External Transfers
Usage

Many companies have the need to make payments direct from employees' salary to a third party company (e.g. charitable donations, medical insurance payments). There are two main ways to do this within SAP Payroll. One is to make the deduction through the payroll process and assign the amount to a specific GL code. This is then transferred to FI and the payment is made to a vendor account.

A more direct process, providing that the third party account details are known, is to use the SAP standard ‘External Transfers’ infotype (0011).

Process

IMG: Personnel Management Personnel Administration Payroll Data External Transfers

The first step is to define the wagetype that will be used on IT0011 to record the payments. Within the SAP standard payroll schema, these wagetypes are then processed within the “Gross to Net processing (Great Britain)” subschema GNT0, via the “Processing request for external transfers” function P0011 and “External bank transfers - International (read infotype 0011)” calculation rule X055.

N.B. External Transfers are not, as standard, processed in retro.

Once the wagetype has been set up, a Payee Key is required to connect the amounts being processed with the correct Bank Key and Account number. For each external account to which payments are to be made, a separate Payee Key must be defined. If the payments are to be made as part of the normal BACS run, payment method should be indicated as ‘E’ BACS

The wage type is then entered using the SAP standard External Transfers infotype (0011), with the amount that is to be paid over and the correct Payee Key. The account details will be automatically populated from the entries made previously:

When payroll is run, external payments that have been processed as BACS, are shown as separate entries in the BT table of the payroll results:

The details of the account to which the payment is to be made, can be seen in the BACS file:

The payment will now be made directly to the third party account when the BACS file is processed.