SAP776154 - ALP - SAP SuccessFactors Payroll Process Strategy 1H 2023 PUBLIC

Payroll Process Strategy
Architecture Leading Practice

SuccessFactors Cloud Architect Community, SAP
1H 2023
PUBLIC
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© 2023 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC 2

01 Updates
Payroll Process Overview
Value Proposition
Process Flow
Data Flow
02 Payroll Process Interactions

AGENDA
Employee Central – Employee Central Payroll

Employee Central Payroll - Employee Central
Employee Central – Benefits
Benefits – Employee Central Payroll
Employee Central – Time (Workforce/Kronos)
Time (Workforce/Kronos) – Employee Central Payroll
Employee Central Payroll – External Vendors
Concur to Employee Central Payroll
03 Design Considerations
04 Payroll Instance Strategy
05 Payroll Testing

Introduction
Purpose Audience
The purpose of this document The primary audience for this document are client team members who play a role in
is to provide valuable, real- implementing the solution and need to make educated and informed decisions.
world insight into how to deal
with the topic during the
implementation of SAP About the Authors
SuccessFactors. It is designed
to promote an understanding of This document is one of the series of Leading Practice documents created by the
key concepts, design SAP SuccessFactors Solution Architecture Services Team.
considerations and their pros
and cons.

What is an Architecture Leading Practice?
Architecture Leading Practice (ALP) is a set of recommended configuration decisions and

guidance on topics associated with a SuccessFactors implementation, and are
recommendations to drive positive outcomes based on intended system design, proven
success from previous implementations, and avoidance of pitfalls.
Leading Practices is designed to help customers get the greatest benefit from their end to
end SuccessFactors HR Processes.
Architecture Leading Practices (ALP) are aligned with Implementation Design Principles,
SuccessFactors Process Library and Data Architecture and fit the SAP HXM Suite
Preconfigured Process Content framework.

Aligning Architecture Leading Practices
Prepare your customer and decide on strategies

ensuring Customer Success
Aligned with SAP HXM Suite

Global view of approaches and Preconfigured Process Content, IDP’s,
processes based on real-life experience SuccessFactors Process Library, and
Data Architecture approaches
Easy to present building blocks Re-usable content in

supporting both full scale as sales Architecture standard formats
engagements Leading Practices

Assets and Principles Including Deliverables and Distribution Channels
SAP Professional
Architectural Leading Practices (ALP) Process Library Leading Practices

Services
Management level overview on critical architecture topics conforming to guardrails and ▪ HR processes and related Leading Practices supported by
referencing IDPs for further details where applicable. Customer Community SuccessFactors.
Use-case: Provide introduction to SuccessFactors on architectural level for Discover and Prepare. ▪ Designed end-to-end across modules of the SAP SuccessFactors
SAP Activate Suite.
Audience: Chief architects, Project Leads, Program Manager, Customer Leadership (IT and HR)
Deliverables: PowerPoints. ▪ System relevant steps but also manual steps are depicted in
process flows.
Use-case: Provide insights into supported HR business process
during Discover, Prepare and Explore.
Audience: Configurators (partner), Designers (partner), Customer
Process Experts (IT and HR)
Deliverables: Leading Practices,
SAP Best Practices Process Diagrams and Process Summaries
SAP SuccessFactors Product
Proven set of HR business process configuration:

SAP Best Practices Explorer
▪ Conforming to Implementation Design Principles and Process Library
Process Library
▪ Supposed to deliver what most customers require Help Portal
▪ Based on the experience and learnings from customer implementation projects
Data Architecture
▪ Allowing automated and modular deployment Partner Community
Use-case: Implementation acceleration during Explore and Realize. SAP Activate

SAP Activate
Audience: Configurators (partners and customers)
Deliverables: Configuration Blocks via SAP Upgrade Center and Documentation (Technical Process
Flows, Workbooks, Configuration Guides – getting started, Test Scripts, Interactive Process Simulations.)
Implementation Design Principles (IDP) Help Portal

