IBP Part 07 Human Capital v02

Integrated Business Processes with SAP ERP
Script 7: Human Capital Management

in SAP ERP
Tutor: Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated Processes with SAP ERP – Human Capital Management
Human Capital Management in SAP ERP
Copyright
- This document is in parts based on publications for the TERP10 course “mySAP ERP
– integrated business processes“– those parts are subject to the copyright of SAP AG.
- All figures used within this course are created in the style of the TERP10 if not labeled
elsewise. Those parts are subject to the copyright of SAP AG.
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the copyright of SAP AG.
- Distribution and reproduction of this document or parts of this document in any
form is prohibited without the written permission of Prof. Dr. Heimo H. Adels-
berger, Dipl.-Wirt.-Inf. Pouyan Khatami and Dipl.-Wirt.-Inf. Taymaz Khatami.
Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

Dipl.-Wirt.-Inf. Taymaz Khatami Page 2
Table of Contents
COPYRIGHT ........................................................................................................................... 2
TABLE OF CONTENTS ......................................................................................................... 3
TABLE OF FIGURES ............................................................................................................. 5
1 HUMAN CAPITAL MANAGEMENT IN SAP ERP ................................................... 8
2 ORGANIZATIONAL STRUCTURES IN HUMAN CAPITAL MANAGEMENT 10
2.1 THEORY: ORGANIZATIONAL STRUCTURES OF SAP ERP HCM (SAP HCM OM) ..... 10
2.1.1 Enterprise Structure in SAP Human Capital Management ................................. 11
2.1.2 Personnel Structure .............................................................................................. 14
2.1.3 Organizational Structure...................................................................................... 17
2.2 EXCURSUS: ENTERPRISE AND PERSONNEL STRUCTURE IN SAP HCM ...................... 24
2.2.1 Enterprise Structures in SAP HCM ...................................................................... 24
2.2.2 Personnel Structures in SAP HCM ...................................................................... 27
2.3 PRACTICE: ORGANIZATIONAL STRUCTURES IN SAP HCM........................................ 30
2.3.1 Organizational Structure in SAP CO ................................................................... 30
2.3.2 Organizational Structure in SAP HCM ................................................................ 36
2.4 ELUCIDATION ............................................................................................................ 48
2.4.1 Organizational Structures of SAP ERP HCM ...................................................... 48
2.4.2 Enterprise Structure in SAP Human Capital Management ................................. 49
2.4.3 Personnel Structure .............................................................................................. 50
2.4.4 Organizational Structure...................................................................................... 51
3 EMPLOYEE RECORDS AND INFOTYPES ............................................................. 55
3.1 THEORY: EMPLOYEE RECORDS AND INFOTYPES (SAP HCM PA) ............................. 55
3.1.1 Infotype Maintenance ........................................................................................... 55
3.1.2 Initial Entry Screen for Maintaining Infotypes .................................................... 56
3.1.3 Personnel File ...................................................................................................... 57
3.1.4 Organizational Assignment .................................................................................. 58
3.2 PRACTICE: INFOTYPES ............................................................................................... 59
3.3 ELUCIDATION ............................................................................................................ 64
3.3.1 Infotypes ............................................................................................................... 64
3.3.2 Infotypes Maintenance ......................................................................................... 64
3.3.3 Initial Entry Screen for Maintaining Infotypes .................................................... 65
3.3.4 Personnel File ...................................................................................................... 65
3.3.5 Organizational Assignment .................................................................................. 66
4 PROCESSES IN HUMAN CAPITAL MANAGEMENT .......................................... 67
4.1 THEORY: PROCESSES IN HUMAN CAPITAL MANAGEMENT ........................................ 67
4.1.1 Personnel Management (SAP HCM PA) ............................................................. 68
4.1.2 Processes in Training and Event Management (SAP HCM PE) ......................... 76
4.1.3 Time Management (SAP HCM PT) ...................................................................... 78
4.1.4 Payroll Accounting (SAP HCM PY)..................................................................... 82
4.1.5 Travel Management (SAP FI-TV) ........................................................................ 83
4.1.6 Employee Self-Service (EES) ............................................................................... 85
4.1.7 SAP HCM Reporting and Analyses ...................................................................... 87
4.2 PRACTICE: PROCESSES IN HUMAN CAPITAL MANAGEMENT ...................................... 90
4.2.1 Recruitment .......................................................................................................... 90
4.2.2 Hiring ................................................................................................................. 106

