R/3 Payroll Accounting is based on an international payroll driver. This payroll driver is modified for each country. The country-specific payroll drivers take the statutory and administrative regulations of a country into account.

Since the payroll driver has a modular structure, you can use the Customizing functions to quickly modify the payroll procedure to meet the particular requirements of your enterprise.

When you access payroll accounting, the payroll driver calls the accompanying payroll schema which consists of a sequence of functions. For each activity, these individual functions import data from internal tables and payroll files.

Payroll is then performed as follows:

1. The system updates the databases and imports the master data relevant to payroll.
2. If off-cycle payroll accounting must take place (bonus accounting, correction accounting , creating a check using manual number assignment) the system deletes the internal table IT.
3. The system imports the last payroll result.
4. The system calculates the gross wage and considers the shift schedule, shift change compensation, and valuation bases. Any master data relevant to payroll is included in the calculations at this point.
5. The system calculates the partial period factors, lump sums and salary elements, and cumulates the gross amounts.
6. The system calculates the net remuneration and, if specific master data has been changed in a previous payroll period, performs retroactive accounting.

After the payroll run, you can transfer the payroll results to financial accounting, or perform evaluations and generate lists and statistics.