Crowe Horwath

Configuration Document
Contents
1.
Introduction
.. 03
2. Basic Settings
..
.03
2.1 Payroll
Area
.03
2.1.1 Period Modifier .
.03
2.1.2 Date Modifier
..03
2.2 Default Payroll Area
.04
2.3 Control Record
...05
2.4 Generate Payroll Periods
.06
3. Basic Pay
3.1 Define EE sub group groping for PCR and
CAP.06
3.2 Reason for Change
...06
3.3 Check Pay scale type
...07
3.4 Check Pay scale area
...07
3.5 Check Assignment of Pay scale structure to Enterprise Structure
08
3.6 Determine default for Pay Scale
data.... 09
3.7 Check wage type group Basic Pay
. 10
3.8 Check Permissibility per
Infotype.11
3.9 Check wage type Characteristics
.12
3.9.1 Employee Sub group Grouping for Primary Wage type
..13
3.9.2 Personnel sub Area grouping for Primary wage
type.13

3.10 Enterprise Structure for wage type model

.. 14
3.11 Revise Default wage types
15
4. Recurring Payments and Deductions
4.1 Check wage type group Recurring Payments and Deductions
..16
4.2 Check entry permissibility per
infotype 17
5. Additional Payments Infotype
5.1 Check wage type group 'Additional Payments'
.. 19
5.2 Check Entry permissibility for Additional
Information.. 19
6. Off-Cycle Payments
6.1 Check wage type group 'One Time Payments OffCycle' 21
6.2 Check entry permissibility per
infotype..22
7. Garnishment
7.1 Garnishment Document Category
23
7.1.1 Create
Originator.
24
7.1.2 Service
Charge.
24
7.2 Garnishment Number Range
Remittance 25
7.3 Garnishment Vendor Sub Group
26
7.4 Garnishment wage type Check wage type text
27
7.5 Garnishment wage type Check wage type group Order Type
.27
7.6 Garnishment Order Types
..28
7.7 Garnishment Adjustable Model for Disposable Net
...28
7.8 Garnishment Create Adjustable Model for Disposable
Net29
7.9 Garnishment Create exempt amount for
Levy...29
7.10 Garnishment Create Additional exempt
amount...30
7.11 Garnishment Model for calculation of the non-exempt
amount.32

7.12 Garnishment Create Federal Hourly wage

....32
7.13 Garnishment Create Rule for non-exempt
.32
7.14 Garnishment Assign order type service charge to document
category..33
8. Tax
8.1 Tax Company
35
8.2 Assign Tax Companies to Personnel
Area..36
8.3 BSI Tax Company
37
8.4 Assign Tax Identification number to BSI Tax Company
38
8.5 Define Federal / State / Local employer ID number
.38
8.6 Maintain Tax processing classes
.39
8.7 Define Taxability
Model.40
8.8 Define Tax type combinations
.41
9. Posting to FICO
9.1.1 PPMOD Feature
.42
9.1.2 Define EE grouping for account
determination43
9.1.3 Define Symbolic
Accounts.44
9.1.4 Define wage type attributes
45
9.1.5 Define Payroll period Posting
date45
9.2.1 Account Assignment
.46
10. Schema and Rule
Customization
..47

1. Introduction
The SAP US Payroll component allows you to process payroll for employees in the United
States, using data from SAP Personnel Administration and Benefits under a wide variety
of configurations. The SAP Payroll system also offers a number of standard payroll
reports. The Tax Reporter component allows you to generate all required state and
federal tax forms, such as SUI reports and W-2s. US Payroll uses an interface to a
separate BSI Tax Factory database to calculate taxes. There are also interfaces to other
SAP modules such as Financial Accounting and Controlling. This document deals with the
design of the SAP US Payroll module for Stonebridge Companies, USA.
2. Basic Settings
2.1 Payroll Area
The Payroll Area defines the frequency with which an employee may be paid in an
Organization.
The Configuration details relevant for Crowe Horwath are described in table given below:
Table
Transaction Code
Menu Path

V_T549A
SPRO
IMG -> Payroll -> Payroll: USA -> Basic Settings -> Payroll
Organization -> Assign new payroll accounting areas to
period modifier -> Check Payroll Areas