4.2.3 Cross-Application Time Sheet (CATS) ............................................................... 115

4.2.4 Personnel Planning and Development ............................................................... 120
4.2.5 Training and Event Management and Travel Management ............................... 130
4.3 ELUCIDATION .......................................................................................................... 135
4.3.1 Processes in Human Capital Management ........................................................ 135
4.3.2 Personnel Management (SAP HCM PA) ........................................................... 135
4.3.3 Processes in Training and Event Management (SAP HCM PE) ....................... 140
4.3.4 Time Management (SAP HCM PT) .................................................................... 141
4.3.5 Payroll Accounting (SAP HCM PY)................................................................... 144
4.3.6 Travel Management (SAP FI-TV) ...................................................................... 146
4.3.7 Employee Self-Service (EES) ............................................................................. 146
4.3.8 SAP HCM Reporting and Analyses .................................................................... 148
5 DATA SHEET .............................................................................................................. 151
6 REFLEXION ................................................................................................................ 152
6.1 QUESTIONS .............................................................................................................. 152
6.2 STANDARD SOLUTION ............................................................................................. 155

Table of Figures
Figure 1: Process Overview: Human Capital Management ....................................................... 9
Figure 2: Enterprise, Personnel, and Organizational Structures .............................................. 11
Figure 3: Definitions Enterprise Structure ............................................................................... 12
Figure 4: Example of Enterprise Structure in SAP Human Capital Management ................... 13
Figure 5: Personnel Structure ................................................................................................... 14
Figure 6: Employee Groups ..................................................................................................... 15
Figure 7: Employee Subgroups ................................................................................................ 16
Figure 8: Payroll Areas ............................................................................................................ 17
Figure 9: Organizational Plan .................................................................................................. 18
Figure 10: Organizational Units ............................................................................................... 19
Figure 11: Jobs ......................................................................................................................... 20
Figure 12: Positions .................................................................................................................. 21
Figure 13: Persons .................................................................................................................... 21
Figure 14: Cost Center ............................................................................................................. 22
Figure 15: Personal Administration and Planning ................................................................... 23
Figure 16: Enterprise Structure – Personnel Areas (1): SAP-System-Screenshot ................... 25
Figure 17: Enterprise Structure – Personnel Areas (2): SAP-System-Screenshot ................... 26
Figure 18: Personnel Structure – Employee Groups: SAP-System-Screenshot ...................... 27
Figure 19: Personnel Structure – Employee Subgroups: SAP-System-Screenshot ................. 29
Figure 20: Process Overview: Organizational Structures in Controlling ................................. 30
Figure 21: Search Profit Center: SAP-System-Screenshot ...................................................... 31
Figure 22: Profit Center in the Standard Hierarchy: SAP-System-Screenshot ........................ 32
Figure 23: Create Cost Center Group (1): SAP-System-Screenshot........................................ 33
Figure 24: Create Cost Center Group (2): SAP-System-Screenshot........................................ 33
Figure 25: Standard hierarchy IDES group: SAP-System-Screenshot .................................... 34
Figure 26: Create Cost Center: SAP-System-Screenshot ........................................................ 35
Figure 27: Hierarchical Assignment of Cost Centers: SAP-System-Screenshot ..................... 36
Figure 28: Process Overview: Organizational Structures in Human Capital Management ..... 37
Figure 29: Organization Department Marketing and SD ......................................................... 37
Figure 30: Activate Query Time Period: SAP-System-Screenshot ......................................... 38
Figure 31: Create Root Organization: SAP-System-Screenshot .............................................. 39
Figure 32: Create Subsidiary Organizational Units: SAP-System-Screenshot ........................ 39
Figure 33: Organizational Structure: SAP-System-Screenshot ............................................... 40
Figure 34: Searching Organizational Objects: SAP-System-Screenshot ................................. 41
Figure 35: Example Column Configuration: SAP-System-Screenshot ................................... 41
Figure 36: Create Jobs: SAP-System-Screenshot .................................................................... 42
Figure 37: Search Jobs: SAP-System-Screenshot .................................................................... 42
Figure 38: Create Tasks (1): SAP-System-Screenshot ............................................................ 43
Figure 39: Create Tasks (2): SAP-System-Screenshot ............................................................ 43
Figure 40: Create Position: SAP-System-Screenshot .............................................................. 44
Figure 41: Assign Job to Position: SAP-System-Screenshot ................................................... 45
Figure 42: Job Assignment: SAP-System-Screenshot ............................................................. 45
Figure 43: Task Assignment (1): SAP-System-Screenshot ..................................................... 46
Figure 44: Task Assignment (2): SAP-System-Screenshot ..................................................... 46
Figure 45: Organizational structure SD and marketing: SAP-System-Screenshot .................. 47
Figure 46: Infotypes ................................................................................................................. 55
Figure 47: Infotype Maintenance ............................................................................................. 56
Figure 48: Initial Entry Screen for Maintaining Infotypes ....................................................... 57
Figure 49: Personnel File ......................................................................................................... 57

