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Payroll Data Conversion Plan

Folks,

 

Attaching a  Payroll Data conversion plan which i used some time back in one of my projects .Hope it will be of help to people doing it the first time.

 

Regards

 

Harris

 

1      Introduction

 

1.1   Purpose of this document

The purpose of this document is to define the requirements and activities for Client data conversion to SAP R/3 solution and to establish a common understanding of the associated obligations of SYSTEM INTEGRATOR and Client for all key activities.

 

1.2 Objectives

Data conversion requirements are based on payroll critical information (employee master data), including base salary, taxation, etc and year to date balances as required on a country by country basis for year end legislative reporting.

 

To meet these objectives, strong control mechanisms must be in place to ensure schedule timeframes are met.

1.3 Responsibilities

Data cleansing, manipulation, collection and validation are the responsibility of Client.

 

System Integrator will be responsible for ensuring that critical data requirements are identified, data upload specification completed and data upload programs written and data uploaded.

 

Client is responsible for providing the data in the format defined in the data upload specification, these specifications are country and client specific.

 

Specific responsibilities will be defined in detail in subsequent sections of this document.

 

1.4   Data conversion process overview

There are seven key activities included in data conversion. These are:

 

  • Definition of requirements
  • Data mapping
  • Data cleansing
  • Data extraction
  • Data preparation and verification
  • Data transfer and verification
  • Data validation and sign off

 

These key activities are conducted in sequence as listed above.

 

Each of these activities will be defined in detail, with assigned responsibilities for each task in the data conversion process section of this document

2      Data conversion process

2.1   Definition of data requirements

 

There are two types of data requirements for each country; standard master data and year to date data.

2.1.1 Master data

 

SAP R/3 requirements for standard master data are defined within the Master data mapping specification.

This specification lists the generic (cross-country) data records (infotypes) and the associated data elements. The data element requirements are listed in order of field sequence in each data record, with details of SAP field name, description, type length and possible field value. The generic specifications include cost centre and OM objects. Cost centres are required for general ledger posting.

Only those cost centres and OM objects specific to the locations included in the implementation and any exceptions currently assigned to active employees, should be migrated to SAP R/3.

2.1.2 Year to date data

Certain provisions require that historical accumulated data be uploaded into the SAP R/3 solution.

The data is usually specific to the current tax period, except where it is required for termination calculation purposes. It includes either one time only year to date data or period by period (i.e., payroll period) up to and including the period end prior to the first parallel test run.

The accumulations are required for customer wage types and technical wage types such as total gross pay, total base salary etc.

System Integrator will provides the specifications for accumulation and standard payment codes for year to date and/or period to date on a country by country basis (refer to chapter Appendices)

 

Legacy systems

Client Master Data and YTD / PTD data will be extracted from the Client local SAP HR and Payroll system

2.2 Data mapping

There are two types of data mapping required, including:

Matching SAP R/3 data field specifications to legacy systems

Matching SAP R/3 data value codes to legacy system value codes

 

2.2.1 Data field mapping

This mapping relates specifically to master data interface and upload requirements.

System Integrator will provide details of any mandatory fields in these specifications.

The data that cannot be interfaced will either need to be manually input or provided for automatic upload via formatted input sheets. This is applicable both to data conversion and future operational requirements.

2.2.2       Data value code mapping

 

This mapping relates to upload requirements for both master and year to date data. The SAP R/3 data value codes are matched to the legacy system data value codes. The Business Blueprint should include a full list of all data value codes. During data mapping, requirements for data cleansing will be identified and the procedures for this work will be defined.

 

 

2.3   Data cleansing

Data cleansing of master data is a prerequisite to data conversion to the SAP R/3 solution. No cleansing is required for YTD / PTD data. The YTD / PTD data is a snapshot of the legacy payroll results to date.

Data cleansing activities include:

  • Alignment of Client HR data values to SAP R/3 solution specifications
  • Ensuring Client use of HR data fields, such as address fields, is consistent

2.4 Data extraction

Initial master data extractions will be required from the legacy system. YTD/PTD data extraction will be required from the legacy system.

