SAP ERP in Warsaw municipality

Grzegorz Ślufiński

The SAP system was implemented in the Warsaw municipality in 2009. The implementation was carried out by Sygnity. Till today, this is the only full-scale implementation of the SAP system in a polish local government unit that is supported by the SAP AG manufacturer.


Sygnity Business Solutions constantly supports the Capital municipality in service and development of  the system. The scale of implementation, its scope and the functioning of the system are shown in the data below.


Implemented SAP modules:

a. Financial and accounting area

• Financial accounting (FI),
• Budget accounting (FM),
• Fixed assets (FI-AA),
• Mass settlements (FI-CA),
• Management accounting (CO),
• Data warehouse (BW),
• Document workflow (WF),
• Long-term Financial Forecast.

b. The area of human resources management

• Human resources administration (PA),
• Organizational structure management (MO),
• Work time management ™,
• Payroll (PY) settlement,
• Service of the Company Social Benefits Fund (own solution),
• Import of leave requests and absences (own solution),
• Import of scholarship agreements (own solution).

Selected numerical data

c. The entire system was launched in production in January 2009,

d. About 600 users from 52 Offices work in the system, 42 of which are budget administrators,

e. Financial and accounting area:

• Two general ledgers are supported – approx. 2,500 accounts in total,
• Subsidiary ledgers (suppliers and recipients): approx. 65 thousand accounts,
• Approximately 720 thousand documents processed yearly,
• The total number of budget holders: 196,
• Number of full budget classifications department / chapter / paragraph: 8 600,
• Number of functional areas, including funding sources and WPF positions: 9,800,
• Number of tasks: 8,700 (including current tasks, investment tasks and sources of income),
• Number of items in the budget plan (2020): 8,500,000 including the WPF,
• Number of planning documents (2020): 20,000,
• Number of engagement documents (2020): 11,300.

f. HR area:

• HR and payroll system supports 19 units (Town Hall + 18 districts),
• In total, the system processes the data of approx. 190,000 personal numbers,
• In the current year (2020), approx. 3,100 payrolls have been recalculated,
• As part of the Company Social Benefits Fund, about 18,400 applications are processed in the system during the year (2020),
• Number of automatically imported absences and applications (2020): 70,000,

g. Reports – in the system with the use of a data warehouse, all budget reports are prepared in monthly, quarterly, semi-annual and annual systems.

The specificity of the solution

FM Budget Accounting (solutions for public institutions)
Budget management allows to handle the process of planning revenues and expenditures, as well as revenues and expenditures for individual budget items and corresponding areas of responsibility. Budget Management allows to control cash flow versus budget.


Planning takes place on four basic assignment objects:
• Budget classification (Department, chapter, paragraph),
• Budget funds administrator,
• Source of financing,
• Budget task,
• So it is an activity-based budget management.

Planning tools enable registration of a plan for the current year, future years, multi-annual financial forecasts (MFF) and mutual relations and dependencies between these areas.

Planning is based on versions of the plan and types of budget, which facilities allow flexible design of the plan preparation process from the initial draft to the actual version. During the planning process, tools allowing for migration of documents directly from MS Excel worksheets are used.

Control of the availability of appropriations

There are two types of funds availability control in the system:

• Passive availability control,
• Active availability control.

Passive control is based on an extensive reporting system. It concerns both operational reports indicating actual values of the plan and its detailed execution broken down into individual stages (types of commitment documents, advances, invoices, payments, etc. ). and on plan decrement objects, as well as reports available from data warehouse. Data Warehouse is a tool that allows for flexible creation of standard budget reporting reports such as. RB-28S.

Active availability control consists of a constant check of the availability of resources carried out by the system when entering documents into the system. When commitment documents are entered into the system, the level of availability of funds on the selected instruction is checked, and if there are no funds, an overrun message appears. In such a situation, posting of the document is not possible. A similar situation occurs e. g. When entering an invoice associated with a sample contract. If the value of the invoice exceeds the amount included in the agreement, the system generates an appropriate message and makes it impossible to enter such a document.
For the needs of the Warsaw local authority, the initial requirement of the client was to launch a solution in the system allowing the registration of long-term commitment documents (e. g. contracts) despite the lack of a plan in the system for subsequent years (control with an overshoot warning message). Subsequent phases have introduced multi-year planning, which works in a similar way to the current year – no ability to record a commitment if funds are not available.

Recording of commitment

When recording an engagement, an active availability check is implemented that prevents documents from being entered if there are no available funds in the budget. Documents can be entered in a multistage process (in the case of the Warsaw municipality) or in a simplified form (Wroclaw municipality). In the first case, registration is divided into two basic stages:

• Introducing initial immobilization of agents (e. g. concerning a request for preliminary countersignature, a preliminary agreement, or the organization of a tender),
• Registration of immobilization of funds (accounting commitment) allowing for entry of e. g. final contracts with contractors, purchase orders, directorate requests, etc. Immobilization documents can be entered in the reference to preliminary immobilizations.

An additional distinguishing feature of the functionalities implemented at UMStW is the projected receipts allowing the recording of documents of planned revenues as to content in a manner similar to planned expenditures. The municipality of Warsaw also makes trace use of reservations of funds, which in turn are the primary document type used to record engagements at the municipality of Wrocław. The main feature of the engagement registration in both projects is the use of the workflow mechanism (more developed in the UMStW project), which allows the system to reflect the multi-stage process of engagement documents processing in the system, starting from their registration, through control, countersignature to the contractor’s signature (when the document requires it). This mechanism automatically redirects the documents introduced by individual authorising officers to the relevant controllers (persons responsible for formal and budgetary verification of individual documents).

