hired a new employee. Instead of receiving his or her first pay at the end of the first payroll period, the new employee is to be paid at the start of his period of employment. In the Off-Cycle Workbench, you can run regular on demand payroll for the first period in which he is employed in your enterprise.

52. © 2006 Nova Scotia Government All rights reserved. Off-Cycle Payroll Options- Payroll On Demand

53. © 2006 Nova Scotia Government All rights reserved. Off-Cycle Payroll Options Reason 2- Off-Cycle Correction Payroll Use This function enables you to make an immediate correction payment if an employee’s master data or time data is changed. The employee does not then have to wait until the system automatically carries out retroactive accounting with the next regular payroll run.

54. © 2006 Nova Scotia Government All rights reserved. Off-Cycle Payroll Options Correction Payroll Example- An employee receives a pay check and discovers that overtime hours have not been remunerated correctly. The employee wants to receive the missing amount immediately, rather than wait until the next regular payroll run. You enter the missing overtime in the corresponding time infotype and then run a correction payroll run in the Off-Cycle Workbench.

55. © 2006 Nova Scotia Government All rights reserved. Off-Cycle Payroll Options- Correction Run

56. © 2006 Nova Scotia Government All rights reserved. Off-Cycle Payroll Options Reason 3- Off-Cycle Additional Payment Use This function enables you to make an immediate correction payment if an employee’s master data or time data is changed. The employee does not then have to wait until the system automatically carries out retroactive accounting with the next regular payroll run.

57. © 2006 Nova Scotia Government All rights reserved. Off-Cycle Payroll Options Reason 3- Additional Payment Payroll Example- You have made a bonus payment of $100 for an employee. The employee should have received $1000. The employee demands to be paid the difference immediately. You have to make an additional payment off-cycle request for $900.

58. © 2006 Nova Scotia Government All rights reserved. Off-Cycle Payroll Options- Additional Payment Run