part7 - human capital management

8/19/2019 Part7 - Human Capital Management

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Integrated business processes with SAP ERPScript 7: Human capital management in SAP ERP

Prof. Dr. Heimo H. AdelsbergerDipl.-Wirt.-Inf. Pouyan KhatamiDipl.-Wirt.-Inf. Taymaz Khatami


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Integrated business processes with SAP ERP

page 2Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/Dipl.-Wirt.-Inf. Taymaz Khatami

Table of contents

Table of contents ........................................................................................................................ 2 Table of figures .......................................................................................................................... 4 Copyright .................................................................................................................................... 6 1. Introduction: Human capital management in SAP ERP .................................................... 7

1.1 Unit objectives “Human capital management in SAP ERP“ ....................................... 7 1.2 Scenario ....................................................................................................................... 8

2 Human capital management with SAP ERP .................................................................... 10 2.1 Theory – Organizational structures in human capital management .......................... 10

2.1.1 Enterprise structure in SAP human capital management ................................... 11 2.1.1.1 Personnel areas ............................................................................................ 12 2.1.1.2 Personnel subareas ...................................................................................... 13

2.1.2 Personnel structure ............................................................................................. 13 2.1.2.1 Employee groups ........................................................................................ 14 2.1.2.2 Employee subgroups ................................................................................... 15 2.1.2.3 Payroll areas ................................................................................................ 16

2.1.3 Organizational structure ..................................................................................... 16 2.1.3.1 Jobs ............................................................................................................. 17 2.1.3.2 Positions ...................................................................................................... 18 2.1.3.3 Persons ........................................................................................................ 19 2.1.3.4 Personal administration and planning ......................................................... 20

2.2 Practical application – Organizational structures in human capital management ..... 21 2.2.1 Excursus – Enterprise and personnel structures ................................................. 21

2.2.1.1 Personnel area ............................................................................................. 21

2.2.1.2 Personnel subareas ...................................................................................... 22 2.2.1.3 Employee groups ........................................................................................ 22 2.2.1.4 Employee subgroups ................................................................................... 23

2.2.2 Organizational structure ..................................................................................... 23 2.2.3 Standard hierarchy .............................................................................................. 24

2.2.3.1 Create profit center...................................................................................... 25 2.2.3.2 Create cost center ........................................................................................ 26

2.2.4 Create an organizational structure ...................................................................... 28 2.2.4.1 Create organizational units ......................................................................... 29 2.2.4.2 Create jobs and assign tasks ........................................................................ 32 2.2.4.3 Create positions ........................................................................................... 33

2.3 Theory – Infotypes ..................................................................................................... 37 2.3.1 Infotype maintenance ......................................................................................... 37 2.3.2 Initial entry screen for maintaining infotypes .................................................... 38 2.3.3 Personnel file ...................................................................................................... 39 2.3.4 Organizational Assignment ................................................................................ 39

2.4 Practical application – Infotypes ............................................................................... 41 2.5 Theory – Processes in human capital management ................................................... 44

2.5.1 From vacancy to hiring an applicant .................................................................. 44 2.5.1.1 Hiring an applicant ...................................................................................... 45 2.5.1.2 Application via Internet .............................................................................. 46

2.5.2 Personnel development and qualifying actions .................................................. 47

2.5.2.1 Qualifications and requirements ................................................................. 48


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Table of figures Figure 1-1: Process overview: Human capital management ...................................................... 9 Figure 2-1: Enterprise, personnel, and organizational structures ............................................. 11 Figure 2-2: Enterprise structure in SAP human capital management ...................................... 12 Figure 2-3: Personnel areas ...................................................................................................... 12 Figure 2-4: Personnel subareas ................................................................................................ 13 Figure 2-5: Personnel structure ................................................................................................ 14 Figure 2-6: Employee groups ................................................................................................... 15 Figure 2-7: Employee subgroups ............................................................................................. 15 Figure 2-8: Payroll areas .......................................................................................................... 16 Figure 2-9: Organizational plan ............................................................................................... 17 Figure 2-10: Jobs ...................................................................................................................... 18 Figure 2-11: Positions .............................................................................................................. 19 Figure 2-12: Persons ................................................................................................................. 19 Figure 2-13: Personal administration and planning ................................................................. 20

Figure 2-14: Enterprise structure – Personnel areas: SAP-System-Screenshot ....................... 22

Figure 2-15: Personnel structure – employee groups: SAP system screenshot ....................... 23 Figure 2-16: Process overview: Organizational structures in Controlling ............................... 24 Figure 2-17: Search profit center: SAP system screenshot ...................................................... 24 Figure 2-18: Search profit center: SAP system screenshot ...................................................... 25 Figure 2-19: Profit center standard hierarchy: SAP system screenshot ................................... 25 Figure 2-20: Create cost center group: SAP system screenshot ............................................... 26 Figure 2-21: Standard hierarchy IDES group: SAP system screenshot ................................... 26 Figure 2-22: Hierarchical assignment cost centers: SAP system screenshot ........................... 28 Figure 2-23: Process overview: Organizational structures in human capital management ..... 28 Figure 2-24: Organization department marketing and SD ....................................................... 28

Figure 2-25: Organizational structure: SAP system screenshot ............................................... 31 Figure 2-26: Example column configuration: SAP system screenshot .................................... 31 Figure 2-27: Search jobs: SAP system screenshot ................................................................... 32 Figure 2-28: Create tasks: SAP system screenshot .................................................................. 33 Figure 2-29: Create position: SAP system screenshot ............................................................. 33 Figure 2-30: Job assignment: SAP system screenshot ............................................................. 34 Figure 2-31: Job assignment: SAP system screenshot ............................................................. 35 Figure 2-32: Organizational structure SD and marketing: SAP system screenshot ................. 35 Figure 2-33: Infotypes .............................................................................................................. 37 Figure 2-34: Infotype maintenance .......................................................................................... 38 Figure 2-35: Initial entry screen for maintaining infotypes ..................................................... 38

Figure 2-36: Personnel file ....................................................................................................... 39 Figure 2-37: Infotype organizational Assignment ................................................................... 40 Figure 2-38: Process overview: Infotypes ................................................................................ 41 Figure 2-39: Personnel master data: SAP system screenshot................................................... 42 Figure 2-40: Maintaining personnel master data: SAP system screenshot .............................. 43 Figure 2-41: Processes in human capital management ............................................................ 44 Figure 2-42: From vacancy to hiring an applicant ................................................................... 45 Figure 2-43: hiring an applicant ............................................................................................... 46 Figure 2-44: Application via Internet ....................................................................................... 47 Figure 2-45: Personnel development and qualifying actions ................................................... 48 Figure 2-46: Qualifications and requirements .......................................................................... 49 Figure 2-47: Training proposals for qualification deficits ....................................................... 50 Figure 2-48: Processes in training and event management ...................................................... 51 Figure 2-49: Career and succession planning .......................................................................... 51