2.1.1 Period Modifier

Period Modifier defines frequency of payroll. Period modifier is defined for specific payroll
periods with start and end dates. If the payrolls run for all employees are in the same
time interval, then only one period parameter is required
The Configuration details relevant for Crowe Horwath are described in table given below:
Table
V_T549R

Transaction Code
Menu Path

SPRO
IMG -> Payroll -> Payroll: USA -> Basic Settings -> Payroll
Organization -> Define period modifiers

2.1.2 Date Modifier

Date Modifier defines payment date for payroll period.
The Configuration details relevant for Crowe Horwath are described in table given below:
Table
Transaction Code
Menu Path

V_T549L
SPRO
IMG -> Payroll -> Payroll: USA -> Basic Settings -> Payroll
Organization -> Define Date modifiers

2.2 Default Payroll area

Based on the assignment of the employee to the organization, the following payroll
areas will default in infotype 1 (Organization Assignment) of Employee. The below table
provides the configuration details relevant for Crowe Horwath.
Feature
Transaction Code
Menu Path

ABKRS
PE03
IMG -> Personnel Management -> Personnel
Administration -> Organizational Assignment -> Check
Default Payroll Area

2.3 Control Record

Control Records for all the Payroll areas are to be created with an initial pay period and
earliest retroactive accounting period should be a period less.
Table/View
Transaction Code
Menu Path
Details of
Configuration

Structure: PV000, TR: PA03

SPRO
IMG -> Payroll -> Payroll: USA -> Basic Settings -> Payroll
Organization -> Assign new payroll accounting areas to
period modifier -> Create Control Record
Create the control record for the created payroll area.
Enter the Payroll period & Earliest retro accounting period
as follows.

2.4 Generate Payroll Periods

Payroll periods for all payroll areas will be generated. These are to be generated per
following pattern:
Table/View
Transaction Code
Menu Path
Details of
Configuration

V_T549Q, V_T549S_B, V_T549S

SPRO
IMG -> Payroll -> Payroll: USA -> Basic Settings -> Payroll
Organization -> Generate payroll periods
Using the following parameters, generate the payroll
period. After making sure of entries generated, enable the
tick mark on carry out table change and then click on
Execute to effect the changes in the tables. Sample entries
generated were shown below.

3. Basic Pay
In this section you define the input values for the Basic Pay infotype (0008), pay scale
reclassifications and standard pay increases.
Basic pay includes wage types which are valuated indirectly and/or can be included in
the basis of valuation and/or can be reduced in the case of unpaid absences or
entries/withdrawals during a month.
This infotype makes a distinction between two groups of data:
Data from the collective agreement such as pay scale type, area, group, level and
A maximum of 40 wage types with amount or number, and unit.

3.1 Define EE Sub grouping for PCR and CAP

The Employee Subgroup groupings for Personnel Calculation Rule are used in payroll
processing. These values are fixed and should not be changed. A value of 1 signifies
hourly wage earners.
The collective agreement provisions are used to group employees with same pay scale
requirements. The value of 1 will be used for Union employees.
Table/View
Transaction Code
Menu Path

V_503_B
SPRO
IMG -> Personnel Management -> Personnel
Administration -> Payroll Data -> Basic Pay -> Define EE
Subgroup Grouping for PCR and Coll.Agrmt.Prov.

3.2 Reason for Change

Every change in Basic Pay needs to be explained. Those reasons for change should be
configured in below: table:
Table/View
V_T530E_B
Transaction Code
SPRO
Menu Path
IMG -> Personnel Management -> Personnel
Administration -> Payroll Data -> Basic Pay -> Define
reason for change

3.3 Check Pay scale type

In this step you set up your enterprise's collective agreement types (pay scale types for
short). The Basic Pay in infotype 0008 is derived from the pay scale type. By using the
internal key, you can assign a fixed internal mean for evaluations to optional pay scale
types.
The below table provides the configuration details relevant for Crowe Horwath.
Table/View
Transaction Code
Menu Path

V_T510A
SPRO
IMG -> Personnel Management -> Personnel
Administration -> Payroll Data -> Basic Pay -> Check Pay
Scale Type

3.4 Check Pay scale Area

A pay scale area is a special area in which a collective agreement is valid. In short Pay
Scale area is a geographical Location

