Articles Tagged ‘Time Management’

Shift Premium Pay Processing

In time management, processing shift premiums are common for all industries.  The most common differential pays are the evening shift and the night shift differentials. These differentials are usually dictated by Union rules and mostly apply to hourly employees. However, there are rules where salaried, non-exempt employees can receive these differentials.

Many are familiar with implementing shift differentials using attendance codes, premium table T510P and work schedule. These three methods work for hourly and salary employees, though you may also need to use substitution and configure work schedules. These three common methods are relatively straight forward, easy to use and can be used mutually exclusive of each other or use in combination between them.

One method that is not widely known is the use of infotype 2012 for processing shift differentials where each employee is assigned IT2012 containing a time type indicating the shift. Time evaluation uses the time type as a flag to generate the relevant wage type.

By utilizing IT2012, there is no need to configure attendance types for shifts, additional work schedules or premium tables. However, there may be more short comings for users in terms of ease of use, master data maintenance, substitutions and overlapping shifts (working 4 hours on evening shift and 4 hours on night shift). IT2012 is more of a conversion tool and accumulator within Time Evaluation than a user friendly tool for day to day operation. With regards to master data, reporting and substitution, using IT2012 is not straight forward. Using IT2012 will reduce the need to configure additional attendance codes, work schedules, or the need for setting up the Premium table entries. However, from a user point of view, this may not be an easy task. The Time Administrator will understand the usage of attendance codes and work schedules, but may not understand the concept of IT2012 which requires selecting correct time types and delimiting IT2012, especially if the employee populations are active in doing substitutions.

IT2012 may work for salary, non-exempt employees who are entitled to shift pay, especially if the shift differential is a fixed monthly amount; however, for hourly employees this should not be an option.

Tags: Chemicals, Consumer Products, HCM, higher education, how to, Infotype 2012, k-12, Manufacturing, Pharmaceuticals, Processing Shift Premiums, Retail, sap, SAP HCM, SAP HCM Blog, sap hcm help, SAP HR, Shift Premiums, state/local, Symphony Blog, Symphony Consulting, Symphony Consulting Blog, Symphony Management Consulting, Time, Time Management, Tips and Tricks, Utilities

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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.

 

Tags: ask the experts, Custom Solution, Forms, Go-Live, HCM, HCM Implementation, how to, Implementation, Off-Cycle/On-Demand Payroll, Pay Period, Payroll, Payroll processing, sap, SAP HCM, SAP HCM Blog, sap hcm help, SAP HCM Tips & Tricks, SAP Payroll, symphony, Symphony Consulting, Symphony Consulting Blog, Time Evaluation, Time Management, Workflow

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