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Figure 2-50: The continuous performance feedback process ................................................... 52 Figure 2-51: Time management ............................................................................................... 53 Figure 2-52: Types of time data ............................................................................................... 54 Figure 2-53: Time sheet CATS ................................................................................................ 55 Figure 2-54: The CATS process ............................................................................................... 55

Figure 2-55: Areas of compensation management ................................................................... 56 Figure 2-56: Long-term incentives ........................................................................................... 57 Figure 2-57: Benefits ................................................................................................................ 58 Figure 2-58: Personnel cost planning and simulation .............................................................. 59 Figure 2-59: Payroll accounting ............................................................................................... 59 Figure 2-60: Combination of remuneration elements .............................................................. 60 Figure 2-61: Payroll ................................................................................................................. 61 Figure 2-62: Travel management ............................................................................................. 62 Figure 2-63: Travel expenses ................................................................................................... 62 Figure 2-64: Cost planning run ................................................................................................ 63 Figure 2-65: SAP EES highlights ............................................................................................. 64

Figure 2-66: integration with other SAP ERP components ..................................................... 65 Figure 2-67: Process overview: Recruitment ........................................................................... 66 Figure 2-68: Export advertisement list: SAP system screenshot ............................................. 67 Figure 2-69: SAP business workflow: SAP system screenshot ............................................... 68 Figure 2-70: Process overview: Recruiting .............................................................................. 69 Figure 2-71: Add qualifications: SAP system screenshot ........................................................ 70 Figure 2-72: Applicant activities – receipt of application: SAP system screenshot ................ 72 Figure 2-73: Display applicant list: SAP system screenshot .................................................... 73 Figure 2-74: Process overview: Hiring .................................................................................... 74 Figure 2-75: Planned activities: SAP system screenshot ......................................................... 75 Figure 2-76: Transferring applicant data: SAP system screenshot .......................................... 76 Figure 2-78: Organizational assignment: SAP system screenshot ........................................... 78 Figure 2-79: Process overview: Personal planning and development ...................................... 80 Figure 2-80: Create position profile: SAP system screenshot .................................................. 81 Figure 2-81: Process overview: Training and event management ........................................... 84 Figure 2-82: Booking a communication course: SAP system screenshot ................................ 85 Figure 2-83: Reporting and analyses ........................................................................................ 87 Figure 2-84: Information system reports: SAP system screenshot .......................................... 88 Figure 2- 85: Manager’s Desktop .............................................................................................. 89


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Copyright

- This document is mostly based on publications for the TERP10 course “mySAP ERP – integrated business processes“– those parts are subject to the copyright of SAP AG.

- All figures used within this course are created in the style of TERP10, if not labeledelse wise. Those parts are subject to the copyright of SAP AG.

- All screenshots used within this document, even if displayed in extracts, are subject tothe copyright of SAP AG.

- Di str ibution and reproduction of thi s document or parts of thi s document in anyform is prohibited without the written permission of Prof. Dr. Heimo H.Adelsberger , Di pl.-Wir t.-Inf . Pouyan Khatami, and Di pl.-Wir t.-Inf . TaymazKhatami .


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1. Introduction: Human capital management in SAP ERP

1.1

Unit objectives “Human capital m anagement in SAP ERP“ This unit aims at giving you an understanding of human capital management in the SAP ERPsystem.

At the conclusion of this unit, you will be able to- define the organizational structures in human capital management- maintain employee records- describe the basic business processes in human capital management- name the interfaces and links to other ERP processes- explain the reporting and analyses tools in human capital management

Note: It is vital for the successful completion of this case study that you are familiar with thenavigation basics in SAP ERP systems (cf. unit Introduction/Navigation ). This includes that

you are able to handle the SAP Easy Access Menu as well as an understanding of the SAPtransaction concept. Your knowledge about help options and further documentation is toenable you to mostly discover the complexity and potential of the system independently – albeit you have to study with given scenarios.

Note: Please avoid to merely clicking through the described steps of the case studies withoutthinking carefully about what you are doing to make sure you achieve sustained learningsuccess . Try to clarify at each step what is done and why it is done. Therefore, you shouldregularly use the F 1 and F4 help functions as well as the SAP online library’s help menu (cf. introduction chapter, Help) to display further information and explanations regarding the

particular processes. Since we arranged the case studies neatly, not all entries that you needto enter on the different screens can be explained in detail. Thus, you should try to get a

profound knowledge using the F1 and F4 keys regarding the meaning of the particular fieldsand entries.

Please unconditionally use the SAP Easy Access Menu instead to the transaction codes. Thus, you will quickly understand the structure and logic of SAP ERP. When you are a bit moreexperienced using the SAP system, it is advisable to use the transaction codes. Please read thecase studies and advises carefully , since careless mistakes causing huge problems happenquite often.


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1.2 Scenario

In the practical application of this unit, you will firstly maintain the organizational structuresin controlling. This includes a profit center and three cost centers. From this point on, you willmaintain an own department in human capital management. This department is in charge ofmarketing, and sales and distribution of your bicycle production.Additionally, you will work with the infotypes concept in the SAP ERP system to recruit

personnel and maintain applicant master data. Based on the applicant master data, you willhire a new employee for your department.In the area of personnel planning and development, you will carry out a succession planningscenario and create a personnel appraisal. Deficits of your employee are supposed to beresolved by a particular training course. Finally, you will settle travel expenses resulting fromthis.The following figure shows the entire process that you will complete in the practicalapplication chapters of this unit using the SAP ERP system. Except for the in depth-maintenance of the organizational structures of controlling, you will focus exclusively on thefunctional area human capital management.


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Figure 1-1: Process overview: Human capital management


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Figure 2-1: Enterprise, personnel, and organizational structures

2.1.1 Enterprise structure in SAP human capital management

The enterprise structure for processes of human capital management contains the followingorganizational elements:

- client: All organizational elements for personnel administration are grouped within aclient.

- company code: A company code is an independent accounting unit. On companycode level, balance sheet and profit and loss statement are created as required by law.

- personnel area: The personnel area is exclusively used in personnel administrationand is unique within a client. Each personnel area must be assigned to a company

code.- personnel subarea: A personnel subarea is exclusively used in personnel

administration as well. For personnel subareas, groups are defined determining whichentries from a following setting can be used for employees assigned to a particularcompany code or personnel area. Groups affect time management and payrollaccounting directly or indirectly.

The enterprise structure is created in customizing.