The below table provides the configuration details relevant for Crowe Horwath.
Table/View
Transaction Code
Menu Path

V_T510G
SPRO
IMG -> Personnel Management -> Personnel
Administration -> Payroll Data -> Basic Pay -> Check Pay
Scale Area

3.5 Check Assignment of Pay scale structure to Enterprise Structure

In this step Pay scale type and Pay scale area are assigned to relevant Personnel Areas
Table/View
V_001P_C
Transaction Code
SPRO
Menu Path
IMG -> Personnel Management -> Personnel
Administration -> Payroll Data -> Basic Pay -> Check
Assignment of Pay Scale Structure to Enterprise Structure

3.6 Determine default for Pay Scale data

In this step, Pay scale area and Pay scale type defaulting functionality in infotype 0008
(Basic Pay) can be configured
Feature
Transaction Code
Menu Path

TARIF
PE03
IMG -> Personnel Management -> Personnel
Administration -> Payroll Data -> Basic Pay -> Determine
default for pay scale data

3.7 Check wage type group Basic Pay

In this section, you assign your wage types to a wage type group.
Model wage types in the standard system are already assigned groups.
The below table provides the configuration details relevant for Crowe Horwath.
Table/View

VV_52D7_B_0008_AL0

Transaction Code
Menu Path

SPRO
IMG -> Personnel Management -> Personnel
Administration -> Payroll Data -> Basic Pay -> Wage
types -> Check wage type group 'Basic Pay'

3.8 Check Permissibility per Infotype

This section allows you to define the date on which wage types may be entered
The below table provides the configuration details relevant for Crowe Horwath.
Table/View
Transaction Code
Menu Path

V_T512Z
SPRO
IMG -> Personnel Management -> Personnel
Administration -> Payroll Data -> Basic Pay -> Check
Wage Type Catalog->Check entry permissibility per
infotype

3.9 Check wage type Characteristics

Table/View
Transaction Code
Menu Path

V_T512Z
SPRO
IMG -> Personnel Management -> Personnel
Administration -> Payroll Data -> Basic Pay -> Check
Wage Type Catalog->Check wage type Characteristics

3.9.1 Employee Sub group Grouping for Primary Wage type

This section allows you to combine employee subgroups for primary wage types, i.e. you
group the employee subgroups already named to groups.
You can use these groupings to specify which wage types may be entered for which
employee subgroup.
Table/View
Transaction Code
Menu Path

V_T511
SPRO
IMG -> Personnel Management -> Personnel
Administration -> Payroll Data -> Basic Pay -> Wage type
->Employee Subgroups for Primary Wage Type

3.9.2 Personnel sub Area grouping for Primary wage type

Table/View
Transaction Code
Menu Path

V_001P_K
SPRO
IMG -> Personnel Management -> Personnel
Administration -> Payroll Data -> Basic Pay -> Wage type
-> Personnel sub Area grouping for Primary wage type

3.10 Enterprise Structure for wage type model

In this step, you can define the key for default wage types in accordance with the above
conditions.
The actual wage types are defined in the next section.
If you want to define default wage types for some, but not all, employee subgroups,
group those employee subgroups with the same default wage types with this feature.
This saves you work in the next step.
Feature
Transaction Code
Menu Path

LGMST
PE03
IMG -> Personnel Management -> Personnel
Administration -> Payroll Data -> Basic Pay -> Wage
types -> Enterprise Structure for Wage Type Model

3.11 Revise Default wage types

In this step, you can set up default wage types based on your internal company structure
for the Basic Pay infotype (0008) using the feature Planned remuneration specification
(LGMST) defined in the previous step
Table/View
Transaction Code
Menu Path

V_T539A
SPRO
IMG -> Personnel Management -> Personnel
Administration -> Payroll Data -> Basic Pay ->Wage types
-> Revise Default Wage Types

Activities:
1. Delete and create entries as required.
2. For each new one, enter the return code of the LGMST feature.
a) Enter the key for the "feature for default wage types".
b) Define their validity period.
c) Assign numbers to the wage types if there are more than one.
d) Define how wage types are to be assigned by entering an indicator in the Mode field.
The following indicators are set:
Indicator Meaning
F The wage type is assigned for basic pay and cannot be overwritten (fixed value).
O The wage type can be entered and/or overwritten.
BLANK No wage type entries may be made.
e) In the Wage type field, enter the default wage type for basic pay.

