System Tips for a Global SAP Payroll Strategy

  • by Satish Badgi, HCM Consultant
  • January 10, 2012
Learn how to meet the common challenges that arise with deploying SAP payroll systems in multiple geographies and countries. See how to use your SAP ERP HCM and payroll functionality to standardize the implementation process across countries, but also to continue to meet local requirements.
Key Concept
SAP offers payroll solutions in more than 50 countries through its own module or through partner-developed SAP solutions. As organizations develop their global SAP ERP HCM systems, SAP payroll becomes an important decision point, especially in large countries where organizations have a strategic presence or a large employee base. By using SAP payroll solutions, these types of implementations are able to leverage SAP’s international functionality, which, in turn, standardizes the implementation process. This standardization allows companies to leverage skills across countries and adopt common processes and policies. In a global environment, there is a need to balance the SAP payroll system implementation with existing local country solutions and any outsourced payroll solutions.

A global SAP payroll system implementation that is integrated with a global SAP ERP HCM system can present many challenges. These challenges consist of both system- and configuration-related challenges as well as non-system and process-related challenges. Examples include:

  • Globalizing the wage type catalogue
  • Consolidating payroll areas
  • Standardizing interface frameworks for data transfer between SAP ERP HCM systems and non-SAP payroll systems (in countries where an SAP payroll solution may not be available)
  • Implementing expatriate or global employee processes and SAP system solutions
  • Creating reusable content and libraries for leveraging work across countries

First I explain how the SAP ERP HCM system affects the SAP global payroll system. Then you learn about topics related to SAP global and local payroll systems, including global employee payroll. Finally, I address the unique challenges presented by the deployment and cutover of global payroll implementations.

See my HR Expert article, “Use a Global Payroll Strategy to Leverage the SAP Payroll System,” which explores the strategies, approaches, and options for global implementations. This article explains the SAP-specific options and approaches for tackling these global payroll implementation challenges.

Satish Badgi

Satish Badgi has been helping clients implement SAP ERP HCM and payroll for more than 15 years. He has been involved with large full-scale SAP ERP HCM and payroll implementations using the breadth and depth of SAP modules. Satish works for a large management and systems integration consulting firm and handles global payroll for clients. He has published two books on SAP payroll, Configuring US Benefits with SAP and Practical SAP US Payroll.

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