SAP HCM Training

Enterprise Structure

There are four main components of enterprise structure:

• Client
• Company code
• Personnel Area
• Personnel Subarea

Personnel Structure

Personnel structure displays position of individual people in the enterprise as a whole.

• Define Employee Group
• Define Employee Subgroup
• Assign Employee Subgroup to Employee Group
• Define Employee Attributes

Organizational Management

"Whom should I report to?”

This is based on the Organizational plan. An Organizational plan provides the foundation of Organizational Management. An organization uses an organizational plan to represent relationships between individual departments and workgroups. The organizational plan uses elements called objects like Persons (P), Jobs (C), Positions (S), Organizational Units (O), and Cost Center (K) etc.

• Concepts of Organizational Management
• Organization and Staffing
  • Create Organizational Unit
  • Create Organizational Unit under hierarchy
  • Create and Assign Position to Organizational Unit
  • Create Job and Assign to the Position
  • Creating Task(Job/Position/Person)

• Create Organization structure using Expert Mode Method
  • Organizational Unit
  • Simple Maintenance
  • Create Organizational Unit
  • Create Position
  • Create Job
  • Assign Job to the Position
  • Create Task Group and Task
  • Assign Task to the Job
• Create Organization structure using Simple Mode Method

Organizational Assignment

Feature: Feature gives default values based on a eligible conditions, when we maintain infotypes. For example: Feature NUMKR is used to give default number ranges for personnel numbers.

• Define Administrator
• Overview of Features
• Define Administrator Group (Feature PINCH)
• Maintain Features
  • PINCH
  • NUMKR
  • ABKRS

Integration between Organizational Management and Personnel Administration

In the SAP system the integration is controlled by switches and all these switches are stored in table T77S0. Organizational Management and Personnel Administration integration is defined by PLOGI-ORGA. We select position on infotype 0000, and system drags other objects (Organizational Unit, Job) related to the position in Organizational Management.

RHINTECHECK: This report looks for inconsistencies among objects (Organization units, Jobs, Cost Centers)

RHINTE10: This report lets you create objects in Personnel Administration.

RHINTE20: This report lets you check if relevant objects are created in both side (Organizational Management and Personnel Administration). If system finds object missing in any side, they can be created immediately.

RHINTE30: This report updates info-type 0001 (Organizational Assignment infotype) for the specified employee.

• Activate Integration (PLOGI ORGA)

Hire an Employee

When we hire a person for the position, you must get an EIN (employer identification number) to use on tax returns.

Info-types: Info-type means Logical grouping of data. For example, all employee personal data grouped in 0002 infotype and employee addresses (Permanent, mailing, foreign) related information stored in 0006 info-type.

Personnel Action: Personnel action means Logical grouping of infotyes. For example, Personnel Action – HIRE , we grouped all infotyes (0000 Action, 0001 Organizational Assignment, 0002 Personal Data, 0006 Address, 0007 Planned working time, 0008 Basic Pay and 0009 Bank infotypes)which are required to hire an employee. Personnel Action- Promotion, We group 0000, 0001, 0007 and 0008 info-types only.

• Overview of info-type
• Personnel Action
• Maintain Info-type
  • Personnel Action - PA40
  • Maintain - PA30
  • Display - PA20
  • Personnel File – PA10
  • Fast Entry – PA70
• Execute Personnel Action - HIRE

Employee benefit plans are typically offered by employers as a way to attract and retain high-quality workers. Some employee benefit plans may differ between employees who are classified as either full-time or part-time.

• Health Plans
  • Master Data overview and maintenance
  • Benefit Overview
  • HR Important InfoTypes
  • Benefit InfoTypes
  • Implementation Guide
  • Pre-requisite for Benefit Configuration

Benefit Area: We use Benefit areas to separate Benefits Plan pool. Benefit Area depends on currency so that you must have Benefits area by country.

Benefits Plan Type: Benefits plan types assigns to plan category. Plan type control the Benefits enrollment process as system does not allow an employee to enroll in more than one benefits plan per plan type.

Plan Status: Plan status control which benefit plan is active, closed or locked. For example: We want to discontinue one plan that no longer applicable but we have employees enrolled for this plan. In that case we lock benefit plan.

Parameter Groups: When cost of benefits plan is varies depending on age, salary and seniority than we define parameter groups to differentiate combination of age, salary and seniority. For Example: Par1- Age + Salary, Par2- Age, Par3- Salary + Seniority.

• Define Benefit Area
• Benefit Plan
• Benefit Providers
• Set Current Benefit Area
• Plan Attribute
  • Define Benefits Plan Types
  • Define Benefits Plan Status
• Employee Grouping
  • Define Parameter Groups
  • Define Salary Groups
  • Define Age Groups
• Define Cost Grouping

Health Plan: Here you define different health plan under appropriate plan type, plan status and assign benefits provider.

