BSH Hausgeräte GmbH has established an audit-proof verification process for its 28,000 monthly payroll statements from SAP HCM using Centric Tools PLK & PLX. Thanks to extensive automation, the HR team can ensure the seamless quality of the comprehensive payroll statements and make corrections preventively before the payment run. As a Centric development partner, BSH also assists in the practical further development of the IKS tools.
With more than 58,000 employees (2019), BSH Hausgeräte GmbH is the largest manufacturer of household appliances in Europe. Currently, payroll statements for around 18,000 active employees and 10,000 retirees are generated monthly using SAP HCM and checked in a largely automated verification process using Centric Tools PLK and PLX.
Long-standing use of PLK & PLX
BSH introduced the PLK verification and analysis tool back in 2006 to replace the time-consuming manual verification of extensive printed earnings statements. In 2012, the Centric PLX tool was added as a user-friendly interface for administrators at the various locations. By combining the two tools, BSH has established a standardized verification process as an integral part of monthly payroll accounting. The Centric tools have since become deeply embedded in the payroll process and are now an indispensable part of the daily work of HR employees.
High acceptance among administrators
At BSH, when the PLX tool is launched, each administrator only sees the notifications for the employees for whom they are the responsible administrator in SAP HCM. Within the scope of substitution rules, they can of course access all employees for whom they have authorization. As a convenient checking tool, PLX enjoys a high level of acceptance among users. Rainer Wiedemann, Head of Payroll Germany, sees this as a key success factor for the entire checking process:
"PLX offers administrators an attractive working environment with a structured overview of notes and topics. They can interactively choose between different layouts and sorting options, and
the traffic light function provides a clear overview of the processing status."
The high quality and security of the audit is also important to the administrators. PLX provides a continuous and verifiable overview of the payroll audit, including helpful ad hoc queries that identify audit-relevant transactions, which have been processed to date, and what percentage is still open. After payroll accounting has been completed, the IKS manager at each location confirms that all notes have been processed completely and correctly on the monthly audit printout provided automatically.
Central control of audit rules
At BSH, the definition and control of audit rules and customizing in PLK are carried out exclusively by the central department. This ensures that all locations work on a uniform audit basis. PLK automatically checks the accounting results and master data based on the audit rules contained therein and the customizing settings made. The PLK runs are scheduled centrally via job scheduling. Once they have been completed, they can be called up and processed by the administrators via PLX.
The technical implementation of the Centric tools and the rollout at the locations was quick and easy; the add-ons integrated into SAP HCM were up and running within one to two days. The technical preparation, on the other hand, was more time-consuming. The HR team examined the approximately 800 check rules contained in PLK in detail and formulated around 90 additional company-specific notes. The well-thought-out customization has paid off and now forms the basis for smooth monthly checks.
Efficient standard process for payroll control
The verification process at BSH is a multi-stage process that begins 11 days before the payment run (Ultimo–11) with a simulation run. On this basis, the generated notes are checked and processed with PLX at the various locations. Until day U-7, when payroll accounting goes live, the accounting and checking runs are repeated, including clearing of the remaining notifications. A final check before the actual transfer of remuneration takes place with PLK again after the live payroll accounting on U-6.
This well-established standard process guarantees the highest quality and efficiency in the checking of 28,000 payrolls. A productive run (without simulation payroll) in the system takes around 10 minutes for a larger location with approximately 3,000 employees, and approximately 1,200 notifications are generated for this each month. Thanks to the high degree of standardization and automation, the HR team can handle the enormous volume of payroll accounting reliably and on schedule with only ten employees in the central department and around 40 clerks at the individual locations. The traceable quality is a key advantage, as Rainer Wiedemann emphasizes:
“It's always a good feeling when all the lights are green before the payment run.”
BSH as Centric pilot customer
As an experienced user company, BSH provides valuable input for the practical further development of the tools as part of a development partnership with Centric. In collaboration with the HR team, functionalities such as the dual control principle, audit printouts, the assignment of internal audit numbers, and organizational differentiation have been incorporated into the tools, which now also benefit other Centric customers.
Ralf Wiedemann has the following summary for the tools:
"Centric PLK and PLX are ideal testing tools for BSH in the context of audit-proof internal controls for payroll accounting. The tools are compact, clear, intuitive to use, and innovative."
