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Successfactors Employee Central Payroll General Ledger Posting to ERP – Part 1

Dear Community members,

I am writing my first blog post after finding excuses for several years and on a topic where I have been consulted a number of times by my fellow colleagues at SAP, SAP partners and Customers on the approach I took a few years ago for the integration of SAP Successfactors Employee Central Payroll with SAP ERP On-Premise or ERP hosted in SAP HANA Enterprise Cloud.

The reason behind why I had to write a blog post now is, there are an increasing number of implementations of  SAP Successfactors Employee Central Payroll and still there are many questions around this topic and now that I managed to find some spare time since I am working from home for couple of weeks.

A very short introduction of myself, I am a Technical Architect with 15 years of experience in SAP ABAP, BASIS, SAP Process Integration, SAP Cloud platform Integration and few topics around SAP Cloud platform.In the recent years, I have been supporting quite a few Successfactors implementations.

Ok, let’s get started with the actual topic now.

Need for SAP Successfactors Employee Central Payroll-ERP GL Posting Integration

On successful completion of payroll run, the posting of payroll results from SAP Successfactors Employee Central Payroll to the SAP ERP Financials application is required to tag employee costs to correct cost centers and GL Accounts (Expense, Balance Sheet and Vendor), remit payments to various agencies, and reconcile data between SAP Successfactors Employee Central Payroll and SAP ERP Financials.

Posting to SAP ERP Financials consists of two-steps : Simulation and Live-Posting

Typical Flow for Payroll Run

The GL posting integration is at use by SAP HCM Payroll customers for many years and two scenarios were possible as mentioned below:

SAP ERP Financials and SAP HCM Payroll on the same instance:Since both SAP HCM payroll and SAP ERP Financials are co-deployed on the same ERP instance, the posting happens internally and there is no need to plan any integration activities.

SAP ERP Financials and SAP HCM Payroll on distributed instances: Most of the time, both instances are still within the same network, hence both the Posting Simulation and the live posting  can be achieved with the help of RFC/BAPI/ALE configurations.

When it comes to SAP Successfactors Employee Central Payroll and ERP integration, since SAP Successfactors Employee Central Payroll is hosted in SAP Data centers and ERP can be within customer network or it could be deployed on SAP HANA Enterprise Cloud , there is a need to plan how best to achieve the integration.

What this blog will not talk about:

  • Integration options for SAP Successfactors Employee Central Payroll to SAP S/4HANA Cloud is not covered here as both are SAP Cloud applications and there is content or guides available explaining how to achieve this.

https://help.sap.com/viewer/23e6b463adc541e89bf8ec54f371a35f/1911/en-US/1186fd6541ea410cb83cf60e5d318f90.html

  • Other Master Data/Transactional Data Exchange:Besides GL posting information exchange, in a SAP Successfactors Employee Central Payroll implementation usually the following Master Data and transactional objects are also exchanged depending on the customer’s needs:
    • Cost Center from ERP to SAP Successfactors Employee Central Payroll
    • Bank Master from ERP to SAP Successfactors Employee Central Payroll
    • Currency Rates from ERP/External Source to SAP Successfactors Employee Central Payroll
    • Salary Data(DME File) to Bank
    • Salary Data(DME) to SAP ERP Financials (if SAP Bank Communication Management is being used)

Options for SAP Successfactors Employee Central Payroll-SAP ERP Financials Integration

There are many articles, KBA’s, standard guides explaining how best to integrate Employee central and ERP or SAP S/4 HANA, however when it comes to SAP Successfactors Employee Central Payroll integration with ERP, I believe there are not many articles explaining how to achieve this.

For those not familiar with the deployment options of Success factors , SAP Successfactors Employee Central Payroll is the Cloud based payroll solution in a Full Cloud Deployment Option i.e all processes around PA, OM , Time and Payroll are managed in the cloud.

There are currently two known ways to achieve SAP Successfactors Employee Central Payroll and ERP (On-Prem/HEC) integration:

  • VPN Approach: Refer to the below KBA which has link to the VPN setup guide which is applicable for both SAP GUI Access to SAP Successfactors Employee Central Payroll from customer network and also RFC connectivity between ERP and SAP Successfactors Employee Central Payroll.This approach is no different than the integration between SAP HCM Payroll and SAP ERP Financials on distributed instances apart from the VPN setup.

https://apps.support.sap.com/sap/support/knowledge/preview/en/2523186

  • Using SAP Cloud Platform Integration:The VPN based approach for SAP Successfactors Employee Central Payroll-ERP integration has its own complexity to implement depending on where the ERP system is hosted and also few customers stick to the principle of always routing any traffic via a middle-ware, hence for certain customers we as implementation team had to use Cloud Platform Integration to achieve this integration.