Cost Variant: Here you define which cost factors affects your plan. Cost variant is plan specific.

Cast Rule: In this step, you define actual costs for a plan.

• Health Plans
  • Define Health Plan General Data
  • Define Options for Health Plans
  • Define Dependents Coverage Options
  • Define Cost Variant
  • Define Cost Rules
  • Assign Health Plan Attributes

Insurance Policies: Insurance policies are contract between employer and insurance companies. You pay premium to insurance company and the insurance company provides a lump-sum amount based on agreement.

Insurance coverage: Insurance coverage is the amount of risk that is covered for an employee by insurance company.

Evidence of Insurability (EOI): EOI is an application process where employee provides details of health condition his/her family.

• Define Employee Grouping
  • Define Coverage Grouping
  • Define Employee Contribution Grouping
  • Define Employer Contribution Grouping
  • Insurance Plan
    • Define Insurance Plan General Data
    • Define Coverage Variants
    • Define Cost Rules
    • Assign Insurance Plan Attributes
    • Define Evidence of Insurability Conditions
    • Setup Insurance Plans
    • Define coverage rules and variants
    • Define cost rules and variants

First Program grouping/Second Program grouping: We define these groupings to differentiate eligible employees for particular plans for particular groupings.

• Flexible Administration
  • Define First Program grouping
  • Define Second Program grouping

Eligibility grouping: Employee must be eligible to take benefits. In this step, you define the criteria to control eligibility for individual benefits plans.

• Define Eligibility Grouping
• Define Eligibility Variants
• Define Benefits Programs

Adjustment Reasons: Info-type 0378 controls adjustment reasons for changes an employee can make to his/her benefits.

• Adjustment Reasons
  • Define Adjustment Grouping
  • Define Adjustment Reasons
  • Define Adjustment Permissions
    • Health Plans
    • Insurance Plans
  • Define Administrative Parameters

Cobra (The Consolidated Omnibus Budget Reconciliation Act): COBRA provides benefits, under limited period of time, to families who lost their benefits.

• COBRA
  • COBRA Plans
  • COBRA Spending Accounts
  • Define Processing parameters
• Maintain Benefits Info-types
  • 0171
  • 0378
  • 0167
  • 0168
  • 0169
  • 0671
  • 0211
  • 0212
• Benefits Enrollment
• Form
  • Enrollment
  • Confirmation

Configuration of 0008 infotype (Basic Pay Infotype)

Collective Agreement provision (CAP): CAP let you define pay scale structure based on Pay scale type, Pay scale area, ESG grouping for CAP and country grouping.

Personnel Calculation Rule (PCR): PCR used in schema to calculate payroll process. You use operation to define PCR. Most of PCRs are given by SAP but we can define or change PCRs.

• Employee Subgroup Grouping for Personnel Calculation Rule (PCR) and Collective Agreement Provision (CAP)
• Check Pay Scale Type
• Check Pay Scale Area
• Check Assignment of Pay Scale Structure to Enterprise Structure
• Maintain Wage Types

Wage types are the key element in the wage type structure. Wage types are the most important concept in Human Resources. Wage types are used to assign payments and deductions and they control the payroll program. Characteristics are used to distinguish the individual wage types.

• Check Wage Type Group "Basic Pay"
• Employee Subgroups for Primary Wage Types
• Personnel Subareas for Primary Wage Type
• Define Wage Type Permissibility for each PS and ESG
• Maintain Wage Type Characteristics

Wage type: Wage types hold the values for employees. It can be time or monetary value. When we process Time evaluation, all calculated time saves in time wage types. In payroll as well all monetary data saves in wage type. For example: Basic salary wage type, Basic hourly wage types, Commission wage type, Gross pay wage type etc. You can evaluate wage types in two ways:

Direct Valuation: When we give values manually for a wage type.

Indirect Valuation: When system calculate values for a wage type.

• Wage Type Valuation
  • Direct Valuation
  • Indirect Valuation
    • TARIF
    • SUMME
    • PRZNT
  • Define valuation of base wage types
• Maintain basic pay infotype (0008)

Configuration of 0014 info-type (Recurring Payment and Deduction Infotype)

• Maintain Wage Type
• Define wage type model
• Define periodicities
• Define Deduction periods
• Maintain recurring Payments and deductions infotype (0014)

Maintain important infotype

• Addition payments infotype (0015)
• Cost Distribution infotype (0027)
• Payroll Status infotype (0003)
• Planned working time (0007)

• Payroll Organization
  • Define Period modifiers
  • Define Payroll Areas
  • Generate Payroll Periods
  • Define Control Record
  • Retroactive Accounting
• Run Payroll
  • Simulation
  • Release for Payroll
  • Start Payroll
  • Check Result
  • Corrections
  • Exit Payroll
  • Remuneration Statement
• Subsequent activities
  • Posting to accounting
  • Third party remittance
• Payroll Results
  • Payroll Journal
  • Display payroll results