Funke Media Group: More security for payroll accounting in SAP HCM

Around 1,700 journalists and 3,800 media professionals work for FUNKE, one of the largest and most successful media companies in Germany, headquartered in Essen. That means thousands of salaries that are paid month after month. FUNKE works here with SAP HCM. By using the Centric tools PLK/PLX in combination with the master data check tool MADAP, the media group has now managed to significantly streamline monthly payroll accounting.

The monthly payroll is the calling card of every company. If there are delays in the payment of salaries, the payroll department usually only finds out when the person concerned asks about it. As efficient as payroll accounting with SAP HCM is, it is prone to errors if certain check routines are not carried out in advance. “Conversely, there have also been isolated cases in which variable remuneration has been paid out twice, for example,” reports Tim Hirschfeld, Head of Payroll & HR Operations at FUNKE, from his experience. However, if such cases only come to light once the first payroll run has been completed, they have to be corrected quickly - in the past, this resulted in time stress and a high manual workload for the 20 colleagues in FUNKE's payroll accounting department at the Essen site.

The entire process becomes transparent

The company wanted to change this. They were looking for a way to display information on payroll errors in SAP in such a way that the entire process could be viewed. At the same time, a tool for the SAP master data check was to be introduced. The goal: more security for the HR department's administrators and a reduction in the manual workload. Centric was chosen as the provider, as Tim Hirschfeld reports.

“After reviewing the market, we opted for Centric's products because we found them particularly intuitive to use. We also liked how easy it was to intervene in inspection rules and change them for our own purposes.”

The solution was an internal control system (ICS) for payroll accounting in SAP HCM. In 2021, FUNKE Services GmbH opted for Centric's tools: PLK for the payroll check, PLX as a cockpit for processing the notes and MADAP as a check tool for the HCM master data and OM data. “Our employees find the operation particularly intuitive,” says Tim Hirschfeld. “We also liked how easy it is to intervene in audit rules and change them for our own purposes.”

The project started with the Master Data Audit Program (MADAP). The audit and correction tool is used for fast, comprehensive and audit-proof verification of HR master data and facts in SAP HCM or customer-specific infotypes and tables. Like PLK/PLX, it is integrated into SAP HCM, so there is no need to familiarize yourself with a new software interface. “The implementation was very simple,” says Dagmar Wolter, who manages the SAP HCM system in Funke's IT department. “We set up the tools together with Centric IT Solutions, who then also provided training for our employees.”

Automatic alerts detect errors early on

The new software tools have greatly simplified the processing procedures: whereas previously employees either had to search for errors themselves or had to rely on external information, all error and plausibility notes are now listed in the PLX Cockpit as a clear worklist. The software automatically distributes them according to fields of activity. A message appears in good time before billing to indicate that the corresponding data record is not “billable”.

“What Centric has delivered here is really good.”

This is made possible by the PLK check tool with its approximately 850 standard routines, which permanently monitor SAP billing. Only a few companies will use them to their full extent, but the full scope of the checks ensures the greatest possible degree of security, as all conceivable cases are covered. “What Centric has delivered here is really good,” says Tim Hirschfeld. “Subsequent evaluations used to help to a limited extent. But this was not possible in the depth of detail that we can now achieve with PLK, PLX and MADAP.”

Test routines were customized

The team individually adapted the routines to their specific requirements. For example, a message was set to be displayed whenever a net payment is more than €500 (or 5%) higher than the previous month. The customizing is carried out by an employee from the payroll department on his own initiative, no help from Centric is required here. Centric IT Solutions ensures that the routines are always up to date by immediately importing new legal changes into the software.

In spring 2023, FUNKE Mediengruppe was in the midst of switching to SuccessFactors, starting with the modules for Recruiting and Performance & Goals. The rest of the traditional SAP HCM will also be converted in the short to medium term. Payroll accounting, however, will remain in classic SAP. PLK/PLX and MADAP can be run with both SAP HCM and SuccessFactors.

Tim Hirschfeld: “For us in the billing department, Centric's tools mean a completely different way of working, as it is now much more structured. You look things up in PLK & PLX, work through your notes and log them. That way, we know at the end that everything has gone through correctly.” For the payroll specialist, it is a great advantage that the Centric products have exactly the same interface as SAP HCM, which his colleagues know like the back of their hand. A message pops up and you can jump to the infotype to edit the error - it couldn't be easier.

Compliance with auditing requirements

Every year, FUNKE has its processes examined by an auditing company. Among other things, they check how the dual control principle can be used to ensure that salaries and variable remuneration are entered correctly into the system. In future, the entries made by employees can be traced in detail via the ICS. The Centric tools not only make the work of the payroll department easier, but also ensure greater transparency and security in the external presentation.