Advanced Vacation Payout

Question

Our Company is three weeks from go-live SAP HCM. We have a union rule that requires us to pay union members in advance for vacation. Many of them take five weeks all at once. We have a weekly payroll. It appears that the way to do this in SAP is to process each vacation request manually through each of the next 5 payrolls (for each employee requesting vacation). This is a huge pain for our payroll department in our legacy environment, and soon to be in SAP. Do you have any suggestions?

 

Answer

Step 1 - In Time Management, enter the Vacation hours for the five weeks, then run Time Evaluation for the five weeks.

Step 2 -  In Payroll, there is an Off-cycle/On-Demand Payroll run option, where it can be run for the next five pay periods for the employee, so their taxes, etc. , will be calculated and taken correctly. (On the actual production payroll for the next 5 pay periods, Payroll will know and exclude the employee from the Regular Production run).

 

An enhancement that may be explored post go-live would involve a custom solution utilizing a combination of forms, workflow, and custom programming to automate the entry part of the process.  The Time Evaluation and Off-cycle steps will already be a part of your new SAP Payroll procedure and not require any further adjustments. 

 

Either way, we recommend you move forward with go-live and only consider a custom solution after go-live and stabilization. Waiting until after you are stabilized will allow you to have a better understanding of your new system and help you to be better prepared when you begin to make adjustments or expand your HCM solution.

 

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This entry was posted on Friday, June 4th, 2010 at 2:08 pm and is filed under Ask the Experts.
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