The automated way to do pay-to-pay auditing

July 11, 2022
Written by Danielle Larocca

Senior Vice-President of HCM Solutions Danielle Larocca has worked in the SAP HCM space for over 20 years. An SAP Mentor and featured speaker at numerous conferences, Danielle has authored four best-selling books on SAP, is the Technical Editor for the SAP Professional Journal, and often the Voice of the Expert on SAPInsider’s Ask the Expert series for HR.

20220407 The automated way to do pay-to-pay auditing_banner image

Identifying variances in your data is something that HCM and payroll professionals have to do all the time: with each configuration change, each Support Pack, new implementations, data conversions, or whenever we upload data from an outside data source or perform day-to-day validations, do client copies, or even for those in a hybrid scenario with SAP® SuccessFactors® Employee Central or SAP SuccessFactors Employee Central Payroll.

 

Bad data can stop the payroll process; it can result in incorrectly paid employees, and compliance may be put at risk. Working proactively to ensure data quality will reduce the time spent troubleshooting and resolving errors post payroll. Put simply, data is used to provide insight. Businesses, when armed with this, are able to improve the everyday decisions they make. If companies do not have confidence in the accuracy of their data, the insight will be lacking and the decisions are likely to be poor as a result.

Pay-to-pay auditing: a risky, time-consuming business

Whether your payroll is run weekly, biweekly, or monthly, there is always the chance that data changes can severely impact one or more employee’s pay. Having a process in place where you can monitor the variances between payrolls can prevent this from happening and escalating.

 

Most companies have some form of error-checking process that is executed prior to exiting payroll and producing employee payments. But how many of these processes are automated and take into account the entire employee population? With changes in regulation, such as SOX/BASLE, auditing has become a requirement rather than a ‘nice-to-have’ function. Due to the large volume of data, most processes involve inspecting only subsets of employees and there is always a risk of missing an actual issue. Regulatory requirements have made recouping incorrect pay a time-consuming and labor-intensive process in certain regions.

Can you control the risks?

So how can you reduce or remove this risk? The good news is that we have a solution to this popular challenge. Variance Monitor™ (VM) from EPI-USE Labs gives you the ability to compare HR and Payroll data between systems and the ability to compare HR and Payroll data across periods. This is great because SAP does not provide a solution for this and it’s an activity that is complex, and time- and resource-intensive with lots of room for manual error. Variance Monitor™ offers you the kind of power and control you need to highlight variances in SAP HCM data. The good news is that it's automated and easy to use. You simply set tolerance levels or specify tables and fields, and comparisons for payroll, time, master data, and FI postings become painless. Also, period-to-period comparisons and the testing of Support Packs is easy and absolutely accurate. VM can also detect ‘null’ values and comes with free sample comparisons for you to use from day one.

 

Variance Monitor is designed for use by anyone who regularly works with data in SAP HCM. This includes payroll professionals, functional users in HR, benefits, Time and so on. It can also include HRIS and IT professionals who have the requirement to validate data to identify differences. Keep in mind that your SAP HCM data is at risk whenever change is introduced – whether through business or configuration changes, or technical or landscape changes. VM gives you the power and control you need to single out variances in SAP HCM data.

 

Variance Monitor reviews data for the entire employee population and has rules that can check for both percentage and value variance, and drill down to search for the reason for the variance. These features will give you complete control of your risk exposure.

How can you reduce risks and cut costs in pay-to-pay auditing?

Let's look in detail at how this process could help you. Let us assume that you have successfully completed the prior period’s payroll and are just about to start this period. You would like to review an employee's payroll using the following rules (this is just one example; you can create multiple sets of rules):20220407 The automated way to do pay-to-pay auditing_4 rules graphic

Rules such as these will highlight employees who have had major changes in their data, and allow you to decide which are correct or improper. Changes could be caused by:

 

  • calculations in time evaluation (for example, extra overtime)
  • changes in master data
  • meeting pension, tax, or national insurance limits (such as FICA in the US)
  • new payments (bonus)
  • new deductions
  • changes to configuration used in the payroll calculation.

If your process of exiting payroll just reviews a subset of employees, it is very easy to miss one or more of these reasons. The ability to automate these types of rules would allow you to find and correct the errors prior to payroll, and can (and in some cases, must) become an integral part of your payroll process.

 

How much would it cost your company in labor to find, fix, rerun payroll, reissue payments, recover excess funds, and so on, that could be saved by monitoring these types of variances upfront?

