SAP Payroll Global Template Rollout and Production Support

Customer

Our customer primarily specializes in a wide range of cleaning agents, personal care, and hygienic products and includes more than 500 companies and NGOs in more than 50 countries worldwide.

Industry

Consumer goods

Project Overview

The goal of the project was to migrate a SCALA-based local payroll application into a SAP-based international payroll system. The project made it possible to include seven in-scope enterprises situated in Russia into the global payroll process.

The project design required the customizing in the following areas:

  • Personnel administration
  • Payroll
  • Finance.

The following key payroll processes were set up.

  1. Master data maintenance
  2. Payroll calculation
    1. basic salary
    2. working schedules & calendars
    3. time dependent & fixed payments
    4. deductions
    5. paid absences
    6. social security allowances
    7. taxes and contributions
    8. loans
  3. Global benefits program
  4. Bank transfers
  5. Legal reporting
  6. Business reports
  7. Posting of payroll results.

Project Execution

The project went through the following phases.

  1. Rollout-I: 6 legal entities, 1 year
  2. Rollout-II: 1 legal entity, 1 year
  3. Migration: 6 months
  4. Support: 6 years, ongoing.

During the Rollout-I phase, IBA Group provided support to the customer and a third-party provider in the project design, testing, and QC.

New processes and functionality were introduced during the Rollout-II phase. IBA Group performed settings for:

  • New types of paid absences
  • Time quotas for vacations
  • New types of payments
  • New social contributions for employees working in harmful conditions.

The Rollout-II phase started a year after the end of the Rollout-I phase and required thorough testing to prevent incidents in the production system used by other six legal entities in Russia.

The key requirement for both rollout phases was to connect to and follow global HR and payroll processes, including employees’ data maintenance, global benefits & loan programs, and employee transfers between different countries.

The reason for the Migration phase was a legal change that required that all personal data of the Russian employees be stored on the territory of the Russian Federation. In cooperation with the customer, IBA Group performed testing of the payroll-related processes and external interfaces to other global systems of the customer.

As the result, the following two parallel landscapes were set up: Global and Russian. Both of them are kept in sync and the interfaces were built it the way allowing for the exchange of all relevant information between the Russian landscape and global, and vice versa.

The Support phase started right after Rollout-I.

IBA responsibilities at this phase included the following.

  • Customizing, development, and testing of change requests
  • Root cause analysis and development of resolution plans for incidents
  • Processing of service requests, including analysis and customization of support packs.

Environment

SAP ERP 6 EhP7

Project results

The project has been ongoing for seven years. The local payroll was moved to the global payroll system and the Russian payroll was built into the global payroll process. The payroll-related data were consolidated in one place for further analysis and reporting at the international level.

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