Steps

IMG->Personnel Management-> Personnel Administration>Organizational Data-> Organizational Assignment-> Define

employee attributes

IMG->Personnel Management-> Personnel Administration>Organizational Data-> Organizational Assignment-> Create payroll

area

IMG->Personnel Management-> Personnel Administration>Organizational Data-> Organizational Assignment-> Check Default

Payroll Area

IMG->Personnel Management-> Personnel Administration>Organizational Data-> Organizational Assignment-> Create control

record

Basic Pay( IT 0008) configurations :

IMG->Personnel Management-> Personnel Administration->Payroll Data->Basic Pay->Define EE

Sub Group Grourping for PCR and Collective Agreement Provision

IMG->Personnel Management-> Personnel Administration->Payroll Data->Basic Pay->Define

Reason for Change

IMG->Personnel Management-> Personnel Administration->Payroll Data->Basic Pay->Check

PayScale Type

IMG->Personnel Management-> Personnel Administration->Payroll Data->Basic Pay->Check

PayScale Area

IMG->Personnel Management-> Personnel Administration->Payroll Data->Basic Pay->Check

Assignment of PayScale Structure to Enterprise Structure

IMG->Personnel Management-> Personnel Administration->Payroll Data->Basic Pay->Determine

Default for PayScale Data

IMG->Personnel Management-> Personnel Administration->Payroll Data->Basic Pay->Setup Payroll

Period for Collective Agreement Provision

IMG->Personnel Management-> Personnel Administration->Payroll Data->Basic Pay->Define

PayScale Salary ranges
IMG->Personnel Management-> Personnel Administration->Payroll Data->Basic Pay->Wage Types> Create Wage Type

IMG->Personnel Management-> Personnel Administration->Payroll Data->Basic Pay->Wage Types> Check Wage Type Group Basic Pay

IMG->Personnel Management-> Personnel Administration->Payroll Data->Basic Pay->Wage Types> Check Wage Type Catalog->Check Wage Type Text

IMG->Personnel Management-> Personnel Administration->Payroll Data->Basic Pay->Wage Types> Check Wage Type Catalog->Check Entry Permissibility Per Infotype

IMG->Personnel Management-> Personnel Administration->Payroll Data->Basic Pay->Wage Types> Check Wage Type Catalog->Check Wage Type Characteristics

IMG->Personnel Management-> Personnel Administration->Payroll Data->Basic Pay->Wage Types> Employee Sub Group Grouping for Primary Wage

IMG->Personnel Management-> Personnel Administration->Payroll Data->Basic Pay->Wage Types> Personnel Sub Area Grouping for Primary Wage Type

IMG->Personnel Management-> Personnel Administration->Payroll Data->Basic Pay->Wage Types> Define Wage Type Permissibility for each PS and ESG

Recurring Payment and deduction ( IT 0014) configurations :

IMG->Personnel Management-> Personnel Administration->Payroll Data->Recurring Payment and

Deduction->Define Reason for Change

IMG->Personnel Management-> Personnel Administration->Payroll Data->Recurring Payment and

Deduction->Wage Types->Create Wage Type Catalog

IMG->Personnel Management-> Personnel Administration->Payroll Data->Recurring Payment and

Deduction->Wage Types->Create Wage Type Catalog

IMG->Personnel Management-> Personnel Administration->Payroll Data->Recurring Payment and

Deduction->Wage Types->Check Wage Type Group Recurring Payments and Deduction

IMG->Personnel Management-> Personnel Administration->Payroll Data->Recurring Payment and

Deduction->Wage Types->Check Wage Type Catalog->Check Wage Type text
IMG->Personnel Management-> Personnel Administration->Payroll Data->Recurring Payment and
Deduction->Wage Types->Check Wage Type Catalog->Check Entry Permissibility Per Infotype

IMG->Personnel Management-> Personnel Administration->Payroll Data->Recurring Payment and

Deduction->Wage Types->Check Wage Type Catalog->Check Wage Type Characteristics

IMG->Personnel Management-> Personnel Administration->Payroll Data->Recurring Payment and

Deduction->Wage Types->Define Employee Sub Group Grouping for Primary Wage Type.