Figure 50: Infotype Organizational Assignment ...................................................................... 58

Figure 51: Process overview: Infotypes ................................................................................... 59
Figure 52: Personnel Master Data: SAP-System-Screenshot .................................................. 60
Figure 53: Infotype Maintenance (Infotype Action - 0000): SAP-System-Screenshot ........... 61
Figure 54: Infotype Action (0000) - Action Subtype Hire (01): SAP-System-Screenshot ...... 61
Figure 55: Display Organizational Assignment: SAP-System-Screenshot.............................. 62
Figure 56: Personnel File: SAP-System-Screenshot ................................................................ 63
Figure 57: Processes in Human Capital Management ............................................................. 67
Figure 58: From Vacancy to Hiring an Applicant .................................................................... 69
Figure 59: Application via Internet .......................................................................................... 70
Figure 60: Hiring an Applicant ................................................................................................ 70
Figure 61: Personnel Cost Planning and Simulation ................................................................ 72
Figure 62: Personnel Development and Qualifying Actions ................................................... 73
Figure 63: Qualifications and Requirements ............................................................................ 74
Figure 64: Training Proposals for Qualification Deficits ......................................................... 75
Figure 65: Appraisals ............................................................................................................... 75
Figure 66: Processes in Training and Event Management ....................................................... 77
Figure 67: Time Management .................................................................................................. 79
Figure 68: Time Sheet CATS ................................................................................................... 81
Figure 69: The CATS Process .................................................................................................. 82
Figure 70: Payroll Accounting ................................................................................................. 83
Figure 71: Travel Management ................................................................................................ 84
Figure 72: Travel Expenses ...................................................................................................... 85
Figure 73: SAP Employee Self-Service ................................................................................... 86
Figure 74: Manager Self-Service ............................................................................................. 86
Figure 75: Reporting and analyses ........................................................................................... 87
Figure 76: Information System Reports: SAP-System-Screenshot.......................................... 88
Figure 77: Manager’s Desktop ................................................................................................. 89
Figure 78: Process Overview: Recruitment ............................................................................. 90
Figure 79: Staffing Status Vacancy Open (1): SAP-System-Screenshot ................................. 91
Figure 80: Staffing Status Vacancy Open (2): SAP-System-Screenshot ................................. 91
Figure 81: Create Job Advertisement: SAP-System-Screenshot ............................................. 92
Figure 82: Add Vacancy to Advertisement (1): SAP-System-Screenshot ............................... 93
Figure 83: Add Vacancy to Advertisement (2): SAP-System-Screenshot ............................... 93
Figure 84: Export Advertisement List: SAP-System-Screenshot ............................................ 94
Figure 85: SAP Business Workplace (1): SAP-System-Screenshot ........................................ 94
Figure 86: SAP Business Workplace (2): SAP-System-Screenshot ........................................ 95
Figure 87: Infotypes maintained: SAP-System-Screenshot ..................................................... 97
Figure 88: Create new Qualification (1): SAP-System-Screenshot ......................................... 97
Figure 92: Short Profile: SAP-System-Screenshot ................................................................ 100
Figure 93: Vacancy Assignment: SAP-System-Screenshot ................................................... 101
Figure 94: Maintain Applicant Activities: SAP-System-Screenshot ..................................... 102
Figure 95: Complete Activity: SAP-System-Screenshot ....................................................... 102
Figure 96: Generate Applicant List: SAP-System-Screenshot .............................................. 103
Figure 97: Create Follow-up Activity: SAP-System-Screenshot ........................................... 104
Figure 98: Complete Activities: SAP-System-Screenshot ..................................................... 105
Figure 99: Process Overview: Hiring ..................................................................................... 106
Figure 100: Planned Activities: SAP-System-Screenshot ..................................................... 107

