We are in the process of converting PeopleSoft HCM to SAP. Here are some of the items we found in the Fit-Gap analysis. These are some of the items SAP does not support out-of-the-box.
If you have any input, ideas or suggestions, please let me know.
1. Savings Limit Process
Requirements around plan limits & IRS limits for employer and employee contributions of various Savings Plans, Deferred Compensation Plans and plan roll-overs after certain contribution or earning limits are reached. These requirements cannot be met with standard SAP functionality.
One example: We can set up 402(g) limit of $16,500 at each plan level. However, there is also "combined" limit of $16,500 as per IRS guidelines. SAP cannot handle this limit out of the box.
2. FICO integration
In PeopleSoft, payroll can pay the employees first and then do GL posting later.
In SAP, this is not possible. Payroll confirmation is dependent upon successful posting to FI, Treasury, and Third Party Remittances. What it means is that if GL postings do not happen successfully, the "entire" payroll will be help up and nobody can be paid.
- How salary expenses will be posted to different G/L accounts based on the cost center type
- How salary expenses will always be posted to the employee’s home cost center first before they are allocated
- Where would we store day rates and how they will be processed
- How will the actual allocation rate be calculated for the hourly employees
- How will the employer burden (payroll tax/benefits) be handled
- How the employee burden will follow the mid-stream charged cost object
- How to prevent delays and issues with closing payroll if the charged cost objects are inactive at the time of payroll posting
- How will we cap the MLP bonus pay allocation at 120%
- How will PTO payouts be allocated for midstream employees as PTO pay out entry will not be done via ESS and mid-stream employees follow task profile
- How will wage types that are not entered in CATS be allocated for mid-stream employees
3. New main bank effective date for employees paid "current"
When an employee updates their main bank via ESS, standard SAP will create the new record starting today and delimit the old record as of yesterday.
In the current system if an employee was able to update their main bank before payroll has been confirmed (e.g. Tuesday morning) then the new bank information will be reflected in the current payroll run. We need to confirm that this is how it is handled in SAP.
When editing a sub bank, the existing sub-bank is delimited as of yesterday and the new sub-bank is effective today. In this situation payroll will deduct "both" the previous sub-bank and new sub-bank amount which is not desired. How this will be handled for employees in general and also specifically for the employees paid current, in arrears, and for specific payroll areas.
5. Sync up employee Off-Cycle main bank infotype IT0009 subtype 5 with employee main bank IT0009 subtype 1 changes via ESS
When using the regular payroll driver, the off-cycle payroll distributes the net payment to all bank accounts including sub-banks. Therefore, we need to create infotype Main bank details for Off-Cycle IT0009 subtype 5 for every employee and keep it synced up with main bank IT009 subtype 1.
6. Change of Permanent Address in ESS
When an employee changes permanent address in ESS, which involves changing their residence state or locals with the same state, the employee should be taken to the ESS page (Iview) for W4, so the employee can consider updating/creating their W4/W5. This enhancement is scoped in the ESS area but as part of this process payroll should get a notification which will allow them to do the following
- The payroll processors will create/change employee residence tax area as appropriate
- The payroll processors will follow up with the employee if needed to ensure that appropriate state/local W4/W5 information is updated by the employee via ESS
7. Employees should be able to create able to select only ACH as the payment method when they edit/create main or other bank.
8. Where to save Goal amounts for 401(k) loan, United Way etc. ?
In PeopleSoft, we can create a general deduction which has amount, goal amount and balance amount.
In SAP, IT0014 stores recurring deductions and IT0015 stores one-time deductions. But there is no place to save goal amount and balance amount.
9.Expat/International Payroll Processing
Based on the decision of outsourcing the expatriate management to a Third Party we need to determine how to handle expat payroll processing
10. SAP has not released the functionality of Multiple Pay Checks in a single pay period
This functionality is needed to record stock option, relocation, and other imputed income as separate transactions in a normal pay cycle to avoid additional off-cycle payrolls
11. Change of Payroll Area after payroll has been confirmed is not allowed in SAP.
This needs to be reviewed and determine a process to ensure that all transactions that impact payroll area are entered timely
12. In order to pay inactive and terminated employees we need to override “run payroll up to date” on the employee’s payroll status record at termination. SAP uses the termination date, what it means is that the employees who terminated cannot be paid after the termination date. However, many time terminated employees need to be paid "after" their termination date e.g. stock option payout etc.