2.4.1 Master data – initial extraction and changes

 

Client is required to set up a procedure for extraction and transfer of the initial master data from the legacy system.  Client must ensure that the extract file contains the records for all employees who need to be recorded for tax year end reporting; including:

  • Terminated employees (current tax year)
  • Prior tax year terminated employees who have received payments in current tax year
  • All active employees
  • Retirees

 

NB: Parallel testing usually identifies some changes are required to the LEGACY HR interface file. Client should anticipate that these changes (usually minor) will occur (for each phase) and retain appropriate technical resources to ensure these changes are made in a timely manner.

2.4.2 YTD/PTD data

Client is required to source extract files of YTD/PTD data codes and values from the legacy payroll system, according to the SAP R/3 specifications.

2.4.3       Payroll transactions

Payroll transaction details are required for the parallel testing and initial operational payroll processing. Client will need to decide whether these details will be extracted from the legacy system or whether a process is put in place to capture the details prior to their input into the legacy system.

Whatever approach is taken, Client will provide the data for upload in the data upload spreadsheets formats provided by System Integrator.

 

 

2.5   Data preparation & verification

This step provides an opportunity to confirm the earlier data mapping against actual data from the legacy systems, as well as preparing file formats for later data reconciliation.

2.5.1 Confirm data mapping

Personnel numbers in each system should be mapped to each other. Data code mapping should be re-verified.  This helps to confirm that what was expressed in the Blueprint design documentation as data codes has been set up correctly in the system and whether the information in the Blueprint represents the actual legacy payroll processing practices.

2.5.2 Data manipulation

Manipulation may be required of payroll legacy system data into the SYSTEM INTEGRATOR provided SAP formats. Client is responsible for any manual manipulation to the data files that may be required.SYSTEM INTEGRATOR will provide formatted upload spreadsheets for all data loads.

2.5.3 Data file verification

Client is required to check each data file and confirm that the requirements defined in the SAP R/3 specifications have been fulfilled.

This verification should include (but is not limited to):

  • All employee records included, as per the control records
  • All mandatory fields contain data
  • All data in field is consistent with requirements
  • Employees have all the required data records and wage types

 

 

Client must ensure that subsequent master data change files do not include any data records with an effective date earlier than the earliest dates set for retro calculation in both the parallel run and production environments

NB: The earliest retrospective calculation dates will differ depending on the Client phased approach.  Some data records will need to transfer earlier effective dates and produce an ‘legacy HR message’ on upload so that manual calculation and input actions can be taken (relevant for retrospective payments with actual effective dates from to first parallel test payroll period date).

System Integrator will provide details of the specific data records that are subject to these date requirements.

2.5.4 Data file control sheet

Each data file must be accompanied by a control sheet.  This control sheet should be confirmed as verified by the Client payroll team.

An example of the standard control sheet is:

 

 

1.1   Data transfer & verification

The aim of the data transfer (data load) exercise is to confirm that what Client has in the legacy system has been converted across to SAP R/3 and the two systems in are in sync.

1.1.1 File transfer approach

All data files must be sent to the following Client specific email address for data loads at SAP R/3:

TBC

Data files are not to be sent via ftp until advised by System Integrator. This is usually not until the final parallel test has been signed off.

Data files should be sent password protected. Password details should be sent to System Integrator in a separate email.

All employee master data load file must be accompanied by an SAP R/3 data load control form. SAP R/3 and Client are required to confirm the file records against this data load form.

Data file are first loaded to the TEST environment. Once data load is verified as correct, data is loaded into the PROD environment.

1.2   Data validation & sign off

This final validation by Client confirms that all active employees (and employees terminated within the tax year) have full master file records.

1.2.1 Milestone sign off

Client is required to formally sign off data conversion when all data loads are confirmed.

 

2       Actions Lists

The following Action List is an overview Guideline for the whole process of Data Migration.

