1. Payroll Services Scenario Overview
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Defining Compensation Policy
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data
Collecting/
Transferring Payroll Input Data
Processing Payroll Calculation
Initiating Payment
Performing Statutory Reporting
Posting and Closing
Scenario
Explorer
Scenario Description
Open Legend
The Payroll Services business scenario is designed to efficiently support the payroll process with an external payroll system. Payroll Services combines the advantages of an internal payroll – transparency, monitoring, and controlling – with the advantages of an outsourced payroll - lower costs, higher efficiency, and lower risk of liability. In the Business Process Outsourcing (BPO) scenario of Payroll Services, the payroll provider takes care of tax calculations and remittance, and initiates the salary payments to employees, thereby reducing your administrative overhead.
Additionally, Payroll Services enables you to validate a preview of all payroll input data within the payroll snapshot before it is transferred to your payroll provider. This allows you to correct the data when necessary, giving you full control over the payroll before the payroll calculation has started.
Scenario/Processes
Business Value
Scenario Flow
Further Information
The following business roles are involved in this scenario:
HR Administrator

2. Payroll Services Scenario Overview
Click process chevrons for details
Defining Compensation Policy
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data
Collecting/
Transferring Payroll Input Data
Processing Payroll Calculation
Initiating Payment
Performing Statutory Reporting
Posting and Closing
Scenario
Explorer
Scenario Description
Legend
Open Legend
Open Legend
Close Legend
The Payroll Services business scenario is designed to efficiently support the payroll process with an external payroll system. Payroll Services combines the advantages of an internal payroll – transparency, monitoring, and controlling – with the advantages of an outsourced payroll - lower costs, higher efficiency, and lower risk of liability. In the Business Process Outsourcing (BPO) scenario of Payroll Services, the payroll provider takes care of tax calculations and remittance, and initiates the salary payments to employees, thereby reducing your administrative overhead.
Additionally, Payroll Services enables you to validate a preview of all payroll input data within the payroll snapshot before it is transferred to your payroll provider. This allows you to correct the data when necessary, giving you full control over the payroll before the payroll calculation has started.
Process mainly driven by the user
Process mainly driven by the system
Manual process not supported by the system
Process that communicates with third-party software (mouse-over for details)
Process with relevance to Financials
Related scenario
Info button with more information
Scenario/Processes
Business Value
Scenario Flow
Further Information
The following business roles are involved in this scenario:
HR Administrator
<Role Name>
<Role Name>
<Role Name>

3. Payroll Services Process Details: Defining Compensation Policy
Click process chevrons for details X
Defining Compensation Policy with Compensation Structure
Maintain compensation structure and assign compensation components
Maintain compensation components
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data i i
Click here to display process variant
Collecting/
Transferring Payroll Input Data
Processing Payroll Calculation
Initiating Payment
Performing Statutory Reporting
Posting and Closing
Scenario
Explorer
Process Description
Further Information
The HR administrator plans and designs the compensation for employees using appropriate reward strategies based on predefined compensation structures and components. The administrator sets up the compensation structures and is also responsible for changes and adjustments: adapting point- and range-based compensation structures by maintaining grades, amounts, and minimum and maximum amounts. Basic elements in compensation are compensation components, comprising:
Salaries or wages
Regular earnings or deductions
One-time earnings or deductions
The HR administrator also creates point- and range-based compensation structures for all employee groups, enabling grouping of employees based on their compensation packages. Compensation structures increase transparency for your company compensation policies and allow analysis of compensation across various employee groups.
Performed by
HR Administrator
Scenario/Processes
In the Work Center
Compensation
Business Value
Scenario Flow
Further Information
See also
Compensation Basics
Compensation Structures

