SAP HR Presentation

7/29/2019 SAP HR Presentation

1/57

AN INSIGHT INTO..

HR Module


2/57

Company Confidential

2

THE SCOPE

ORGANIZATIONAL MANAGEMENT

PERSONAL ADMINISTRATION

PERSONAL TIME MANGEMENT PAYROLL PROCESSING


3/57


3

ORGANIZATIONAL

MANAGEMENT


4/57


4

ORGANIZATIONAL MANAGEMENT

Organizational Management enables you to map your

companys organizational structure exactly and puts the facts

at your fingertips when you need them allows you to simulate

and experiment with future organizational changes in any

number of plan scenarios on a decentralized basis.


5/57


5

Organizational Structure

Organizational units, jobs, positions.

Enterprise Structure

Company code, personnel area and personnel

sub area.

Personnel StructureEmployee group ,employee subgroup and

payroll area.

Structures in HR


6/57


6

Organizational Structure

Organizational Unit.

Organizational Unit is defined as an organizational

grouping of employees ,such as a department. They differfrom other units in an enterprise such as Personnel Area,Company Code, Business Area. We can depict location /functional unit of an Organization using Organizational unit.


7/57Company Confidential

7

Organizational Units



8

Job

Job is defined by the standard description of thefunction to be performed and the task to be dealt by anindividual person.

Position

Position is defined as an organizational grouping ofwork that can be performed by one person. It can

comprise one or more jobs.

Person

The Personal information of the Employee who isholding that Position

Organizational Assignment

Components of Organizational Unit



9

Jobs



10

Manager

(JOB)

Sales ManagerProduction

Manager

Purchase

Manager

3 Different Positions for the JOB Manager

Positions



11

Objects & Relationships



12



13

Company code

The company code is an independent company with itsown Accounting unit- a company which draws out itsown balance sheet.

Personnel Area

Representation of large divisions or separateGeographical Areas of a companies structure. It is asubunit of a company code.

Personnel Sub-Area

It represents a further sub-division of Personnel Area.

It specifies the public holiday calendar , assigns a legal

person for Payroll and Income Tax grouping.

EnterpriseStructure

Elements of Enterprise Structure



14


Whats the Rationale (for deciding on Enterprise Structure)Reporting Requirements

Groupings for Time management

Groupings for Payroll



15

PersonnelStructure



16


Personnel Structure-Employee Subgroup



17

PersonnelStructure

It Groups Employees for Payroll ProcessingSame Day

Same Period

Same Pay Date

Payroll Area The Payroll area , is a grouping of employees on the basis of the

frequency & time of payment .



18

Personnel Structure

Whats the Rationale (for deciding on PersonnelStructure)

Reporting Requirements

Pay Component Definition

Groupings for Time management



19

Functions of Organizational Management

A. Efficiently Creates and Maintains Your Organizational Plan.

B. Graphically edits entire organizational plan or selected sections of it using

structural graphics. Structural graphics also allows you to select individual

objects in the plan for editing.Eg: If the company is going for an expansion or any take over it becomes easy

to modify your existing structure.

C. Can append an additional planning feature in Organizational Management,

status indicators, to the objects in structure. You can optimize planning withthe planning statuses planned, submitted, approved, rejected, and active.



20

Functions of Organizational Management

E. Enterprise Structure provides the information pertaining to particularlocation

F. Personnel Structure provides the information regarding divisions ofemployees.

D. Organisational structure provides the information regarding Reportingstructure and Staff Assignment.



21

PERSONNELADMINISTRATION



22


A highly efficient component integrated within the R/3 Human Resource

Management System. It can be used to manage all aspects of modern

personnel administration.

Free yourself from routine, time-consuming, and cost-intensive

administrative tasks and devote more time to more critical activities. R/3

Personnel Administration allows you to create and process employee datamore precisely and efficiently. Its simple, process-oriented entry

procedures and user-friendly online dialog ease your workload

considerably.

Itautomatically checks data plausibility for exact dates upon entry into thesystem and logs all employee information. This allows you to track the

chronology of data at all times and forms the basis for sound HR decisions

at all levels.



23

Take advantage of R/3Personnel Administration as the core of your HR

processes and create a state-of-the-art, flexible, and efficient HR

department with,

Customized Master Data Administration

Unrestricted Data History

Open to Customer Solutions and Third-Party Applications. Reassignments and status changes.

Performing TransfersPerforming Organization Reassignments

Data entry for relieving employees.

Guarantees Transparent and consistent data.



24/57


24

Enterprise Central Components inPersonnel Administration offers a range of

menus in which Infotype are grouped together by content.

INFOTYPES


25/57


25

Extensive Reporting plays a central role in Personnel Management. Enterprise

Central Components-Personnel Administration provides with numerous tools

and utilities to efficiently and flexibly evaluate HR data.

The standard system contains numerous reports that support different types of

evaluations. Depending on the available HR data, you can perform thefollowing evaluations :

Lists (for example, employee directory, family members, bank details,

anniversary of years of service )

Statistics (for example, staffing levels, nationality, age, wage, and

seniority) SAP Business Graphics enables you to display and edit your

evaluation results in a graphic. Some report results can then be processed in

other PC programs, such as Microsoft Word and Microsoft Excel.