4. Recurring Payments and Deductions

In the infotype Recurring Payments/Deductions (0014), you can save amounts for a
certain wage type that are to be repeatedly paid out or withheld via payroll. 'Recurring
payments/deductions' are additional wage elements that as a rule are not paid
out/withheld in every payroll period, but according to a fixed periodicity, unlike
'Additional payments'.
In this step, you can define wage types which are either paid or withheld regularly
4.1 Check wage type group Recurring Payments and Deductions
Assign wage types to a wage type group
Table/View
Transaction Code
Menu Path

VV_52D7_B_0014_AL0
SPRO
IMG -> Personnel Management -> Personnel
Administration -> Payroll Data -> Recurring Payments and
Deductions -> Wage Types -> Check wage type group
'Recurring Payments and Deductions'

4.2 Check entry permissibility per infotype

In this step, specify wage types can be entered in this infotype
Table/View
Transaction Code
Menu Path

V_T512Z
SPRO
IMG -> Personnel Management -> Personnel
Administration -> Payroll Data -> Additional Payments ->
Wage Types -> Check Wage Type Catalog-> Check Entry
Permissibility for Recurring Payments and Deductions

Activities
1. Determine the validity period for entries.
2. Determine whether a wage type can feature once or more than once at any one time
(time
constraint).

5. Additional Payments Infotype

You assign your wage types to a wage type group in this step.
Model wage types in the standard system are already assigned to groups.
The below table provides the configuration details relevant for Crowe Horwath..
Table/View
Transaction Code
Menu Path

VV_52D7_B_0015_AL0
SPRO
IMG -> Personnel Management -> Personnel
Administration -> Payroll Data -> Additional Payments ->
Wage Types ->Check wage type group 'Additional
Payments'

5.2 Check Entry permissibility for Additional Information

In this step, you specify when wage types can be entered in this infotype.
Table/View
V_T512Z
Transaction Code
SPRO
Menu Path
IMG -> Personnel Management -> Personnel
Administration -> Payroll Data -> Additional Payments ->
Wage Types -> Check Wage Type Catalog-> Check Entry
Permissibility for Additional Payments
Activities
1. Determine the validity period for entries.
2. Determine whether the wage type can be entered once or more than once at any
one time

6. Off-Cycle Payments
In this step you assign your wage types to the wage type group One Time Payments OffCycle.
Table/View
VV_52D7_B_0267_AL0
Transaction Code
SPRO
Menu Path
IMG -> Personnel Management -> Personnel
Administration -> Payroll Data -> Additional Payments:
Off-Cycle -> Additional Payments: Off-Cycle -> Check
wage type group 'One Time Payments Off-Cycle'

6.2 Check entry permissibility per infotype

In this step you define when wage types are entered in this infotype.
Table/View
Transaction Code
Menu Path

V_T512Z
SPRO
IMG -> Personnel Management -> Personnel
Administration -> Payroll Data -> Additional Payments:
Off-Cycle -> Wage Types ->Check Wage Type Catalog ->
Check entry permissibility per infotype

Activities:
1. Define the period of validity for entries.
2. Determine whether multiples of a wage type can exist at any one time.

7. Garnishment
A garnishment is a legal procedure authorizing a deduction from an employees earnings
to satisfy a debt.
It refers to a court proceeding through which a creditor seeks to reach an employees
earnings before they are paid, so they can be used to satisfy a legal claim against the
employee.
7.1 Garnishment Document Category
The categories that are used to identify various garnishment documents are created in
the Document Category.
Table/View
Transaction Code
Menu Path

V_T5UG1
SPRO
IMG -> Payroll -> Payroll: USA -> Garnishments -> Master
Data -> Document -> Create document category

7.1.1 Create Originator

The originator describes the legal entity that has issued the garnishment document.
Table/View
Transaction Code
Menu Path

T5UGM
SPRO
IMG -> Payroll -> Payroll: USA -> Garnishments -> Master
Data -> Document -> Create originator

