Transforming workforce management with HCM and ERP integration
Key takeaways
Recognizing the value of connected workforce and business systems, middle market businesses are increasingly seeking greater integration between human capital management (HCM) systems such as UKG and Dayforce and enterprise resource planning (ERP) solutions such as Microsoft Dynamics, Sage Intacct and Oracle NetSuite. Effective integration can improve payroll and financial data management while reducing errors and manual processes. By connecting real-time human resources and finance data, businesses can optimize budgeting, forecasting and operational planning, while protecting sensitive information through controlled access and predefined workflows.
Why connected systems matter
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HCM serves as the system of record for all HR data, including payroll, time and organizational structure. That's where you leverage the power of the HCM solution to inform the ERP and vice versa.
Chris Mueller, Managing Director, RSM US LLP
Use case: UKG and NetSuite
Streamlined business processes with UKG and NetSuite integration
Many organizations operate with disparate systems that are not fully integrated, which leads to manual data entry, manual processing and frequent reconciliation across financial, payroll and HR reports. These inefficiencies reduce financial visibility and limit the quality of analytics and reporting.
But effective integration of a UKG HCM system and NetSuite ERP system enables organizations to connect organizational and people data—including demographic, structural and payroll data—with financial and operational systems, elevating the entire financial lifecycle. Integration typically focuses on five key areas:
- Employee data: Confirms the right people are in the right roles in both the HCM and ERP systems
- Organizational hierarchy: Aligns HR and finance views of the organization to provide a strong foundation
- Payroll and financial data: Transfers payroll, budgeting and position data from UKG to NetSuite for accurate budgeting, forecasting and financial reporting
- General ledger (GL): Brings payroll and other financial information into NetSuite to maintain accurate records
- Time data: Transfers time data from UKG to NetSuite for project management, time reporting and billing, while also moving projects and job codes from NetSuite into UKG to enable accurate time tracking
UKG-NetSuite integration scenarios
Foundational components of UKG-NetSuite integration are employee master integration, followed by payroll integration to seamlessly transfer financial data from UKG into NetSuite. Integrated employee and payroll data can then be leveraged in the NetSuite Planning and Budgeting (NSPB) platform to support enhanced financial planning and analysis, delivering a complete view of workforce and financial data.
Scenario 1: Employee master synchronization
UKG integration:
Automatic daily sync
Enables automatic synchronization of employee demographic data, keeping employee rosters up to date and reducing manual data maintenance
Mapping of native and custom fields
Allows organizations to transfer not only basic employee information but also custom attributes or additional identifiers
Duplicate detection prevention
Maintains data integrity by preventing duplicate records and accurately reflecting UKG updates in corresponding NetSuite employee records
NetSuite integration:
Controlled exposure of sensitive information
Restricts sensitive payroll data and limits visibility through role-based access controls
Seamless workflow integration
Supports business and lifecycle management, including approval routing based on departments or supervisor hierarchies
Enhanced employee analytics
Supports the NSPB platform, including head count and full-time equivalent analysis for financial reporting and planning
Scenario 2: Payroll to GL automation
UKG integration:
Flexible mapping
Supports complex earnings, deductions, taxes and segment mappings in the UKG connector, eliminating manual Excel and report processes
UKG integration dashboard
Once configured, transfers payroll data seamlessly into NetSuite with a single push of a button, supporting all cycle payrolls
No manual uploads
Reduces manual work, accelerates month-end close and supports accurate financial data in the ERP system
NetSuite integration:
Customized access
Defines how payroll data appears at the employee level or in aggregated form, with access controlled through role-based permissions
Flexible payroll data alignment
Tracks employee costs at the project level and aggregates overhead at the department level; once mapping rules are defined, payroll data flows automatically into NetSuite, eliminating manual mapping
Predefined approval workflows
Allows payroll journal entries to reflect real-time employee data changes and follow predefined approval workflows, ensuring the appropriate users review and approve entries
Scenario 3: Workforce planning automation
Organizations have two options for bringing workforce and payroll data from UKG into NetSuite for reporting and planning. These include:
Aggregated reporting
Data already mapped in the ERP solution can be transferred for monthly or quarterly reporting at an aggregated level, such as by department or organizational structure.
Detailed workforce planning
Data can be pulled directly from UKG or the ERP solution to support planning at the individual employee level, including department allocations, coding and budget calculations.
This integration enables a full planning and reporting cycle, allowing organizations to compare workforce and financial data, track variances, and support monthly, quarterly and annual reporting in the NSPB platform.
Integration typically begins with the native UKG and NetSuite connector. If additional data or functionality is required, such as items that need to flow into the UKG but are not covered by the turnkey solution, the next step is custom integration.
It’s important to think about the advantages of integrating these systems, what exact information do we want to transfer between them, and how do we want to use it within each of these systems. Also, whether that fits into that native UKG-NetSuite connector, lives outside of it or follows a hybrid approach. Maybe we use the connector for specific purposes and then a custom route is leveraged for things that fall outside of it.
Ian Murray, Manager, RSM US LLP
Successful integration requires aligning HR and finance stakeholders on target operating models and outcomes, coordinating GL structures, maintaining clean data and focusing on effective change management.
For an effective return on investment, reduce your manual journal creation and imports. The key is to shorten the payroll close, resulting in lesser chances of data entry errors. It improves your audit readiness. And now you can focus on the data insights and use that to really move the business forward.
Heather Webb, Director, RSM US LLP
The takeaway
Organizations are increasingly recognizing the potential of HCM-ERP integrations to streamline processes, improve financial visibility and enhance workforce planning and budgeting. Regardless of where you are in your integration strategy, proactive planning, clear alignment between HR and finance, and robust data hygiene are essential for success.
As business requirements continue to evolve, it is crucial to reevaluate your UKG and NetSuite processes to optimize payroll, employee data management and financial planning. While you may understand your current systems, additional integration support may be necessary to define goals, implement best practices and execute seamless adoption across the organization.
Ready to get started? RSM’s experienced advisors understand the HCM and ERP landscape and can help you plan proactively for greater ROI. Contact our team to learn how RSM can help transform your HCM and ERP foundation.
Take advantage of connected workforce insights
Watch RSM’s recent webinar in which RSM US Managing Director Chris Mueller, Director Heather Webb and Manager Ian Murray detailed the power of UKG and NetSuite integration, offering practical guidelines and specific use cases.
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