REPORTING

REPORTING


26/57


26

REPORTING

Integration Between Organizational


27/57


27

Integration Between Organizational

Management and Personnel Administration


28/57


28

TIME MANAGEMENT


29/57


29

TIME MANAGEMENT

The Enterprise Central Components-Time Managementcomponent

is an efficient and adaptable business application that you can use

to complete routine personnel administrative tasks, such as:

1. Determining requirements and planning employee shifts

2. Recording Time data

3. Processing data from time recording systems or self-service

applications.

4. Checking working time assignments against internal companypolicies, collective agreements and other legal regulations that

apply to employee working time.

5. Evaluating the time data used for bonus and overtime wage

types.

TIME MANAGEMENT


30/57


30

TIME MANAGEMENT


31/57


31


32/57


32


33/57


33

Enterprise Central Components system automatically Performs Checks During Time

Recording:

1.Checks the employee working times entered against available time credits.

2.Monitors whether any of the attendances entered fall on any scheduled days off.

3.Prevents entry of data records that could collide in the system.

4. Enterprise Central Components evaluates employees time data and compares it againstinternal company policies, collective agreements and other regulations in place. This

System approves overtime, accumulates time in lieu, and issues bonus wage types,

By using the Time Management Pool, the personnel administrator can easily correct or

change the time data recorded for the employees for whom system messages were issued.

Overtime requests may also be approved using the Time Management Pool, and anymissing time postings can be re-entered at any time using this flexible maintenance utility.

At the end of a month or any applicable pay period, employees receive statements

regarding their time accounts. Enterprise Central Components-Payroll Accounting

accesses the time wage types created during time evaluation and uses them to determine

gross pay for employees.

TIME MANAGEMENT


34/57


34

Analyze the daily information of employee attendance & absence

Ease of modification of existing absence and attendance rules.

Time Management data is generated in pairs , therefore it is easy to detect and

repair any discrepancy in the employee time data

Retroactive accounting : if some information is backdated then the original

data can be changed & the system automatically recalculates the time data in

order to generate desired compensation.

Each rule that you apply has validity period attached to it .

If required the system is capable of generating a history of changes that have

been made to set master data .

If you wish to define how employees work on weekdays and holidays

This holiday calendar help you assign different rates that are applicable to

weekly off and public holidays. The evaluation data can be simulated and checked for error then finally

corrections can be made .

Also if there is some error in the time evaluation for some employee ids . Then

the time data can be again corrected and the time evaluation is automatically

run only for those employee id .

Time Management - Advantages

Introduction to Payroll


35/57


35

Introduction to Payroll

Wh t i P ll?


36/57


36

What is Payroll?

Payroll is used to calculate remuneration for work

performed by individual employees.


37/57


37

Payroll


38/57


38

Payroll Process Over View

Payment

Gross Pay

Net PayDeductions

P ll P


39/57


39

Payroll Process


40/57


40

Calculation of Wage Elements

Statutory & Voluntary


41/57


41

Statutory & Voluntary

Deductions

N t P /G t N t C l l ti


42/57


42

Savings Plans (401k)

Garnishments

Benefits

Flexible Spending Accounts (FSA)Loans

Taxes

Earnings Less Deductions

Net Pay/Gross-to-Net Calculation

Net Pay=-Amount paid to employee after withholding taxes, benefit

contributions & other deductions

P ll P i i


43/57


43

Payroll Prerequisites

Payroll Cycle


44/57


44

Payroll Cycle

Payroll Integration


45/57


45

Payroll Integration

PAYROLL

TIME

MANAGEMENT

MASTER

DATA

FI/CO

Wage Types


46/57


46

Wage Types

Wage Types allow for theassignment of payments and

deductions and the control of

payroll programs.

Mona Roise

MonaRoise

2048

2049

Valuation of Wage Types


47/57


47

Valuation of Wage Types

Some Payroll Infotypes


48/57


48

Some Payroll Infotypes

IT 0001 OrganizationalAssignment

IT 0003 Payroll Status

IT0007 PlannedWorking Time*

IT 0008 Basic Pay

IT 0009 Bank Details

IT 0014 Recurring

Payments/Deductions IT 0015 Additional

Payments

IT0008 B i P


49/57


49

IT0008 - Basic Pay

INR

INR

IT0014 - Recurring Payments/Deductions


50/57


50

IT0014 - Recurring Payments/Deductions

INR

IT0015 - Additional Payments


51/57


51

IT0015 - Additional Payments

INR

Payroll Areas


52/57


52

Payroll Areas

Retroactive Accounting


53/57


53

Retroactive Accounting

Payroll processing Advantages


54/57


54

Ability to process payroll for employees using data from SAP

Personnel Administration, and Time Management Payroll run (regular and off-cycle)

Payroll corrections

Payments

Remuneration Statements

Posting to Financial Accounting

Offers a number of standard payroll reports

Tax Reporter component allows you to generate all required

standard forms form 3A , Form 6A, Form 16 ,Form 12A PF Form 5PF Form 10 PF

Labour Welfare funds Gratuity report Professional tax reports

Pension Reports

Form 24 Income Tax Form 217(2A)

Payroll processing - Advantages



55/57


55

Easy method of pay scale reclassification

Automatic calculation of pay scale increase

There can be separate cost assignment of each wage

component

Easy and efficient method for administering bonus

Ease of calculating and administering arrears.

Strongest Feature is Retro active accounting

Quick and timely payroll processing

Efficient tools for payroll correction Generating on demand checks

Options to simulate and correct the payroll before actual

processing

Automatic transferrin of a roll results to FI/CO.



56/57


56


57/57

SAP HR Presentation

Documents

Transcript of SAP HR Presentation