Evonik relies on Centric Add On Tools PLK/PLX and MADAP as internal control system (ICS)

Evonik Industries replaced its previous audit tool with the Centric ICS tools for SAP HCM. Since going live in March 2018, the responsible HR team has been auditing more than 24,000 payroll cases (actives) per month using Centric's add ons. As a result, the payroll check is now largely automated, with no system discontinuities or manual intermediate steps. What is most important for Evonik Industries, however, is the significantly increased security and transparency. While the previous audit tool contained 173 internally developed audit rules that had grown over the years, the number of audit rules applied in Centric ICS has now more than quadrupled.

Flexibility through professional standard software

The ability to further develop and adapt the set of rules they used was a key reason for HR managers to switch to Centric. The previous, custom-developed solution was too inflexible in this area and often required external programming effort when changes were made. In response, HR Services Germany division seized on a company-wide quality offensive as an opportunity to look for specialized testing tools on the market.

Centric was able to score points in the selection process as a certified SAP partner. With their comprehensive set of rules included out of the box, Centric tools also proved to be a leading standard solution for SAP HCM. The user-friendly operation and easy customization of the checking rules also convinced the HR experts in charge.

Visible increase in data quality

It was clear to the project team that, in addition to the core ICS tools PLK and PLX, the Centric Master Data Audit Program (MADAP PA/OM) should also be implemented right from the start. The regular monitoring of HR master data with MADAP quickly showed visible results as planned: The number of detected errors decreased with each monthly audit and correction run, so that tangible added value could be achieved after a short time thanks to the increased data quality.

Internal expansion of rules and regulations

Evonik Industries implemented the ICS solution with Centric's support, adapted it to its own requirements, and trained the administrators. With regular operation, the internal ICS team then started analyzing the error notes generated by the system and activating and further developing new check rules accordingly. The starting point for this was the 173 test instructions from the legacy system, which were also to apply in the new ICS. In the meantime, around 630 of the notes predefined by Centric in the PLK tool are in use, while more than 150 notes developed in-house are active in MADAP.

Effective process organization

Evonik Industries has introduced a key user concept for monthly quality inspections. Every day, around 45 employees with main responsibility at three sites use the Centric tools PLX and MADAP to process error messages. In first-level support, these administrators are each responsible for a fixed employee payroll area. Second-level support is provided by two quality managers from the central HR quality assurance department, who use the PLK and MADAP tools to control the monthly test runs, monitor corrections, and perform perspective quality tests.

Two pre-settlement check runs and one check run for duplicate bank details are carried out each month. Due to the decentralized use of Centric tools, a lot of competence and responsibility has shifted to the clerks. For example, first-level support level uses MADAP not only to perform simple field content checks for gaps, errors, or inconsistencies, but also to check facts such as accruals, time quotas, and accounting transactions. Thanks to the automatic documentation of all entries and the dedicated control of access rights, collaborative processing is always secure and traceable.

Reliable and flexible

With Centric Tools, the average number of errors in check runs has now been reduced from 1,000 to 400, and the productive payroll run is only started after the documented elimination of all errors. Markus Hilfert, Head of Global HR Systems, confirms:

"Since we started using Centric for preventive quality checks, every productive payroll run at our company has gone through smoothly and error-free."

The reliability of payroll has increased employee confidence in the HR department. It has also reduced queries to the HR team and the amount of time spent on direct consultation. The set of rules for quality checks is being continuously enhanced. To this end, for example, each administrator can make new suggestions, which are then assessed by the central ICS team and implemented in the system if necessary. Thanks to internal administration and further development, the HR department can respond to new requirements promptly and flexibly.

"The Centric tools are a central application in our payroll accounting. They have a high level of acceptance among our employees and have also strengthened confidence in the work of the HR department."

About Evonik

Evonik is a global leader in specialty chemicals. The Group operates in more than 100 countries with more than 32,000 employees and generated sales of €13.1 billion and earnings (adjusted EBITDA) of €2.15 billion in 2019. Evonik goes far beyond chemicals to provide customers with innovative, value-adding, and sustainable solutions.