Learn New Methods For Comparing Payroll Results and Improve Your Payroll Implementation Projects

  • by Owen McGivney, Senior Consultant, iProCon Ltd.
  • March 7, 2014
Get tips and ideas for how to perform a payroll parallel run. A payroll parallel run is the comparison of payroll results between a legacy payroll system and a new SAP payroll system that is being implemented. The results are compared line by line and wage type by wage type between the two systems.
Learning Objectives

Reading this article you will learn how to:

  • Extract payroll results from the SAP and the legacy payroll systems
  • Evaluate the benefits of various tools for comparing payroll results
  • Define a strategy for identifying payroll differences between the two systems
Key Concept

A payroll parallel run is the process of verifying that a newly built payroll system is capable of replacing the legacy payroll system. A payroll period that has already been run and paid on the legacy payroll system is selected. Employees are created on the SAP payroll system with corresponding payroll and SAP ERP HCM master data. The payroll is then run on the new SAP payroll system and the results are compared down to employee and pay element level. By proving that the new payroll system comprehensively matches the legacy system, the business can have confidence that the new system has been configured correctly and will pay its employees accurately.

If you build a new payroll system, you need to verify that it can replicate the results of the legacy system. You can do so with a payroll parallel run. A key activity in a parallel run is the comparison of equivalent sets of payroll results from the legacy system and the new SAP payroll system. Following are different methods of extracting, comparing, and displaying this data to identify and resolve any differences and discrepancies as quickly and effectively as possible.

Note
In a previous article, “How to Plan and Manage a Successful Payroll Parallel Run,” I wrote a general overview of the payroll parallel run within the project framework.

Owen McGivney

Owen McGivney is a senior consultant at iProCon Ltd., part of the iProCon group, based in London, England. He has worked on implementing SAP HR and payroll systems since 1998. Owen has delivered UK, Irish, and multi-national payroll solutions for a wide range of private- and public-sector clients. He has a special interest in combining ABAP programming with configuration to create innovative and effective solutions.

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