Figure 101: Completed Applicant Master Data: SAP-System-Screenshot ............................ 108

Figure 102: Transferring Applicant Data: SAP-System-Screenshot...................................... 109
Figure 103: Create Action: SAP-System-Screenshot............................................................. 110
Figure 104: Organizational Assignment: SAP-System-Screenshot ....................................... 111
Figure 105: Create Basic Pay: SAP-System-Screenshot........................................................ 112
Figure 106: Check Transfer Results: SAP-System-Screenshot ............................................. 114
Figure 107: Process Overview: Cross-Application Time Sheet............................................. 115
Figure 108: Infotype Time Sheet Defaults: SAP-System-Screenshot ................................... 115
Figure 109: Attendance Time: SAP-System-Screenshot ....................................................... 116
Figure 110: Absence Time: SAP-System-Screenshot ............................................................ 117
Figure 111: Release Time Data: SAP-System-Screenshot .................................................... 117
Figure 112: Approve Time Data: SAP-System-Screenshot ................................................... 118
Figure 113: Absence Time Overview: SAP-System-Screenshot ........................................... 119
Figure 114: Process Overview: Personal Planning and Development ................................... 120
Figure 115: Create Position Profile: SAP-System-Screenshot .............................................. 121
Figure 116: Career Planning: SAP-System-Screenshot ......................................................... 122
Figure 117: Succession Planning: SAP-System-Screenshot .................................................. 123
Figure 118: Interesting Candidates for the Marketing Position: SAP-System-Screenshot .... 124
Figure 119: Profile Match-up (1): SAP-System-Screenshot .................................................. 126
Figure 122: Perform Appraisal: SAP-System-Screenshot ..................................................... 128
Figure 123: Process Overview: Training and Event Management ........................................ 130
Figure 124: Booking a Communication Course (1): SAP-System-Screenshot...................... 132
Figure 125: Booking a Communication Course (2): SAP-System-Screenshot...................... 132
Figure 126: Create Expense Report: SAP-System-Screenshot .............................................. 133
Figure 127: Planned Working Time Infotype: SAP-System-Screenshot ............................... 143
Figure 128: SAP Employee Self-Service ............................................................................... 147
Figure 129: Manager Self-Service ......................................................................................... 148

1 Human Capital Management in SAP ERP

This teaching unit aims at giving you an understanding of Human Capital Management in the
SAP ERP system.
Educational objectives in this unit:

At the conclusion of this unit, you will be able to
- define organizational structures in Human Capital Management
- describe how to manage employee records in Human Capital Management
- describe the basic business processes of Human Capital Management
- discuss the key integration points with other SAP ERP processes
- identify the use and benefits of Employee Self Service (ESS).
- list options for reporting Human Capital Management information
Scenario
In the practical application of this unit, you will firstly maintain the organizational structures
in controlling. This includes a profit center and three cost centers. From this point on, you will
maintain an own department in Human Capital Management. This department is in charge of
marketing and sales and distribution of your bicycle production.
Additionally, you will work with the infotypes concept in the SAP ERP system to recruit per-
sonnel and maintain applicant master data. Based on the applicant master data, you will hire a
new employee for your department.
In the area of personnel planning and development, you will carry out a succession planning
scenario and create a personnel appraisal. Deficits of your employee are supposed to be re-
solved by a particular training course. Finally, you will settle travel expenses resulting from
this.
The following figure shows the entire process that you will complete in the practical applica-
tion chapters of this unit by using the SAP ERP system. Except for the in depth-maintenance
of the organizational structures of controlling, you will focus exclusively on the functional
area Human Capital Management.