Expert level guidance beyond Implementation Handbooks on implementation design and
strategy addressing how to leverage SuccessFactors in order to fulfill customer requirements Customer Community
end-to-end while conforming to guardrails and product roadmap.
Partner Edge
Use-case: Provide detailed advice on how to leverage product during Explore and Realize.
Deliverables: Documents, PowerPoints (as rare exception) SAP Activate Deployable business
Audience: Architects, Designers, Developers, Configurators, Customer Experts (IT and HR)
Documentation
configuration

***Key 1H 2023 Updates*** What’s New
1H 2023 Updates:
▪ Expanded ability to support different SAP Payroll solutions by Legal Entity from Employee Central
(example US Legal entity on ECP while German Legal entity on HCM Payroll)
SAP ERP HCM Payroll (on-premise) is available in 58 SAP-provided and 44 partner-

provided countries
SAP SuccessFactors EC Payroll (cloud) is available in 49 SAP-provided and 3 partner-

provided countries (requires EC)

Payroll Processes in HXM Suite
Payroll Processes in HXM Suite
A fully integrated and connected The delivery of connected, The Payroll Process Helps you to stay compliant with
HR and talent suite is essential to industry leading, HR practices Architecture Leading Practice will increasing regulations, and
achieve full value realisation and moments that matter also help you identify and plan for a manage legal changes more
and deliver exceptional needs data that matters seamless end to end experience efficiently
experiences for employees. ensuring people, process and
data flow effortlessly across the
total SuccessFactors HXM suite

HXM Suite Processes (Cloud)
Business Value Key Process Interactions Key Data Interactions
▪ Recruiting Marketing & Posting Job Profile Builder

Employee Data Position Data
Framework
Attract & Acquire ▪ Attract & hire best candidates ▪ Recruiting Management
Manage Workforce Process
Process ▪ Faster time to new hire value. ▪ Onboarding

▪ Employee Central New Hire Data Applicant Data Requisition Data
▪ Performance and Goal Management Competency Compensation

Pay for ▪ Ensure strategy & goal alignment ▪ Compensation & Variable Pay Employee Data
Framework Data
Performance ▪ Continuously improve performance ▪ Reward & Recognition
Process ▪ Pay for performance of top talent ▪ Employee Central Business Goals Job Data Performance Data
▪ Employee Central Payroll
▪ Performance/Goal Mgt./360 Review Competency

▪ Accurately and consistently identify top talent ▪ Career Development Planning Employee Data Position Data
Framework
Identify & Grow
▪ Provide opportunities for employee growth & ▪ Mentoring
Process development. ▪ Succession Management Development
Succession Data Performance Data
Goals
▪ Employee Central
▪ Learning Competency Assignment

Employee Data
▪ JAM Framework Profiles
Educate &
▪ Enhance skillsets of existing workforce ▪ WorkZone for HR
Develop Process ▪ Career Development Planning Development Plan Course Content Job Data
▪ Employee Central
Time Off Process Solution Architecture components

SAP SuccessFactors HXM Suite Alignment to Business Value

Value outcomes resulting from streamlined Cross-module set providing synergistic, business Building blocks that help facilitate the attainment of
processes such as effective talent acquisition, top value outcomes driven by processes outcomes
talent retention, and improved efficiencies.

Payroll Process in HXM Suite
This Leading practice will

▪ Explain per HR process area how multiple individual modules support the end-to-end process
▪ Explain the business value of each scenario
▪ Explain in detail how SuccessFactors modules are integrated from a data and process point of view
In this Architecture Leading Practice, process interactions are:

•1.Employee Central to Employee Central Payroll (PTP Replication – Master Data, Payments and Deductions)
The Payroll process depicts •2.Employee Central to Compensation (Job Information, Comp Information, Salary Ranges)
the entire business process •3.Compensation to Employee Central (Publish Planned Comp and Bonus information)
•4.Employee Central to Time (Employee Demographic Information)
of instilling a true pay-for-
•5.Finance (S/4 or ECC) to Employee Central (Cost Center Data)
performance culture by tying
•6.Finance (S/4 or ECC) to Employee Central Payroll (Cost Center Data)
continues employee
•7.Employee Central Payroll to Finance (S/4 or ECC) (GL Postings, Payment Postings and Vendor Payments)
performance with rewards
•8.Employee Central to Benefits (Employee Demographics and Benefits Eligibility Data)
and improves employee
•9.Benefits to Employee Central Payroll (Benefit Deductions)
engagement by ensuring
•10.Time to Employee Central Payroll (Evaluated Time Data)
fair, objective compensation •11.Employee Central Payroll to Employee Central ( Pay Stub, Analytics)
decisions with calibration •12.Employee Central Payroll to External Vendor ( Banks, Tax Entities )
tools. •13.Employee Central to Concur (Employee Master Data)
•14.Concur to Employee Central Payroll (Expense Reimbursement Payments)

