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This SAP article will guide you all about “How to Create Payroll area in SAP” step by step with screenshot.

Create payroll area

In this step, you set up the payroll areas (accounting areas) that your enterprise needs. The payroll area fulfills two functions that are necessary for payroll:

• It groups together personnel numbers that are to be processed on the same date.


• It determines the exact payroll period.

Example

You define one payroll area for salaried employees and one for industrial workers.

Requirements

Get an overview of how many payroll areas you need in your enterprise.

Standard Settings

The standard SAP System contains country-specific payroll areas for the usual employee groups.

Recommendation

Determine which employee groups you want to settle separately. On the one hand, this decision depends on whether you want to settle individual employee groups (for example, business and salaried employees) at different times, and, on the other hand, on how detailed you want the evaluations to be with regard to the payroll area.

Activities

• Check the standard payroll areas and create new ones if necessary.


• Determine for every payroll area whether it may be settled.

Steps to Create Payroll area in SAP

Path: – SPRO > IMG > Personnel management > Personnel administration > Organizational data > Create payroll area.

Step 1:- Enter transaction code “SPRO” in the SAP command field and enter.

Step 2:- In Customizing execute project screen select SAP Reference IMG.

Step 3:- After Selecting SAP Reference IMG, a new screen IMG Path will be displayed. Select create payroll area for creating a new payroll area.

Step 4:- Select new entries to define new payroll areas.

Step 5:- On the new entries screen, update the following fields.

• Payroll area: – Enter the two digits payroll area key


• Payroll area text: – Update the name of the payroll area


• periods parameters: – Select the period parameters from the list (03- weekly, 02 – semi monthly, 11-monthly etc).

Step 6:- After creating payroll areas click on save button to save the data.

Now, we have successfully done with “How to Create Payroll area in SAP”.