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Figure 2-2: Enterprise structure in SAP human capital management

2.1.1.1 Personnel areasIn human capital management, the enterprise structure below company code level is organizedusing personnel areas. A personnel area is a unit of personnel administration and represents asubunit of a company code. The individual personnel areas of a company code are identifiedusing a four-digit alphanumeric key. Personnel areas within a client must be clear.The personnel area has the following functions:

- generated default values for data entry, e.g., for payroll accounting- is a selection criterion for reporting- represents a unit for authorization checks

Figure 2-3: Personnel areas


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2.1.1.2 Personnel subareasPersonnel areas can be further divided into personnel subareas . On personnel subarea level,the organizational administration of principal aspects of human resources is carried out, i.e.,

pay scale and age type structures and work schedules. A personnel subarea is identified by afour-digit alphanumeric key as well. Thereby, control features are stored according to thecountry.

The most important organizational functions of personnel subareas are:- Specify country groupings. The master data entry as well as setting up and processing

of wage types and pay scale groups depend on country groupings. The grouping must be unique for each company code.

- Assignment of a legal person to differentiate between companies legally.- Determination of groupings for time management to, for example, set up work

schedules and substitution, absence and leaving types.- Generation of default values regarding pay scale type and area for an employee’s basic

pay.- Definition of a public holiday calendar.- Definition specific wage types for each personnel subarea.

Figure 2-4: Personnel subareas

2.1.2 Personnel structure

The administrative personnel structure in human resources refers predominantly to workhours and compensation. The personnel structure consists of the elements employee groups,employee subgroups, and payroll areas.Employee groups represent different types of employees, e.g., active employees, retirees, andcontractors.Employee subgroups are the second level and is used to define different payroll procedures,e.g., hourly and salaried.The payroll area is used to give default values for payroll that can be used as selection criteriafor reporting as well as for authorization checks. Using the payroll area , you can determinethe period of time between settlements for employees of a subgroup.


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Figure 2-5: Personnel structure

2.1.2.1 Employee groupsEmployees groups roughly divide employees. An employee group defines the position of anemployee in a company. Thereby, the employee makes a certain contribution in terms ofwork. Primarily, active employees, pensioners, and early retirees are the important groups in

personnel administration.

The main organizational functions of an employee group are:- To generate default values for data entry, for example, for payroll area and basic pay

of an employee.- It is a selection criterion for reporting.- It is a unit of authorization checks.- You can use a standard catalog for setting up employee groups that can be extended

according to individual customer requirements if needed.


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Figure 2-6: Employee groups

2.1.2.2

Employee subgroupsAccording to the position of an employee, the employee subgroup is a fine division ofemployee groups. Within the employee group of active employees, for example, employeesubareas differentiate between wage earners, salaried employees, and non pay-scaleemployees.On employee subgroup level, all administration features of the personnel structure aredefined. The most important characteristics are:

- Using the grouping of employee subgroups for the personnel calculation rule, you candetermine different payroll procedures for different employee subgroups. Thus, youcan for example control whether an employee is paid hourly or monthly.

- The grouping of primary wage types controls the validity of wage types for employeesubgroups, while the grouping for the collective agreement provisions restricts thevalidity of pay scale groups to particular employee groups.

- You can define default values for data entry using employee subgroups, e.g., for the payroll area.

Figure 2-7: Employee subgroups


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2.1.2.3 Payroll areasA payroll area is an organizational unit for running payroll. All employees who have payrollrun for them at the same time and for the same period are assigned to the same payroll area.Usually, payroll is carried out for each payroll area. The payroll area provides the payrolldriver with the number of employees for whom payroll is to be run and with data of the

payroll period. The system determines the number of employees for whom payroll is to be runusing the infotype organizational assignment (0001). Among other things, this infotypecontains the respective payroll area in the personnel master record.

Note: A payroll area for an employee can only be changed at the end of a period. When anemployee changes status from wage earner to salaried employee in the middle of a month,and both are located in different payroll areas, you must not enter the new payroll area untilthe start of the next month.

Figure 2-8: Payroll areas

2.1.3 Organizational structure

The organizational plan of a company in the SAP ERP system is created usingorganizational units and positions. The organizational plan features an all-encompassing anddynamic model (i.e., the model can be adjusted continuously, without referring tocustomizing) of the structural and personnel environment of a company that can be evaluatedat any time. I contrast to the enterprise structure the organizational structure is created in theSAP Easy Access menu.

Note: The enterprise structure consists, as you already know, of company codes, personnel groups, personnel subgroups, etc. These units (we referred to them as organizational levels inearlier units of this course) should not be confused with the organizational structure in humancapital management (HCM). The organizational structure contains organizational units,

positions, etc., which are located below or within the enterprise structure. The enterprise structure represents the legal and financial aspects of a company, e.g., company codes, whilethe organizational structure in HCM represents the organizational plan of enterprise parts,


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departments, etc. (e.g., employee X is assigned to position Y, position Y is part oforganizational unit Z, organizational unit Z is assigned to company code and accounting area1000 of IDES, i.e., accounting for organizational unit Z is carried out in the enterprise

structure of the IDES 1000).

The organizational plan represents hierarchies of a company:- The organizational structure of your enterprise : The organizational structure

represents the hierarchy between the different organizational units of a company. Theorganizational structure is created by creating and maintaining organizational unitsand linking them to each other.

- The individual positions and the reporting structure (chain of command) : Areporting structure represents a given line structure of an enterprise. The reportingstructure is created by creating and maintaining positions and linking them to eachother.

Figure 2-9: Organizational plan

2.1.3.1 JobsJobs represent a unique classification of responsibilities in a company. When creating jobs,you should pay attention to which specific tasks and requirements are associated with anindividual job. Jobs are used in the following application components:

- shift planning- personnel cost planning- personnel development

Note: You should keep your job descriptions as general as possible and as specific asnecessary.


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Figure 2-10: Jobs

2.1.3.2 PositionsWhen you created a job in the SAP ERP system, you need to define a number of positions thatcorrespond to this job that are required in the company. The tasks defined on the jobs areinherited by a position. A position can be extended by defining additional tasks that only haveto be carried out by this individual position. Positions can be 100% filled, partially filled, or

vacant.Example: Not jobs but positions are filled with employees. A position can also be shared by anumber of employees hat work less than full time. For example, two employees can share a

position (60% and 40%).

Note: A job is used as a template from which positions inherit particular characteristics suchas tasks. When you create for example the job secretariat, different organizational units that

feature a position secretary can inherit the tasks correspondence, appointment management,etc. Thus, you do not need to create those tasks for each position. Additionally, positions can

feature individual tasks, e.g. audit or make coffee.


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Figure 2-11: Positions

2.1.3.3 PersonsEmployees of a company are represents by persons in the SAP ERP system. Persons hold

positions in the organizational structure determined by organizational management.In personnel administration, infotypes for persons are maintained. In the infotypeorganizational assignment, in the organizational structure section the position held by a personis entered. Using position assignment, persons are linked with the organizational plan.Additional default values in personnel administration such as infotype of the employee groupand employee subgroup (1013) can be derived from data of the organizational management.

Figure 2-12: Persons


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2.1.3.4 Personal administration and planningIn case personnel administration and personnel planning are integrated, you can enter

positions in the actions infotype (0000). This infotype needs to be maintained firstly. Thefields job, organizational unit, or cost center can not be overwritten. They determine therelation to the position.The default values for the fields personnel area, personnel subarea, employee group, andemployee subgroup can be supplied using the organizational unit or the position.

Figure 2-13: Personal administration and planning


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2.2 Practical application – Organizational structures in humancapital management

In the following short excursus, you will get to know the enterprise and personnel structuresof the IDES group in the SAP ERP system. After that, you will maintain an ownorganizational structure for you bicycle department.

2.2.1 Excursus – Enterprise and personnel structures

To display the enterprise and personnel structures of IDES AG, you need to proceed to thecustomizing settings. Therefore, choose:

Tools Customizing IMG Execute Project (SPRO)

Choose to display the implementation guide. You can find the settingsfor the enterprise and personnel structures in human capital management under

Enterpri se Structur e Defini tion H uman Resource M anagement

The assignment of personnel areas to company codes and employee subgroups to employeegroups is available under

Enterpri se Structur e Assignment H uman Resource M anagement

2.2.1.1 Personnel areaFirstly, choose

Enterpri se Structur e Defini tion H uman Resource M anagement Personnel Ar eas( Copy, Delete, Check Personnel A reas)

Choose the button and then to display a list of all personnel areasof the IDES group.

For example, the IDES group contains the personnel areas 1000, 1100, 1200 etc. Theidentification of the personnel area is deliberately chosen in alignment with the company codename to which the personnel area is assigned. Personnel area 1000 is in charge of personneladministration regarding company code 1000, for example. You can display the assignment toa company code by double-clicking the respective personnel area. In addition, you can all up

Enterprise Structur e Assignment H uman Resour ces Assignment of PersonnelAr ea to Company Code

to display the respective assignments.


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Figure 2-14: Enterprise structure – Personnel areas: SAP-System-Screenshot

2.2.1.2 Personnel subareasChoose

Enterpri se Structur e Defini tion H uman Resource M anagement PersonnelSubareas ( Create Personnel Subar eas)

A dialog is displayed for which personnel area the subareas are valid. Enter personnel area1000. You can see that there are no personnel subareas for personnel area 1000 existent. Dueto missing rights, you cannot create it on your own.Personnel subareas are not necessarily required for the structure of personnel administration,since they merely structure a personnel area

2.2.1.3 Employee groupsChoose

Enterpri se Structur e Defini tion H uman Resource M anagement Employee Groups

In this table, you can see all data objects representing employee groups. Thus, the employeegroups active, pensioner and early retiree, etc . exist within the IDES group.


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Figure 2-15: Personnel structure – employee groups: SAP system screenshot

Technically speaking, employee groups are atomic data structures, i.e., they do not containfurther data but consist only of a description. In detailed customizing (master data, processcustomizing), these data structures are used to state which actions or processes can be run foran employee group. For example, you can set that in SAP ERP, only those persons receivesalary whose status is one (active).

2.2.1.4 Employee subgroupsYou can display the employee subgroups of IDES group under

Enterpri se Structur e Defini tion H uman Resource M anagement EmployeeSubgroups ( Define Employee Subgroups)

Employee subgroups are atomic structures as well. In combination with employee groups,they offer options for detailed personnel administration.

Leave the SAP implementation guide and take a closer look at the organizational structure.

2.2.2 Organizational structure

Despite the good order situation, management of the IDES group decided to increasemarketing measures for the Speedstar and the Speedstarlett. Therefore, a new department issupposed to be set up that focuses on marketing and distribution activities regarding the two

products. For this reason, the respective organizational structure needs to be entered into theSAP ERP system and the personnel for vacant jobs needs to be hired.

Firstly, get an overview of the navigation and the basic structures and terms in HCM. Basedto that, you all get to know the important concepts of SAP ERP human resources managementin an integrative case study

You first task is to enter the organizational structure of the new department into the SAP

system and to assign it to existing organizational structures. Again, replace xyy with your userID when processing the case study.


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To create the new department, you need a cost center to which you can assign the newdepartment. You will initially maintain an own profit center which will be assigned tohierarchy node H1300 (marketing and sales and distribution) in the standard hierarchy of theIDES group.

2.2.3 Standard hierarchy

Standard hierarchies serve the unique assignment and hierarchical relations of CO objects,e.g.,

- cost centers- processes- profit centers

Figure 2-16: Process overview: Organizational structures in Controlling

Display the profi t center standard hierar chy of the IDES group. Therefore, call up thefollowing transaction:

Accounti ng Controll ing Profi t Center Accounti ng M aster Data StandardH ierarchy Di splay (KCH 6N)

1. In case you are prompted to enter a controlling area, enter controlling area 1000.

2.

Expand the organizational structure tree in the right window so that you can see thenode H1100 External Services . Your new profit center is supposed to be assigned tothis profit center area. Next, create a profit center with reference to this hierarchicallevel.

Note: In case you do not see the desired hierarchical nodes when calling up the transaction KCH6Nor later, the transaction OKENN (OKEON) (depending on the settings of your user), you can

search for the root organizational unit H1 using the search assistant for the profi t centergroup (for OKENN, cost center group ). From this root node, you can expand and navigate tothe respective node.

Figure 2-17: Search profit center: SAP system screenshot


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Figure 2-18: Search profit center: SAP system screenshot

2.2.3.1

Create profit centerA profit center is an organizational unit of accounting, which structures the company in amanagement-oriented manner, i.e., for internal controlling purposes. You can analyze profitsand losses for a profit center that are calculated using either period accounting or the cost-of-sales approach. You can analyze your company’s fixed assets by profit center and thus usethem as investment centers.

Create profit centerCreate a profit center. Therefore, call up the following transaction

Accounti ng Controll ing Profi t Center Accounting M aster Data Profi t CenterI ndividual Processing Create (KE51)

1. Name the profit center PROFITxyy . Use the profit center 1015 as template inaccounting area 1000.

2. The profit center is valid from January 1st of this year unit 31.12.9999.3. The name is bicycle-xyy and you can enter a short text and a person in charge at your

choice.4. Hierarchical area is H1100 External Service.

Save your entries. A message is displayed stating that the profit canter is inactive. Activateyour profit center with the button.

Check the standard hierarchy of the profit center again. A new entry with your profit centershould be listed.

Figure 2-19: Profit center standard hierarchy: SAP system screenshot


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Now that you created the profit center, you can maintain the respective cost center.

2.2.3.2 Create cost centerFirstly, display the standard hierarchy of cost centers of the IDES group. Therefore, call up

the following transaction:

Accounting Controll ing Cost Center Accounting M aster Data StandardH ierarchy Change (OKEON)

Note:Only one user can change the standard hierarchy at a time (pay attention to possible errormessages and repeat the step later), but all users can display the standard hierarchy.

1. Expand the node H1300 (marketing, sales and distribution).2. Create a new node H xyy with the description M arketing and SD bicycle-xyy

directly below H1300 by clicking the node H1300 with the right mouse button andthen select the option create group (subordinate) .

Figure 2-20: Create cost center group: SAP system screenshot

3. Save your entries. Your new hierarchy node should be displayed below nodeH1300.

Figure 2-21: Standard hierarchy IDES group: SAP system screenshot


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The new department is supposed to contain tree organizational units to each of which one costcenter is assigned. In organizational management, three organizational units will be entered,one for marketing, one for SD, and one root organization.Correspondingly, start with creating three new cost centers. The cost centers will be assignedto profit center PROFITxyy. To create cost centers, choose:

Accounting Controll ing Cost Enter Accounting M aster Data Cost CenterI ndividual Processing Create (KS01)

1. Enter CC-MSD-xyy in the cost center field and enter validity period from 01.01. ofthe current year until 31.12.9999 . Confirm with Enter .

2. Enter the following data: Name: Mark-SD-xyy Description: Marketing and SD root xyy Responsible person: your name Cost center category: management (5) Hierarchy area: Hxyy (SD and marketing bicycle xyy) Company code: 1000Business area: vehicles (3000) Profit center: PROFITxyy

Save your entries and independently create the other two cost centers.

3. Cost center marketingCost Center: CC-MA-xyy Validity: 01.01. of the current year – 31.12.9999

Name: Marketing-xyy Description: Marketing department xyy Responsible person: your name Cost center category: 8 Hierarchy area: Hxyy (SD and marketing bicycle xyy) Company code: 1000Business area: vehicles (3000)Profit center: PROFITxyy

4. Cost center SDCost Center: CC-SD-xyy

Validity: 01.01. of the current year – 31.12.9999 Name: SD-xyy Description: SD department xyy Responsible person: your name Cost center category: 8 Hierarchy area: Hxyy (SD and marketing bicycle xyy) Company code: 1000Business area: vehicles (3000)Profit center: PROFITxyy

When displaying the standard hierarchy of cost centers once again (OKENN), your new cost

centers should be assigned to the respective hierarchical areas.


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Figure 2-22: Hierarchical assignment cost centers: SAP system screenshot

Now that you created the cost centers and the profit center, you have the required structures tocarry out organizational management from a HR department point of view.

2.2.4 Create an organizational structure

Your new department is referred to as Dep-bike-xyy and represents the root organizationalunit. The department consists of two areas: Marketing-xyy and SD-xyy . The cost center KS- MA-xyy is assigned to the marketing department, and the cost center KS-VE-xyy is assignedto the SD department, both originating from company code 1000 .

Figure 2-23: Process overview: Organizational structures in human capital management

Despite the fact that it is somewhat unrealistic that a differentiated scope of duties is onlycarried out by few employees, we assign only two employees to each area due tosimplification reasons. Both the marketing and the SD area will feature a position for thedepartment chief and a secretary positi on .The following figure is supposed to clarify the organization of your new department:

Figure 2-24: Organization department marketing and SD


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As you can see from the figure above, you need to create the following organizationalstructures in the next step:

Three organizational units:

1. Root organization: Dep-bike-xyy 2. SD area: SD-xyy 3. Marketing area: Mark-xyy

Two jobs:1. Job for the department chief: M anage-xyy 2. Job for the secretary: Secretary-xyy

Note: As explained earlier jobs are generic object types that facilitate the creation of positions.Thereby, the position inherits all characteristics of the assigned job.

Four positions:1. Position for the department chief SD: SD-DC-xyy 2. Position for the department chief Marketing: MA-DC-xyy 3. Position for the secretary SD: SD-SE-xyy 4. Position for the secretary Marketing: MA-SE-xyy

Different tasks must be assigned to the respective positions. As you might guess, identicaltasks for positions can be assigned directly from the corresponding job .You can assign the tasks correspondence and organization to job Secretary-xyy and the tasksmanagement f unctions to job Manage-xyy . The tasks client acquisition and advertisingefforts are not generic and need thus to be assigned directly to positions.

In the next step, you will transfer this organizational structure for your new department to theSAP system.

2.2.4.1 Create organizational unitsTherefore, call up the following transaction:

H uman Resources Organizational M anagement Organizational Plan Organizationand Staff ing Create (PPOCE)

1. Enter the validity from 01.01. of the current year until 31.12.9999 .2. Activate the query time for organizational changes using the settings function from

the menu.3. In the upper left window, you can see an icon with the name new organizational unit.

This will be your organizational root . Click the icon and enter the followinginformation on the lower part of the screen:

a. Basic data tab: Name: Dep-bike-xyy additional description: Department bike-xyy your name


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b. Account assignment tab:Cost center: CC-MSD-xyy Company code: 1000 Personnel area: 1000

Confirm with Enter .4. Create the two other organizational units below the created organizational unit by

clicking the organizational root with the right mouse button and selecting create .Choose li ne manager of organizational uni t from the pop-up window. Enter thefollowing information for the SD department (skip the following pop-up with Enter ):

a. Basic data tab:Organizational unit: SD-xyy additional description: SD-xyy your name

b. Account assignment tab:Cost center: CC-SD-xyy (to change the cost center in account

assignment, click replace cost center – )company code: 1000

personnel area: 1000

5. Repeat this step for the marketing department. This should be located below theorganizational root as well.

a. Basic data tab: Name: Mark-xyy

additional description: M arketing-xyy your name b. Account assignment tab:

cost center: CC-MA-xyy company code: 1000

personnel area: 1000

Save your organizational structure.

Note:When leaving transaction PPOCE , you can display your hitherto created objects using

transaction PPOME and the search function upper left side of the screen. The search functioncan be used to search for all object types. When selecting organizational uni t and enteringdep-bike-xyy, the search result is displayed in the left window.

Your hitherto created organizational structure should look like this:


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Figure 2-25: Organizational structure: SAP system screenshot

Note: Another useful function is the column confi guration . With this, you can display additionaldata regarding your organizational units. In the following figure, you can see the additional

selection of the object ID. This is helpful since it is unique in the SAP system andcorrespondingly, easier to find from other program modules.

Figure 2-26: Example column configuration: SAP system screenshot


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Now that the organizational units are created, your next task is to create jobs . At this point,you could start directly with creating positions, however, our positions are supposed to inherittasks from generic jobs. Thus, this step is required.

In case you left the transaction already, all up transaction PPOME and display the

organizational structure.

2.2.4.2 Create jobs and assign tasks

1. Jobs are created choosing Edi t Create Jobs from the menu bar. In the followingselection window, enter the subsequent data:

Valid from: 01.01of the cur rent year until 31.12.9999 Object abbreviation: M anage-xyy and Secret-xyy Description: M anagement bike xyy and Secretary bike xyy

2. Display the job M anage-xyy using the search function (job).

Figure 2-27: Search jobs: SAP system screenshot

The search results are displayed in a hit list on the bottom left side of the screen.Select your job Manage-xyy with a double-click.

3. Select your job in the right window and select the create ( ) button to define newtasks. Enter the following data on the bottom part of the screen:Valid from: 01.01of the cur rent year until 31.12.9999 Object abbt.: Mgmt-xyy

Name: M anagement Tasks xyy


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Figure 2-28: Create tasks: SAP system screenshot

4. Independently create the two tasks for the job secretary.

Valid from: 01.01of the cur rent year until 31.12.9999 Short text: Corresp-xyy and orga-xyy Description: Correspondence bike xyy and Organization bike xyy

Save your entries.

2.2.4.3 Create positions Now you can create positions. The positions are assigned to the organizational units SD-xyy

and Marketing-xyy , respectively.

Display your organizational root Dep-bike-xyy again (using the search function). You alreadylearned how to create a new object from an organizational unit.

Figure 2-29: Create position: SAP system screenshot


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1. Select the sales and distribution organizational unit ( SD-xyy ) and create two new positions below with the following specifications:

Valid from: 01.01of the cur rent year until 31.12.9999 Position: SD-DC-xyy and SD-SE-xyy

Description: Department chi ef SD xyy and Secretary SD xyy

2. Select the newly created position SD-DC-xyy in the basic data view. Enter your newlycreated job M anage-xyy in the Job field. Confirm with Enter . You can see that in thetasks slide, for this position, the task of the job was inherited.

3. Click your position SD-DC-xyy with the right mouse button and select Goto/taskassignment .

Figure 2-30: Job assignment: SAP system screenshot

Select your position once again and create a new task by clicking the create button(described by task ):

Valid from: 01.01of the cur rent year until 31.12.9999Short text: acquise-xyy Description: customer acquisi tion xyy


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Figure 2-31: Job assignment: SAP system screenshot

4. Optional (if not enabled): Select your task management task (expand the jobmanagement bike xyy below your position) and push the right mouse button and selectchange percentage . Set the percentage of the task to 50 %. Repeat this step for thesecond task (acquisition). Thus, you can ensure that a position takes only themaximum 100 % of work time.

Repeat steps 1-4 for the other positions to complete the organizational structure of the initialoverview. Finally, your organizational unit should be similar to the following figure. Do notforget to save.

Figure 2-32: Organizational structure SD and marketing: SAP system screenshot


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To complete, li st the object IDs of your four posi tions on your data sheet.

Posi tionI D SD-DC-xyy: _________________________________________________

Posi ti onI D SD-SE-xyy: _________________________________________________

Posi tionI D M A-DC-xyy: _________________________________________________

Posi tionI D M A-SE-xyy:_________________________________________________


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2.3 Theory – Infotypes

Last name, first name, or date of birth represent individual information and this information isdefined in data fields in SAP ERP. Data fields are combined according to content-relatedinformation to data groups or information units . In human resources, we refer to theseinformation units as information types or short, infotypes .Data in human capital management are recorded in logically related groups according to theircontent. For example, place of residence, street, and house number of an employee representhis or her address and are thus stored in the address infotype (along with other information).Infotypes feature a name and a four-digit numeric key. For example, the address infotype hasthe key 0006.

Figure 2-33: Infotypes

2.3.1 Infotype maintenance

ERP software must maintain the up-to-dateness of employee data. When maintaininginfotypes, you can display, correct, and supplement employee data. Human capitalmanagement stored employee data in infotype records and provides each infotype with certainvalidity. Usually, that is a validity interval or a key date.There are three options to maintain infotypes:

- single screen maintenance,- personnel actions, or- fast entry

Single screen maintenance (individual infotype maintenance):For single screen maintenance, one single infotype is called up to maintain data for a certainsituation or subject. In single screen maintenance, an infotype is maintained for one personnelnumber.

Personnel actions:Personnel actions are used when a subject or situation is rather complex and when more thanone infotype is to be maintained. When carrying out a personnel action, the system displaysall respective infotypes to be maintained, one after another.


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Fast entry:Using fast entry, you can maintain an infotype for more than one personnel number at thesame time.

Figure 2-34: Infotype maintenance

2.3.2 Initial entry screen for maintaining infotypes

The infotypes most frequently used in HR are grouped according to their content and assignedto static menus. An infotype can be included in more than one menu. Rarely used infotypesmight not be included in any menu at all. Menus are called up by selecting the respective tab

page. The green ticks next to infotypes in the menu list indicate that there are already records present for this personnel number.

Figure 2-35: Initial entry screen for maintaining infotypes


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2.3.3 Personnel file

His or her personnel number uniquely identifies an employee in the SAP ERP system. A personnel file exists for each personnel number that contains all infotypes for which recordsare stored. Infotypes are displayed in ascending numerical order.

In case several records exist for one infotype, they are displayed one after another. Then, thesystem proceeds to the next infotype. At the end, the system returns to the initial screen. In the

personnel file, you can scroll forwards and backwards.

Figure 2-36: Personnel file

2.3.4 Organizational Assignment

When maintaining and saving the infotype personnel data (0002), the system automaticallydisplays the infotype organizational assignment (0001).The following fields are already filled in by the organizational assignment:

- company code- personnel area

-

personnel subarea- business area- employee group andemployee subgroup

Additional missing data can be entered manually.

In case the position was not recorded in the actions infotype (0000), this can be done here ininfotype organizational assignment (0001). The position is entered in infotype organizationalassignment in the organizational structure section. The entered position and its presentrelations to a job, an organizational unit, and cost center, these fields are importedautomatically. The fields job, organizational unit, and cost center can therefore not be

overwritten manually.


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Figure 2-37: Infotype organizational Assignment


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Figure 2-39: Personnel master data: SAP system screenshot

3. The individual infotypes are grouped by particular criteria (tabs).4. Select the infotype organizational assignment and choose display .5. You can see that Ms Maier is assigned to the following organizational units

Enterprise structure:

a. Company code 1000 b. Personnel area 1300c. Cost center 2100d. Business area 9900

Organizational structure:e. position 50000076f. job 50011880g. organizational unit 50000073

Personnel structure:

h. active employee (employee group)i. part of employee subgroup DU (employee)

j. part of accounting area D2


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Figure 2-40: Maintaining personnel master data: SAP system screenshot

6. Return to the previous step and look for the infotype basic pay . What is the standard pay of Ms Maier? List the amount on your data sheet.

Basic pay M s M aier: ____________________________________


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2.5 Theory – Processes in human capital management

Processes in human capital management include:- recruiting- hiring- training and personnel development- managing work time- compensation and benefits- payroll administration- travel planning- personnel cost planning and reporting- employee self-services

Figure 2-41: Processes in human capital management

2.5.1 From vacancy to hiring an applicant

The recruitment component organizes the entire recruiting process in SAP, from the initialdata entry until filling vacant positions. Thereby, the SAP system features

- identification of personnel requirements,- creating job advertisements,- short-listing applicants, and- managing applicant correspondence

When an applicant is hired, the data entered in recruiting can be transferred to personneladministration as employee data. Line managers can use the manager’s desktop to recorddecisions about applicants and to trigger further administration in the HR department

efficiently. External applicants can use the web application employment opportuni ties andemployees can use the employee self-service component job adver ti sements to electronicallyattach application documents to online applications.


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Figure 2-43: hiring an applicant

2.5.1.2 Application via InternetUsing the internet application employment opportunities , companies have the following

possibilities in the recruitment process:- present vacancies and- direct applications for positions

Moreover, applicants can display only vacancies for a certain region or all vacancies. Eachadvertisement contains a short description of the position and its requirements. Informationregarding the position is copied by the system from the advertisements stored underrecruiting.

Applicants can either apply directly in response to an advertisement or submit an unsolicitedapplication. For applications via internet, the applicant enters data concerning person,experience, qualifications, education, and training. The system automatically transfers thesedata to the SAP ERP system.

Note: Since SAP R/3 Enterprise, an applicant can add or change any entered data. The

applicant can attach application documents electronically with this internet function.


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Figure 2-44: Application via Internet

2.5.2 Personnel development and qualifying actions

The personnel development function in SAP human capital management increases theemployees’ ‘value’ for a company by planning and implementing development and training

measures for employees. This increases motivation and satisfaction of employees by takinginto account individual preferences and suitability for jobs. The personnel development component ensures that a company has all required qualifications and capabilities. This isachieved by setting up qualification potentials.A company can determine the development requirements by comparing future workrequirements with current qualifications and development preferences of employees. Themanagement can aim at particular results with these development activities. For example,using career and succession planning you can determine whether an employee should betransferred to a certain post. General measures can include the extension of existingcapabilities and knowledge of employees or ensuring that employees keep pace withtechnological changes.Qualifying measures (training courses, job rotation, etc.) can be grouped to development plans(e.g., trainee program for sales employees). These qualifying actions are referred to as generaldevelopment plan, since it affects all employees of a company. When general development

plans are available in the SAP system, you can adjust them to the individual requirements ofemployees.In addition, you can praise employee performance and conduct with personnel developmentand perform individual targets for employees. Due to appraisal results, the further careerdevelopment of employees can be planned.


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Figure 2-45: Personnel development and qualifying actions

2.5.2.1 Qualifications and requirementsYou can assign qualifications to both employees and position. For employees, you refer tothem as qualifications; for positions, you refer to them as requirements.All qualifications (and requirements) are stored centrally in a catalog. It is always referred tothe same object, but from a different point of view. Thus, you can compare qualifications of a

person with requirements defined for a position.

Note: Editing the qualification catalog is carried out in customizing for personneldevelopment. You can still enter modifications after the system has already gone live bychoosing current settings from the menu.


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Figure 2-46: Qualifications and requirements

2.5.2.2 Training proposals for qualification deficitsIn case personnel development is linked to training and event management, you can use the

generate training proposals functions from the personnel development component. The

system proposes possible training courses (business events) to gain missing qualifications.You can book employees for courses directly or pre-book employees for business event types.The system can also propose and assign development plans that impart requiredqualifications. Consequently, particular actions from this general development plan can becopied to an individual development plan of an employee.The system only proposes events and development plans that aim at least at the same or at ahigher degree of expertise and qualification (in comparison to the current ones of therespective employee).

Example: A mechanical engineer is supposed to work in Japan for a longer period of time.When comparing her profile with the requirements of the tasks in Japan, it becomes apparent

that she does not have the required language skills. Since personnel development is linked totraining and event management, the system proposes a Japanese class that will provide theengineer with the skills she will need for her new tasks. The administrator directly books herfor one of these classes.


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Figure 2-47: Training proposals for qualification deficits

2.5.2.3 Processes in training and event managementTraining and event management contains four major processes:

- In business event preparation, all master data required for creating the businessevent catalog are recorded and maintained. This includes time schedules, eventlocations, resources, etc. Additionally, business event groups and types can be created

that constitute the foundation of the event catalog.- The second major process is the creation of the business event catalog . Individualevent dates can be created with or without resources and in a single process, multipleevent dates can be planned according to existing demand.

- After that, day-to-day activities are carried out. In this process, you can- book internal and external participants,- pre-book participation,- replace bookings, and- cancel attendance

The correspondence function contains a suitable notification for that can be outputtedfor these activities.

- Recurring activities include the periodical execution of associated activities.Thereby, events can be fixed, locked, and unlocked. This major process involves alsothe follow-up of events.

This process is reflected in reporting.


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Figure 2-48: Processes in training and event management

2.5.2.4 Career and succession planningCareer and succession planning aims at two things:

- encouraging the professional development of employees- ensuring of a sufficient number of employees

Career planning includes the determination of possible career objectives for employees aswell as planning their professional development. In succession planning, suitable candidatesto fill vacant positions are determined.

Figure 2-49: Career and succession planning

2.5.2.5 The continuous performance feedback processThe continuous performance feedback process aims at:

- align the workforce with the company’s strategy - communicate the company’s strategy - create flexible and future-oriented performance planning

- review performance and determine superior and minor performances- accomplish transparency and flexibility regarding rapidly changing requirements- establish a basis for performance-oriented pay and succession management


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Figure 2-50: The continuous performance feedback process

2.5.3 Time management

In a human capital management system, options to evaluate work carried out by employees

and to determine employee availability are essential. This information is also essential forother areas in a company, such as controlling or logistics, and impact enterprise-widedecision-making.Time management in SAP ERP allows for the evaluation of working times. Informationregarding working times is for example used to determine gross wages in payroll.The SAP ERP system features the following options to record working times. This includes

- time manager’s workplace, - a central time sheet,- online menus,- time recording systems, andemployee self-service applications

Moreover, SAP offers the possibility to manually or automatically coordinate time accounts(e.g., working times, flextime, flexible working times, and finishing times).Working times can be used to allocate activities in controlling. Costs caused by working timescan be assigned to their source in controlling.Information from time management can be used to determine the availability of employees inlogistics and based on that, to carry out capacity planning. Contrastingly, you can use capacityrequirements to plan working hours and employee shifts.


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Figure 2-51: Time management

2.5.3.1 Types of time dataTo evaluate and to remunerate the working time of an employee, the recording of workingtimes is essential.Variances or exceptions for the work schedule of an employee are recorded in the respective

time manager’s workplace . This information is then stored in the appropriate infotypes.Employee time data include amongst others- hours worked,- holidays,- illness,- overtime,- substitutions, and- business trips


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2.5.4 Areas of compensation management

The compensation management component controls and manages the remuneration policy ofa company. It provides a central overview of the remuneration policy as well as a controlmechanism for its implementation. Additionally, it facilitates compensation planning and

budgeting, as well as decentralized compensation management.

Compensation management contains four areas:- You can carry out job pricing in compensation management. Results can be stored in

external job pricing systems and in salary surveys. Using these results, pay gradestructures can be generated to which you can assign jobs and positions within acompany. Thus, it is possible to determine the internal value of jobs and positionswithin a company and to ensure therefore competitiveness of the company.

- Budgeting enables the planning and monitoring of costs for compensationadjustments. Budgets are assigned to organizational units. Additionally, budgets can

be created centrally or locally. Budgets can also be rolled up using organizationalunits.

- Compensation administration is used for the distribution of salary increases, shares,etc. to individual employees according the remuneration policy of a company.

- Long-term incentives regarding participations can be managed (stock option plans).

Figure 2-55: Areas of compensation management

2.5.4.1 Long-term incentivesLong-term incentive plans determine the number of shares for a particular plan. For example,you can determine using a long-term incentive plan, how many shares are available foremployees. The compensation management component supports five different types of long-term incentives:


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- incentive stock options- non-qualified stock options- performance shares- performance units- restricted stock

A company uses vesting rules and work schedules to determine when an employee gains theright for receiving company shares and the amount of this award (example: all options arevested after three years).Change events are reasons for changing subscribed options (example: a stock split agreedupon by the executive board).Life events are triggered by individual employees or companies themselves (examples of liveevents include: mergers, marriage, death, or retirement. Life event usually change the vestingschedule).

Figure 2-56: Long-term incentives

2.5.4.2 BenefitsIn many countries (especially North America), it is common that employees participate in

benefit plans offered by a company as part of their compensation package. The advantage of benefits for employees is that offered packages are available at a reduced rate. An employee

pays less for company-based plans in comparison to a private package.Employees enroll for a particular benefit plan and receive different benefits, depending on thechosen plan. Contributions are paid either by the employer, the employee, or both, dependingon the plan.

In the SAP ERP system, you have the possibility to generate plans for different employeeswith reference to multiple factors. Restrictions and eligibilities for benefit plans are stored inthe IMG. Thus, the processing of benefits is facilitated and made user-friendly.In SAP, there are six plan categories available:

- health- insurance

- savings- stock purchase- credit and miscellaneous


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The plan category miscellaneous can record benefit plans that cannot be assigned to one ofthe other categories, such as fitness programs or company cars.

Figure 2-57: Benefits

2.5.5 Personnel cost planning and simulation

Personnel cost planning and simulation is based on a wide data basis. It is lined to otherapplications in the SAP ERP system. Thus, this application can support cross-department

business processes.Payment information required to create personnel cost plans can be derived from differentsources. Related basis payments, payroll results, simulated reclassifications, recurring

payments, and on-time payments are included.Planned compensation data can also be used for positions and jobs in planning processes.Additionally, you can determine average values.Moreover, managers can perform adjustments. Therefore, the system supports a web-basedfrontend. Generated cost plans can be transferred to SAP Business Intelligence for evaluation

purposes. After plan release, SAP HCM users can use the data for the following:- create a salary budget for compensation management- create a training budget for training and event management- transfer data to accounting


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Figure 2-58: Personnel cost planning and simulation

2.5.5.1 Payroll accountingPayroll accounting calculates the payment for work performed by each employee.Specifically, this includes numerous work processes, such as creation of payroll results andremuneration statements, bank transfers, and check payments.

Payroll accounting includes further subsequent activities, for example:- transfer of results to accounting

-

different evaluations, e.g., evaluation of payroll account- transfer of payments to third-parties, e.g., taxes

Figure 2-59: Payroll accounting

2.5.5.2 Combination of remuneration elementsRemuneration elements of an employee are derived from individual wage and salary typesthat are used during the payroll period. The remuneration calculation includes payments suchas basic pay, different bonuses, and gratuities. Deductions are possible for a company-ownedflat, day care, or similar benefits. Whether these factors increase or decrease the taxableincome depends on the law of a country or, in some countries, on company regulations.


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An employee’s remuneration consists of all wage and pay types determine individually duringa payroll period.

Figure 2-60: Combination of remuneration elements

2.5.5.3 Payroll: overviewDuring a payroll run, changes to master and time data affecting payroll past and present arenot allowed. The payroll program reads the infotypes master data and time data, i.e., changesmade during the payroll process can affect the correctness of the payroll results. This alsomeans that during master data maintenance, no payroll run can be carried out. The payrollcontrol record controls this.

The following relationship exists between menu and payroll control record:

Menu function Status of payroll control recordRelease payroll Release of payrollStart payroll The payroll program is started and the status of the payroll control

record remains ‘released for payroll’ Check result Check payroll resultCorrections Release for correctionsExit payroll Exit payroll


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Figure 2-61: Payroll

2.5.6 Travel management

The travel management component contains all functions required for processing businesstrips, such as travel requests, approval, settlement, and if necessary, corrections, andretroactive accounting.HCM master data, control parameters and recorded travel facts are stored in views and areused in travel planning and travel expenses. A reservation of travel services, booking, and

possible subsequent revisions can also be carried out using an external reservation system.The settlement results can be transferred to financial accounting (FI), payroll, or to externalsystems. Payment using data medium exchange is also possible.


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Figure 2-62: Travel management

Travel expensesUsing the travel expenses program, you can settle all trips with the status approved/to be

settled . For test purposes, you can also settle individual trips, if the end date of the trip is notin a future payroll period.

For trips in particular payroll periods, the payroll program determines settlement results usingthe entered travel dates and stores the results in the PCL1. To be settled, these trips must end

before the end date of the payroll period.

Figure 2-63: Travel expenses


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2.5.7 Cost planning run

The SAP ERP system allows for the execution and administration of cost planning runs.Thereby, you can create personnel cost plans with appropriate characteristics that are used asfoundation of scenario-specific cost plan runs. Thus, you can test the effects of particular

part7 - human capital management

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