Value Proposition
Value Proposition Process Flow Process Interactions Design Planning
▪ Automated end-to-end payroll process ▪ Employee Central (Time, Benefits) Employee Data Organizational Data Compensation Data
▪ Full transparency over the complete ▪ Payroll Control Center
Payroll end-to-end process ▪ Finance Time &
Finance Data Job Data
Process ▪ Robust payroll engine supports Benefits Data
complex payroll processing, including
retroactive payments, simulations and
similar

Value Proposition
Automates the Real-time overview of Real-time insight Automated root cause

payroll process workload and into payroll analysis and
progress correction
▪ Fully automated end-to-end payroll process

▪ Full transparency over the complete end-to-end process
▪ Automated ‘root cause’ analytics
▪ Audit and compliance trails identify all ‘who did what by when’ throughout the process
▪ Rich content for policy checks and validations
▪ Robust payroll engine supports complex payroll processing, including retroactive payments, simulations and similar

Process Flow
similar

Overall Landscape – ECP (Cloud)
External Time Concur

Benefits Tracking
ECP EFT Garnishments

PTP Calculate
Employee Gross
Central Check Printing Tax Reporting Filing
Calculate Net
▪ Employee Data Third party Integrations

▪ Basic Pay
▪ (Time) Pay types
▪ Absence quota
▪ Absences
▪ Garnishments Payroll History
▪ Payments
Financial System
▪ Deductions
▪ W-2/W-2c, W-4*(Mashup) Analytics
▪ Direct Deposit
▪ Benefits

Payroll Process
Cross-Module Business Process Flow – ECP (Cloud)
Net pay
Tax Deductions
Other Deductions
EC Payroll
Employee Central Payroll Results – Pay stub, Analytics
Employee
Master Data
Employee Demographic
Data, Benefit Eligibility data Bank
Concur
Tax Entities
Employment data Expenses
▪ Hire Date Reimbursements
Job Information data
Vendor 1
▪ Division
▪ Department Vendor 2
▪ Company Compensation Benefits
▪ Pay Grade
▪ Pay Range New Compensation and
▪ FTE….. Job Information Data Employee Info
Compensation data ▪ Final Salary Amount ▪ Personal Info
▪ Salary, Pay Rate ▪ Lump Sum Amount ▪ Address
Frequency ▪ New Pay grade Job Information
▪ New Position Evaluated Time Data data
▪ Company
Time ▪ Cost Center
▪ Pay Grade
Work Schedule
▪ Compensation
data
Cost Center Data Cost Center Data ▪ Salary, Pay Rate
▪ Frequency
▪ Payments
Financial Data ▪ Deductions
GL Postings
Third Party Postings
© 2023 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC Vendor Payments 19
Payment Postings
Payroll Process – Cross-Module Process Flow
Employee Central → EC Payroll Employee Central → Benefit

Employee Master data, Payments and Deductions Employee demographic data
Employee Central → Compensation management Benefits → EC Payroll

Job Information, Comp Information, Salary Ranges Benefit Deductions
Compensation → Employee Central Time → EC Payroll

Publish Planned Comp and Bonus information Evaluated Time Data
Employee Central → Time EC Payroll → Employee Central

Employee demographic Data Payroll results
Finance (S/4 or ECC) → Employee Central EC Payroll → External Vendor

Cost Center data Net Pay, Tax Payments
Finance (S/4 or ECC) → EC Payroll Employee Central → Concur

Cost Center Data Employee Master Data
EC Payroll → Finance (S/4 or ECC) Concur → EC Payroll

Payroll Financial Postings, Payment Postings, Vendor Expenses reimbursement payments
Payments, Garnishment payments

Payroll
Process Interactions
Process Interactions
similar

Payroll Process – Process Interactions
Employee Central to Employee Central Payroll
What is it?
Define the data source from Employee Central which
can be used for Payroll processing
The interaction allows you to...

