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Payroll is the single most critical and risk-sensitive area in any SAP deployment. Integrating third-party systems into your payroll processes—without losing control of retroactivity, wage type generation, and deduction accuracy—requires a level of precision that only SAP-native point-to-point integrations can offer.
We dive into Infotype structures, ABAP interface designs, compliance considerations, and how to build integrations aligned with your payroll control record lifecycle.
Payroll is the single most critical and risk-sensitive area in any SAP deployment. Integrating third-party systems into your payroll processes—without losing control of retroactivity, wage type generation, and deduction accuracy—requires a level of precision that only SAP-native point-to-point integrations can offer.
We dive into Infotype structures, ABAP interface designs, compliance considerations, and how to build integrations aligned with your payroll control record lifecycle.
At its core, point-to-point integration is the direct, tightly coupled connection between SAP and a third-party system, bypassing generic middleware tools. This method:
1. Reduces latency
2. Improves customization
3. Simplifies error handling
4. Aligns closely with payroll and compliance needs
Rather than sending data into a black box middleware, you're in full control—writing ABAP logic that knows exactly which Info type, PA subtype, or Wage Type to manipulate.
1. Data Extraction: Use ABAP programs or LSMW tools to pull employee master data, time punches, deduction records, etc. Accessed from Infotypes like 0002, 0167, 0378, 2010, 2011
2. Transformation: ABAP logic maps SAP internal formats to the vendor’s schema (e.g., Fidelity fixed-width layout, Alight’s ANSI X12)
3. File Generation & Encryption: Generated file stored on the SAP application server or NFS path PGP encryption applied if needed
4. Secure Transmission: Transferred via SFTP using command-line tools or SAP’s own connectivity add-ons
5. Audit Logging: All activity logged via custom Z-tables or application logs (SLG1)
Payroll is the single most critical and risk-sensitive area in any SAP deployment. Integrating third-party systems into your payroll processes—without losing control of retroactivity, wage type generation, and deduction accuracy—requires a level of precision that only SAP-native point-to-point integrations can offer.
Employees elect their 401(k) and Roth plans through HR, but without automation, payroll deductions get delayed, mismatched, or lost in reconciliation.
Outbound File: Extract Infotype 0169 and 0378 for all active employees
File Format: Fixed-length or CSV, mapped to Fidelity schema
Transmission: Encrypted via SFTP, aligned with payroll cutoff
Inbound File: Confirmation files (elections, errors) processed daily
SAP Update: ABAP logic updates existing Infotype 0169, flags errors
Employees request proof of employment or income for loans, leasing, etc. Manually generating PDFs introduces delay and legal risk.
Outbound File: Job title, hire date, W-2 records, gross/net pay
Timing: Fixed-length or CSV, mapped to Fidelity schema
Inbound Acknowledgment: Logged via Z-table with status update
Security: PGP-encrypted, secure SFTP
On-Demand Requests: Consent-based extract on trigger from Equifax
SFTP jobs are set up via command-line batch, SAP Java Secure Agent, or SAP PI/PO SFTP adapter.