7.1.2 Service Charge

For each garnishment, a service charge can be levied through the corresponding field in
the Garnishment Document infotype (Infotype 0194). If you do not make an entry in this
field, no service charge will be calculated.
However, if you do enter a service charge in Infotype 0194, the service charge rule will
be derived from the Company Service Charge view. If no company service charge exists,
then the service charge will be derived from the Government Service Charge view. If a
company service charge and a government service charge are both available, then the
smaller of the two amounts will be applied
Table/View
Transaction Code
Menu Path

V_T5UGC
SPRO
IMG -> Payroll -> Payroll: USA -> Garnishments ->
Master Data -> Document -> Service Charges ->
Create service charge texts

7.2 Garnishment Number Range - Remittance

You create two number ranges that are required to process garnishments. The first
number range applies to the garnishment transfer, and the second number range
applies to the vendor subgroup
Garnishment Transfer - Remittance
Table/View
Structure INRDP
Transaction Code
SPRO
Menu Path
IMG -> Payroll -> Payroll: USA -> Garnishments ->
Master Data -> Document -> Number Ranges -> Create
number range for the garnishment transfer

7.3 Garnishment Vendor Sub Group

You create two number ranges that are required to process garnishments. The first
number range applies to the garnishment transfer, and the second number range
applies to the vendor subgroup
Garnishment Vendor Sub Group
Table/View
Structure INRDP
Transaction Code
SPRO
Menu Path
IMG -> Payroll -> Payroll: USA -> Garnishments ->
Master Data -> Document -> Number Ranges -> Create
number range for the vendor subgroup

7.4 Garnishment wage type Check wage type text

To create the wage types for the wage type catalog and define which wage types will
apply to garnishment orders in your system
Table/View
Transaction Code
Menu Path

V_512W_T
SPRO
IMG -> Payroll -> Payroll: USA -> Garnishments ->
Master Data -> Order Types -> Wage Types -> Check
wage type texts

7.5 Garnishment wage type Check wage type group Order Type
Assign the selected wage types to Garnishment wage type group
Table/View
Transaction Code
Menu Path

V_52D7_B
SPRO
IMG -> Payroll -> Payroll: USA -> Garnishments ->
Master Data -> Order Types -> Wage Types -> Check
Wage Type Catalog -> Check wage type group 'Order
Type'

7.6 Garnishment Order Types

To create the garnishment order types required by your enterprise. Order types are used
to describe the various deductions that exist within a garnishment document
Table/View
Transaction Code
Menu Path

V_T5UG0
SPRO
IMG -> Payroll -> Payroll: USA -> Garnishments ->
Master Data -> Order Types -> Create order types

7.7 Garnishment Adjustable Model for Disposable Net

In this section, you will learn how to adjust the disposable net. To do so, you must create
an adjustment model in the two subsequent steps. If you do not need to adjust the
disposable net, you may omit this section and proceed to the Non-Exempt Amount
section. The disposable net is formed in conjunction with values 1 and 2 of processing
class 59. For additional information on this topic, refer to the step in which you Check
garnish ability of wage types
Table/View
Transaction Code
Menu Path

T5UG5 Adjustment Model Text

SPRO
IMG -> Payroll -> Payroll: USA -> Garnishments ->
Master Data -> Order Types -> Garnishable Amounts ->
Disposable Net -> Define adjustment model texts for

the disposable net

7.8 Garnishment Create Adjustable Model for Disposable Net

Table/View
Transaction Code
Menu Path

V_T5UG2 Adjustment to the Disposable Net

SPRO
IMG -> Payroll -> Payroll: USA -> Garnishments ->
Master Data -> Order Types -> Garnishable Amounts ->
Disposable Net -> Create adjustment model for the
disposable net

7.9 Garnishment Create exempt amount for Levy

Create the exempt amounts per payment period.
Table/View
Transaction Code
Menu Path

V_T5UGE Figuring Amount Exempt from Levy

SPRO
IMG -> Payroll -> Payroll: USA -> Garnishments ->
Master Data -> Order Types -> Garnishable Amounts ->
Non-Exempt Amount -> Levy -> Create exempt amount
from levy

7.10 Garnishment Create Additional exempt amount

Create the additional exempt amounts per payment period.
Table/View
Transaction Code
Menu Path