Figure 1: Process Overview: Human Capital Management

Organizational Structures in Human Capital Management
2 Organizational Structures in Human Capital Man-

agement
This section explains the personnel structure, organizational structures, and the enterprise
structure of the Human Capital Management application in SAP ERP.
2.1 Theory: Organizational Structures of SAP ERP HCM (SAP

HCM OM)
The SAP ERP application Human Capital Management is an extensive person-
nel administration system. As such it allows for mapping the hierarchical struc-
tures of a company and the relationships within these hierarchies as well as
storing and managing employee data. The SAP ERP system differs between the
enterprise structure, personnel structure, and organizational structure.
The enterprise structure in SAP ERP represents the structure of the enterprise’s hierarchy
(regarding personnel). It contains the legal and financial structures of the company. The high-
est level is the company code, which is divided into personnel areas and personnel subareas
from the Human Capital Management point of view. The enterprise structure of Human Capi-
tal Management application is defined in the system's customizing.
When entering personnel data in SAP ERP the respective employees must be assigned within
the enterprise structure first.
The personnel structure is built less hierarchically but rather relationally. The organizational
elements of the personnel structure are employee groups, employee subgroups, and payroll
areas. For personnel administrative purposes, employees are grouped by their status (e.g.,
active or inactive) and by the type of contract (e.g., salary or hourly) into employee groups.
The organizational structure is a functional structure, representing your enterprise based on

tasks. This organizational plan is used in order to carry out business and human resources
processes. Thus, it is a task-related, functional structure of your enterprise. The organizational
structure is created by using tools from the Organizational Management component.
The employee plays a central role in a company. Every employee is included in the structure
of its enterprise. Therefore, employees are assigned to the organizational structures in SAP
ERP. This assignment defines where the employee works, the status and the function she/he
has in the company. Thereby, this information is relevant for payroll, time management, per-
sonnel planning, reporting, authorization checks, etc.
Thus, assigning employees to the structures of a company has the highest priority in Human
Capital Management. This is the first step for entering personnel data. The organizational as-
signment of an employee is carried out in infotype organizational assignment (0001). The
employee is uniquely assigned into the enterprise structure, personnel structure, and organi-

zational structure. The information of the organizational assignment of an employee is im-

portant regarding
- authorization checks
- entry of additional data
- time management accounting
- payroll accounting
When entering employee data, the employee is assigned to a company code, a personnel
area, and a payroll area in infotype organizational assignment (0001). Thus, the employee
is assigned to an organizational unit, a job, and a cost center.
An infotype is comparable to a tab and contains the master data of an employee in the SAP
ERP system regarding a certain functional area. In the following figure, you can see the info-
type organizational assignment (0001), which contains all the organizational data (organiza-
tional, enterprise, and personnel structure) of an employee.
Figure 2: Enterprise, Personnel, and Organizational Structures
2.1.1 Enterprise Structure in SAP Human Capital Management

The Enterprise structure is always comprised of 4 levels. This structure is typically geograph-
ic, but it doesn’t have to be. Generally, it answers the question “where and at what company
code does an employee work?” The enterprise structure for processes of Human Capital Man-
agement contains the following organizational elements:

Figure 3: Definitions Enterprise Structure
Client: All data, processes and, thus, all organizational elements for personnel administration
are stored within a client. In Human Resources there are client dependent (e.g., personnel da-
ta) and client independent data (e.g., holiday calendar). Usually there is no interchange be-
tween clients on one system. That is, in legal and organizational terms, the client is a self-
contained unit within the ERP system. Following points from the standpoint of Human Re-
sources should be considered before setting up a client in SAP ERP:
- There is usually no exchange of data between clients.
- If an employee changes clients, you have to create the personnel number again.
Company code: The company code is the next level under the client. A client can contain
multiple company codes. Consider that company codes are elements, which do not belong to
Human Resources, but are part of the Financial Accounting. You create company codes in the
customizing of Financial Accounting, but also use them in human resources within the enter-
prise structure. For instance, the currency is stored in the company code, but is also relevant
for Human Resources (wages, etc.).
The company code is a self-contained unit in legal terms, which is an independent unit for
accounting and, thus, contains a complete set of accounts. The company code is the highest
level of the company structure. On company code level, balance sheet and profit and loss
statement are created as required by law.
Personnel area: In Human Capital Management, the enterprise structure below company
code level is organized by using personnel areas. A personnel area is a unit of personnel ad-
ministration and represents a subunit of a company code from the Human Capital Manage-
ment (personnel administration) point of view. The individual personnel areas of a company
code are identified by a four-digit alphanumeric key. Personnel areas within a client must be
unique.

