Tag: consulting

  • SAP HCM payroll tip: Use the What If tool for quick testing of TaxFactory

    SAP HCM relies on BSI TaxFactory for US payroll tax calculations, but HCM teams may be unaware that the tool is available and can help you do some quick testing when the time comes to apply TUBs, Cyclic, or upgrade to a newer version of BSI TaxFactory. For testing, we can reuse the scenarios we’ve already created by changing a few data elements instead of having to locate and create all the data in SAP.

    This does not replace end user testing, but it does expedite unit testing in development environments where data is typically sparse and out of date.

    First, access the BSI TaxFactory GUI and then open the Test node:

    The first step is to enter the basic pay-related data of the scenario:

    The second step is to enter the specific tax data scenario to be reviewed. Here we are setting up Federal:

    Our pay period wages are $1,000 with a married status and 2 exemptions. We save that information and add any additional tax authorities we want to test.

    The final step is to select the Calculate button to generate the calculation based on the scenario we entered.

    We can now review exactly how our scenarios will calculate taxes. If you set up the exact same data in SAP you’ll get the same result.  You can now save the scenario and use it at a later time by making small tweaks, such as check date.

    Once you have your scenario created, it is as simple as selecting the Calculate button and you should receive output very quickly that displays the details you need to validate.

    If you want a method to quickly test BSI, using the What If Tool provides an easy option. Scenarios can be created and reused with a little data change.

    The next blog post will discuss the BSI TaxFactory Batch Test Tool, which is my preferred method of testing BSI due to the easy of copying SAP information and manipulation of that information.

    Read the ILN blog at Insider Learning Network | SAP HCM payroll tip: Use the What If tool for quick testing of TaxFactory

  • Payroll Configuration: Reduce payroll risk of upgrades, support packs, and configuration changes

    We are all familiar with the fact that there are many components that must be in proper working order for the payroll process to result successfully. Each component is a risk point in the payroll process and mitigation of that risk is necessary. Some components are outside of the payroll department control and result is a dependency on other areas that may not always consider payroll requirements.

    Payroll processes combines data from several sources including:

    • SAP System
      • HRSPs (HR Support Packs)
      • Configuration (custom and delivered)
    • HR Master Data
      • Employee actions
      • Individual Infotypes
    • Time data
      • Time entry and approval
      • Time evaluation

    Upgrades and HRSPs are a fact of life but tend to be difficult for some support organizations to accept, especially if their SAP module is stable and not needing any updates.

    Payroll requires HRSPs be installed for legal compliance or changes to underlying program logic. A thorough test plan should be put in place and be repeatable since this will be done at least once a year.

    You can take some other practical steps to avoid proble ms at the configuration stage:

    • Make configuration a priority – resolve problems in a timely manner.  This means providing SLAs (service level agreements) for internal and external support,  end user testing to facilitate the process and keep things moving, and adequate resourcing of support and user acceptance testing.
    • Document any configuration changes during implementation and ongoing support. Turnover and memory fading happen! Having documentation that can be reviewed and understood will help when determining why decisions were made the way they were made.
    • Add negative testing to the plan.  Unintended consequences of making a change can easily happen if the whole picture is not understood or it has been a while since the area of configuration had last been visited.

    Companies seem to have an easier time with change when they have built a strong training and documentation structure. Subject master experts (SMEs) will understand their business process and also be familiar with business processes that utilize payroll data.  Documentation is also very important to a SME – especially when processes are run infrequently.

    Finally, go beyond training employees only for their specific tasks. Taking a holistic approach will give an employee a perspective of where and how they fit in the organization and the overall processes.   Employees will better understand timelines,  but they may even identify methods of better efficiency, use the right tool for the job, and they’ll know how or who to contact to resolve issues that may occur.

    Managing payroll successfully requires juggling various components  and keeping them working in proper order.

    But it’s not j ust a technical juggling act. Every payroll team needs to keep focus on some process basics: repeatable testing plans, documentation of requirements and configuration, and a strong training structure that can reduce costs when changes are needed.

    Read the ILN blog at Insider Learning Network | Payroll Configuration: Reduce payroll risk of upgrades, support packs, and configuration changes