8/13/2019 What is a Payroll Area

http://slidepdf.com/reader/full/what-is-a-payroll-area 1/4

What is a payroll area?

Payroll Area:

  Typically an organization has a variety of employee types who are paid at different pay

frequencies. For example, blue collar workers are paid weekly, white collar employeesare paid monthly , part time employees are typically paid bi-weekly.

  Payroll Area groups employees together on the same payroll run frequency (semi-

monthly, monthly, etc.).

  When executing a payroll for a particular payroll area all employees belonging to that payroll are processed. This avoids the need for running payroll individually for

employees who are paid at same frequency

What is a Payroll Periods?

Records of payroll run for earlier months an employee are always stored for tax, audit and retro

 purposes. Suppose the current month is Oct 2010 and you want to refer to the payroll results forthe month of Jan 2010 for an employee who is paid on monthly basis. It surely is easy to look for

this data. But what if the employee is configured to be paid every 9 days and you want to know

what his 16th pay slip, for the current financial year, looked like. How do you go about searchingfor this data? Inconvenient isn’t it? Well, Enter Payroll Periods. 

Payroll Periods represents the period for which regular payroll is run.

It is identified by a period number and a payroll year.

The payroll period includes a “start date”, an “end date”. In the above example period 01 for

 payroll area xx has start date 01/01 and end date 01/31

For each payroll area, payroll periods are generated for current and future years.

When generating payroll periods, the period number depends on the period parameter (semi-

monthly, monthly, etc.) and the start of the fiscal year. For example, for countries for which the

financial year starts in April, payroll period “01 2010″ represents the payroll period for April2010.

8/13/2019 What is a Payroll Area

http://slidepdf.com/reader/full/what-is-a-payroll-area 2/4

What is a Pay Day?

It’s the date the salary is credited to bank account of the employee. 

Pay Day differ from organizations to organizations. Some pay on the last working way of the

month. Some companies pay last month’s salary on the 10th of the current month.

What is an Infotype?

SAP-HR uses infotypes to store all relevant employee data required for administration purposes.

It has a 4 digit-code and a related name.

It stores similar data into one screen.

For example, Personal Data (Infotype 0002) stores the employee’s personal data (i.e., first name,last name, birth date, marital status).

Every SAP infotype has fields for which data needs to be entered. There are two types of fields:

  Mandatory fields, which have a tick in the field. 

8/13/2019 What is a Payroll Area

http://slidepdf.com/reader/full/what-is-a-payroll-area 3/4

  Optional fields, which are blank.

 Number ranges for infotypes have been pre-determined by SAP. They are as followed:

  HR/Payroll Data = Infotype 0000 to 0999  Organizational Data = Infotype 1000 to 1999  Time Data = Infotype 2000 to 2999

Authorization to access SAP HR Master Data can be defined at the infotype level. Therefore,

SAP

users can be given access only to the employees’ information relevant for their position,  

allowing appropriate level of security to be maintained for confidential personnel information.

Infotypes Sub-Types

Some infotypes are divided in different groups linked to the same theme. These groups are called

subtypes. “Permanent Residence” and “Emergency Address” are subtypes of the Infotype 0006 

(Addresses).

Infotype Periods

Infotypes are maintained according to specific validity dates: start and end dates. This allows

maintaining an employee’s data history. When you update an employee’s data, the previous datais most likely automatically time-delimited. As a result, an employee can have many records for

one infotype, with different validity periods.

Which criteria determine payroll areas?

Employee subgroup and payroll period are the two criteria that determine the payroll areas.

8/13/2019 What is a Payroll Area

http://slidepdf.com/reader/full/what-is-a-payroll-area 4/4