         Why SAP Cloud Platform Integration: It is SAP’s strategic integration platform for Cloud Customers and is the default platform included in SAP Successfactors Employee Central license.

        Since SAP Successfactors Employee Central Payroll is a cloud solution, any web-services or IDocs available can be consumed from SAP Cloud Platform Integration without any additional tasks or the need to raise incidents to support for white-listing.

However for allowing traffic from SAP Cloud Platform Integration to ERP, white-listing activities via SAP Web-dispatcher or F5 load-balancer or other reverse-proxy solutions need to be considered, however using a cloud connector is more hassle-free compared to setting up a web-dispatcher or a non-SAP reverse proxy.This is validated with the customer on a case-by-case basis.

Typical Topology

                  1.INBOUND(to ERP):Cloud Connector should be configured to connect to the SAP Cloud Platform Integration Sub-account.

                  2.OUTBOUND (from ERP): ERP should be allowed to connect to SAP Cloud Platform Integration (normally involves a  forward proxy)

 In the next blog, I will show how exactly the integration can be achieved using SAP Cloud Platform Integration for payroll posting.

I am more than happy to welcome any feedback or comments which help me to improvise my next blogs.

Credit goes to my colleague Sriprasad Shivaram Bhat for pushing me to post this as a blog rather than as an internal knowledge sharing document.

13 Comments
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  • Hello Harish,

    Thanks A Lot for the write up.This topic is less touched across SCN and its really helpful for the consultants working on customer projects involving SuccessFactors EC Payroll.

    Regards,

    Sriprasad Shivaram Bhat

  • Hey Harish,

    Thank you for this blog. Our organization is in the process of implementing ECP and SuccessFactors for a client who is maintaining Payroll in ECP and using an on-premise ECC system for their financial needs. We had no clue as to how to achieve this, or even if this was possible. Thank you once again for this.

    Now, I do have one question. As I understand it, the VPN tunnel is to get back-end access to the ECP system which is nothing but an ERP system in the cloud. But how would one connect ECP (on the cloud) and ERP (on-remise) for financial data integration? Is this achievable through ALE/IDOCs? Will normal spro configuration suffice?

    Any inputs will be highly appreciated.

    Thanks

    Kriba

    • Hi Kirubakar,

      A VPN tunnel between both systems should be configured usually via IPSec VPN tunnel and for this customer network team usually works with Sap Successfactors Employee central payroll operations team (via a support ticket), check the below note for details.The process is same as SAP GUI connection from customer network to Successfactors Employee central payroll .

      https://launchpad.support.sap.com/#/notes/0002523186

      Once the bi-directional VPN is achieved, the configuration is via SPRO and it uses ALE/IDOC and BAPI’s – I am sharing the details in my next blog.

  • Hello Harish,

     

    Thanks for sharing the useful blog.

    May you please tell me if we can connect EC payroll (oncloud) and SAP ERP (onpremise) system using the middleware SAP PO 7.5 (onpremise). If yes, how we will achieve this.

    Thanks in advance!

     

    Regards

    Lokeshwar

  • Hi Lokeshwar,

    Yes you can use SAP Process Orchestration as well since the integration will only involve SOAP messages exchange.

    Please wait for the part-2 and if you still have questions , I am happy to answer.

    I am planning to have part-2 out very soon , very likely this week.

    Thanks,

    Harish

  • Hi Harish,

    Thanks for the informative blog!

     

    Could you please tell me if ECP has a feature to make the third party payroll vendor (taxes, pension) payments directly from ECP system?

    Best Regards,

    Gaurav

     

  • Hi Harish

     

    We are using ECP and integrating to S/4 for G/l posting. the idocs are failing in S/4 because we have got financial consolidation configured and the system is deriving the wrong consolidation chart of accounts as default. Has anyone faced similar issues with the idocs. We are using ALE to connect both the systems

    ta

    Shankar