4. Payroll Services Process Details: Defining Compensation Policy
Click process chevrons for details X
Defining Compensation Policy with Compensation Structure
Maintain compensation structure and assign compensation components
Maintain compensation components
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data i i
Click here to hide process variant
Collecting/
Transferring Payroll Input Data
Defining Compensation Policy without Compensation Structure
Processing Payroll Calculation
Initiating Payment
Performing Statutory Reporting
Posting and Closing i
Scenario
Explorer
Process Description
Further Information
The HR administrator plans and designs the compensation for employees using appropriate reward strategies based on predefined compensation structures and components. The administrator sets up the compensation structures and is also responsible for changes and adjustments: adapting point- and range-based compensation structures by maintaining grades, amounts, and minimum and maximum amounts. Basic elements in compensation are compensation components, comprising:
Salaries or wages
Regular earnings or deductions
One-time earnings or deductions
The HR administrator also creates point- and range-based compensation structures for all employee groups, enabling grouping of employees based on their compensation packages. Compensation structures increase transparency for your company compensation policies and allow analysis of compensation across various employee groups.
Performed by
HR Administrator
Scenario/Processes
In the Work Center
Compensation
Business Value
Scenario Flow
Further Information
See also
Compensation Basics
Compensation Structures

5. Payroll Services Process Details: Preparing Payroll Process
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Preparing Payroll
Process
Defining Compensation Policy
Schedule future payroll processes
Check mapping tables
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data i i
Collecting/
Transferring Payroll Input Data
Processing Payroll Calculation
Initiating Payment
Performing Statutory Reporting
Posting and Closing
Scenario
Explorer
Process Description
Further Information
The HR administrator schedules regular payroll runs according to the payroll periods (for example, bi-weekly, semi-monthly) of the different payroll groups. Depending on the planned payroll run date, the administrator creates the payroll periods, plans the payment dates, the payroll period start and end dates, and the cut-off dates – the latest dates that payroll- relevant data must be entered in the ByDesign system to ensure its inclusion in the payroll run.
The HR administrator is also responsible for smooth communication between the ByDesign system and the payroll provider system. This role includes ensuring that the mapping tables of pay types to provider pay types, time types to provider times types, and time account pay types to provider time account types are correctly maintained and up-to-date in the ByDesign system.
Performed by
HR Administrator
Scenario/Processes
Business Value
In the Work Centers
Payroll Processing
Compensation
Scenario Flow
Further Information
See also
Payroll Run Quick Guide

6. Payroll Services Process Details: Defining Employees’ Compensation
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Defining Employee Compensation with Compensation Structure
Defining Compensation Policy
Preparing Payroll Process
Assign compensation structure and grade to employees
Maintain compensation according to compensation structure
Maintain deductions
Maintaining Employees’ Payroll Data i i i
Click here to display process variant
Collecting/
Transferring Payroll Input Data
Processing Payroll Calculation
Initiating Payment
Performing Statutory Reporting
Posting and Closing
Scenario
Explorer
Process Description
Further Information
The HR administrator maintains all employee salary changes and adjusts the assignment of compensation structures and grades: adding new compensation components or maintaining amounts for earnings or deductions as required.
Performed by
HR Administrator
Scenario/Processes
In the Work Center
Compensation
Business Value
Scenario Flow
Further Information
See also
Synchronize Employee Data

7. Payroll Services Process Details: Defining Employees’ Compensation
Click process chevrons for details X
Defining Employee Compensation with Compensation Structure
Defining Compensation Policy
Preparing Payroll Process
Assign compensation structure and grade to employees
Maintain compensation according to compensation structure
Maintain deductions
Maintaining Employees’ Payroll Data i i i
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Collecting/
Transferring Payroll Input Data
Processing Payroll Calculation
Defining Employee Compensation without Compensation Structure
Initiating Payment
Performing Statutory Reporting
Posting and Closing i
Scenario
Explorer
Process Description
Further Information
The HR administrator maintains all employee salary changes of employees and adjusts the assignment of compensation structures and grades: adding new compensation components or maintaining amounts for earnings or deductions as required.
Performed by
HR Administrator
Scenario/Processes
In the Work Center
Compensation
Business Value
Scenario Flow
Further Information
See also
Synchronize Employee Data

