Basic Sub-modules of HCM

• Personnel Administration• Organizational Management• Time Management• Training and Event Management• Travel management

Basic structure for SAP-HRBasic 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

Personnel AdministrationPersonnel Administration

Elements of Personnel AdministrationElements 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 Elements of Personnel Administration (Contd..)(Contd..)

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

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

Personal Data

Organizational Assignment

Family Details

Education

Skills

Salary Details

Previous Employment

Contracts

Leave Entitlement

Working Hours

Employee DataEmployee Data

Master Data: OverviewMaster Data: Overview

Employee

Master Data Records

Organizational Assignment

Address

Bank Details

Family

Work Schedule

PayrollPayroll

BenefitsBenefits

TimeTime

OM

Enterprise, Personnel and Organizational Enterprise, Personnel and Organizational StructuresStructures

Enterprise

Structure

Personnel

Structure

Organizational

Structure

Infotypes- Way to insert Master DataInfotypes- Way to insert Master Data

Employee

Family (IT 0021)

Bank Details (IT 0009)

Address (IT 0006)

Actions (IT 0000)

OrganizationalAssignment (IT 0001)

Major FeaturesMajor 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 FeaturesMajor 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 ManagementOrganizational Management

Overview of Plan VersionOverview of Plan Version

OrganizationalUnit

Position

Person

TasksR

epor

ting

Rel

atio

n

Departments/ Project Teams/ SBU’s

Holder of Position

Departmental Heads

For Position and OU

Position Position PositionR

epor

ting

Rel

atio

n

Rep

ortin

g

Rel

atio

n

Vacant

Jobs

Creating an Organizational PlanCreating an Organizational Plan

1. Create Root Organizational

Unit

7. Assign Holders

4. CreatePositions

3. Create Jobs

2. Create AdditionalOrg. Units

5. Assign Tasks

6. Assign Cost centers

Why use Organizational Management?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 FeaturesMajor 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 FeaturesMajor Features

• Vacant Positions– Stimulate to recruitment

• Structured representation of – Enterprise structure– Reporting structure– Vacancies etc.

Organization Structure- PositioningOrganization Structure- Positioning

Time ManagementTime Management

ObjectivesObjectives

• Time Recording

• Time Evaluation

• Shift Planning

• Cross-Application Time Sheet

Time Management OverviewTime Management Overview

Employee is at workEmployee is SickEmployee Working Overtime

Time RecordingTime RecordingInfotypes

# of Hours Worked# of Sick Hours# of Overtime Hours

Time EvaluationTime Evaluation

Rs. for # of hours workedRs. for # of Sick HoursRs. for Overtime

FI/CO

PayrollPayrollPayrollPayroll

Time Recording : Methods of Time Data Time Recording : Methods of Time Data CaptureCapture

• 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 SchedulesWork Schedules

Personnel Subarea Employee SubgroupInfotype 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?

Other featuresOther 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 AdministrationPayroll Administration

Payroll ProcessPayroll Process

Gross Pay

Net Pay

Deductions

Rs.

CompanyContributionsAdd 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 componentsSalary components

Bonuses

OvertimeProfessional membership

Allowances

HRA

Basic Pay

RecurringPayments &Deductions

AdditionalPayments

LTA

Flexible Wage Types (Salary Component)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)Basic pay (IT-0008)

Payroll Process-flowPayroll Process-flow

Master Data Time Management

PrerequisiteConfiguration for Payroll

PayrollRun

Gross - Deductions = Net Pay•Payroll Organization •Basic Pay•Other Payments & Deductions

Final Steps

•Direct Deposit/Checks •FI/CO Transfer•*Third Party Remittance•*Tax Reporting

Payroll RunPayroll Run

Master data entered for current pay period

Fix rejects and other updates

Remuneration &Subsequent Activities

Start Payroll

Exit Payroll

Release Payroll

Corrections

Any rejects

? ResultsOK ?

Yes No

No Yes

Check Results

Balance expenses with GL entriesBalance expenses with GL entries

Bank Details (IT 0009)Bank Details (IT 0009)

Payroll AccountingPayroll Accounting

• Need based Payroll system• Specific Payroll Period• Separate Payroll period for Separate personnel

group, personnel area• Flexible for wage type calculations

FeaturesFeatures

• 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 Salary Slip

Legal ProvisionsLegal 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 FeaturesOther Features

• Standard Reporting• Ad hoc reporting• Integration with Time Management

– Overtime

– Leaves

– Leave without pay– Shift allowances– Paid holidays

Training ManagementTraining Management

• Standard Buz Events– Schedule.– Organiser - Internal/ External.– Location/ Building.– Book Resources.– Capacity.

Business EventBusiness Event

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

• Procedure– Reaction to booking/ prebooking etc.– Transfer skills.

• Employees/ Applicants/ Ext Persons/ Company/ Department.

AttendeesAttendees

• 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 ManagementTravel Management

Workflow 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 requestTravel request

Travel planTravel plan

Cost incurred & ApprovalCost incurred & Approval

Cost in standard formatCost in standard format

Transfer to accountTransfer to account

ReportsReports

ReportsReports

Personnel Administration Organizational Management Training and Event Time Management Travel Management