2.1   Action List 1 - Definition of Data Requirements

Project Phase

Steps

Activity

Owner

Blueprint

 

Employee master data

 

 

1

Provide base line HR interface specifications, including details of any mandatory fields

System Integrator

 

2

Provide base line non HR data record (infotypes) specifications, e.g. allowances, deductions

System Integrator

 

3

Provide base line country specific data record (infotypes) specifications

System Integrator

 

4

Conduct preliminary investigation and identify legacy data source (system/s)

Client

 

5

Source payroll register report and/or other payroll reports to action step 6 and to establish control counts for relevant periods

Client

 

 

Year to date (YTD) data

 

 

6

Provide YTD specifications

System Integrator

 

 

Full list of wage types required, including customer specific wage types codes from Blueprint and technical and accumulation wage type specifications

 

 

 

Determine frequency of upload - Is it a single load YTD accumulated or a PTD (month by month) load

 

 

 

Include accumulation rules, i.e. System Integrator will advise what wage types are added together to produce total accumulators (dependent on SAP rules for accumulation rather than legacy approach)

 

 

 

Technical/accumulator wage type values will be generate from the base data in the legacy system based on these rules

 

 

 

2.2   Action List 2 – Data mapping

Project Phase

Steps

Activity

Owner

Blueprint

1

Provide final HR interface specifications (

System Integrator

 

2

Match SAP R/3 data codes (payments & deductions etc) to legacy system codes in Blueprint design document

Within above mentioned specification, the column “Source Field” needs to be mapped.

Client

Realisation

3

Complete full data field comparison/match and final definition (using configuration spreadsheets)

Additionally, to the field mapping done in point 2, the value mapping has to be done as the 1st task of the Data Conversion activities in Realisation Phase.

Client

 

4

Final confirmation of legacy data sources for all systems

Client

 

5

Identify all data to be transferred

Client

 

6

Identify all alternative data transfer requirements (manual or automatic upload sheets)

Client

 

7

Define procedures for input of non legacy data (pre and post go live, including process for collection)

Client

 

8

Define rules for mapping data values in the interface file

Client

 

9

Code and unit test production of legacy interface file

Client

 

10

Define procedures for data cleansing

Client

 

11

Produce preliminary extract of YTD data from legacy system

Client

 

 

2.3   Action List 3 - Data cleansing

Project Phase

Steps

Activity

Owner

Realisation

1

Initiate any system development effort possible to maximize Client data collection in the legacy system, ensure data is set up prior to initial data extraction, if needed

Client

 

2

Ensure correct data field alignment for interface file requirements (e.g., there may be optional fields in the legacy system for data capture which need to be restricted, e.g. address lines and fields)

Client

 

 

2.4   Action List 4 – Data extraction

Project Phase

Steps

Activity

Owner

Realisation

 

Extraction from legacy system

 

 

1

Provide details of the effective dates for master data records & relevant data records (infotypes) for earliest YTD requirements

System Integrator

 

2

Provide details of the effective dates for master data records & relevant data records (infotypes) for retroactive calculations by phase

System Integrator

 

3

Produce full extract file for sample set of employee master data from legacy system (test interface field definition and placement)

Client

 

4

Set up control record comparative base line, pay period by pay period

Client

 

 

headcount list of all valid employees defined by interface specifications as active employees

 

 

5

Extract full employee master data base file (effective date of records as per specifications at item 1 above)

Client

 

6

Verify master data extraction file against headcount control record (identify terminated employees)

Client

 

7

Prepare terminated employee details in separate manual upload file

Client

 

 

Extraction from legacy system

 

 

8

Produce full master data extract file from legacy system for all employees (to confirm what data is available in legacy system, in what format)

Client

 

 

 

 

 

9

Set up control record (baseline)

Client

 

 

  • Compile list of any employees who have been in the payroll during current tax year

 

 

 

  • Compile list of all terminated employees & date of termination

 

 

10

Produce full extract file from legacy system for all employees

Client

 

 

  • Start date for initial infotype load determined by SAP control record not employees’ hire date

 

 

11

Extraction file/s verified against control record (to ensure all active employees are included)

Client

 

12

All files confirmed by Client payroll team as valid after extraction (if extractions is done by IT team or external vendor)

Client

 

 

Payroll transactions

 

 

13

Compile or extract transactions from legacy system, into SAP R/3 formatted upload spreadsheets

Client

 

 

PTD/YTD

 

 

14

Produce full YTD/PTD extract file for 1st period, from legacy system for all employees

Client

 

 

 

 

 

15

Build PTD/YTD values by employee by period.