IMG->Personnel Management-> Personnel Administration->Payroll Data->Recurring Payment and

Deduction->Wage Types->Define Personnel Area Grouping for Primary Wage Type

IMG->Personnel Management-> Personnel Administration->Payroll Data->Recurring Payment and

Deduction->Wage Types->Define Wage Type Permissibility for each PS and ESG

Additional Payments ( IT 0015) configurations :

IMG->Personnel Management-> Personnel AdministrationaP->Payroll Data->Additional Payments
->Define Reasons for Changes

IMG->Personnel Management-> Personnel AdministrationaP->Payroll Data->Additional Payments

->Wage Types->Create Wage Type Catalog

IMG->Personnel Management-> Personnel Administration->Payroll Data->Additional Payments

->Wage Types->Create Wage Type Catalog

IMG->Personnel Management-> Personnel Administration->Payroll Data->Additional Payments and

Deduction->Wage Types->Check Wage Type Group Additional Payments

IMG->Personnel Management-> Personnel Administration->Payroll Data->Additional Payments and

Deduction->Wage Types->Check Wage Type Catalog->Check Wage Type

IMG->Personnel Management-> Personnel Administration->Payroll Data->Additional Payments>Wage Types->Check Wage Type Catalog->Check Entry Permissibility for Additional Payments

IMG->Personnel Management-> Personnel Administration->Payroll Data->Additional Payments>Wage Types->Check Wage Type Catalog->Check Wage Type Characteristics.

IMG->Personnel Management-> Personnel Administration->Payroll Data->Additional Payments>Wage Types->Define Employee Sub Group Grouping for Primary Wage Type
IMG->Personnel Management-> Personnel Administration->Payroll Data->Additional Payments>Wage Types->Define Wage Type Permissibility for each PS and ESG

Payroll India specific configurations :

IMG->Payroll->Payroll India->Basic Settings->Payroll Organization->Check Payroll Accounting Area

IMG->Payroll->Payroll India->Basic Settings->Payroll Organization->Generate Payroll Periods

IMG->Payroll->Payroll India->Basic Settings->Payroll Organization->Generate Payroll Periods>Check Date of Payday
IMG->Payroll->Payroll India->Basic Settings->Payroll Organization->Generate Calender for
Cumulation
IMG->Payroll->Payroll India->Payscale Groupings->Define Payscale Groupings for Allowances
IMG->Payroll->Payroll India->Payscale Groupings->Asssign Payscale Groupings for Allowances
Basic salary for India configurations:
IMG->Payroll->Payroll India->Basic Salary for India->Asssign Basic Wage Types to Groupings for
Allowances
IMG->Payroll->Payroll India->Basic Salary for India->Asssign Basic Wage Types to Groupings for
Allowances
IMG->Payroll->Payroll India->Basic Salary for India->Assign Basic Codes for Allowance Groups
Reimbursements, Allowances and Perks (RAP) configurations
IMG->Payroll->Payroll India->Reimbursements, Allowances and Perks->Assign Wage type Model for
Payscale Grouping for Allowances
IMG->Payroll->Payroll India->Reimbursements, Allowances and Perks->Maintain Default Wage
Types for Basic Pay
IMG->Payroll->Payroll India->Reimbursements, Allowances and Perks->Maintain Wage Types
Characteristics
IMG->Payroll->Payroll India->Reimbursements, Allowances and Perks->Maintain PayScale Groups
and Levels.
IMG->Payroll->Payroll India->Reimbursements, Allowances and Perks->Maintain Valuation of Basic
of Basic Wage Type
IMG->Payroll->Payroll India->Reimbursements, Allowances and Perks->Maintain Allowance Rules
Based on Slabs

IMG->Payroll->Payroll India->Reimbursements, Allowances and Perks->Calculate Eligibility for

RAPs

Tax & professional Tax configurations

IMG->Payroll->Payroll India->Professional tax->Define professional tax grouping details

IMG->Payroll->Payroll India->taxation -> Define taxation method for company

Statutory (Provident Fund,ESI, Labor welfare fund, Gratuity, Superannuation)

configurations
Provident Fund:

IMG->Payroll->Payroll India->Statutory social contribution ->Provident Fund ->Define trust details for
provident fund

IMG->Payroll->Payroll India->Statutory social contribution ->Provident Fund ->Assign company rates

for provident fund

IMG->Payroll->Payroll India->Statutory social contribution ->Provident Fund ->Define trust validity

period

IMG->Payroll->Payroll India->Statutory social contribution ->Provident Fund ->Maintain contribution

details for Provident Fund

IMG->Payroll->Payroll India->Statutory social contribution ->Provident Fund ->Define contribution

type for statutory rates for Provident Fund

ESI:

IMG->Payroll->Payroll India->Statutory social contribution ->ESI-> Maintain ESI Eligibility limit

IMG->Payroll->Payroll India->Statutory social contribution ->ESI-> Maintain number of working days
in a month

IMG->Payroll->Payroll India->Statutory social contribution ->ESI->Define per area & sub area
groupings for ESI

IMG->Payroll->Payroll India->Statutory social contribution ->ESI->Assign ESI grouping for per area
& sub area

IMG->Payroll->Payroll India->Statutory social contribution ->ESI-> Maintain contribution rates for

ESI.