V_T5UGF Figuring Additional Exempt Amount

SPRO
IMG -> Payroll -> Payroll: USA -> Garnishments ->

Master Data -> Order Types -> Garnishable Amounts ->

Non-Exempt Amount -> Levy -> Create additional
exempt amount

7.11 Garnishment Model for calculation of the non-exempt amount

In this step, create a model for determining the garnishable amount. You can store your
entries in five blocks. For each of the first four blocks (Limit 1, Limit 2, Federal Minimum
Wage and Special Non-exempt), the system determines an individual garnishable
amount each time and uses the lowest amount as the result for the garnishable amount.
A garnishable amount determined in this way is then adjusted by the amount of the fifth
block (Additional Amount).
Table/View
Transaction Code
Menu Path

V_T5UG3 Model for the Calculation of the Non-exempt

Amount
SPRO
IMG -> Payroll -> Payroll: USA -> Garnishable Amounts
-> Non-Exempt Amount -> Create model for the
nonexempt amount

7.12 Garnishment Create Federal Hourly wage

In this step, create the Federal Hourly Wage. This amount is used to determine the
garnishable amount in accordance with the Federal Minimum Wage.
Table/View
Transaction Code
Menu Path

V_511K_B Payroll Parameters

SPRO
IMG -> Payroll -> Payroll: USA -> Garnishable Amounts
-> Non-Exempt Amount -> Create federal hourly wage

7.13 Garnishment Create Rule for non-exempt

In this step, create the rules that will be used within your system to determine the
garnishable (non-exempt) amount. If necessary, you may assign a wage type model to
the rule to adjust the disposable net.
Table/View
Transaction Code
Menu Path

V_T5UG4 - Rules for Calculation of the Non-Exempt

Amount
SPRO
IMG -> Payroll -> Payroll: USA -> Garnishable Amounts
-> Create rule for the nonexempt amount

7.14 Garnishment Assign order type service charge to document category

In this step, assign the order types Service Charge to the document category. If you have
made the entry in the infotype Garnishment Document that the Service Charge is to be
calculated, then you must assign the document category to the order types. The Service
charge in the garnishment results will be stored under this order type.
Table/View
Transaction Code
Menu Path

V_5UG1_B - Service Charge

SPRO
IMG -> Payroll -> Payroll: USA -> Garnishments ->
Master Data -> Order Types -> Assign order type
service charge to the document category

8. Tax
SAP uses the BSI TaxFactory tax calculation engine is used for calculating taxes. BSI is a
third part software tool where data flow happens from and to SAP. Additionally BSI Tax
Update Bulletins (TUBs) should be applied regularly, both in the SAP and the BSI
databases, to keep the tax tables up-to-date.
The SAP Tax Calculation Process:
Before the SAP Payroll component sends any data to the BSI TaxFactory for tax
calculation, the payroll driver goes through a number of steps to determine exactly
which taxes will be applied for each payment or deduction wage type. These steps
depend largely on how you configure wage types, tax types, tax authorities, and
taxability models in the Tax section of the Payroll: USA IMG. This topic illustrates the
process by which the payroll driver determines which tax calculations will be performed
by the BSI tax calculation engine.
The tax calculation process follows these steps:
1.The payroll driver determines which tax authorities apply to the employee, such as
residence area FED, by looking at the employee's master data.
2.The payroll driver reads a wage type and its tax class (processing class 71
specification). For example, 1001 Salary of $1000.00 with processing class 71
specification 0 (Regular wages).

3.Based on the applicable tax area and tax authority, the payroll driver selects a
taxability model for this combination of tax class, tax area and tax authority. In this case,
the taxability model would look like this:
Tax
Authority
FED

Tax model

R/W/U

Tax Class

01

Tax Type
Combo
08

4.Based on the tax type combination included in the taxability model, the payroll driver
determines which tax types must be applied to the wage type amount. The payroll driver
sends BSI the wage type amount and the relevant tax types. In this case, the following
data would be sent to BSI for tax calculation:
Amount
$1000
$1000
$1000
$1000
$1000
$1000

Tax Type
01 Withholding tax
02 EIC Payment
03 EE Social Security
04 ER Social Security
05 EE Medicare
06 ER Medicare

