---
description: Before you proceed ahead executing payroll , make sure that control record is set to release status in your SAP system
title: How to Execute Payroll in SAP
image: https://www.guru99.com/images/how-to-execute-payroll-in-sap.png
---

 

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**⚡ Smart Summary**

Executing Payroll in SAP calculates employee pay for a period using the country payroll driver PC00\_MXX\_CALC. This resource explains what payroll execution involves, its prerequisites, the step-by-step foreground run, and how to schedule a background run for large employee populations.

* 💵 **Purpose:** Payroll execution calculates each employee’s gross and net pay for the payroll period.
* 🔑 **Transaction:** A live run uses PC00\_MXX\_CALC, where XX is the country’s Molga.
* 🧪 **Simulation First:** Test mode (PC00\_MXX\_CALC\_SIMU) checks results without updating payroll tables.
* ✅ **Prerequisites:** The control record must be released and time evaluation completed before running.
* 🌙 **Background Run:** Large employee ranges are scheduled as background jobs and tracked in SM37.

[ Read More ](javascript:void%280%29;) 

![How to Execute Payroll in SAP](https://www.guru99.com/images/how-to-execute-payroll-in-sap.png)

In this tutorial, you will learn how to Execute [Payroll](https://www.guru99.com/sap-payroll.html) in SAP.

## What is Payroll Execution in SAP?

Payroll execution is the step where SAP actually calculates each employee’s gross and net pay for a payroll period. When you run payroll, the country-specific payroll driver reads the employee’s master data, time results, and wage types, applies the payroll schema, and produces the payroll results stored in cluster RT and related tables.

You start a live run with a transaction of the form PC00\_MXX\_CALC, where XX is the country’s Molga (Modifier for Legal Authorities). The run can be executed interactively for a small group or scheduled as a background job for large employee populations.

Before the calculated results become final, most teams first run payroll in simulation, or test mode. Simulation performs the same calculation but does not update the payroll tables, which lets administrators find and fix errors safely. Once the results are clean, the live run writes the official payroll results that feed the pay slip, posting to accounting, and bank transfer.

## Prerequisites Before Executing Payroll

Payroll only produces correct results when the data feeding it is complete. Before you execute a live run, confirm the following:

* **Control record released:** The payroll control record for the payroll area must be set to “Release for Payroll” so the period is open and master data is locked.
* **Time evaluation complete:** If employees use time management, time evaluation (PT60) must have run without errors so the time wage types are ready.
* **Master data maintained:** Personal, organizational, pay scale, bank, and tax infotypes should be up to date for every employee.
* **Correct schema and Molga:** You must know the country’s Molga and select the matching payroll schema.
* **No blocking locks:** Check infotype 0003 for employees locked out of payroll and clear them if needed.

With these prerequisites met, run payroll first in simulation to catch errors, then execute the live run. This order prevents rework and keeps the pay cycle on time.

## How to Execute Payroll in SAP

Before you proceed ahead executing payroll, make sure that the control record is set to released status in your [SAP system](https://www.guru99.com/what-is-sap-definition-of-sap-erp-software.html).

**Step 1)** In the SAP command prompt, Enter transaction PC00\_M**XX**\_CALC, where **XX** \= Molga of the country for which you want to execute payroll.

[](https://www.guru99.com/images/sap/2010/02/sap-execute-payroll.jpg)

**Step 2)** In the next SAP screen,

* Enter Payroll Area
* Select Current Period
* You can also select another period and run payroll for a period other than the current period.

[](https://www.guru99.com/images/sap/2010/02/sap-execute-payroll1.jpg)

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**Step 3)** Select the correct Schema.

[](https://www.guru99.com/images/sap/2010/02/sap-execute-payroll7.jpg)

**Step 4)** Under Log, Flag the **Display log** checkbox.

[](https://www.guru99.com/images/sap/2010/02/sap-execute-payroll3.jpg)

**Step 5)** Under Remuneration statement parameters:

* For a SMALL number of employees, tick the “Display Variant Rem. Statement” field and select the appropriate variant.
* For a LARGE number of employees, tick “No Remuneration Statement” since there is a high chance of an ABAP dump Error.

