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.
Centralized 1: A central department or location performs all payroll readiness and close activities.
Centralized 2: Individual locations are responsible for setting payroll ready, but a central payroll department or location executes the payroll close.