Understand and Streamline Your R/3 HR Payroll-FI Integration: How to Debug Common FI/CO Problems Caused by Payroll

  • by Steve Bogner, Managing Partner, Insight Consulting Partners
  • January 15, 2005
Learn about common FI/CO problems caused by Payroll and how to debug the process.
Key Concept
The central integration object between SAP Payroll and FI/CO is the symbolic account, a four-character code that connects wage types in Payroll to accounts in FI/CO.

Understanding the integration between SAP Payroll and FI/CO is critical to ensuring that payroll is correctly accounted and reconciled. I'm going to describe the configuration options available in this integration area as well as their effect on R/3 HR Payroll-FI/CO reconciliation.

Just as various amounts and balances in FI/CO are stored in accounts, all the amounts and balances in payroll are stored in wage types. An employee's base pay, overtime, tax, deduction, and net pay amounts are stored in wage types, as are employer-paid items such as employer taxes and the employer portions of benefits. As in FI/CO account balances, the amounts in wage types are related to other objects such as cost centers, company codes, and business areas. Wage types are the central concept of SAP Payroll and are the primary integration point with FI/CO.

You need to understand six important topics to ensure a smooth, accurate, and complete integration between SAP Payroll and FI/CO:

  • Mapping wage types to FI/CO accounts
  • Overriding cost center assignments
  • Generating intercompany postings
  • Making date-effective changes
  • Generating month-end accruals
  • Ensuring all payrolls are posted to FI/CO

Steve Bogner

Steve Bogner is a managing partner at Insight Consulting Partners and has been working with SAP HR since 1993. He has consulted for various public, private, domestic, and global companies on their SAP HR/Payroll implementations; presented at the SAP user's group ASUG; and been featured on the Sky Radio Network program regarding SAP HR.

Steve will be presenting at the upcoming HR Payroll Seminar November 7-8 in Chicago and November 27-28 in Orlando. For information on the event, click here.

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