5.The BSI tax engine calculates the tax on the wage type amount. The tax types passed
to BSI determine which calculation formulas it uses.
6.BSI returns the results of the tax calculations to the SAP Payroll system, including the
tax amounts calculated for each wage type amount and tax type. This information
appears in the payroll log.
Result
The tax wage types determined in this process are stored in the payroll results cluster for
the employee. These tax wage types can also be copied to the tax interface tables
where they form the basis for various tax reports generated by the SAP Tax Reporter
component
8.1 Tax Company
Tax Companies are defined for Crowe Horwath.
Table/View
Transaction Code
Menu Path

T5UTL - Tax Company

SPRO
IMG -> Payroll -> Payroll: USA -> Tax -> Tax Companies
-> Define tax companies

8.2 Assign Tax Companies to Personnel Area

Tax Companies are assigned to each personnel area/ sub-area combination in this step.
Table/View
Transaction Code
Menu Path

T5U0P - Additional organizational data for personnel

area/subarea
SPRO
IMG -> Payroll -> Payroll: USA -> Tax -> Tax Companies
-> Assign tax company to personnel area

8.3 BSI Tax Company

This same table entries should also be maintained in BSI database
Table/View
Transaction Code
Menu Path

BTXCOMP - BSI: Tax Company Code

SPRO
IMG -> Payroll -> Payroll: USA -> Tax -> Tax Companies
-> Define BSI tax company

8.4 Assign Tax Identification number to BSI Tax Company

Assign each employer identification number to a BSI tax company.
Table/View
Transaction Code
Menu Path

T5UTH Tax Number <-> BSI Tax Interface

SPRO
IMG -> Payroll -> Payroll: USA -> Tax -> Tax Companies
-> Define tax identification numbers by BSI tax
company

8.5 Define Federal / State / Local employer ID number

Define federal, state and local employer ID numbers within each tax company in this
step
Table/View

V_T5UTI - Employer ID Number

Transaction Code
Menu Path

SPRO
IMG -> Payroll -> Payroll: USA -> Tax -> Tax Companies
-> Define federal/state/local employer ID number

8.6 Maintain Tax processing classes

In this step you set the values for the following processing classes for all tax wage
types. This allows controlling the way the wage types are processed by the payroll
system.
Table/View
Transaction Code
Menu Path

V_512W_D - Processing Classes, Cumulations, and

Evaluation Classes
SPRO
IMG -> Payroll -> Payroll: USA -> Tax -> Tax-Related
Wage Types -> Maintain tax-related processing classes

8.7 Define Taxability Model

In this step, you define tax models for each combination of type of payment, type of
employee, and residency or work. Each combination determines a set of tax types to be
used for the model.
Table/View
Transaction Code
Menu Path

T5UTM - Tax Model

SPRO
IMG -> Payroll -> Payroll: USA -> Tax -> Tax Data

Maintenance -> Tax Models (Subsequent Maintenance)

-> Define taxability model

8.8 Define Tax type combinations

In this step, you define combinations of tax types.
Table/View
Transaction Code
Menu Path

T5UTY - Tax Type Combinations

SPRO
IMG -> Payroll -> Payroll: USA -> Tax -> Tax Data
Maintenance -> Tax Models (Subsequent Maintenance)
-> Define tax type combinations

9. Posting to FICO
Initial integration point between HR & FICO takes place through Cost Center. These cost
centers need to be mapped to individual Organization Units and if required, Positions
within Organization Management.
Next integration is through Symbolic Accounts. Wage types are assigned to Symbolic
Accounts and in turn these Symbolic accounts are mapped to GL accounts.
These mappings are a combined effort of HR & FI consultants.
9.1 Activities in HR System
9.1.1 PPMOD Feature
In this step, define the employee groupings for account determination. No need to
specify employee groupings unless it needs to post wage types to various accounts in
Financial Accounting (FI) in line with employee attributes.
If you want to post to FI accounts with reference to a specific employee groupings, you
must define an alphanumeric key of up to three characters for each of the required
employee groupings. You then define the conditions for assigning employees to
employee groupings that you have defined for posting to accounting. (You set conditions
according to employee attributes, as defined by entries in the Workplace Basic Pay table
(WPBP). Note that an employee can, at any one time, only be assigned to one employee
grouping.
Table/View
Transaction Code
Menu Path

