Basic Sub-modules of HCM

• Personnel Administration
• Organizational Management
• Time Management
• Training and Event Management
• Travel management
 Basic structure for SAP-HR
Enterprise Structure
- Company code, personnel area and personnel subarea

Organization Structure
- Organizational units, jobs and positions

Personnel Structure
- Employee group, employee subgroup, payroll accounting area

Which company does the

employee work for? Whom does the employee
report to?

What are the tasks to be

Which department does performed by the
the employee work in? Employee employee?
Personnel Administration
 Elements of Personnel Administration

• Maintain Employee Data

– Able to view/modify HR Master Data
viz. Master, Payroll, Time data

• HR Processes
– Hire Employees
– Promotion and Increment
– Termination
– Transfer etc…
 Elements of Personnel Administration
(Contd..)

• Recruitment
– Applicant Master Data, Selection Procedure and status
– Vacancy Assignment
– Advertisement

• Personnel Development
– Planning for Career, Succession
and Individual growth
– Appraisals
 Employee Data

Personal
Data
Organizational
Assignment
Contracts
Family
Details

Leave Education
Entitlement
Skills

Working Previous
Hours Employment
Salary
Details
 Master Data: Overview

Organizational OM
Assignment

Address
Payroll
Bank Details

Family

Work Schedule Benefits

Employee
Time
Master Data Records
 Enterprise, Personnel and Organizational
Structures

Enterprise
Structure

Personnel
Structure

Organizational
Structure
 Infotypes- Way to insert Master Data

Family (IT 0021)

Address (IT 0006)

Organizational
Assignment (IT 000

Employee Bank Details (IT 0

Actions (IT 0000)

 Major Features

• Systematic employee data entry and recall

– Well featured info-types for separate data entry
– Effective dates for all data in the system
– Automatic validity check on all data
• Audit trials for all changes
– Source (who), date, time and “before” and “after” data
• System generated employee numbers
– Separate range for different group employees
• Dynamic event change monitoring
– System prompts user to change update related data
 Major Features

• “Fast Entry” feature

– Screen for multiple employees
– Multiple screen for one employee
• Date driven reminders
• Search feature for selecting employees
– employee no., department, supervisor etc
• Authorization restriction
– Information on “need to know basis”
• Standard Reporting
• Ad hoc reporting
Organizational Management
 Overview of Plan Version

Organizational Departments/ Project

Unit Teams/ SBU’s
Holder of Position Person

Position Departmental Heads

For Position and Tasks

OU
Reporting

Reporting
Reporting
Relation

Relation
Relation
Jobs Position Position Position

Vacant
 Creating an Organizational Plan

1. Create Root 5. Assign

6. Assign
Organizational Tasks
Cost centers
Unit
7. Assign
Holders

4. Create 2. Create
Positions Additional
Org. Units

3. Create
Jobs
 Why use Organizational Management?

• Using Organizational Management, the user may get a picture of the

organization at any point in time: past, present or future. With this
information, the user may be proactive in planning for future human
resource needs.

Present Future
 Major Features

• Easy to create, change and display current Plan Version

• Current plan version can be copied for future and past plan
versions for
– Making imaginary business scenarios
– To research compensation in various circumstances

• Integrated functionalities
– Personnel Development
– Recruitment
– Compensation Management
 Major Features

• Vacant Positions
– Stimulate to recruitment
• Structured representation of
– Enterprise structure
– Reporting structure
– Vacancies etc.
Organization Structure- Positioning
Time Management
 Objectives

• Time Recording

• Time Evaluation

• Shift Planning

• Cross-Application Time Sheet

 Time Management Overview

Time Recording
Infotypes
Employee is at work
Employee is Sick
Employee Working Overtime

Time Evaluation FI/CO

# of Hours Worked
# of Sick Hours Payroll
Payroll
# of Overtime Hours Rs. for # of hours worked
Rs. for # of Sick Hours
Rs. for Overtime
Time Recording : Methods of Time Data
Capture
• Manual time sheets
– Employee physically record start
and end time
• Using clock punch cards
– Employee use machines to punch a
card
• Electronically via magnetic card
– Employee swipes a card at a time
terminal
• Employer assumes employee
works contracted hours
– Employee only informs employer of
changes
 Work Schedules

Personnel Subarea Infotype Employee Subgroup

0001

Infotype
0007

 Monthly work schedule

 How are employees schedule to FI/CO
work on the day Payroll
 When can they take breaks?
 Is the day a public Holiday?