[](https://www.guru99.com/images/sap/2010/02/sap-execute-payroll4.jpg)

**Step 6)** Click Execute and check the **Display Log** for the results of the Payroll Run. It gives a summary of total number of employees run, employees in error, and employees successful.

If you selected **Remuneration statement** in the previous selection screen, you can view this by clicking on the **Form** button.

[](https://www.guru99.com/images/sap/2010/02/sap-execute-payroll5.jpg)

**Step 7)** Remuneration Statement.

[](https://www.guru99.com/images/sap/2010/02/sap-execute-payroll6.jpg)

You can also run payroll in Simulation (Test Mode) using transaction **PC00\_MXX\_CALC\_SIMU** (XX = Molga). Test Mode simulates the actual payroll run but does not update the payroll tables. It is helpful in determining and correcting errors before you perform an actual (live) payroll run.

## How to Execute Payroll in Background

When running payroll for a large employee range it is advisable to process it in the background.

**Step 1)** In SAP Command Prompt, Enter Transaction PC00\_MXX\_CALC, where XX = Molga of the country for which you want to run the payroll.

**Step 2)** Enter the Payroll Area and Payroll Schema.

[](https://www.guru99.com/images/sap/2010/02/SAP-Payroll-Background.jpg)

**Step 3)** In SAP Menu Bar, click:

1. Program
2. Execute in Background

[](https://www.guru99.com/images/sap/2010/02/background-sap-payroll.jpg)

**Step 4)** In the SAP -Output Device Dialog Box:

1. Enter Device as LOCL (local)
2. Click the check mark

[](https://www.guru99.com/images/sap/2010/02/sap-background-sm37.jpg)

**Step 5)** An Information message stating Format is set to X\_65\_132 is shown. Click Check Mark to proceed ahead.

[](https://www.guru99.com/images/sap/2010/10/sap-payroll-background-information-message.jpg)

**Step 6)** Click Immediate and then click the save button so the job is scheduled instantaneously. Alternatively you can also specify a date and time to run the job.

[](https://www.guru99.com/images/sap/2010/10/payroll-background-sap-1.jpg)

**Step 7)** Go to Transaction SM37 to check your Job.

[](https://www.guru99.com/images/sap/2010/10/SM37-payroll-background.jpg)

## FAQs

⚙️ What is the SAP payroll driver program?

The payroll driver is the ABAP program that runs a country’s payroll—for example, RPCALCU0 for the USA and RPCALCK0 for India. Transactions PC00\_MXX\_CALC and PC00\_MXX\_CALC\_SIMU internally call this driver with the correct country parameters.

🌍 What is Molga in SAP payroll?

Molga is the two-digit Modifier for Legal Authorities that identifies a country in SAP payroll—for example, 10 for the USA, 40 for India, and 08 for Great Britain. It selects the correct country payroll driver and schema.

📐 What is a payroll schema in SAP?

A payroll schema is an ordered set of functions and rules that tells the driver how to calculate pay—reading master data, importing time results, computing wage types, and posting output. Each country ships a standard schema, such as U000 or K000, that customers copy and adapt.

🔁 What is the difference between a live and a simulation payroll run?

A simulation run calculates payroll but does not update the payroll tables, so it is safe for testing and error checking. A live run writes the official results that feed pay slips, accounting postings, and bank transfers.

🧾 What are payroll clusters RT and CRT?

RT (Results Table) stores the wage types and amounts calculated for one payroll period. CRT (Cumulative Results Table) stores year-to-date and other cumulated totals. Both live in the payroll cluster and drive pay slips and tax reporting.

📋 What is transaction SM37 used for in payroll?

SM37 is the Job Overview transaction. After scheduling payroll as a background job through PC00\_MXX\_CALC, SM37 lists the job with its status—released, active, finished, or cancelled—and lets the administrator open the spool log to review results.

🤖 How can AI help during payroll execution?

AI can validate inputs before a run, explain payroll log errors, forecast total cost, and answer employee pay questions. It supports the administrator, but the actual calculation and posting still run inside SAP payroll.

🤖 Can AI and Copilot reduce payroll run errors?

Yes. AI and Copilot assistants can compare the current run against prior periods, flag unusual pay changes or missing data, and suggest fixes before the live run. Administrators should still confirm each finding and correct it in SAP.

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