8. Payroll Services Process Details: Maintaining Employees’ Payroll DataX
Click process chevrons for details X
Maintaining Employees’ Payroll Data
Defining Compensation Policy
Preparing Payroll Process
Defining Employees’ Compensation
Maintain payroll group assignment
Maintain payment data
Maintain tax and/or social insurance data i i i
Collecting/
Transferring Payroll Input Data
Processing Payroll Calculation
Initiating Payment
Performing Statutory Reporting
Posting and Closing
Scenario
Explorer
Process Description
Further Information
During the payroll hire process, the HR administrator maintains employees’ payroll data, such as the payroll group assignment, payment information, and additional information for further bank accounts. According to country-specific regulations, tax and/or social insurance data for employees is also maintained.
Performed by
HR Administrator
Scenario/Processes
In the Work Center
Personal Administration
Business Value
Scenario Flow
Further Information
See also
Synchronize Employee Data

9. Payroll Services Process Details: Collecting & Transferring Payroll Input Data
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Defining Compensation Policy
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data X X
Collecting Payroll Input Data and Transferring Data using
File Download and Automated Upload
Processing Payroll Calculation
Initiating Payment
Performing Statutory Reporting
Posting and Closing
Create snapshot
Check and correct snapshot data. Recreate snapshot as necessary
Create and download data file
Transfer data file to payroll provider
View warnings and error messages from provider. Update/resend snapshot as necessary i i i i i
Click here to display process variants
Scenario
Explorer
Process Description
Further Information
The Business Process Outsourcing (BPO) scenario for a regular payroll run in the ByDesign environment begins with the collection of all new or changed payroll, compensation, and time data into a payroll snapshot, which is then systematically validated for inconsistencies. Errors in the snapshot data are identified by the ByDesign system for the HR administrator to view and correct, followed by re-creation of the snapshot as required. Once the snapshot data is complete and accurate, an XML file is created, downloaded, and transferred to a third-party payroll provider .
The different variants in this process are dependent on how the data are brought into the payroll provider’s system. In all variants, it is essential that the complete process of snapshot creation and transfer to the provider is repeatable.
Performed by
HR Administrator
Scenario/Processes
In the Work Center
Payroll Processing
Business Value
Scenario Flow
Further Information
See also
Expense Report Notification to Payroll Processing
Payroll Processing with DATEV (DE only)

10. Payroll Services Process Details: Collecting & Transferring Payroll Input Data
Click process chevrons for details
Defining Compensation Policy
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data X
Collecting Payroll Input Data and Transferring Data using
File Download and Automated Upload
Processing Payroll Calculation
Initiating Payment
Performing Statutory Reporting
Posting and Closing
Create snapshot
Check and correct snapshot data. Recreate snapshot as necessary
Create and download data file
Transfer data file to payroll provider
View warnings and error messages from provider. Update/resend snapshot as necessary i i i i i
Click here to hide process variants
Collecting Payroll Input Data and Exporting Data via Automated Messaging (currently not supported)
Collecting Payroll Input Data and Exporting XML Data Converted to Excel i i
Scenario
Explorer
Process Description
Further Information
The Business Process Outsourcing (BPO) scenario for a regular payroll run in the ByDesign environment begins with the collection of all new or changed payroll, compensation, and time data into a payroll snapshot, which is then systematically validated for inconsistencies. Errors in the snapshot data are identified by the ByDesign system for the HR administrator to view and correct, followed by re-creation of the snapshot as required. Once the snapshot data is complete and accurate, an XML file is created, downloaded, and transferred to a third-party payroll provider .
The different variants in this process are dependent on how the data are brought into the payroll provider’s system. In all variants, it is essential that the complete process of snapshot creation and transfer to the provider is repeatable.
Performed by
HR Administrator
Scenario/Processes
In the Work Center
Payroll Processing
Business Value
Scenario Flow
Further Information
See also
Expense Report Notification to Payroll Processing
Payroll Processing with DATEV (DE only)