Client

 

 

Ensure values are 'signed' according to the rules provided by System Integrator for technical wage types and deductions (including employer contributions)

 

 

 

Confirm rules for input - values vs. quantity (e.g. leave and overtime as values instead of units)

 

 

16

Record headcount per period and accumulated values for each period for total payroll and per wage type as control records, including ER contribution.

 

 

 

Map legacy reconciliation payment types to SAP wage types, as defined in the SAP R/3 specifications for country specific wage types.

 

 

 

2.5   Action List 5 – Data preparation & verification

Project Phase

Steps

Activity

Owner

Realisation

1

Map legacy payroll employee number to SAP ID number

Client

 

2

Identify any data codes discrepancies between the legacy system and SAP R/3 SAP since initial mapping

Client

 

 

  • Advise these to SAP R/3 for investigation and confirmation of any variation from Blueprint baseline

 

 

3

Manipulate data into SAP format

Client

 

 

  • refer to chapter Appendices – Data Mapping Spreadsheet

 

 

4

Data file verification

Client

 

 

Extraction file/s verified against control record (to ensure all active employees are included)

 

 

 

All employees have all the required data records and wage types

 

 

 

Records contain data in all mandatory fields

 

 

 

All data in the data columns is consistent with the requirements.

 

 

 

All initial data load records are dated earlier than the first day of the YTD load period (as per APD ES specifications)

 

 

 

All subsequent master data change files do not include any data records with an effective date earlier than the first day of the first parallel test payroll period (as per SAP R/3 specifications)

 

 

 

All files verified by Client payroll team as valid prior to upload

 

 

 

Sort and sub-total upload sheets by wage type and compare to payroll register sub totals, by payment, earning and deduction code

 

 

 

Remove sub totals and sort by employee ID by wage type prior to sending to SAP R/3

 

 

5

Data file control sheet

Client

 

 

Complete control sheet specific to data file

 

 

 

Wherever possible, confirm via the control sheet that all data for all employees has been provided (detail exceptions)

 

 

 

Control sheet to include control totals by data records (infotype)

 

 

 

2.6   Action List 6 – Data transfer & verification

Project Phase

Steps

Activity

Owner

Realisation

 

Master data files (LEGACY HR & legacy systems)

 

 

1

Data file sent via email to SAP R/3

Client

 

 

Include control sheet for verification

 

 

2

Receipt of data file acknowledged

SYSTEM INTEGRATOR

 

 

Data file checked (to determine that Client has understood requirements

SYSTEM INTEGRATOR

 

3

Data file uploaded

SYSTEM INTEGRATOR

 

4

Data load verified

SYSTEM INTEGRATOR

 

 

Run SAP report of all employees to verify input against control record – infotype by infotype reports

 

 

 

Compare with upload control sheet to ensure data loaded for all employees

 

 

5

Client advised data loaded (includes SAP report if client does not have access to SAP – MPS model)

SYSTEM INTEGRATOR

 

 

YTD/PTD

 

 

1

Data file sent via email to SAP R/3 (period by period)

Client

 

 

Include control sheet for verification

 

 

2

Receipt of data file acknowledged

SYSTEM INTEGRATOR

 

 

Data file checked (to determine that Client has understood requirements)

 

 

3

Data file uploaded

SYSTEM INTEGRATOR

 

4

Data load verified

SYSTEM INTEGRATOR

 

 

Run SAP report (RPCLGV09) Wage Type Distribution List by employee (under the YTD load payroll area) to verify input against control record

 

 

 

Compare with upload control sheet to ensure data loaded for all employees

 

 

5

Client advised data loaded

SYSTEM INTEGRATOR

 

6

Run payroll to transfer values to final YTD figures, e.g. YTD single pay run, PTD multiple pay runs and reconciliation.

SYSTEM INTEGRATOR

 

 

YTD single pay run.

 

 

 

Compare final YTD values to confirm sum of parts = whole for all values

 

 

2.7   Action List 7 – Data validation & sign off

Project Phase

Steps

Activity

Owner

Realisation

1

Validate SAP baseline by comparison with legacy system

Client

 

 

Compare with payroll register reports (with pay details to net)

 

 

 

Compare with individual payslips

 

 

2

Sign off control sheet comparison

Client

 

3

Complete data conversion milestone sign off document

Client

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