Integration with Payroll: Time Management in SAP HCM

Introduction

Integrating time management with payroll in SAP HCM ensures accurate compensation for employees based on their working hours, overtime, and absences. This tutorial explains the step-by-step process with real-world examples.

Step 1: Configuring Time Data for Payroll

Set up the system to transfer time data to payroll:

1. Go to SPRO > SAP Reference IMG > Time Management > Integration with Payroll > Set Integration Parameters.
2. Configure the time wage types for payroll processing, such as overtime or absences.
3. Example: Define wage types for standard working hours (WT1000) and overtime (WT2000).

Step 2: Recording Time Data

Ensure that time data, including attendance and absences, is recorded accurately:

1. Use transaction code PA61 (Time Data Recording) or CAT2 (Time Sheet: Maintain Times).
2. Example: Record that Employee J worked 9:00 AM to 6:00 PM on January 10, 2025, with 1 hour of overtime.

Step 3: Running Time Evaluation

Process the recorded time data to calculate working hours, overtime, and absences:

1. Go to transaction code PT60 (Time Evaluation).
2. Run the evaluation for the selected period and employees.
3. Example: Calculate overtime for Employee J, showing 1 hour of overtime on January 10, 2025.

Step 4: Transferring Time Data to Payroll

Send evaluated time data to payroll for processing:

1. Ensure time evaluation results are error-free by reviewing the log in PT60.
2. Run transaction code PC00_M99_CIPE (Evaluation Transfer to Payroll).
3. Example: Transfer Employee K's working hours and overtime for the January payroll cycle.

Step 5: Processing Payroll

Include time data in payroll processing:

1. Use transaction code PC00_MXX_CALC (Payroll Calculation).
2. Verify that the wage types from time evaluation are reflected correctly in the payroll results.
3. Example: Ensure that Employee L's payroll includes 5 hours of overtime at the appropriate rate.

Step 6: Generating Reports

Create reports to review payroll and time data integration:

1. Use transaction code PC00_M99_CLGA09 (Wage Type Reporter) to analyze wage types.
2. Run reports to verify overtime, absences, and other time-related payments.
3. Example: Generate a report showing overtime payments for all employees in January 2025.

Conclusion

Integrating time management with payroll in SAP HCM ensures accurate and efficient compensation processing. By following these steps, organizations can streamline their payroll operations and maintain compliance with labor laws.