This is a quick and ready document, just to get the hang of this document creation process on SCN.If this actually helps somebody, that is an added bonus. I will consider editing and expanding on it at a future date.

This gives a brief guide to closing down payroll for a UK Payroll area. For simplicity, it is assumed to be a Monthly paid Payroll area. This covers the period for Payroll Closedown – That is to say, it is assumed that all payroll related data for this period has already been entered, payroll has been run a few times, results checked, errors corrected and so on. Therefore all that remains is to carry out final simulations and close down the payroll.

This is not intended to be a detailed guide on the various transactions involved. It is assumed that the reader is familiar with the payroll process.

1) Release Payroll

Transaction – PA03.

Set the Payroll Area to “Released for Payroll”

2) Run Payroll

Transaction – PC00_M08_CALC

Execute Payroll and ensure that there are no rejections. By this stage, there should be no rejections as all errors would have been identified and addressed before arriving at this point.

3) Simulate Posting

Transaction – PC00_M99_CIPE

Ensure that the Payroll Posting program does not end up with any rejections, and also does not create any incorrect documents. Posting errors are usually hard to correct after exiting the Payroll, and hence it is imperative that we identify any potential posting errors at this stage. This would allows us to re-run payroll if required.

4) Simulate Pre – DME

Transaction – PC00_M08_CDTA.

This is a quick check to ensure that the Pre-DME is error free. It gives an opportunity to reconcile the number of people processed in payroll and the number of payments made. There should not be any errors, or transfers that were not performed.

The only “error” that is acceptable is “F11 No transfer data for personnel number xxxxxxxx”. This signifies that the employee has been processed in payroll, but does not have any Net pay.

5) Simulate FPS – RTI Submission

Transaction Code – PC00_M08_RTI_FPS

It is very important to simulate this transaction before exiting payroll. Errors in FPS submission usually require the re-running of payroll to rectify them, and therefore it is essential to carry out an error free simulation before Payroll has been exited.

Execute first, with only the ALV option selected. On the output screen ensure there are no rejections. Go to Extras> Error list on the menu bar and verify there are no business errors.

Now, execute again with the “Test in Live” option and both ALV and XML selected. Again verify there are no rejections, and the Extras >Error List and Extras>XML errors, do not show any.

Click on the B2A manager, highlight the line and then select the ” Execute” button. The screen should show a succesful confirmation.

Important Note – There are occasions where SAP comes back with an ambiguous message, such as “Waiting, Poll Again”. In this case, it is always worthwhile, to call up the HMRC help line and confirm that the Test in Live file has been received successfully, before proceeding with the rest of the payroll process.It would be dangerous to assume that the submission has been trouble free, although, in the majority of cases, it is simply a delay in communication from the HMRC gateway back to the SAP system.

If the above simulations are successful, Great!, you are now ready to Exit the Payroll.

6) Exit Payroll

Transaction – PA03

Set the Set the Payroll Area to “Exit Payroll”, taking care to look out for any warning messages which warn about incorrect or locked personnel numbers still existing in the payroll area.

7) Live Pre-DME

Transaction – PC00_M08_CDTA

Execute the transaction in live mode, and make a note of the parameter id generated.

8) Generate the BACS file

Transaction PC00_M99_FPAYM

Use the parameter ID and date generated in the previous step to generate the BACS file. All organizations are likely to have their own individual governance process around this step. It is normal to run a Cash Breakdown report or a Wagetype Reporter to reconcile the BACS amounts with the payments generated in Payroll.

9) Generate Payslips.

Transaction – PC00_M08_HRF

This is the transaction used by organizations that utilise a HRFORMS payslip. However there are other methods available, and it is also possible that a custom transaction is used by certain companies for their payslips.

10) Live FPS – RTI Submission

Transaction – PC00_M08_RTI_FPS

If you have come this far, you will not expect to see any rejections at this stage.

On the output screen, select the B2A manager, and submit the FPS.

Again, it is normal to get a succesful confirmation message from the HMRC gateway that says “OK, Final Confirmation by IR”. if the message received is ambiguous, it is recommended to contact HMRC and verify that the submission has been received by them error free.

It is worthwhile to download the FPS report and save it in excel for future reference, as this is not saved or available once the following month has been run.

10a) Employer Payment Submission

Transaction – PC00_M08_RTI_EPS

This is the YTD submission that must be made every month.

The values populated in this report can be extracted by running a Wagetype Reporter – ensure that the values are cumulative Year – to – Date values.

This report has a Test in Live option, but in this case there is very little added value to use this. Submit via the B2A manager to HMRC and ensure a successful confirmation is received.

11) Live Posting to Finance

Transaction – PC00_M99_CIPE

Finally we are in a position to post payroll results to accounting, and close down yet another payroll process. As our simulations have been successful, we will expect to see an error free live posting to accounting.

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10 Comments

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    1. Harish Krishnan Post author

      Thanks Jayasree.

      This is my first attempt at making a document, a lot depends on the kind of response this one gets. The problem is of course, that this site is awash with documents of all kinds – it is difficult to hit upon a topic that hasn’t already been covered. Is there anything in particular that you would like to know about?

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      1. Sriram Tamil

        Hi Harish,

        I am just going through all the documents. Soon i will be supporting UK payroll but i have no experience on that, so would you please let me know what are the things i must be ready with when they start giving KT on it ,

        Where can i go and learn the legalization. Tax calculation, country specific process and any special processes,

        CAn you help me with this, it would be really great ful.

        Thanks

        Sriram

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        1. Harish Krishnan Post author

          Hi Sriram,

          HMRC.gov.uk tells you everything you need to know about the typical UK specific laws regarding Tax, National Insurance and Statutory Absence processing.

          Other things to know about are Court Orders, Student Loans

          Pensions, Auto Enrollment, RTI are processes that have been introduced recently – hopefully you something about RTI from the list above.

          looking into sap.com/hrgb media library often provides some good documentation on how Absence Processing and others are configured in SAP.

          All the best.

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  1. Mahaa S

    Great Document Harish.

    I never knew what RTI was and do not have much exp with Payroll UK, but the document sums it up very well on the end to end process and is brief giving clear and concise explanation.

    Look forward to many more documents on UK payroll.

    Cheers,

    Maddy

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  2. Sven Ringling

    Hi Harish,

    nice list.

    May I suggest you add the EPS submission lest it’s forgotten? Even, if it comes up only some time after exiting payroll, it’s still part of the normal process.

    kind regards

    Sven

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    1. Harish Krishnan Post author

      Thank you very much Sven. I had forgotten the EPS myself in my very first draft, but just before publishing it, included it as point 10a in my list. At that point, I was too lazy to re number the whole list.

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      1. Sven Ringling

        Hi Harish,

        I guess you wouldn’t need renumbering anyway, as you’d usually do the payroll posting before the 6th of teh following month, when EPS would normally happen. Unless you wait with EPS from last month until you do FPS for the current month – not sure, whether anybody is doing that.

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        1. Harish Krishnan Post author

          Hi Sven, in this case, I have just assumed a single Monthly payroll – My last project had 1 weekly 2 fortnightly and 1 Monthly Payroll, (including cross frequency multiple employment) so we had to ensure that all payrolls with a paydate before the 6th were included in the EPS for the month. So, as you have rightly pointed out,  that is an important point to remember when having multiple pay frequencies, with respect to running the EPS.

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