Accrual Concepts in SAP US Payroll

Foreign. So hello everyone. Thank you for joining in. So we are continuing with the payroll transformation series for US Payroll from SAP point of view. So now we have already covered couple of stuffs in the implementation track. And if you talk about more about that we have seen the tax factory in the past UX US Tax Reporter. Okay, all those stuff we have seen now going back to the class notes once again. So in the previous sessions we have already covered the claim handling for overpayment. Okay, so today we are going to talk about a small topic called accruals. Okay. What does an accrual means? It is purely a technical accounting term. I will say so whenever a company's company owes you something but that is not yet recorded in their accounts or in their accounting books that will known as the accrual. Otherwise it can be also if some amounts have been already spent for your organizations but those cash transaction will not take place within that period. Okay, maybe it will happen in the upcoming period, right? In in this kind of a scenario you will be using the accruals concept. And it is also important for a payroll point of view. So for more about it you could be getting for US payroll there is a website called sec.gov that is for US securities and Exchange Commission. So where exactly you'll be getting more detail if you go details. What are the different rollouts, what are the different news latest news all those topics. So you can explore more about it if you're interested. Now coming to our SAP point zero. What is why it is important for us. So let me go there to direct to SAP system and I will tell you what are the actual thing we do in the SAP system. Okay, so for that directly I will be taking to the configurations point of view without any spending any other area. Let me go to the directly to the configurations. That is npe. I will be showing you the sub schema. Okay, so you might be already knowing EU000 that is our general standard schema for US payroll. And for we have already copied that and the our our schema is this one. G triple zero or Z triple zero. This is our customized payroll schema for US Payroll. And inside that we have something here you will be finding called UAC0. Okay. So let me know if you're able to find it out that so you can see the receiver line number 310 in my system. Okay. That is we call it a monthend accruals. Okay, as you're talking about right? This subschema I will take you through that particular subscription double clicking.uac0 so this is a blog. This is the block of the code for this particular USC zero schema. This is already there subsema under main schema u000 or j triple zero whatever you have customized, right? This schema looks very simple. It is very small in size, okay? But it controls your entire configurations for your month end accrual. Okay, so the processing month end accrual start from here. And if there is any special run okay, that we define means if there is any special run is happening, then it will control that, it will check for that. If it is not, then it will simply ignore. Okay, if there is any special run so sprn this will take care of it. Else if it is not, then there will be no such calculation. Okay, so if it is there, then there is an action here. So you can see UAC0 it will set the switch accrual on. Okay, so if you see then there is a function called UACG app. There are function, these are functions USGF this function will be responsible for calculating whatever the acruals, whatever you are having. Okay, so this is something we have to check. And after that it will be printing, it will be updating your accruals table and finally it will be ending the special run. This is the typical process. Generally what we do. If you have to customize something as per your client needs, simply you have to remember this UAC0 what I have done inside this direct jet requ0 I've already used it. Rather what I need to do UAC0 just as usual, like any custom schema, you have to use the standard schema, copy it, make it GAC0 or ZAC0. Then simply you create your own stuff, right? So maybe I will be creating the transfer request like this. Then what I will do this schema, basically I'll be putting in my J triple zero schema. Okay, so if I go here, wherever there was a UAC0, right? That I will be replacing with Zac0 okay, this will be my new schema sub schema. Okay, so I'll save it now what are the changes and all so jdc0 only I will be doing so based on your client require maybe it will vary from client to client, what kind of month and accrual. So based on that you will be changing this, you know, in this particular block. So. So this is how the simple rule, okay, so UAC0 or ZSC0, whatever we have seen today, the subschema, it will be controlling the switch for calculating your accrual. Okay, so this will be switching on or switching off accordingly. Okay, so now after understanding this, there is another configurations which we have to do that is from a west type point of view. So from a waste type point of view. So you have to check your calculations. Let me go to there. Spro and from there if I go. If we have basically directly we have to go to the US Payroll configurations. Let me go there. Payroll. Under that we have US Payroll payroll, US. Payroll usa. Under that we do have month and accruals. Let me go there. Month and accrual. You can see this is the configuration before payroll reports. Yeah, month and accruals. And here we have a couple of configurations here. Okay, so here basis for computations, line item creation for month end accruals. Specialist functionality. Okay, so here first of all you have to do your basic for computations where exactly the weights type you will be setting it up. Okay, so you have to define your waste types. Which waste types are required? Okay, so basically whatever the waste types you are selecting here, one thing is there you have to understand slash404. Okay, if I go there. So this is employer, Social Security, tax. Okay, so if you see here we have to here also the maintaining the processing class. The processing class, whatever you will be seeing it will be 79 needs to be set it up. Okay, so we have to check that processing class. And this is one of the waste types. So if I go here I can see the details. Right? So this is something related to this particular wage type. Secondary wage type. Okay, Other than that, whatever the wage types you are using, check it out your particular waste types which is required for your accrual. Okay, so accordingly you have to check it out. So whatever the waste type. Let's say you are checking. Let's say are we going for any random waste type for the timing, Let me go for something else from this list at least the primary waste type. Let me go there. Model wish type. So ideally you have to maintain the processing class 17 and wherever whatever you are using. Okay, so in those cases basically you have to go to that particular wi. I'm just going for a random wedge type. Okay, so this is one of the thing already we have seen earlier. Okay, the processing class 79 to be maintained. Okay, so it needs to be set it up. So this is important one and what kind of accrual it will happen. So you can see the all the options here. Okay, so in the processing class you have an