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

2.2   Action List 2 – Data mapping

2.3   Action List 3 - Data cleansing

2.4   Action List 4 – Data extraction

2.5   Action List 5 – Data preparation & verification

2.6   Action List 6 – Data transfer & verification

2.7   Action List 7 – Data validation & sign off