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?
Which department does
the employee work in?
What are the tasks to be
performed by the
employee?
Employee
Important Terminologies
SAP Terminology Explanation
COMPANY CODE
Organizational unit in Accounting which represents a business
organization
PERSONNEL AREA
Defines a specific area of the enterprise and is organized according to
Personnel, Time Management and Payroll.
However, in Indian scenario, it is as per the State, since some of the
statutory Tax rates viz. Professional Tax, Labour Welfare Fund etc., are
different in different States
PERSONNEL SUBAREA
Represents a specific area of the company organized according to certain
aspects of Personnel, Time Management and payroll:
1.Differing Pay Scale and Wage Type Structure
2.Differing Planned working time
3.Differing Appraisal Criteria
EMPLOYEE GROUP
Divides employees into groups and allows to define their relationship to
the enterprise. Helps to
Generating default values
Generating selection criteria
Generating unit for the authorizations.
EMPLOYEE SUBGROUP
Subdivision of the Employee Group
Processing in payroll Accounting
Validity of primary wage types
Validity of Work Schedule
Validity of Time Quota types
Relation
Company Code
Personnel Area Personnel Area
Personnel
Subarea
Personnel
Subarea
Personnel
Subarea
Employee Group Employee Group
Employee
Subgroup
Employee
Subgroup
Personnel Area





Retiree




Early Retiree/ VRS





Active Workforce
Employee Groups
Personnel Structure - Employee Group
Personnel Administration
Objectives
Maintain Employee Data
Able to view/modify employee information
viz. Master, Payroll, Time data

HR Processes
Hire Employees
Promotion and Increment
Termination
Transfer etc



Personal
Data
Organizational
Assignment
Family
Details
Education
Skills
Salary
Details
Previous
Employment
Contracts
Leave
Entitlement
Working
Hours
Employee Data
Master Data: Overview
Employee
Master Data Records
Organizational
Assignment

Address

Tax Information

Family

Work Schedule


Payroll
Benefits
Time
OM
Enterprise, Personnel and Organizational
Structures
Enterprise
Structure
Personnel
Structure
Organizational
Structure
Infotypes
Employee
Family (IT 0021)
Bank Details (IT 0009)
Address (IT 0006)
Actions (IT 0000)
Organizational
Assignment (IT 0001)
Infotypes, Infogroups and Personnel Actions
Infotype
Info Group
Personnel Action
Infotypes and Actions
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
Unit
Position
Person
Tasks
R
e
p
o
r
t
i
n
g

R
e
l
a
t
i
o
n

Departments/ Project
Teams/ SBUs
Holder of Position
Departmental Heads
For Position and
OU
Position Position Position
R
e
p
o
r
t
i
n
g

R
e
l
a
t
i
o
n

R
e
p
o
r
t
i
n
g

R
e
l
a
t
i
o
n

Vacant
Jobs
Creating an Organizational Plan
1. Create Root
Organizational
Unit
7. Assign
Holders
4. Create
Positions
3. Create
Jobs
2. Create
Additional
Org. Units
5. Assign
Tasks

6. Assign
Cost centers

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
Available Vacancy
Organizational Structure
Time Management
Objectives
Time Recording

Time Evaluation

Shift Planning

Cross-Application Time Sheet
Time Management Overview
Employee is at work
Employee is Sick
Employee Working Overtime
Time Recording
Infotypes
# of Hours Worked
# of Sick Hours
# of Overtime Hours
Time Evaluation
Rs. for # of hours worked
Rs. for # of Sick Hours
Rs. for Overtime
FI/CO
Payroll
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
Employee Subgroup
Infotype
0001
Infotype
0007
FI/CO
Payroll
Time Recording (Infotypes)
Monthly work schedule
How are employees schedule to
work on the day
When can they take breaks?
Is the day a public Holiday?
IT-0001(Organisational Assignment)
IT-0007 (Planned working time)
IMG Customizations
Personnel Subarea - Employee Subgroup Groupings
Work Schedules
Public Holidays
Public Holiday Calendar
Daily Work Schedules
Break Schedules Variants Rules - Variants
Period Work Schedules
Work Schedules
Generate
Monthly Work Schedules
Infotype 0007 Plan Working Time
Personnel Subarea Groupings for Work Schedules
Personnel subarea
grouping
01 02
Work Schedule NORM8 NORM10
8Hours - 5 Days 10 Hours- 4 Days
Personnel subarea
A B C


Two sets of PSG groupings are used
Personnel Subarea groupings for work schedules
Personnel Subarea groupings for daily work schedules
Change Work Schedules
Other features
Work Schedule
Fixed or Flexible work schedule
Paid / unpaid breaks
Predefined holidays for separate personnel group (PG)
Substitute (Badali employee)

Define and assign Quotas to PG
Absent quota (Leave Management)
Attendance quota
Overtime quota

Fine integration with Payroll
Scenario - Absence
Payroll Administration
Payroll Process
Gross Pay
Net Pay
Deductions
Rs.
Company
Contributions
Add
C2C
=
Less
=
Basic
Allowances
Reimbursements
Bonus, Incentives

Emp. Contributions
Loans Repayment
Taxes
Third Party Deductions
Other deductions
PF Contribution
Super Annuation
Provision for Gratuity
etc.

Salary components
Bonuses
Overtime
Professional
membership
Allowances
HRA
Basic Pay
Recurring
Payments &
Deductions
Additional
Payments
LTA
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
Configuration for Payroll
Payroll
Run
Gross - Deductions = Net Pay
Payroll Organization
Basic Pay
Other Payments & Deductions
Final Steps

Direct Deposit/Checks
FI/CO Transfer
*Third Party Remittance
*Tax Reporting
Balance expenses with GL entries
SAP AG
R
Integration with Subsequent Activities
Payroll
posting
Payments
to employee
Tax
Posting document
List of payments
Employment tax notification
automatic
posting
manual
posting
manual
posting
Salaries
payable
Salaries
payable
Tax
payable
Tax
payable
Salaries
payable
Salaries
payable


HR HR
HR HR
HR HR
Tax
payable
Tax
payable
FI FI
FI FI
HR HR
Expenses Payables Bank
Bank
clearing
Wages
and
salaries
Bank
clearing
Accounts
FI FI
to
to
to
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

Payments and Deductions
Salary Slip
Additional & offcycle Payments
Additional Payments
For irregular payment
For selected personnel no., payroll area, or personnel
group
Off cycle payments
Payroll run in between any payroll period
For selected personnel no., payroll area, or personnel
group

Additional Payment (IT 0015)
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

Declaration u/s 80
Provident fund contribution
Professional tax
ESIC