In this ALE business process, you create the payment medium for wage and salary payments to your employees. In some cases, you can also create payments to third-parties. Since data which is also used for wage and salary payments is of a particularly confidential nature, no data is transferred to a separate financial accounting system in this business process. This procedure is also recommended since wages and salary payments are normally processed by employees in the Personnel department.
Although financial accounting programs are also used in this ALE business process, all programs involved are run in the HR system. The data is stored and evaluated in the HR system. There is no flow of data between the systems.
Process flow for wage and salary payments
The Pre.program DME reads the relevant data from the payroll result, creates the payment data and stores it in the database. The payment medium program processes this payment data and creates the corresponding payment medium.
Process flow for wage and salary payment by check with integrated remuneration statement
In some countries, it is possible to print checks with an integrated remuneration statement for your employees. This means the remuneration statement is printed on the check. With this function, the remuneration statement is generated by the Pre.program DME and saved on the database. The check printing program reads the remuneration statement from the database and prints it on the check. An entry is created in the check register for each check.
To be able to process the payment data locally in the HR system, Customizing for HR and FI must be set up accordingly. Even though these Customizing settings belong to FI, you must still make the settings for this business process in the HR system since the payment data is processed locally in the HR system, and the required Customizing settings cannot be read over systems.
You make these settings in Customizing for Payroll under Data Medium Exchange ® Preliminary Programs for Data Medium Exchange.
To make these settings, choose Customizing for Financial Accounting under Accounts Receivable and Accounts Payable ® Business Transactions ® Automatic Outgoing Payments. You use the above path to set up the house bank and house bank account in HR Customizing.