4. Payroll4.1 Payroll list preparation4.2Payment posting in SAP4.3Accounts for hours according to the time report4.4 Accruals for personnel costProcess OverviewHuman Resource department Depreciation & discounting import with payroll dataGenerate payroll list for employee and freelancerApproved by HR Manager?Prepare “Business Payment” according to the approved payroll reportYesReview the payroll list NoApproved according to Signature Mandate?YesYesNoAccounts Payable 2.2 Accounting Standing data is availableSend pay slip notices to employees 4.1 Payroll list preparationApproved payroll listHuman Resource department Generate as batch in formatAccounting Correct errors from batch input file Batch input file process correctly?Correct errors from batch input file NoReconcile postingYesExecute closing operating expenses4.2 Payment posting in SAPBSU/PM, Engineering Service departments Project expenses claim with“Time Report”Approved by PM?Normal expenses claimNoHuman Resource department Input the hours according to the time reportYesTransfer correct?Post hours to payroll listAdjust transfer Payroll preparation processYesNo4.3 Account for hoursStanding data availableHuman Resource department Accounting Accrual proposalApproved by HR manager?Approved by CM?Review proposalNoYesNoGenerate posting in SAP systemYes7 4.4 Accruals for personnel costsItemRisk Control Activities1.Incorrect input of data. Missing updated of data. Unauthorized change of standing data.Only the authorized personnel can read/change the standing data.Regular review of standing data by HR.2.Missing transaction. Calculation error.Reconcile by employee according to the pay slip notice.Double check the payroll list by HR manager.3.Unauthorized payment to employeesThe payment has to be released by the authorized personnel.5.1 Payroll list preparationItemRisk Control Activities4.Inaccurate allocationCompare the amount distributed with total payroll.Investigate differences. 5.2 Payment posting in SAP ItemRisk Control Activities5.Unauthorized time records are input into system. Time records must be checked and approved by authorized personnel before input into system. 5.3 Account for hours according to the time reportItemRisk Control Activities6.Calculation of provision may not be correctThe accrual list has to be approved by commercial manager, and provisions create in line with US GAAP closing guidelines.5.4 Accruals for personnel costsRisk Identification