Centralized or de-centralized payroll
The Payroll Close process accommodates both centralized and de-centralized payroll practices. This flexibility is provided by the Payroll Administrator security groups. These groups control who has rights to the Payroll Close. Some organizations use a combination of de-centralized and centralized systems for their payroll process.
Centralized
A central payroll department or location performs the Payroll Close process.
De-centralized
A de-centralized process relegates the Payroll Close activities to individual locations or departments, instead of a centralized payroll department or location.
Here are examples of how the two systems may be used:
- De-centralized: Individual locations are responsible for all Payroll Close activities including executing the Payroll Close.
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Centralized 1: A central department or location performs all payroll readiness and close activities.
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Centralized 2: Individual locations are responsible for setting payroll ready, but a central payroll department or location executes the Payroll Close.