11. Payroll Services Process Details: Processing Payroll Calculation
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Defining Compensation Policy
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data X
Processing Payroll: Gross-to-Net
Calculation Performed by Payroll Provider
Collecting/
Transferring Payroll Input Data
Initiating Payment
Performing Statutory Reporting
Posting and Closing
Run payroll
Validate payroll results. Update snapshot when necessary i i
Click here to display process variant
Scenario
Explorer
Process Description
Further Information
The payroll provider processes payroll and checks payroll results for completeness and correctness. The provider ensures that the calculation of tax and social insurance contributions meets the relevant country-specific regulations.
If the payroll results are not correct because of invalid data sent to the provider from the ByDesign system, this data must be corrected and a snapshot of the data re-created. A new data file is then created in the ByDesign system and transferred to the payroll provider.
Performed by
Payroll Provider
Scenario/Processes
In the external payroll provider system
Business Value
Scenario Flow
Further Information
See also
Quick Guide for Work (in Payroll Processing)

12. Payroll Services Process Details: Processing Payroll Calculation
Click process chevrons for details
Defining Compensation Policy
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data X
Processing Payroll: Gross-to-Net
Calculation Performed by Payroll Provider
Collecting/
Transferring Payroll Input Data
Initiating Payment
Performing Statutory Reporting
Posting and Closing
Run payroll
Validate payroll results. Update snapshot when necessary i i
Click here to hide process variant
Processing Payroll : Gross-to-Net Calculation Using Automated Messaging
(currently not supported)
Scenario
Explorer
Process Description
Further Information
The payroll provider processes payroll and checks payroll results for completeness and correctness. The provider ensures that the calculation of tax and social insurance contributions meets the relevant country-specific regulations.
If the payroll results are not correct because of invalid data sent to the provider from the ByDesign system, this data must be corrected and a snapshot of the data re-created. A new data file is then created in the ByDesign system and transferred to the payroll provider.
Performed by
Payroll Provider
Scenario/Processes
In the external payroll provider system
Business Value
Scenario Flow
Further Information
See also
Quick Guide for Work (in Payroll Processing)

13. Payroll Services Process Details: Initiating Payment
Click process chevrons for details
Defining Compensation Policy
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data X
Initiating Payments
Collecting/
Transferring Payroll Input Data
Processing Payroll Calculation
Performing Statutory Reporting
Posting and Closing
Create bank transfer file
Transmit bank transfer file i i
Click here to display process variants
Scenario
Explorer
Process Description
Further Information
The payroll provider initiates salary payments to the employees. How this process is done is provider-dependent. In this scenario, one example of a possible payment initiation process performed by the provider is illustrated. Three alternative variants to this example process are also shown.
Performed by
Payroll Provider
Scenario/Processes
In the external payroll provider system
Business Value
Scenario Flow
See also
Quick Guide for Work
Further Information

14. Payroll Services Process Details: Initiating Payment
Click process chevrons for details
Defining Compensation Policy
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data X
Initiating Payments
Collecting/
Transferring Payroll Input Data
Processing Payroll Calculation
Performing Statutory Reporting
Posting and Closing
Create bank transfer file
Transmit bank transfer file i i
Click here to hide process variants
Check Printing and Dispatch
Bank Transfer via Customer
Bank Transfer to Employees from Provider’s Bank Account
Scenario
Explorer
Process Description
Further Information
The payroll provider initiates salary payments to the employees. How this process is done is provider-dependent. In this scenario, one example of a possible payment initiation process performed by the provider is illustrated. Three alternative variants to this example process are also shown.
Performed by
Payroll Provider
Scenario/Processes
In the external payroll provider system
Business Value
Scenario Flow
See also
Quick Guide for Work
Further Information