The personnel area has the following functions (the acronym RAD is often used in this con-
text):
- Reporting: It is used as a selection criterion for reporting in HCM.
- Authorization: It represents a unit for authorization checks.
- Defaults: You can generate default values for data entries in infotypes, e.g., for payroll
accounting area.
Personnel subarea: Personnel areas can be further divided into personnel subareas. On per-
sonnel subarea level, the organizational administration of principal aspects of human re-
sources is carried out, i.e., pay scale and wage type structures and work schedules. A person-
nel subarea is identified by a four-digit alphanumeric key as well. Thereby, control features
are stored according to the country.
The most important organizational functions of personnel subareas are:

- specify country groupings. The master data entry as well as setting up and processing
of wage types and pay scale groups depend on country groupings. The grouping must
be unique for each company code.
- assignment of a legal person to differentiate between companies in legal terms
- determination of groupings for time management to, for example, set up work sched-
ules and substitution, absence and leaving types
- generation of default pay scale types and area for an employee’s basic pay
- definition of a public holiday calendar
- definition of specific wage types for each personnel subarea
The enterprise structure is created in customizing. The following figure displays an example
on how the Enterprise Structure might look and how the individual organizational levels and
units are assigned to each other.
Figure 4: Example of Enterprise Structure in SAP Human Capital Management

2.1.2 Personnel Structure

In order to make differences in working time and payroll remuneration of employees accord-
ing to their status in the company, a distinction between the employees needs to be made. For
these administrative purposes, the employees in an enterprise are divided into two levels. The
highest level is an employee group, the second, an employee subgroup. These levels are sub-
ject to authorization checks, to define remuneration levels or different work schedules, for
example.
The administrative personnel structure in human resources is primarily relevant for work
hours and compensation. The personnel structure consists of the three elements employee
groups, employee subgroups, and payroll areas.
Employee groups represent different types of employees, e.g., active employees, retirees, and
contractors.
Employee subgroups are the second level of the personnel structure and are used to define
different payroll procedures, e.g., hourly and salaried.
The payroll area is used to give default values for payroll that can be used as selection crite-
ria for reporting as well as for authorization checks. Using the payroll area, you can determine
the period of time between settlements (payments) for employees of a subgroup.
Figure 5: Personnel Structure
2.1.2.1 Employee groups

Employees groups are used for general division of employees. An employee group defines the
relationship of an employee in a company. Thereby, the employee makes a certain contribu-
tion to the company in terms of work. Primarily, active employees, pensioners, and early re-
tirees are the important groups in personnel administration. Employee groups are relevant
within reporting, when creating defaults in infotypes and in order to control authorizations.

The main organizational functions of an employee group are (again the RAD concept):
- It is a selection criterion for reporting.
- It is a unit of authorization checks.
- to generate default values for data entry, for example, for payroll area and basic pay of
an employee
You can use a standard catalog for setting up employee groups that can be extended according
to individual customer requirements if needed.
Figure 6: Employee Groups
2.1.2.2 Employee Subgroups

According to the position of an employee, the employee subgroup is a fine division of em-
ployee groups. Within the employee group of active employees, for example, employee sub-
groups differentiate between wage earners, salaried employees, and non-pay-scale employees.
On the employee subgroup level, all administration features of the personnel structure are
defined. This information is relevant for reporting, when creating defaults and to control au-
thorizations (RAD). However, even more relevant is the control of working times and remu-
neration according to the employee subgroup. Similar to personnel subareas, employee sub-
groups store keys, which allow for making differences in work and payment.
The most important characteristics are:
- Using the grouping of employee subgroups for the personnel calculation rule, you can
determine different payroll procedures for different employee subgroups. Thus, you
can, for example, control whether an employee is paid hourly or monthly.
- The employee subgroup grouping of primary wage types controls the validity of wage
types for employee subgroups, while the grouping for the collective agreement provi-
sions restricts the validity of pay scale groups to particular employee groups.
- You can define default values for data entry by using employee subgroups, e.g., for
the payroll area.

Figure 7: Employee Subgroups
2.1.2.3 Payroll areas

A payroll area is an organizational unit used for running payroll. All employees who have
payroll run for them at the same time and for the same period are assigned to the same payroll
area.
Usually, payroll is carried out for each payroll area. The payroll area provides the payroll
driver with the number of employees for whom payroll is to be run and with dates of the pay-
roll period. The system determines the number of employees for whom payroll is to be run by
using the infotype organizational assignment (0001). Among other things, this infotype con-
tains the respective payroll area in the personnel master record.
A payroll area for an employee can only be changed at the end of a period.
When an employee changes status from wage earner to salaried employee in
the middle of a month, and both are located in different payroll areas, you must
wait until the start of the next month to enter the new payroll area.

Figure 8: Payroll Areas
2.1.3 Organizational Structure

The Organizational Structure represents the task-related, functional structure of your enter-
prise. The organizational plan differs from the administrative enterprise or personnel struc-
ture, whose structural elements are relevant to payroll or accounting. You can view your or-
ganizational plan with objects and reporting relationships to see different views of the organi-
zation.
The organizational plan of a company in the SAP ERP system is created using organizational
units and positions. The organizational plan features an all-encompassing and dynamic model
(i.e., the model can be adjusted continuously, without referring to customizing) of the struc-
tural and personnel environment of a company that can be evaluated at any time. In contrast
to the enterprise structure, the organizational structure is created in the SAP Easy Access
menu (transaction PPOCA).
The enterprise structure consists, as you already know, of company codes, per-
sonnel groups, personnel subgroups, etc. These units (we referred to them as
organizational levels in earlier units of this course) should not be confused with
the organizational structure in Human Capital Management (HCM). The or-
ganizational structure contains organizational units, positions, etc., which are
located below or within the enterprise structure. The enterprise structure represents the legal
and financial aspects of a company, e.g., company codes, while the organizational structure
in HCM represents the organizational plan of enterprise parts, departments, etc. (e.g., em-
ployee X is assigned to position Y, position Y is part of organizational unit Z, organizational
unit Z is assigned to company code and cost control area 1000 of IDES, i.e., accounting for
organizational unit Z is carried out in the enterprise structure of the IDES 1000).

The organizational plan represents hierarchies with in a company:

- The organizational structure of the enterprise: The organizational structure repre-
sents the hierarchy between the different organizational units of a company. The or-
ganizational structure is created by creating and maintaining organizational units and
linking them to each other.
- The individual positions and the reporting structure (chain of command): A re-
porting structure represents a given line structure of an enterprise. The reporting struc-
ture is created by creating and maintaining positions and linking them to each other.
Figure 9: Organizational Plan
2.1.3.1 Organizational Units

Organizational units describe business units in an enterprise such as departments. They can be
classified generally (e.g., by function or by region), or specifically (e.g., by project group).
The way you classify organizational units depends on the company in question.
You use relationships to connect organizational units with each other. These relationships
constitute a network, which illustrate the hierarchical structure of the enterprise. That is, you
must relate organizational units with one another in an organizational plan. Thereby, the hier-
archical interrelationships that exist between the organizational units represent the organiza-
tional structure of your enterprise.
Furthermore, organizational units can be related to cost centers. A cost center that is assigned
to an organizational unit, which is at the top of the organization's hierarchy, can be be-
queathed to all organizational units below.

Example: The following example shows the organizational unit Executive Board as the supe-
rior object over two subordinate objects, Human Resources and Finance.
Figure 10: Organizational Units
2.1.3.2 Jobs
Jobs are general classifications of tasks or responsibilities within the organization. Jobs are
created once and are used to describe positions. When creating jobs, you should pay attention
to which specific tasks and requirements are associated with an individual job. Jobs are used
in the following application components:
- shift planning
- personnel cost planning
- personnel development
You should keep your job descriptions as general as possible and as specific as
necessary.

Figure 11: Jobs
2.1.3.3 Positions
A position is a specification of a job. One job can be used to create several positions. When
you created a job in the SAP ERP system, you need to define a number of positions that cor-
respond to this job that are required in the company. Information such as tasks, requirements,
etc., which are stored in a job definition, are bequeathed to all the positions created from this
job. Positions are occupied by persons.
The tasks defined for the jobs are inherited by a position. A position can be extended by de-
fining additional tasks that only have to be carried out by this individual position. Positions
can be 100% filled, partially filled, or vacant.
Example: Not jobs, but positions are filled with employees. A position can also be shared by a
number of employees that work less than the full time capacity of the position. For example,
two employees can share a position (60% and 40%).
A job is used as a template from which positions inherit particular characteris-

tics such as tasks. When you create, for example, the job secretary, different
organizational units that feature a position secretary can inherit general tasks
of the secretary job, e.g., correspondence, appointment management, etc. Thus,
you do not need to create those tasks for each position. Additionally, positions
can feature individual tasks, e.g., audit or make coffee.
Consider that positions are related to organizational units, jobs are not.