Configure data fields that need to be replicated from
Employee Central to Employee Central Payroll.
▪ Position
▪ Jobs
▪ jobInfo
▪ compInfo
▪ payComponentRecurring
▪ payComponentNonRecurring
▪ personalInfo
▪ employmentInfo
▪ Advances
▪ Custom MDF

Payroll Process – Design Decisions
User ID
▪ We recommend that you use numeric employee IDs in Employee
Central, because the PERNR is numeric in Employee Central
Payroll. Therefore, an alphanumeric ID can’t be used across all
processes in the Employee Central Payroll system.
▪ If your Employee Central system is already productive and you’re
using alphanumeric IDs in Employee Central, you need to either
update the ID field in Employee Central or use another numeric
ID field in the replication process for the PERNR.
Job, Company and Position Codes:

▪ Make sure Job and Position Codes are numeric and less than 8
digit code. Company codes are 4 character length. If lengths are
not aligned mapping entries are required
National ID
▪ Only national-IDs that are flagged as primary in Employee Central
are replicated to infotype 0002.

Master Data
Migrate Personnel Admin
Before starting the initial load, decide on the scenario to adopt: Data to Employee Central
▪ How to deal with the history of employee data? Payroll
– Decide on Full Transmission start Date Change Management

▪ How to deal with employees and employment that won't be
Migrate Legacy
accounted in the Employee Center Payroll system? Payroll Data
– Decide on Replication scope from Employee Central to
Employee Central Payroll First payroll run
▪ Move the FTSD forward from time to time to limit the amount of Go-live
data being replicated and thus improve performance.
Maintain old Data in Old Maintain Personnel admin data on
– Before setting the FTSD, make sure that you have corrected all system EC and EC Payroll
replication errors prior to this date. Otherwise, master data is
not replicated and taken into account during the payroll run.
▪ Decide on what information will be entered in Employee Central Subsequent
activities
and what goes directly in Employee Central Payroll.
– You're not allowed to change the infotypes manually after End of month
they’ve been replicated. If you do, they’ll be overwritten during
the next replication run.
Migrate Personnel Admin

End of Implementation Data to Employee Central

Employee Transfer
Transferring your employee from one country to another country, or
legal entity, can affect how those settings are applied to the
PERNR, since another country will have different rules and other
HR requirements. Here are options available in Employee Central:
International Transfer
▪ Same employment can not be used for International transfer due
to the following reasons:
– Taxation and social insurance processing can not be done
correctly
– Payroll does not support a country change on the same
employment
Recommendation
▪ Always use a new Employment for an international Transfer.

Employee National Transfer
Advantages of using the same employment:

▪ History of the employment can be seen by the Admins /
Managers of the new legal entity
▪ Operational efficiency / Data Maintenance
▪ Transfer of Absence / Attendance quotas
▪ Benefits data
▪ Other common data aspects
Payroll for that country requires a new employment:

▪ The payroll design for particular countries require a new
employment
– Example: Singapore–New IRAS number is required
– UK –If Tax reference number
Customer Business practices

▪ Employer does not allow transfer in the middle of the payroll
period and does not need two payslips for the same employee in
the same period (e.g. month)
▪ As a policy always use a new employment


Segregation Data Privacy
Things To consider - When to use a new employment: of Duty and Protection
▪ Data Protection / Segregation of Duty is a requirement.(Details
in the next slide)
▪ Reusing the same employment will not support “Periods of
responsibility”. Role segregation can only be done with new
employment.
▪ Operational Integration-Source legal entity and Destination
legal entity are not part of the same group/brand
▪ Brands are different
▪ Policies are different and Not operationally integrated yet.
Payroll S/4HANA


Decision guide for transfers on same or new Employment

Pay Components / Wage Types
▪ Finalize the Wage type catalog to determine what pay components/wage

types are required in Employee Central and Employee Central Payroll system.
▪ Determine the Pay Components to be used for different portlets.
▪ Determine if Annual Salary or a Pay period Salary is going to be maintained on
Compensation portlet – impacts replication process to Infotype 0008.
▪ Identify and segregate the list of Pay components which will be maintained in
Employee Central or Employee Central payroll.

