Employee Central Payroll vs. On Premise Payroll

[Former Member]

Hi Folks,

Hope someone can help me address the question below....

This client is moving to the Cloud with Employee Central and Talent Management, and will like to have payroll in SAP.

If this client already has SAP Finance implemented, and could potentially implement SAP Logistics processes in the future, what will be the advantages and disadvantages for opting for Employee Central Payroll vs SAP On-Premise Payroll ?

For example, how will the Integration with other SAP modules like CRM, FI, MM, Purchasing work if we opt to implement EC Payroll ? Will we have to send a minimaster of employees to the SAP ERP on premise FI system  ? In this case employees will be in 3 places (EC Payroll, EC and on SAP on premise).

How about licenses ? Will it be more cost effective to have EC Payroll as opposed to having SAP on premise payroll ?

Thanks.

Javier

[lukemarson]

Hi Javier,

In this scenario it does seem that SAP ERP Payroll would be a better solution than Employee Central Payroll, although it's not always as simple as that

If you use Employee Central and Employee Central Payroll with Employee Central as the system of record then you would indeed have data in 3 places. In SAP ERP and Employee Central Payroll you would have mini-masters, but this data is replicated on a need basis so shouldn't pose any problems if your integration is well built.

The main thing is how Payroll is handled in Employee Central as there is mash-up functionality and display of payslip that is focused on Employee Central Payroll. The bottom line is that it probably depends on:

• What countries are in scope
• If Employee Central Payroll handles all of your required functionality
• Licensing
• Existing landscape

Best regards,

Luke

[StephenBurr]

Hi Luke,

Can the "mash-up" approach be used with SAP Payroll on-premise (or only in EC Cloud Payroll)?

Stephen

[lukemarson]

Hi Stephen,

Although "mash-up's" are designed for Employee Central Payroll, they can be used with SAP ERP Payroll too.

Best regards,

Luke