Time Recording (Infotypes)

 Other features

• Work Schedule
– Fixed or Flexible work schedule
– Paid / unpaid breaks
– Predefined holidays for separate personnel area (PA)
– Substitute (Badali employee)

• Define and assign Quotas to PA

– Absent quota (Leave Management)
– Attendance quota
– Overtime quota

• Fine integration with Payroll

Payroll Administration
 Payroll Process

Add
Company
Contributions
• PF Contribution
• Super Annuation
=
C2C
• Provision for Gratuity
• etc.

Gross Pay

Less Rs.
• Basic
• Allowances Deductions
=
• Reimbursements
• Bonus, Incentives • Emp. Contributions
• Loans Repayment Net Pay
• Taxes
• Third Party Deductions
• Other deductions
 Salary components

Basic Pay

HRA
Overtime
Professional
LTA membership
Bonuses
Allowances

Recurring
Additional Payments &
Payments Deductions
 Flexible Wage Types (Salary Component)

• Wage types with fixed amount (direct valuation)

– e.g. Basic pay
• Wage type depends on other wage types (indirect valuation)
– e.g. HRA (30% of Basic)
• Can assign upper and lower limits
– e.g. Medical reimbursement maximum Rs. 15,000/annum
• Tax conscious
• Wage types for reimbursement and claims
– Special reports for the current status
• For specific personnel group, personnel subgroup group,
personnel area, pay scale groups and levels
Basic pay (IT-0008)
 Payroll Process-flow

Master Data Time Management

Prerequisite Payroll Final Steps

Configuration for Payroll Run

•Payroll Organization •Direct Deposit/Checks

Gross - Deductions = Net Pay
•Basic Pay •FI/CO Transfer
•Other Payments & Deductions •*Third Party Remittance
•*Tax Reporting
 Payroll Run

Master data entered for current pay period

Release Payroll
Fix rejects
and other updates Start Payroll

Check Results
Yes Any No
rejects
? Results
No OK ? Yes

Corrections
Exit Payroll

Remuneration &
Subsequent Activities
Balance expenses with GL entries
Bank Details (IT 0009)
 Payroll Accounting

• Need based Payroll system

• Specific Payroll Period
• Separate Payroll period for Separate personnel
group, personnel area
• Flexible for wage type calculations
 Features

• Country Specific Payroll Roll Out

– Separate legal and tax provisions
• Realization and reports on Gross Payroll
• Realization and reports on Net Payroll
• Realization and reports on Deductions
– Legal deductions
– Loan and other premiums
– Recovery of advance payment
Salary Slip
 Legal Provisions

• Applicability of the labour laws

– Monthly eligibility check
• Deductions
– Income Tax under section 80, 80c
– Provident Fund
– ESI (if applicable)
• Reports
– PF 3A, 6A
– Pension (Form 6, Form 7)
– Income tax (Form 16, Form 24)
 Other Features

• Standard Reporting
• Ad hoc reporting
• Integration with Time Management
– Overtime
– Leaves
– Leave without pay
– Shift allowances
– Paid holidays
Training Management
 Business Event
• Standard Buz Events
– Schedule.
– Organiser - Internal/ External.
– Location/ Building.
– Book Resources.
– Capacity.

• Prerequisites
– Have attended xyz Buz event.
– Should have abc skills.

• Procedure
– Reaction to booking/ prebooking etc.
– Transfer skills.
 Attendees
• Employees/ Applicants/ Ext Persons/ Company/ Department.

• Trainee/ Attendee Administration.

– Book/ Prebook/ Replace/ Rebook/ Cancel.
– Bulk Booking.
– Correspondence (e-mail/ letters).
• Attendance Menu.

• Reports
– Int/ Ext Attendee List.
– Attendees Training History.
– Attendee Appraisal.
– Attendance Statistics.
– Cancellation List per attendee/ Buz event.
– Attendee bookings/ prebooking/ rebooking.
Travel Management
 Workflow

• Travel Planning
– Entering a travel request
• By the employee or his boss
• Travel Expenses
– Entering the Trip Facts
– Checking Trip Facts
• Approving a Trip
– By the concern authorities
– With necessary modification, if necessary
• Displaying the Approval notification for the employee
• Settling a Trip (posting to account)
• Standard and Ad hoc reports
Travel request
Travel plan
Cost incurred & Approval
Cost in standard format
Transfer to account
Reports
Reports
 Personnel Administration
 Organizational Management
 Training and Event
 Time Management
 Travel Management