Employee Central to EC Payroll
Pay Ranges
▪ Make sure Pay Grade is the first association with Pay Range in
Corporate Data Model.
FTE
▪ Determine how part-time employees salaries are captured in
Employee Central.
Job and Position Codes

▪ Make sure you replicate the Job codes and Position codes to
show the actual texts for Job and Position on IT0001.

Payroll Process
Design Planning
Understanding SuccessFactors Terminology
Data Center
▪ A Data Center is a physical location of server/s where the SAP SuccessFactors cloud application is hosted. The data center
is generally driven by the geographic location of the headquarters of the customer. E.g. DC04 in Arizona USA, DC02 in
Amsterdam Netherlands, etc.
Environment
▪ An Environment is a set of servers hosting various SAP SuccessFactors & HR Cloud solutions in a data center. Each data
center has 2 types of environments:
▪ A Preview environment is where the semi-annual releases are applied first, giving the customers thirty (30) days to test the
new functionality.
▪ A Productive environment is a stable environment that has been fully tested, has real live data, and is used for business
operations. Customer production instances are always hosted in the Productive Environment.
Instance (Tenant)
▪ Instance and Tenant are interchangeably used terms and refer to a single database schema of a platform (product type) for
example HXM Core (BizX), LMS etc. Each instance when provisioned for a specific customer is assigned a unique identifier,
called Company ID.
Client (MANDT field)
▪ This term is primarily referred to in the context of SAP SuccessFactors Employee Central Payroll (ECP) and legacy SAP
ERP HCM Payroll instances. A client is a partition within an SAP system (e.g., client 100, client 200, etc.).
Employee Central Payroll
Comes with 2 non-production instances for ECP, and allows multiple clients to be created:
• Development Instance can have 2 clients
• Test instance can have 3 clients
• Production Instance

Payroll Process – Instance Strategy
EC Payroll
Development Test (QA) Production
Employee Central Employee Central Employee Central
Config Move Config Move
Preview Preview Prod Prod
PTP
PTP PTP PTP
Client 100 Client 200 Client 100 Client 200 Client 100 Production
Configuration Unit Test UAT / SIT Parallel Test
Employee Central
Employee Central Payroll Employee Central Payroll Payroll
CPI
CPI CPI
S/4 or ECC S/4 or ECC S/4 or ECC

Payroll Process – Instance Strategy
EC Payroll
Development Test (QA) Production

▪ Start all functional configuration here. Functional Testing Client ▪ Run “Live Payroll”.
▪ Validate and approve functional configuration. ▪ Develop and validate technical integration in ▪ Integrate with productive 3rd party applications.
▪ Move approved configuration to Test/QA to all Functional Testing Client. ▪ Refresh Dev and/or Test environments
clients in QA instance. ▪ Validate end-end configuration (UAT). if needed.
▪ Use this environment for Release changes ▪ Integrate with 3rd party applications (Test Data).
▪ Leverage as validation base for net new features. ▪ Move approved configuration to Production
Configuration client: ▪ Refresh from Production if needed (anonymized).
▪ Conduct configuration UAT & SIT client:
▪ Conduct developments ▪ Conduct your user testing
Unit test client: ▪ Run Integrations
▪ Conduct tests before releasing. Parallel test client:
▪ Conduct your Parallel testing.
▪ Validate results to Legacy Payroll system

SF SAP ECC
Payroll Process – Instance Strategy EC and HCM Payroll 975P PHR 410
Active Project Mode – Data Migration / Payroll Testing Example

