Integration Of Position Budgeting Control For Clou...

Position Budgeting Control (PBC) for Cloud enables organizations to reserve and control workforce budget across fiscal years and budget periods. PBC acts as a bridge between SAP SuccessFactors Employee Central and SAP S/4HANA Financials, ensuring that payroll costs are aligned with approved budgets. This blog describes how to integrate PBC with SAP S/4HANA Payroll in an on-premise or private cloud deployment.

Note: SAP provides standard integration with Employee Central Payroll on the modern stack only. This guide describes the steps to integrate PBC with SAP S/4HANA Payroll. Custom iFlow development and any issues arising from non-standard integration configurations are the responsibility of the implementing partner or customer.

Prerequisites

Before you begin, you must complete the setup and configuration of Position Budgeting Control for Cloud.

High-Level Overview of the PBC Integration to SAP S/4HANA Payroll

Figure 1 Block diagram showing the integration architecture for SAP S/4HANA On-Premise Payroll, highlighting which components are part of the standard integration and which require custom development.

Integrating PBC with SAP S/4HANA Payroll (On-Premise/Private Cloud)

For SAP S/4HANA On-Premise Payroll, the standard synchronization job is not available. Instead, you must build custom iFlows to handle synchronization of symbolic account and employee grouping data, and to communicate with the earmarked funds API.

Build Custom iFlows for Symbolic Accounts and Employee Groupings

The symbolic account and employee grouping services cannot use standard communication scenarios for on-premise systems and must be handled via custom iFlows. Create custom iFlows to consume the following standard OData services delivered by SAP:

HRSFEC_SYMBOLIC_ACCOUNT_SRV – Fetches symbolic account data from payroll.
HRSFEC_EMPLOYEE_GROUP_SRV – Fetches employee grouping data for account determination.

Activate the services in your SAP S/4HANA On-Premise system and enable them with Basic Auth or OAuth-based configuration.

End-to-End iFlow Implementation

In this integration, a single iFlow calls both OData services sequentially within SAP Integration Suite (CPI), captures each response, and combines the data before returning the final response to PBC.

Overview

User triggers the iFlow using an HTTPS sender.
The iFlow calls HRSFEC_SYMBOLIC_ACCOUNT_SRV, captures its response.
The iFlow then calls HRSFEC_EMPLOYEE_GROUP_SRV in a similar manner.
The combined response is returned.

Step 1: Create an iFlow

Create a new Integration Flow in SAP Integration Suite with the following structure:

HTTPS sender → iFlow logic → HTTP receiver

Step 2: Configure the HTTPS Sender Adapter

In the sender adapter, set the address in the Connection tab (endpoint path). This endpoint is what you will configure later in Security Center for symbolic account and employee grouping. For example: /SymbolicAccount. The address must start with /.

Step 3: Configure the Content Modifier

Add a Content Modifier step and configure the required exchange properties for the API calls (such as the target system URL and authentication parameters).

Step 4: Set the ERP Configuration

Configure the connection details pointing to your SAP S/4HANA On-Premise system.

Step 5: Add a Request Reply Step

Add a Request Reply step to handle the outbound HTTP call to the on-premise OData service.

Step 6: Configure the HTTP Adapter (SAP S/4HANA On-Premise System)

Configure the HTTP receiver adapter with the endpoint of the on-premise OData service (HRSFEC_SYMBOLIC_ACCOUNT_SRV or HRSFEC_EMPLOYEE_GROUP_SRV) and the appropriate authentication method.

Repeat Steps 3–6 to add the second OData service call (HRSFEC_EMPLOYEE_GROUP_SRV) within the same iFlow.

Step 7: Save and Deploy the iFlow

Save and deploy the iFlow in SAP Integration Suite. After deployment, verify the status in the Integration Content Monitor — the iFlow should show as Started. Any startup errors will be visible here before any message processing log is created.

Step 8: Test the iFlow

Test the iFlow using the service bindings created for the instance. Confirm that both OData services return data as expected.

After building and testing the iFlows, configure the synchronization job with the iFlow endpoint details and register the iFlows in Security Center, as shown in Configuring the Integration Content for the Earmarked Funds API and Configuring the X509 Certificate in the Integration Flow.

Alternative approach: Instead of building custom iFlows to retrieve the symbolic account and employee grouping data, you can use the Manage Symbolic Accounts and Manage Employee Groupings APIs during configuration to create and save the mapping between the Pay Components ID to Symbolic Accounts ID and Employee Class and Employment Type to Employee Grouping for account determination. The symbolic accounts and employee groupings from the payroll systems are used by Position Budgeting and Control to derive the G/L account information required for the Financials system in SAP S/4HANA Cloud Public Edition.

These APIs expose the same data and can be used when a custom iFlow is not preferred:

Enable PBC in SAP S/4HANA Payroll (On-Premise/Private Cloud)

Register the symbolic account and account determination APIs configured in the previous steps. The enabling, registering, and setup steps may differ from the standard Employee Central Payroll steps detailed in the Implementing Employee Central Payroll based on SAP Human Capital Management for SAP S/4HANA guide.

Perform IT724 Replication

Ensure the PTP Replication connection is configured using report RP_HRSFEC_PTP_CONFIGURATION as a prerequisite. Then schedule report RP_HRSFEC_PBC_REPL (transaction HRSFEC_PBC_REPL) as a periodic job in the payroll system. This report fetches financial status and line items via the PBC API and replicates the data to IT724 in your payroll system. Application logs are written under object HRSFEC, sub-object PBC, with external ID prefix IT724_REPLICATION*.

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