Work Day Interface PECI (Human Capital Management) Introduction

Workday is a very popular Human Capital Management Software but they do not have good Payroll Processing Capabilities which is the final outcome of a Human Capital Software. To address this, they have given a good interface i.e. PECI Interface i.e. (Payroll Effective Change Interface). It is latest interface version given by Workday for integrating Human Capital Software with a Payroll and Statutory Compliance Software for calculating organisation tax compliance and Employee Salary.

In this article, let us discuss the strengths and weakness of Workday interface and how organisations can overcome that.

Strengths:

• This workday interface extract all the transactions in XML format which is very easy to analyse and study for any potential error or gap.
• It works on Pay Group ID logic where data is interfaced as per pay group id mapped to employees.
• With each transaction, Workday PECI use 'Update' or 'Added' Flag so Payroll vendor can easily identify the transaction to be updated in payroll software.
• There are event codes for every transaction in PECI file. So every transaction has a corresponding event code for the payroll software to identify the data and work on data upload. This is unique feature which is good for building interface.
• New Hire (The event with this code means a new employee is hired in Workday so a new record should be created for this employee in payroll software
• Rehire (The event with this code means an employee who was terminated earlier has been rehired and a new record must be created in payroll software.
• Update (This code comes whenever there is any update done in data for the employee in payroll software.
• Separation(Termination)
• Inbound transfer from pay group (i.e. transfer of employee in a payroll)
• Outbound transfer from pay group (i.e. transfer of employee out of a payroll)
• Inbound transfer from payroll company  (i.e. transfer of employee in a company)
• Outbound transfer from payroll company (i.e. transfer of employee out of a company

• Workday interface can schedule the interface files so files run automatically and need no manual intervention of user. This function can be performed using SFTP (Safe File Transfer Protocol). 
• Workday interface integrate information on Compensation and OTP (one time payments), Equity offered to employees, Dividend Payments and other items of non payable nature. 
• Workday interface can also be used to integrate statutory compliance information like statutory ID of employees, Address and flat duty charges if any.
• Interface can send data in Hours, Days, Units and Amount for Payroll software to do related calculations for overtimes, no pay leave, allowances and others.
• Workday works on dimension basis where we can classify employees as per different dimensions.

Now, let us discuss some of its limitations.

• Under interface we have to set some freeze period definitions. Because for a payroll to process, we need to setup freeze period. Now the limitation is non-pay related data changes done in Workday will reflect in Payroll software only after the freeze period is over. It creates challenges related to statutory compliance reporting. This challenge can be overcome if we can allow processing of only non-pay related data file run during freeze period and pay related data to interface after the freeze period. But we need to categorize the data which is subject to 
• Sometimes, the interface will not send the update/added flag for the data and it will create many issues during payroll run.

Overall, the Workday interface is a good tool and great opportunities for payroll vendors to make maximum out of it and grow their Businesses. 

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