D2 QHR 411
T3 QHR 411
T2 CHR 213
*PREVIEW STACK PRODUCTION STACK
PHR 410
BizX Instance
Production Data load of ~60k EE
SAP ECC
records into Prod.
6
Prod
BizX RMK WFA Complete production

validation testing. 7
ONB LMS
5
Migrate
CHR 213
BizX Instance configuration to BizX Instance
QHR 411
Data load of ~60k EE
Prod after UAT records into D2. 2
SAP ECC Development Stage/QA SAP ECC
QA
Dev
BizX RMK WFA

Configure translations for EC, COMP/VP, & ONB UAT in QA. 3
ONB LMS Complete UAT in QA. 4
Migrate configuration
Prod Break/Fix: Regression
after Iteration 3
*Receives quarterly releases 30 days on

1 QHR 411
average in advance of Production Stack BizX Instance BizX Instance
Parallel Payroll Testing EC Data Migration SAP ECC
QA
Instance Copy to create

special instance(s) after Single instance could
Iteration 2 BizX BizX be recycled
depending on data or
© 2023 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC payroll complexity
36
Design Planning
similar

Design Planning
Implementing Payroll Together With Other Cross-Module Processes
Involve all customer Business SMEs during the Payroll Design Workshop to discuss and align on cross-
module topics such as:
▪ Finance (cost objects, payroll run results)
▪ Core HR (employee data, including bank information, compensation, and other relevant objects)
▪ Time and Attendance (evaluated time data, including time off, and time entries for employees that are paid
based on time data)
▪ Benefits and Garnishments
▪ Expenses
▪ Off-Cycle Payroll (e.g. bonuses, commissions, performance-based compensation, and similar)

Payroll Testing
Design and Execution
Preparation: Data Mapping & Conversion
Data Mapping
Make sure key Payroll team leaders are involved in data mapping exercises to identify unique data structures, custom programs and infotypes,
and special payroll groups or issues
Payroll sign-off on data mapping is an early checkpoint for design and the document provides a useful map to understand data differences in
testing when EC becomes the system of record for PA & OM data
Understand what infotypes and sub-types will be managed by EC vs. managed by payroll in HCM
Data Migration
Be clear on data scope and excluded populations (terminated, retired, LOA, Global Assignments) so handling special populations is agreed
upon upfront

Table Compare Testing
Testing
The recommended first level of Payroll testing is to compare a snapshot of the Payroll data in a Client
Copy (HCM or ECP) taken at the point that data migration to EC is done, so you can test that the payroll
infotypes replicated back to HCM match the tables in the source system.
Using programs you may have already available or tools or custom reports, compare the key infotype
tables (IT01, 08, 14, 15, etc.) from the snapshot to the replicated client and track the differences found.
This will give you an early indication of where data mapping issues may be. This will also help the team
understand the kinds of data differences that will be seen.

Data Differences
Data coming from EC to Payroll will have differences for a variety of reasons:
▪ Differences in the way EC handles events or dates
▪ Defaulted values used to make EC data migration easier where source data is not clean
▪ Data issues that must be fixed in source system before next iteration or migration
Classifying found data differences allows the team to clearly understand the status of testing and not
spend time on issues that will not affect payroll:
▪ Known Differences – data issues that result from expected changes in how EC handles data or
differences that result from data or configuration issues that have been identified and will be fixed in
the next iteration
▪ Accepted Differences – differences that are not payroll relevant but result from process or data
handling changes that are part of the project. No action is needed for these differences
▪ Unknown differences – data issues that have not been seen before and where the cause of the
issue is not yet known. These are the issues that need to be worked and resolved before the next
round of testing.

Parallel Payroll Testing
Running parallel payroll runs allows the comparison of payroll from data replicated from EC and provides
a final, critical test of both the EC Configuration and the data migration/data replication processes. This
should be done during Iteration 3 when the final configuration is ready for testing.
Objective
Ensure new Employee Central integration with SAP HCM Payroll provides consistent system inputs and
payroll results with the current production payroll environment
Approach
• Production snapshot of SAP HCM taken just prior to payroll execution
• Parallel snapshot date should include most common (high volume) and most complicated pay
groups
• Two SAP test clients created
• SAP HCM EC Payroll Parallel Test client
• SAP HCM SAP Production Control client
• Payroll comparison programs or tools to identify data differences between the Payroll Parallel Test
client and the Production Control client should be used. Again, using the recommended Difference
classifications will make focusing attention on the most critical issues easier.