options if it is not relevant to your month end accrual. Okay, so you can choose the first 1 0. That means you don't have to fill up anything. If it is a waste type group 1 for modifier in case of month and accrual, you can use one or two. Okay, so you can use one. Okay, so this is something you have to understand whenever in terms of configurations. So whatever the waste types you have created, these things would be taken care. Okay, so that is one of the key configurations. That means you have to check your processing class 70. Okay. Other than that, what you need to do. So let me go there again. So here when it comes to. There is something called in the other configurations here setup computational part amounts. Okay, so we can also check these two schema. One schema and one rule. Okay, this is a processing of time data for payroll accounting. This would be. You would be aware of what kind of valuations you are doing, what kind of calculations. This is also you have to check if you have not done. Okay, Another thing is here, another rule we have to check it out. That is, um. O D. This is the rule. Okay. This is the modifier for your payroll accounting. Okay, These two things you have to take care whenever you are doing this. Okay, so other than this, let me go back. There are some other configurations as well. Like we have your how to triggering the month and accrual computation. So you have to maintain your posting date. Okay, so you have to create your posting date. Okay. Again, why you executing this? Similarly, if you have not done, you have to do this activity. Okay, so other than that we do have another maintain posting. It's on an ongoing basis. You'd also maintain your posting date. It is not very thing not very unique as such. But if you already done as a part of a payroll, you must be aware of it. Okay, this is another configurations you have to take care of. Other than that even also you have to define your closing date. Okay, so that is also another configuration for every company code every year. What is the closing period that you need to define here? Okay. As per your company code. Then we do have latest document creation date. So when the latest document is going to be created. Okay, so that also you can get from here. This is our report. Then you can also set it up the period related data entries, date entries here all the data identifier and everything will be here. The latest document creation. Then that will upload that will be creating from here. Okay, so these are the couple of configurations you have to see here. Other than that there are some line item creation. Also if you want to do all those stuff. Okay, you can use this Functionality or a nodes. Okay? If you want to activate month and accruals and check processing, these are the schema. Okay, Already we have discussed, right, these three things. Okay, so this is the U. The main schema of U.S. payroll, then USC0, then maintain PCR for USC0. Okay? This is something we already discussed already. Okay? So this is an accrual, okay, so these three things you. You should be aware of. Okay? Already we have seen this schema. Sub schema and all just for a quick recap from a node point of view, okay? So we can see all the three things are there. But ideally we just choose two changes not in the standard we copy and in the copied one we have to clear. Okay? Similarly, from a finance posting point of there are a couple of things you have to do. You have to maintain your symbolic accounts for your. Whatever the monthly accrual is happening, it is as usual, okay? Just like any other symbolic account maintenance, you have to do it. Similarly, we have another thing here. Assign symbolic account in waste as whatever the waste types you have been created for your accrual. So those specific waste types, okay? Those for that you should be having a hosting types and this thing should be configured, okay? This is an important activity, okay? And same goes with your other configurations like third party remittance, if you're having any. So how the posting of the waste types will be looking and how it will be linked to your symbolic accounts, okay? That part you will be learning from here, okay? That you can do from here, okay? Other than that, if you want to assign accrued expense accounts that you can do in this node. So you have to choose your chart of accounts, whatever you are using, okay? Let's say I'll be choosing something random here and if I go inside it, these are the configurations. Whether accounts are determined based on your debit credit or employee group, okay? Or any modifications or it is not chargeable, okay? So accordingly you have to set it up, okay? This is something you take care and also you can assign your accrual account, okay? For that particular chart of account you can assign your. Whatever your chart of accounts is there. Okay, so this is the functionality or configuration. I will say this. Then also you have a option called specialist functionality you can set up. What are the delayed data entry? Okay, Suppose if there is any delay, okay, so you can maintain your for your month and accrual here by maintaining processing class 79, okay, maintain PCR. Same thing here, there different schema ut ut here. All the time related stuff will be there. Similarly we have PCR umod. So here also you can see whatever the changes, whatever the requirement, okay. Accordingly you have to configure all these things. Okay So I think this is more than enough. But I will recommend once you have the data set from a configuration point of view I have discussed. Okay, but from a implementation point of view, again so you have to understand the basically your whenever you're processing the same thing in a payroll, U.S. payroll. Okay, what are the changes you will be doing? Okay, so those details you have to practice in your system and let me know if you are facing any challenges while doing those things. Okay, so again so already we have discussed again quick recap. USC 0, that was the main sub schema we have discussed that is for accrual calculation. Okay, so this is something interesting and inside that as I already discussed, this is something you remember which functions calculates your accrual. Okay so this is more than enough for today's session uscgf that is your it carries out the accrual calculations and it creates a table called secr. Okay. That table will be created in whenever you're doing the finance posting and you will be seeing those results in the payroll whenever you are running the payroll. Okay. And if you are having such already has been defined, your accrual is on right switch on. You definitely will be able to do that. Okay, so with that we have completed this equal activity and I'm hoping you will be able to do it in your system and you can showcase or if you're facing any challenges while executing this. Okay. With those respective edge types and all, let me know and more than happy to help you. Okay so with this we will close this today's short session and tomorrow we will be continuing with the another topic for US payroll that is how to interface with the third party payroll system goes to net calculations and all that part we'll be discussing. So for now we'll stop here. Thank you very much for joining in. We'll see you soon. In the next episode.