SuccessFactors and Fieldglass – What to expect

Skill shortage, increasing labour costs and baby boomers are causing organisations to adopt newer hiring models. What used to be an exception, contingent workforce is slowly becoming the norm. Trevor Vas talks about an emerging trend of organisations adopting formal contingent working models in their quest to be more flexible (Read here). The Australian Bureau of Statistics reports that contingent workers make around 28% of today’s workforce. Keeping pace with this trend in the HR world, vendor management software has been evolving over the years. SAP Fieldglass, a cloud based Vendor Management System, is market leader in this space. Fieldglass is used in more than 100 countries and available in 16 languages.
 
So what makes up this workforce? A contingent workforce is a provisional group of workers who work for an organisation on a non-permanent basis, also known as freelancers, independent professionals, temporary contract workers, independent contractors or consultants (Wikipedia). What are the benefits of this flexible workforce? Apart from choice of work assignments and greater career control, they also have the benefit of setting own hours and rates.
 
When SAP acquired Fieldglass in 2014 it was in line with the other acquisitions namely Ariba and Successfactors. SuccessFactors has Contingent Workforce management functionality but is limited and hence the need to acquire Fieldglass. SAP has plans to integrate Fieldglass with its next generation products HANA and Fiori.
 
The following picture depicts the processes involved from sourcing the worker to payment. There are sub processes involved which help the users build an efficient workforce. SAP Fieldglass not only helps in simplifying the sourcing of the contingent workers and managing them, but also enables the data stored for further analysis.
 
pramod-fieldglass-1
 
(Source: SAP E-book)
 
The Fieldglass platform is based on J2EE architecture utilizing an n-tier approach. The application is delivered through a multi-tenant Software-as-a-Service model, hosted by Fieldglass.
So what do customers get by implementing Fieldglass VMS? Some of the benefits are:
 

  • Cost savings
  • Better visibility
  • Ensure compliance – labour, tax, health and safety
  • Source high quality candidates

 
Fieldglass and SAP
 
Fieldglass’s open integration framework helps in simplifying integration with SAP’s Ariba and Successfactors. There are more than 200 successful integrations between Fieldglass and SAP ERP.
 
pramod-fieldglass-2
 
(Source: SAP E-book)
 
Fieldglass and Successfactors
 
The Employee Central module of Successfactors has been enhanced with new features and functionalities to cater to the Contingent Workforce management processes. The processes of sourcing and managing the contingent workforce like timesheets, headcount reports etc. is well handled in Fieldglass. Employee Central helps in integrating the Fieldglass data into its contingent profiles via uploads. Once uploaded this data is searchable in the organisation directory.
 
Fieldglass and SAP HCM
 
Fieldglass can be also integrated with SAP’s ERP HCM system via standard connectors. In this scenario while the requisition and hiring happens on the Fieldglass platform, the position/job and organisation data needs to first flow in from the ERP system. The infotypes that can be maintained in the ERP system via the “Worker Download Connector” are: Actions (0000), Organisational Assignment (0001), Personal Data (0002), Working Time (0007), Contract Details (0016) and Purchasing Data (0901). Apart from the HCM data, other ERP data like cost centres, task codes, pay rates etc. are available for use in the connector. The connector is flexible enough to add any custom fields to support the business process.
 
Conclusion
 
With an increasing percentage of contingent workers comes the issues of rising costs, compliance risk, lower quality candidates, lower visibility and lower productivity. SAP Fieldglass is rightly positioned to help organisations overcome these hurdles. With its superior Software-as-a-Service (SaaS) offering, SAP Fieldglass provides 360 degree capabilities for managing the complexities associated with contingent workforce management.
 
Pramod
SAP SuccessFactors Consultant

This entry was posted on May 24th, 2016.

SAP Payment Summary Reconciliation Process

As we are approaching the end of financial year, it is the perfect time to start preparing your PAYG Payment Summaries for the 2016 financial year. Depending on the frequency of payment, this preparation can be done before 30 June 2016. As they are due for distribution to employees by the 14th July 2016 and the Australian Taxation office by 14th August 2016, it is advantageous to start the process sooner rather than later.
 
In my role at KALTech, I have noticed that the Payroll team often find this time of the year very stressful. They have to perform their regular tasks of processing the payroll, balancing posting and additionally now have to produce payment summaries, overwrite YTD figures, add FBT payment and review employee’s records in preparation for the new financial year, just to name a few additional responsibilities at this time of the year. It’s easy to see why the payroll teams stress so much at this time of the year.
 
To help alleviate this, I’ve listed some practical steps for a smooth and stress free end of financial year(EOFY). These suggestions are based on my experience in the SAP Payroll Consulting area.
 