T549B - Company Features

Pe03 Feature PPMOD
IMG -> Payroll -> Payroll: USA -> Posting to Financial
Accounting -> Activities in the HR-System -> Employee
grouping and symbolic accounts -> Define employee
grouping/account assignment -> Maintain Feature

9.1.2 Define EE grouping for account determination

Table/View
Transaction Code
Menu Path

V_T52EM - Employee Grouping for Account

Determination
IMG
IMG -> Payroll -> Payroll: USA -> Posting to Financial
Accounting -> Activities in the HR-System -> Employee
grouping and symbolic accounts -> Define employee
grouping/account assignment -> Employee Grouping /
Account Assignment

9.1.3 Define Symbolic Accounts

Table/View
Transaction Code
Menu Path

V_T52EK - Symbolic Accounts

IMG
IMG -> Payroll -> Payroll: USA -> Posting to Financial
Accounting -> Activities in the HR-System -> Employee
grouping and symbolic accounts -> Define symbolic
accounts

9.1.4 Define wage type attributes

Here you specify which wage types are to be posted, how often they are to be posted
within the evaluation of one payroll result, and the symbolic account to be used for each
posting.
You can also maintain the following posting characteristics:
Plus/minus sign
The system stores wage types with a plus (+) or minus (-) sign in the payroll result. How
specific wage types are stored depends on how the system processes them during the
payroll run. In the standard system, the sign is usually set correctly for secondary wage
types. If you enter a plus sign (+) in the V column, positive amounts are posted as
debits, and negative amounts are posted as credits. If you enter a minus sign (-) in the V
column, positive amounts are posted as credits and negative amounts are posted as
debits.
Processing a wage type
You can use the processing type to assign posting characteristics of a wage type to the
following business processes:
Posting payroll results
Posting month end accruals
Supplying personnel cost data to Cost Planning
Symbolic account
Account assignment type
The account assignment type determines which account type is to be used for posting. It
is defined by the symbolic account, and can only be displayed in this column.
Indicator specifying whether the cost assignment for infotypes Recurring
payments/deductions (0014), Additional payments (0015), and Employee remuneration
information (2010) should be ignored (table C1).
Table/View
Transaction Code
Menu Path

V_T52EL - Wage Type Posting

IMG
IMG -> Payroll -> Payroll: USA -> Posting to Financial
Accounting -> Activities in the HR-System -> Wage
Type Maintenance -> Define wage type posting
attributes

9.1.5 Define Payroll period Posting date

Table/View
Transaction Code
Menu Path
Details of
Configuration

V_T549S_B - Period-Related Date Entries

IMG
Payroll -> Payroll: USA -> Posting to Financial
Accounting -> Activities in the HR-System -> Maintain
payroll period posting date
Here generate and maintain the posting date for each
payroll period of a payroll area. This setting is relevant
if you set the According to period definition indicator as
a default when you create the posting run.
Accounting components use the posting date to
determine the posting period to which postings are to
be made.

9.2 Activities in Accounting System

In this section, you assign accounts in Accounting to symbolic accounts in Human
Resources. According to this assignment, during posting to Accounting, the accounts in
Financial Accounting are assigned to line items for which symbolic accounting has been
performed.
With the exception of the technical accounts, the activities for the various account types
contain an identical step, that is, you must define the rules for the corresponding posting
transaction. Note the following information for carrying out this step:
The Debit/Credit indicator must only be set if you want to post debits and credits to
different accounts. It is not advisable to set this indicator, since in posting to Accounting,
only summarized documents are posted.
If you set the EE group indicator, a further column EE group appears in account
assignment. You must only set this indicator if you want to post to any symbolic account
for a specific employee grouping. You make the relevant settings for posting to symbolic
accounts in the step Define Symbolic Accounts.
The Posting to Accounting done on excel with ETV codes mapped to wage types and GL
accounts are as attached:
9.2.1 Account Assignment
Assignment to Financial Accounts

Assignment to Expense Account

Assignment to vendor Accounts

10. Schema and Rule Customization

Schema U000 has been copied and customized with new rules as per business