- SAP Managed Tags:
Business Requirements
Typical variety of business capabilities constituting Payroll can be seen in the illustration below:
Solution Options
Typical deployment choices for Payroll are the following:
- SuccessFactors Employee Central Payroll is SAP’s Public Cloud Payroll Management system for simplified global payroll processes. It is a blend of proven SAP ERP 6 technology and flexibility and SuccessFactors Employee Central innovation and user experience.
- HCM Payroll in SAP S/4HANA Private Cloud or RISE is the successor of HCM in SAP ERP 6 with all advantages of a private cloud environment and the flexibility and extensibility known from the classical HCM solution. It can either be run in an integrated ERP scenario together with Finance and Logistics or separated in a standalone HCM scenario.
- Further option is to keep the existing SAP ERP 6 (not lower than Enhancement Pack 6) until 2027 (with mainstream maintenance) or 2030 (with extended maintenance option at additional cost), then upgrade to SAP S/4HANA Release 2023 or higher and active business function for HCM for S/4HANA (H4S4).
Criteria to determine the most suitable target solution
The following questions are seen to be crucial to determine the most suitable target solution and to define the course:
- Do you want to keep your existing HCM solution by SAP for longer?
- Do you have any policies or regulations preventing you from using a public cloud solution?
- Do you require fast innovation?
- Do you require a high degree of process customization?
- Do you need to separate your HCM from the transactional ERP?
Decision Tree
Conclusion
- The SAP SuccessFactors solution is proven to be the best choice in case you need to adopt SAP HCM innovation at maximum speed and are already running and taking advantage of SAP SuccessFactors Employee Central and SAP SuccessFactors Employee Central Time management solutions
- The deployment choice SAP S/4HANA Private Cloud Edition or RISE Edition offers the highest degree of flexibility with highly complex and customized process flows. In addition, it is the alternative for Public Cloud solutions, if there are regulations or policies in your organization preventing to store employee data in public cloud solutions.
- Depending on corporate policies and business requirements SAP S/4HANA Private Cloud or RISE can either co-host HCM functionality in the integrated S/4HANA scenario or a standalone HCM instance, as required.
- ERP version 6 is guaranteed to be under extended maintenance for HCM solutions through 2030 after which you must migrate to one of the options listed above. Most commonly, transition from ERP HCM to HCM for S/4HANA is being conducted by a system conversion (known as “Brownfield” transition approach)
Look out to similar decision accelerators in other HR scenarios (e.g., HR Administration, Talent Management etc.) in the adjacent articles in this community.
Should you need subject matter expertise from SAP with regards to this or other architecture decisions, please feel free to ask your Technical Quality Manager or your Account Executive at SAP.
