Payroll and Benefits Integration: Understanding Evaluation Dates

  • by Clay Molinari, SAP HR Consultant, C&C Savant, Inc.
  • May 15, 2003
In benefits, cost information is presented in terms of expected or estimated amounts. A complex set of factors comes into play during payroll processing that can cause the actual deductions to be different. This article examines the integration between payroll and benefits so that you can explain to your end users why this happens.

In R/3, fields that are calculated, such as the amount of a benefit deduction, are not stored directly in the database. Rather, the underlying data required to make the calculation is stored and the amount is calculated in real time as needed. This allows R/3 to calculate the correct deduction even when some related data has been changed, but it can sometimes lead to perplexing results.

In benefits, cost information is presented in terms of expected or estimated amounts. A complex set of interrelated factors comes into play during payroll processing that can cause the actual deductions to be different. This article examines the integration between payroll and benefits so that you can explain to your end users why this happens. You will understand which part of a deduction calculation happens in benefits and which part happens in payroll. The information presented in this article is based on U.S. Payroll, but many of the concepts are relevant in all countries.

Clay Molinari

Clay Molinari has 20 years of experience in the IT industry and has been working as an SAP HR consultant since 1997. He is currently president of C&C Savant, Inc., an SAP consulting firm that specializes in combining standard SAP configuration and custom ABAP programming to help its clients solve unique or complicated requirements.

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