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These commonly include − A SAP Payroll System manages the gross and net pay, which also includes the payments and deductions calculated while processing payroll for an employee.The system calculates the payment and all deductions while processing remuneration using different wage types.Expense Payable for payroll is posted to cost center using integration with SAP Finance and Accounting module.You can assign the cost to cost centers in Finance and Accounting module.Each function consists of import data function from internal tables and payroll related files.The steps in Payroll processing − A payroll system gets the payroll related data from the system.Incentive and Wages data is used to calculate the incentive wages component in the payroll.Wage type defines the daily payroll for each employee and incentive defines the other extra benefits that should be paid to an employee.

SAP Payroll is one of the key modules in SAP Human Capital Management.

Once this payroll run is completed, the results are transferred to Finance Accounting and evaluation.

Then the posting is done for the corresponding cost centers.

Payroll driver is used to run the payroll and their structure is based on that particular country’s laws, as each country has a specific payroll driver.

Following are a couple of drivers with their technical names − This represents the calculation rules used by the payroll driver.

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The payroll driver considers the administrative and legal regulations of the country while defining the payroll.

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