GL Payroll Posting Comparisons
Final testing step is to compare Payroll posting results to the relevant financial systems
Testing
Objective
Ensure new Employee Central integration with SAP HCM Payroll provides consistent system payroll
posting results with the current production payroll environment
Approach
Compare EC Payroll Parallel Test client & SAP HCM SAP Production Control client
posting tables via custom reports or integration file compare

Leading Practices/ Common Pitfalls
▪ Identify Payroll test dates early in the process

▪ Allow sufficient time for System Copies and make sure environment has capacity for multiple clients
▪ Utilize your existing testing and validation tools for table compares and enhancement pack test
processes to optimize testing
▪ Any changes in EC configuration would impact the Payroll Replication, hence recommendation is to
plan Payroll Parallel testing after EC IT3 testing is complete
▪ Data Migration directly impacts the Payroll Parallel testing results, so validate data quality in EC before
starting the testing
▪ Implementation of EC to ERP Integration requirements is very key, perform UAT/SIT before final
Payroll Parallel testing and validate all replication requirements
▪ Identify sizable Employee Population for each country testing
▪ Time and Benefits data is required in SAP system along with employee master data (from replication)
to run the Payroll, so if any interfaces are required to bring this data in other than replication from EC
that should be planned

Payroll Process
Summary
You should now be able to
▪ Describe the overall solution architecture for the Payroll process

▪ Explain data components required from different modules for a complete customer solution
▪ Support customer planning related to deploying Payroll
▪ Plan for impacts and changes to existing live SFSF modules and how elements combine to provide for a holistic solution

Additional Resources
Link to other SAP Resources
▪ Process Library: SuccessFactors Process Library

▪ Implementing ECP: SAP SuccessFactors Employee
Central Payroll | SAP Help Portal
▪ Implementation Design Principle: Managing Payroll
Revelant Data Changes
▪ Implementation Design Principle: Migrating from ERP
HCM Payroll to Employee Central Payroll
▪ Implementation Design Principle: Managing
Employments in SuccessFactors Suite
▪ SuccessFactors What’s New Viewer: What's New
Viewer (sap.com)
▪ SAP Roadmap Explorer: SAP Road Map Explorer

Thank you.
Global SAP SuccessFactors / HXM Cloud Architect
Community
Contact us: [email protected]
Community Leads:
Sandeep Bahra, Mustafa Nusrath (NA/LATAM)
Pedro Bolanos, Vikas Singh Rajpurohit (EMEA/CIS)
Adarsh Mahalingappa (APJ/APAC)
Key Contributors
Authors
Raj Aitha , Roelof Korte, Rinky Karthik, Eric Bernhard, Remko Ramakers, Junaed Mortuza, Carlos Torres-Banchs

Appendix
SAP Global Payroll / Time Strategy – Payroll Options
Strategy Product Overview

• Available in 4th quarter of 2022
Retain or UX Modernization H4 for S/4
On-Premise • Requires ECC move to Hana
On Premise
Customer owns software and fully • Expands maintenance till 2040
manages it. Converts to H4 for
S/4
• Allows Conversion of current

environment to Hyperscaler
Private Cloud Retain Cloud Lift & Convert PCE • Any customizations are allowed to
move in Shift
UX Modernization
Edition • Environment exists in the cloud
Cloud Migration Exclusive and privacy-protected
environment for one customer. Lift & • SAP Services are supplied for
Convert existing ECC PR and Time to maintenance
PCE option
• SAP future forward payroll

Employee Reimagine Payroll ECP / SAP Time • SAP owned integrations, Regular
Central Payroll Standardize & Automate upgrades/ maintenance by SAP
Shared resources for multiple customers. • Data center on SAP and HyperScaler
/ SAP Time Cloud Migration
Migration from ECC PR with PCC
Automation