15. Payroll Services Process Details: Performing Statutory Reporting
Click process chevrons for details
Defining Compensation Policy
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data X
Performing Statutory Reporting
Collecting/
Transferring Payroll Input Data
Processing Payroll Calculation
Initiating Payment
Posting and Closing
Run required statutory reports for tax and social insurance
Create forms
Transmit data to authorities i i i
Scenario
Explorer
Process Description
Further Information
For this statutory process, the payroll provider:
Performs statutory reporting for tax and social insurance
Prints forms for employees (for example, remuneration statements)
Prints forms for authorities (for example, contribution statements)
Transfers data to authorities according to country-specific regulations
Performed by
Payroll Provider
Scenario/Processes
In the external payroll provider system
Business Value
Scenario Flow
Further Information
See also
Producing Statutory Reports

16. Payroll Services Process Details: Posting and Closing
Click process chevrons for details
Defining Compensation Policy
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data X
Posting and Closing
Collecting/
Transferring Payroll Input Data
Processing Payroll Calculation
Initiating Payment
Performing Statutory Reporting
Extract payroll posting data from provider system
Upload data into General Ledger
Close payroll period i i i
Scenario
Explorer
Process Description
Further Information
The HR administrator extracts payroll posting data from the payroll provider system and posts payroll results generated by the provider into General Ledger. In a final step, he closes the payroll period.
Performed by
HR Administrator
Scenario/Processes
Business Value
In the Work Center
Payroll Processing
General Ledger
Scenario Flow
Further Information
See also
Transferring Payroll Results to Accounting

17. Payroll Services Business Value
Initiate
Run
Settle
Maintaining Employee Compensation
Maintaining Employee Payroll Data
Collecting/
Transferring Payroll Input Data
Processing Payroll Calculation
Initiating Payment
Performing Statutory Reporting
Post to Ledger
Scenario
Explorer
Overview
Key Benefits
Support for global payroll outsourcing so that payroll is run accurately, on time, and in compliance with country regulations
Recording functions that are integrated with project management and financials to simplify resource allocations, payments, and profitability analysis
Automated payroll processing that reduces the costs of HR services
Tight integration of outsourced payroll for optimized collaboration and efficient communication with payroll provider
This scenario is ideal for HR executives in midsize companies who need to set up and manage scalable, accurate, and efficient payroll processes in a country- compliant manner.
You can deploy workforces regionally or internationally, control payroll costs, perform company-wide compensation planning, and improve the accuracy of your company’s time reporting.
SAP Business ByDesign integrates compensation planning and time recording into payroll processing and allows for accounting records to be updated.
Scenario/Processes
Business Value
Scenario Flow
Further Information

18. Payroll Services Scenario Flow Variant: Payroll Services
Workforce
Administration
Organizational
Management/ Payroll Processing
Payroll
Processing
Personnel
Administration
Time and Labor Management
Compensation
Expense Reimbursement
Defining Compensation Policy
Preparing Payroll Process
Defining Employees’ Compensation
Maintaining Employees’ Payroll Data
With Compensation Structure
Without Compensation Structure
With Compensation Structure
Without Compensation Structure
Payroll
Processing
External
Payroll
Processing
External
Payroll
Processing
External
Payroll
Processing
General
Ledger
Scenario Explorer
Collecting/
Transferring Payroll Input Data
Processing Payroll Calculation
Initiating Payment
Performing Statutory Reporting
Posting and Closing
Scenario/Processes
Financial
Closing
File Download and Transfer to Provider
Using XML Data File with Excel Conversion
Automated Messaging
Gross-to-Net Calculation by Payroll Provider
Gross-to-Net Calculation via Automated Messaging
Salary Payments on Behalf
Check Printing
Bank Transfer File
Salary Payments from Payroll Provider Bank
Business Value
Scenario Flow
Legend
Further Information
Process mainly driven by the user
Process variant1
Process variant 2
Process related to Financials
Work center in which process is performed
Work
Center
Additional Application
Process communicating with third-party software
Related scenarios
Business
document flow

19. Payroll Services Further Information
Scenario
Explorer
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Scenario/Processes
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