1. SAP Glossary
  2. Payroll
  3. year-end


What is 'year-end' in SAP PY - Payroll?


year-end - Overview

  • Component: PY

  • Component Name: Payroll

  • Description: Pertaining to any payroll process that occurs at the end of a calendar year.


year-end - Details

  • Term: Year-End

    Component: PY - Payroll

    Definition: Year-end in SAP Payroll refers to the set of processes and activities performed at the close of a calendar or fiscal year to finalize payroll data, ensure compliance with legal reporting requirements, and prepare for the new payroll year. This includes generating statutory reports, resetting payroll periods, and archiving payroll results.

    How It’s Used: In real SAP payroll projects, year-end activities are critical to ensure that all employee payments, deductions, and contributions are correctly accounted for before the new year begins. Payroll administrators use year-end procedures to produce tax certificates, social security reports, and other statutory documents. It also involves closing off the payroll period for the year, so no further changes can be made to that year's payroll data, and setting up the system for the upcoming year's payroll runs.

    Important Configuration:

    • Execute year-end payroll closing programs such as RPUYEAR00 (Year-End Closing) and RPUYEAR01 (Year-End Reset)
    • Generate statutory reports using country-specific programs (e.g., tax certificates, social insurance reports)
    • Update payroll control records via T-code PA03 to lock the payroll period for the year
    • Maintain payroll periods and calendar in T-code PE04 and PE01
    • Archive payroll data using SAP ArchiveLink or other archiving tools to comply with data retention policies

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year-end - Related SAP Terms

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