BSI TaxFactory SaaS
▪ Mandatory for SAP SuccessFactors Employee Central Payroll customers

with U.S. employees
▪ Integrated with our U.S. Payroll solution
▪ Comprehensive coverage for federal, state, local, and territory tax
jurisdictions
▪ Minimizes the risk of fines and penalties due to automatic updates
▪ Added benefits of lower maintenance and dedicated support

BSI TaxFactory SaaS
Tax authority coverage
Federal Local
▪ Withholding Tax ▪ County and City Withholding Taxes
▪ Federal Unemployment Insurance Premium (FUTA) ▪ City, Borough, Township, Village and Municipal Taxes
▪ Federal Insurance Contributions Act (FICA) ▪ Occupational Privilege and Head Taxes
– Social Security ▪ School District Taxes
– Medicare ▪ Transportation District Taxes
▪ Railroad Retirement Tax
State Territory
▪ Withholding Tax ▪ Withholding Tax
▪ State Unemployment Insurance (SUI) ▪ Unemployment Insurance
▪ State Disability Insurance (SDI) ▪ Disability Insurance
▪ All Occupational / Miscellaneous Taxes

BSI eFormsFactory SaaS
▪ Integrated with our U.S. Payroll solution

▪ Reduces burdens and compliance challenges of managing and producing
W-4s
– Employees are provided self-service access to online payroll tax forms
– Employers are provided a console to manage and process these forms
online
▪ Employee Withholding Allowance Certificates
(Federal W-4, State / Local equivalents)

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Payroll Process Strategy

Architecture Leading Practice

© 2023 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC 2

02 Payroll Process Interactions

Employee Central – Employee Central Payroll

04 Payroll Instance Strategy

© 2023 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC 3

© 2023 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC 4

Architecture Leading Practice (ALP) is a set of recommended configuration decisions and

© 2023 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC 5

Prepare your customer and decide on strategies

Aligned with SAP HXM Suite

Easy to present building blocks Re-usable content in

© 2023 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC 6

Architectural Leading Practices (ALP) Process Library Leading Practices

Proven set of HR business process configuration:

Use-case: Implementation acceleration during Explore and Realize. SAP Activate

Implementation Design Principles (IDP) Help Portal

© 2023 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC 7

SAP ERP HCM Payroll (on-premise) is available in 58 SAP-provided and 44 partner-

SAP SuccessFactors EC Payroll (cloud) is available in 49 SAP-provided and 3 partner-

© 2023 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC 8

© 2023 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC 10

Business Value Key Process Interactions Key Data Interactions

▪ Recruiting Marketing & Posting Job Profile Builder

Process ▪ Faster time to new hire value. ▪ Onboarding

▪ Performance and Goal Management Competency Compensation

▪ Performance/Goal Mgt./360 Review Competency

▪ Learning Competency Assignment

Time Off Process Solution Architecture components

© 2023 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC 11

Business Value Key Process Interactions Key Data Interactions

© 2023 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC 12

This Leading practice will

In this Architecture Leading Practice, process interactions are:

© 2023 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC 14

Value Proposition Process Flow Process Interactions Design Planning

Business Value Key Process Interactions Key Data Interactions

© 2023 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC 15

Automates the Real-time overview of Real-time insight Automated root cause

▪ Fully automated end-to-end payroll process

© 2023 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC 16

Value Proposition Process Flow Process Interactions Design Planning

Business Value Key Process Interactions Key Data Interactions

© 2023 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC 17

External Time Concur

ECP EFT Garnishments

Central Check Printing Tax Reporting Filing

▪ Employee Data Third party Integrations

© 2023 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC 18

Employee Central → EC Payroll Employee Central → Benefit

Employee Central → Compensation management Benefits → EC Payroll

Compensation → Employee Central Time → EC Payroll

Employee Central → Time EC Payroll → Employee Central

Finance (S/4 or ECC) → Employee Central EC Payroll → External Vendor

Finance (S/4 or ECC) → EC Payroll Employee Central → Concur

EC Payroll → Finance (S/4 or ECC) Concur → EC Payroll

© 2023 SAP SE or an SAP affiliate company. All rights reserved. | PUBLIC 20

Value Proposition Process Flow Process Interactions Design Planning