 

Highlight variances in SAP HCM data

 

 

Explore Popular Tags

Query Manager SAP SuccessFactors SAP HCM reporting HCM Reporting SAP HCM SAP Reporting HCM SAP Payroll reporting EPI-USE Labs Payroll SAP SuccessFactors Employee Central Payroll Document Builder Query Manager Analytics Connector SAP Analytics Cloud SAP HCM Data SAP Query SAP SuccessFactors Reporting Microsoft PowerBI Payroll reporting SAP SuccessFactors People Analytics SAP Payroll data Variance Monitor HR and Payroll data PRISM Tableau HXM Move Human Capital Management (HCM) Payroll Data people analytics sap query hr Data Sync Manager Employee Central Payroll Journey to SAP SuccessFactors SAP HCM journey COVID-19 HCM Productivity Suite HR Intelligent HR and Payroll SAP SAP ERP HCM SAP HCM Payroll SAP S/4HANA Private Cloud Edition (S/4 PCE) reporting solution ABAP Cloud-based SAP HCM solutions DSM for HCM Employee data Employee payroll GeoClock Let's Talk HCM Pay Recon SAP Data Warehouse Cloud SAP HCM Analysis SAP HCM On-Premise Solutions SAP HR Reporting SAP HXM SAP S/4HANA SAP SuccessFactors HCM Journey SAP SuccessFactors Roadmaps SAP and SuccessFactors HXM Reporting SAP data privacy and compliance SuccessConnect data validation payroll control center successfactors Data Sync Manager for HCM Employee Central GDPR HCM, HR OData Query Manager with Document Builder Real-time reporting and document creation SAP Analytics Cloud (SAC) SAP HCM On-premise SAP HCM/HXM SAP HR SAP HXM 2021 SAP On-Premise customers SAP Payroll to the Cloud SAP Road maps SAP customers SAP data SAP data privacy & security Success Factors SuccessConnect 2019 Tax Reporting Transformation without re-implementation accurate payroll data certification custom infotype data source on-premise SAP HCM s/4HANA Analytics solutions Automated reports Automation Cloud migrations DSM Object Sync for SuccessFactors Hybrid Data Secure Data Types Data analysis Employee Central Payroll Reporting Employee Letters Employee communication Free HCM Assessment HR Journey HR employee reports Human Resources Human Resources data Hybrid Reporting SAP and SuccessFactors Hybrid SAP and SuccessFactors Hybrid reporting Hybrid reporting solution Microsoft Excel OData integration OM Object Sync On-Premise Payroll On-Premise Payroll S/HANA Sidecar On-premise reporting Organization of the data PA PRISM for HCM (Private Cloud Edition) PRISM free assessment People Analytics Workforce Planning Personalized documents Protect personal employee data Report Stories Reporting and analysis Robotic Process Automation (RPA) Robotic Process Automation framework S/4HANA Private Cloud Edition (PCE) SAP Data Privacy Suite SAP Data Security SAP ERP Payroll customers SAP HCM Roadmap SAP HCM and Payroll customers SAP Mentors SAP SuccessFactors Hybrid SAP SuccessFactors Release updates SAP SuccessFactors Time Management SAP SuccessFactors Time Tracking SAP certified solution SAP migration SAPPHIRE 2018 SuccessFactors and the Intelligence Enterprise SuccessFactors' Employee Central Payroll The Report Center The Road to People Analytics Time management Workforce Planning ad hoc data variances easy reporter ebook high-speed, low-risk on-premise SAP data partner roadmap single reporting solution sq01 technology third party ALE STP report ASUG Accessing COVID-19 data Ad Hoc Query American Payroll Association (APA) Analytics Connector Analytics reports Analytics solution At-risk employees Australian Payroll Australian Tax Office (ATO) Automated analysis and pay run reconciliations Automatic HR reports Best practice in BI Bots Business Analytics Business Intelligence COVID-19 statistics COVID-19 vaccinations Certified solutions Check for data replication errors Client Sync Cloud hosting SAP PCE Company Branding Compare legacy HR and Payroll data Comparing data Configuration Center Copy and mask test data Coronavirus Created timestamp Custom store Customer-specific infotypes DSAG Data Privacy Data Replication Data Sources Data Sync Manager (DSM) Data access Data privacy regulations Data production support issue solution Democratize data Description Digital tranformation Diversity & Inclusion reporting DocuSign Document Building Dynamic data ECC EPI-USE Labs’ solutions ERP Education sector Electronic Signatures Embedded Analytics Edition Employee Central time Employee Central timesheets Employee NICs Employee payment summaries Employee right to privacy Employer NICs Encrypt data FAQ Index Font Guidelines Gender Pay Gap General Data Protection Regulation Governance, Risk Management and Compliance (GRC) Government forms Grid control Grid layout H4S4 HANA HCM Client Sync™ HCM/HXM/HR Blogs HIPPA HMRC HR Innovations 2019 HR Service Delivery HR and Payroll Integration HR conference HR documents Historical payroll results Hourly time tracking Human Capital Management Human Resources reports HumanRevolution Hybrid SAP SuccessFactors environment IRS Tax Withholding Estimator
+ See More

Get Instant Updates


Leave a Comment: