SAP Solution Brief SAP ERP SAP ERP Human Capital Management

AUTOMATE GLOBAL HR AND PAYROLL PROCESSES

INTEGRATED HR FOUNDATION FOR INSIGHT INTO GLOBAL WORKFORCE

HR and payroll organizations worldwide are consolidating core HR and payroll operations on a common global platform with no disruption to their business. Key to a smooth implementation is the know-how embedded in HR, payroll, and financials software from SAP.

Fragmented software landscapes are common in todays multinational organizations. In some cases, they are a result of historical reasons no one can any longer recall. In other cases, decentralized decision making leads to a heterogeneous technology foundation that may meet the needs of local stakeholders but fails to maximize returns for the global organization in terms of information transparency. This is sometimes recognized as a stumbling block for the business and sometimes as a lowpriority challenge to be dealt with at some point in the future. What SAP has shown over many years of serving a variety of HR and payroll organizations worldwide is that consolidating core HR and payroll operations
Consistent accurate data One integrated system of record for personnel, payroll, and financial data No duplication of data Reduced exception handling

on a common global platform does not need to be an exercise of nerves, nor must it disrupt business or cause any discontinuity to operations. A common global HR and payroll environment is not only technically feasible and operationally desirable, it can be achieved with a common global skill set that places control of previously decentralized operations within a single instance of SAP software. It becomes accessible to all who need it and extensible to support non-HR processes like financial operations with relative ease. (See Figure 1.) The payoff in these scenarios is enormous better workforce data, better ROI, and a surprising agility in handling disparate legal and end-user requirements with a single instance of SAP

Reduced risk Compliance with legal requirements and increased and year-end payroll compliance and accounting rules Automated time and attendance workflows Increased Human resources transparency Benefits Time Payroll Financials Payroll (outsourced) Clear sourcing strategy Multiple deployment options in-house, outsource, hybrid Increased efficiency of HR operations Reduced administrative workload

Automated global HR processes

Consistent, standardized processes Global reach (languages, currencies, and regulatory requirements) Adherence to global financial business Lower IT cost requirements (chart of accounts, tax calcula Reduced interface and maintenance costs tions, payroll, deprecia- Single instance for multiple countries tion methods) Flexible technology platform
Figure 1: Single Integrated Solution with Unified Global Processes

optional

technology. The benefits of the solution arent just operational. Consolidating HR and payroll operations within a single platform provides decision makers with unprecedented, detailed intelligence about workforce costs that is simply unachievable in a heterogeneous HR IT environment.

Fragmented Solutions and Broken Processes

HR, payroll, and finance software certainly have individual stakeholders who may be involved directly in selecting, implementing, and managing those solutions on an ongoing basis. Each set of stakeholders has specific needs and priorities. The key to achieving best-in-

For example, public and private sector organizations today universally recognize the need to be more agile. Never before have so many organizations worldwide shifted their sources of labor and their workforce cost structures in order to weather economic uncertainty and continue growing, competing, and executing their business strategies. But how does an organization truly know the makeup of a far-flung global workforce? How can management determine the best mix of contingent and full-time labor without clear reporting on labor costs across lines of business and geographical boundaries? Having a comprehensive end-to-end process that starts with data entry by employees and HR staff for payroll and extends to financials operations is the prerequisite for enabling strategic workforce decision making. Eliminating redundant data throughout the process makes the process more efficient. UniVice president HR Vice president HR Human resources Employee HR administrator

fying the process across organizational and geographical boundaries makes the data useful. In practical terms, this means you can run payroll for business units in multiple countries from a single solution with a single data model. You bypass duplicate data entry and benefit from a posting process that creates balanced general ledger and other entries in the SAP ERP Financials solution without requiring extra adjustment or manual intervention by users to transform the data. This renders analysis simpler than ever before.

Comprehensive Process Steps

SAP offers a flexible way for you to get up and running as you automate global HR and payroll processes. A number of optional, implementable steps comprise the entire process. Each step relies on the foundational HR components in SAP software. Each step can be tailored to your organizations needs
Payroll manager Payroll Controller General ledger and controlling

SAP has shown over many years of serving a variety of HR and payroll organizations worldwide that consolidating core HR and payroll operations on a common global platform does not need to cause any discontinuity to operations.
class HR and payroll processes is to recognize the common challenges an organization faces in managing its labor costs and identifying areas for improvement that cut across these disparate solutions.