Superannuation:

IMG->Payroll->Payroll India->Retirement benefits ->Superannuation->Maintain Superannuation trust

ID

IMG->Payroll->Payroll India->Retirement benefits ->Superannuation->Maintain Superannuation

contribution frequency & relevant wage type

IMG->Payroll->Payroll India->Retirement benefits ->Superannuation-> Define contribution rates for

Superannuation

IMG->Payroll->Payroll India->Retirement benefits ->Superannuation-> Maintain Eligibility details for

Superannuation

Gratuity:
IMG->Payroll->Payroll India->Retirement benefits -> Gratuity->Maintain Gratuity Trust ID

IMG->Payroll->Payroll India->Retirement benefits -> Gratuity->Maintain Gratuity contribution

frequency & relevant wage type

IMG->Payroll->Payroll India->Retirement benefits -> Gratuity-> Define contribution rates for Gratuity

IMG->Payroll->Payroll India->Retirement benefits -> Gratuity->Maintain the eligibility year for

Gratuity

Labor welfare fund:

IMG->Payroll->Payroll India->Statutory social contribution -> Labor welfare fund ->Define Per area
& sub area grouping for LWF
IMG->Payroll->Payroll India->Statutory social contribution -> Labor welfare fund ->Assign LWF
grouping for Per area & sub area

IMG->Payroll->Payroll India->Statutory social contribution -> Labor welfare fund -> Define
contribution rates for LWF

Payroll India Company Loans configurations :

IMG->Payroll->Payroll India->Company Loans->Master Data->Create a Loan Type

IMG->Payroll->Payroll India->Company Loans->Master Data->Assign Repayment Type

IMG->Payroll->Payroll India->Company Loans->Master Data->Create Loan Conditions

IMG->Payroll->Payroll India->Company Loans->Master Data->Maintain Loan Eligibility Checks and

Limits

Banking

IMG->Payroll->Payroll India->Data Medium Exchange-> Preliminary program for Data Medium

Exchange ->Set up House banks

IMG->Payroll->Payroll India->Data Medium Exchange-> Preliminary program for Data Medium

Exchange ->Define sending banks

IMG->Payroll->Payroll India->Data Medium Exchange-> Preliminary program for Data Medium

Exchange ->Check text keys for payment transcations.

General Ledger/Symbolic Account configurations in HR system :

IMG->Payroll->Payroll India->Reporting for Posting Results to Accounting-> Activities in HR System>Employee Grouping and Symbolic Accounts->Define Employee Grouping Account Determination

IMG->Payroll->Payroll India->Reporting for Posting Results to Accounting-> Activities in HR System>Employee Grouping and Symbolic Accounts->Define Symbolic Accounts

IMG->Payroll->Payroll India->Reporting for Posting Results to Accounting-> Activities in HR System>Maintain Wage Types->Define Posting Characteristics for Wage Types

IMG->Payroll->Payroll India->Reporting for Posting Results to Accounting-> Activities in HR System>Maintain Wage Types->Maintain Posting Periods for Payroll Periods
IMG->Payroll->Payroll India->Reporting for Posting Results to Accounting-> Activities in HR System>Create Posting Variants

IMG->Payroll->Payroll India->Reporting for Posting Results to Accounting->Assigning Accounts>Assign Expense Accounts

IMG->Payroll->Payroll India->Reporting for Posting Results to Accounting-> Activities in HR System>Assigning Accounts->Assign Expense Accounts

IMG->Payroll->Payroll India->Reporting for Posting Results to Accounting->Assigning Accounts>Assign Balance Sheet Accounts

IMG->Payroll->Payroll India->Reporting for Posting Results to Accounting->Check Customizing for

Account Determination

IMG->Payroll->Payroll India->Payroll Calender->Define Schedule for Payroll Calender