1. Pay by Pay Reconciliation Process

These processes are performed on the same day as the payroll bank transfer occurs and any discrepancies need to be investigated.

  • 1.1 Individual payroll results verses Payment Summary listing figures

  • 1.2 Tax on Payment Summary Listing verses Group Tax Remittance

  • 1.3 Payroll Tax Gross to Payment Summary Listing Gross
    •  
      This process is the final pay-by-pay reconciliation. It reconciles the payroll taxable earnings to the gross amounts recorded on the payment summaries. The spread sheet is sent to the Finance team once the Payroll Officer has completed their data input. The Finance contact should then include the payroll taxable earnings and the differences are investigated.
       
      The calculation used for this reconciliation is:
                   Payroll Tax Earnings
        Less      Payroll Tax Earnings not on Payments Summaries
        Less      On Payment Summaries Not Payroll Taxable
        Equals   Gross Amounts on Payment Summaries
       

      2. End of Financial Year Checklist

      This is a list of tasks which must be performed either just prior to or at the end of the financial year:

      • 2.1 Check that business addresses and contacts details are correct on payment summaries. This is a configuration task performed by the Payroll consultant.

      • 2.2 Apply any SAP OSS Notes or Patches affecting payment summaries.

      • 2.3 Check outstanding overpayments to ensure the accuracy of gross and tax figures and process any necessary adjustments to the payment summaries.

      • 2.4 Communicate with the Business owner the deadline for any late/adjustment or off-cycles payments.

      • 2.5 Process any overrides due to late/adjustment or off-cycles paid after the last payroll runs but before June 30.

      • 2.6 Load FBT figures as overrides on Payment Summaries. These figures are provided and signed off by Taxation (Person in-charge).

      • 2.7 Preparation of final Payroll Tax, Group Tax and Payment Summary Reconciliations.

      • 2.8 Run Payment Summary program to create Infotype 849 and 850 records. These amounts must equal the reconciliation figures. This Infotype is used to generate both the ATO Magnetic Media and the Printing File.

      • 2.9 Determine best approach for distributing terminated and current payment summaries.

      • 2.10 Send the file to the printers and approve proofs.

      • 2.11 Confirm delivery date post printing.

      • 2.12 Prepare any ATO letters i.e. adjustment to previous year payment summaries and Lump Sum E.

      • 2.13 Prepare Workplace Giving Letters.

      • 2.14 Prepare manual payment summaries, if necessary.

      • 2.15 General announcement to all employees.

      • 2.16 Check that the number of payment summaries printed is same as requested.

      • 2.17 Co-ordinate the distribution to all employees which may include communication to reception and all mailrooms. Terminated employee’s payment summaries can be sent to home address/postal address on record.

      • 2.18 Preparation of ATO Magnetic Media including completion of covering Payment Summary Report (download from ATO website).

      • 2.19 Forward Magnetic Media, letters and any ATO copies of manual payment summaries to ATO.

       

      3. Payment Summary Overrides

      These overrides adjust figures appearing on the payment summary when the change cannot be done via the payroll results. An example of this is off-cycle payments made between the last pay run and June 30.
       
      Using this process means that the actual payroll results do not match payment summary figures.
      As these adjustments are reconcilable items, it is important to keep them at a minimum. All adjustments should be made via the payroll were possible.
       

      4. Recommendations

      Below are some recommendations which could prepare the Payroll team in advance for the year end:
       

      • 4.1 Increase Payroll Team awareness of impact to payment summaries when processing data.

      • 4.2 Adjustment/ Advanced and Off-cycles payments to be kept at a minimal after the last payroll run for the financial year.

      • 4.3 A report to be created which reads each individual payroll result to produce a total. This will reduce the time taken to merge this data into Excel.

      • 4.4 Currently, each program variant is manually updated with any new wage types created. There is a risk that the maintenance of this variant is not done causing reconciliation to be incorrect.

      • 4.5 To lower the risk and increase efficiency, a wage type catalogue should be created. With this catalogue as a basis, a new processing class should be created grouping the wage types together. Reporting could then be performed based on the processing class rather than individual wage types. When new wage types are created or copied, the processing class would be added therefore updating the variant automatically.

      • 4.6 The Payroll Tax Reconciliation should be undertaken by the Finance Team using the pay results.

       
      To conclude, the key is to “Plan ahead and not to wait until the last minute”. If you are not completely confident with your SAP payment summary process, then the best way forward is to invest in training with a SAP solution provider, like KALTech who will provide you with all the required support.
       
      KALTech has excellent support experience, especially around the Payment Summary process. We have proven methodologies that guarantee the best results for our customers.
       
      Talk to us and Experience the KALTech Difference!
       
      Sweety Shah
      KALTech SAP/SuccessFactors Consultant

This entry was posted on May 12th, 2016.