Benefits administration Create plans Plan enrollment

Time management

Enter time Evaluate time Calculate gross/net Transfer to financials Scheduled close Analyze labor costs

Payroll

Finance

Manager

Figure 2: Automated Global HR and Payroll Processes Across the Enterprise

and legal requirements. And each step addresses the needs of stakeholders from different teams across your organization, from benefits administration and payroll to accounting. (See Figure 2.) The key implementable steps are described below. Benefits Administration In this implementation step, you create the benefits plans your employees may enroll in and can configure the payrollrelevant processes, including payroll deductions. You can include self-service functionality to allow employees to enter and update their information online a key advantage for reducing administration costs and an attractive option for shared-services environments. Time Management When you implement time management, you can define payroll-relevant shifts and time schedules, working calendars, and vacation allowances. As with the benefits functionality, this includes self-service functionality to let users enter the time they worked as well as their absences and breaks. They can allocate the time they worked to any number of relevant projects within the HR software or within other software. For example, staff can allocate time worked to project tracking software or cost allocations software serving your financial operations. With the time evaluation function supported in the SAP software, you can dynamically generate a variety of payroll-relevant time codes to be used in determining employee pay. Payroll The payroll engine is a multinational solution that integrates directly with the HR software from SAP allowing users to enter HR information that becomes immediately available to the payroll program for gross-to-net calculations. The payroll software can be integrated with SAP ERP Financials as well, which facilitates the efficient transfer of payroll results for the general ledger, controlling and bank transfer activities, and other operational purposes. General Ledger and Period-End Closing A variety of processes are run periodically to generate internal and external reports from SAP ERP Financials, many of which rely on accurate data from the SAP software for HR and payroll. Configuring these aspects of SAP ERP Financials allows you to handle tasks rapidly that would previously have required extensive data transformation and manual intervention.

Figure 3: Real-Time, Relevant Information for Decision Makers

Labor Costs SAP provides a wealth of reporting technology as well as content, with key performance indicators related to the workforce available to all users of SAP software for HR and payroll. Using technologies such as SAP BusinessObjects Xcelsius Enterprise software, you can employ powerful analytical tools and dashboards to deliver real-time information about labor costs to decision makers around the world in a visually compelling format. (See Figure 3.) Agile decision making becomes possible when executives can review the drivers of workforce-related expenses, observe how they can change over time, and develop an anticipatory sense of how they will continue to fluctuate in the future. Find Out More To find out more, call your SAP representative or visit us online at www.sap.com/hcm.

QUICK FACTS

www.sap.com /contactsap

Summary HR and payroll organizations worldwide are consolidating core HR and payroll operations on a common global platform with no disruption to their business. Key to a smooth implementation is the know-how embedded in HR, payroll, and financials software from SAP. Business Challenges Unify fragmented software landscapes Achieve transparency of information globally Consolidate core HR and payroll operations on a common global platform Gain control of previously decentralized operations Key Features Flexible, optional implementation steps Automate global HR and payroll processes rapidly Strong HR foundation Configure HR and payroll processes based on HR components in SAP software Compliance with legal requirements Build support for legal compliance right into the implementation Fulfillment of stakeholder needs Address the needs of stakeholders from different teams across your organization, from benefits administration and payroll to accounting Business Benets Better workforce data through consolidation of HR and payroll operations on a single platform Reduced administration costs through implementation of self-service functionality Better handling of disparate legal and end-user requirements by running business processes on a single instance of SAP technology Efficient transfer of payroll results through integration with the SAP ERP Financials solution For More Information For more information, call your SAP representative or visit us online at www.sap.com/hcm.
50 099 703 (10/04) 2010 SAP AG. All rights reserved. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, Clear Enterprise, SAP BusinessObjects Explorer, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP France in the United States and in other countries. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specications may vary. These materials are subject to change without notice. These materials are provided by SAP AG and its aliated companies (SAP Group) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.