The distinctive feature of the implementation at UMStW is the so-called “software for the future”. carryover of the immobilisation document obligation, which carries over the unused commitment (outstanding booking amounts) of the previous year to the next year in cases where the selected contract could not be fully executed in the old year. A unique solution is also to reflect already at the level of preliminary budget obligation the procedure of distribution of VAT amounts according to the WSS sales structure indicator. This solution takes into account the transfer of proportions between pre-bond and commitment documents and allows for automatic recalculation of multi-year document proportions at the turn of the year as a result of WSS changes. The tool provides for VAT settlement according to the indicator, preindicator and mixed method.

Recording of performance

When recording documents of execution in the financial accounting module, entries updating values related to budget execution are automatically generated. This concerns both entries updating the value of the amounts of available funds, but also outstanding commitment amounts (e. g. contracts, orders, etc. ). The different types of operations reflected in the budgetary accounting are included under “Technical and quantitative data” in the subsection “FI/FM integration”. Updating of budgetary accounting data is performed not only in the case of strictly financial documents, but also coming from other implemented modules (Human Resources and Payroll, Fixed Assets, etc.).

Technical data

Planning documents (UMStW)

Types of documents:

• Self-corrections,
• Resolutions,
• Initial introduction of the budget,
• Entering the budget,
• Orders.

Engagement Documents including Accounts Receivable Register (UMStW) Document Types and Types (4 types, 19 types):

Initial immobilization of funds:

• Request for an initial countersignature,
• Initial agreement,
• Annex to the agreement,
• Presidential order,
• WOPŚF-See. result from contracts.

Immobilization of funds:

• Agreement / Agreement,
• Annex to the contract / agreement,
• Subsidy agreement,
• Order,
• Advance,
• Director’s application,
• Protocol,
• Decision,
• Other,
• WOPŚF-Applications.


• Commitment of funds,
• Negative commitment,
• WOPŚF-Tenders.

Projected revenues:

• Influences of the authority,
• Office receipts.

FI/FM integration

Basic types of accounting (process steps) used in budgetary accounting:

FI documents:

• Invoices,
• Payments,
• Advance requests,
• Advances,
• Pre-entered invoices (only UMStW),
• Transfer of funds,
• VAT settlement according to WSS in connection with the commitment.

Engagement Documents:

• Initial immobilization of funds (only UMStW),
• Immobilization of funds (only UMStW),
• Reservation of funds,
• Manual reduction of initial fixations and fixations,
• Value adjustments,
• Transfer of the obligation to the next year (only UMStW),
• Transfer of the obligation from the previous year (only UMStW),
• Calculation of involvement as a result of a change in WSS,
• Automatic VAT calculation and conversion according to WSS.

19 HR departments, one system

Within the HR area, the following functionalities have been launched: personnel administration (HR-PA), organisational structure management (HR-OM), working time management (HR-TM), payroll settlement (HR-PY), and an original tool to handle the Company Social Benefits Fund.
However, it was not so much the scope of the HR project as the complexity of the HR management processes that challenged the participants in the implementation.
The Capital City of Warsaw is administratively divided into 18 districts with separate district offices headed by mayors. Together with the main Town Hall, this gives 19 units with separate HR departments. Payroll processing is done centrally for all employees of the office. Additionally, a separate team handles payments under civil law contracts (mandate contracts and contracts for specific work).
An additional difficulty is that the salary budget is located in districts and headquarters, while payroll is generated only at headquarters. This is due to the organization of employment – employees have one employer – the Office of the Capital City of Warsaw. As a result, payroll contributions must be calculated in one place. Before the implementation of SAP, the office used two applications dedicated to payroll services for employees. In one of them, payroll services were provided to the personnel fund (i. e. employees employed under employment contracts), and in the other – to the non-personnel fund (including civil law contracts). Currently, although the personnel and non-personnel fund is still handled by two separate offices, all related processes are implemented in SAP.

SAP in the area of HR and FI-CO creates one integrated IT solution.

Company Social Benefits Fund

As part of the SAP HR implementation, a dedicated tool was created to handle the Company Social Benefits Fund (ZFŚS), extending the standard SAP solution in this area, which was developed in accordance with the strict guidelines of the employees of the City of Warsaw Office. Warsaw. The vast majority of functional solutions were carried over from the previous system.

The full process of servicing the Social Benefits Fund is carried out in the SAP system – from entering applications for benefits, printing out applications for the committee meeting, entering the committee’s decisions into the system, printing out contracts to be signed with the employee, reporting, sending granted benefits to settlements on the payroll.
This is a great facilitation and time-saving for the organisation, which every year processes over 7,500 applications for various social benefits, from holiday co-financing, through granting loans, to assistance in difficult material situations, and has at its disposal the amount of PLN 16 million a year for this purpose.

Importing holiday requests and absences

The SAP UmstW system has been integrated with the employee service portal, where employees register absences and leave requests. This data is imported into the system in an automatic way creating appropriate records in HR infotypes. At the same time, information on the remaining absence limit is returned. The number of imported entries currently reaches 70,000 per year.

Import of scholarship agreements

We are currently commissioning a tool that automatically imports scholarship agreements and receipts for those agreements directly from an external application. In this application, beneficiaries create applications to which the resulting contracts are transferred to the SAP system by making appropriate entries in the data of the contracts. Analogous to contracts, monthly bills are imported. The tool also allows for automatic creation of beneficiary master data in case the beneficiary registers data for the first time.

Import of grant agreements

A similar solution to the import of scholarship agreements is the mechanism being implemented for importing grant agreements. Events recorded in external tools initiate the creation or update of contractor master data, the registration of contracts in the system affecting the commitment of funds, and the cyclical recording of accounts settling the investment for which the grant was awarded