13. We need the ability to create multiple checks in one payroll cycle in order to record check numbers to accurately reflect stock transactions, but this does not seem to be an activated functionality in SAP. Research is in progress.
14. How to set-up Employee Time allocations in SAP – In CATS Time Entry or in FICO Configuration
- Task Profiles are currently used in PeopleSoft to allocate employees time value to various charged cost objects
- This allocation process is required to ensure accurate FICO posting and downstream Partner Billing process
15. Validation at the point of time entry.
- Hard Error If Hourly employees charge Attendances to their home cost center
- Hard Error If Hourly employees charge absences to a cost center that is not their home cost center
- Hard Error If Midstream employees charge attendances or absences to their home cost center
- Hard Error If employees do not enter comments when charging out worked hours to a charged cost object which is not their home cost center
- Hard Error If minimum hours are not entered for call out and call in attendances
- Hard Error travel units time entry (maximum 1 unit per day)
16. Cost Allocation Task Profiles
Task Profiles are used to allocate an employees worked time to one or multiple charged cost objects (Cost Center, AFE/WBS/Work order) based on the allocation percent. The use of the task profile allows the employee to just enter their daily worked hours and not require them to allocate their hours every day/week and ensure data accuracy, FICO posting and partner billing.
The timekeeper creates and maintains the employees task profiles which change as the employee works in different areas. The charged cost objects available for assignment in the task profile are based on the "filtered list" from SAP. The task profile includes the following data fields – company, charged cost object, percentage allocation, GL Type (LABR/DR). The task profile allocation data is used in the labor allocation process.
17. Display the GL Type (LABR or Day Rate) associated with the charged cost object in CATS/ESS/MSS
This indicator is derived from the custom field on the ESM cost center master – Day Rate Yes/No.
18. Time Administrator Assignment Time Administrators groups are dynamically created each night assigning the appropriate employees for each timekeeper group based on selection criteria. Time Administrators have access to their respective groups based on a role and row level security. The majority of the group selection criteria is based on the employees location or home cost center, however there are some additional complex groupings.
Proposd solution: The criteria for the time administrator assignment will be maintained in the delivered SAP feature PINCH, which defaults in the Time Administrator Group to employee IT0001.
A custom data load will be run nightly as a batch job in SAP to detect changes to feature PINCH. If changes have been made the output of the load will be the update of the Time Administrator field in IT0001 for employees whose Time Administrator Group has changed.
19. 9/80 Employees Holiday Calendar Assignment
When a Holiday falls on an employees 9/80 day off, the Holiday is moved to the prior day so the employees schedule can reflect the Holiday and the 9/80 day off.
20. Filtered cost object drop down selection
When an employee currently selects a cost object they are presented with a filtered list of SAP CO/PM/PS configured cost objects to choose from. The list is filtered by an external program which filters out cost objects that should not be available for selection in time entry.
21. Restrict ESS/MSS/CATS Drop Down for Absence/Attendance time types according to EE Sub Groups.
Only allow ESL/STD/WC absence codes in the drop down for employees who have been approved for ESL/STD/WC
Gap: Delivered SAP functionality allows the absences or attendances available on the drop down in CATS to be restricted according to the Personnel Area and Personnel Sub Area to which an employee belongs, but not according to the EE Sub Groups.
22. UK employees should not be able to enter prior period adjustments for the prior year - All employees will be allowed to go back 60 days to enter prior period adjustments. UK employees should not be able to cross years.
23. Allow employees to enter comments.
The requirement is that when certain conditions are met the employee should be forced to enter comments in the free text screen.
This gap is that comments can only be entered on the ESS daily view screen, but not on weekly view.
24. Quota Overview Columns Headings in ESS to be changed as per company terminology.
ESS Quota Overview Column headings require "enhancement".
- Remove the Deductible from and to fields.
- Change the word Entitlement to Award
25. Nobody can enter time or correct time entry when Time Evaluation is running.
Employee record is locked and absolutely no maintainance can be done on employee record when Time evaluation is running. Time evaluation can run nightly, but payroll still needs to run it in daytime just before confirming th epayroll.
Need to determine the method to notify and prevent Employees, Managers and Timekeepers from entering time when Time Evaluation is running.