Figure 12: Positions
2.1.3.4 Persons
Employees of a company are represented by persons in the SAP ERP system. Persons hold
positions in the organizational structure determined by organizational management.
In personnel administration, infotypes for persons are maintained. In the infotype organiza-
tional assignment, in the organizational structure section, the position held by a person is en-
tered. Using position assignment, persons are linked with the organizational plan. Additional
default values in personnel administration such as infotype of the employee group and em-
ployee subgroup (1013) can be derived from data of the organizational management.
Figure 13: Persons

2.1.3.5 Cost Center

A Cost center is an organizational object of Controlling and, thus, is maintained in Control-
ling (SAP CO: see teaching unit 9). Cost Centers can be assigned to organizational units or
positions. Note that a Cost Center is not an element of the Organizational Structure of HCM
but it can be assigned to Organizational Structures like Organizational Units or Positions.
Cost center assignments are inherited along the organizational unit structure. That is, when
you assign a cost center to an organizational unit, all organizational units and positions that
are below this organizational unit, inherit this cost center by default. You can change the cost
center assignment at a lower level such as position or person manually.
Organizational units can have multiple cost center assignments/percentages.
Figure 14: Cost Center
2.1.3.6 Personal Administration and Planning

In case personnel administration and personnel planning are integrated, you can enter posi-
tions in the actions infotype (0000). This infotype needs to be maintained first. The fields
job, organizational unit, or cost center cannot be overwritten. They determine the relation to
the position.
The default values for the fields personnel area, personnel subarea, employee group, and em-
ployee subgroup can be supplied by using the organizational unit or the position.

Figure 15: Personal Administration and Planning

2.2 Excursus: Enterprise and Personnel Structure in SAP HCM

This chapter will clarify aspects of the SAP ERP Enterprise Structure and Per-
sonnel Structure in Human Capital Management. Additionally, you will learn
how organizational levels and their interrelations are represented in SAP ERP
HCM. This section is not relevant to the final certification exam by SAP AG;
however, it encourages in-depth understanding of the topic.
2.2.1 Enterprise Structures in SAP HCM

To display the enterprise and personnel structures of IDES AG, you need to proceed to the
customizing settings. Therefore, choose:
Tools  Customizing  IMG  Execute Project (SPRO)
Choose to display the implementation guide. You can find the settings for
the enterprise and personnel structures in Human Capital Management under
Enterprise Structure  Definition  Human Resource Management
The assignment of personnel areas to company codes and employee subgroups to employee
groups is available under
Enterprise Structure  Assignment  Human Resource Management
2.2.1.1 Personnel Area

The personnel area is an organizational unit that represents a specific area of the enterprise
and it is organized according to aspects of personnel, time management, and payroll. A per-
sonnel area is divided into several personnel subareas. Please note that the personnel subareas
contain the business characteristics. To assign the business characteristics, you must have set
up at least one personnel subarea for each of your personnel areas, even if you do not use per-
sonnel subareas in your enterprise structure.
When you define the personnel areas, the setting up of the enterprise structure has begun. You
assign characteristics to these personnel areas in subsequent IMG steps. These steps are dealt
with in the IMG at the same time they are established in a business sense.
Example:
Company X has three production plants in Germany: Hamburg, Cologne, and Berlin. In the
SAP System these would constitute three personnel areas.
Firstly, choose

Enterprise Structure  Definition  Human Resource Management  Personnel Areas

( Copy, Delete, Check Personnel Areas)
Secondary, choose the button and then to display a list of all personnel
areas of the IDES group. Confirm the system notification.
For example, the IDES group contains the personnel areas 1000, 1100, 1200, etc. The identi-
fication of the personnel area is deliberately chosen in alignment with the company code
name to which the personnel area is assigned. Personnel area 1000 is in charge of personnel
administration regarding company code 1000, for example. You can display the assignment to
a company code by double-clicking the respective personnel area.
Figure 16: Enterprise Structure – Personnel Areas (1): SAP-System-Screenshot
Alternatively, you can call up
Enterprise Structure  Assignment  Human Resources  Assignment of Personnel Ar-

ea to Company Code
to display the respective assignments.

Figure 17: Enterprise Structure – Personnel Areas (2): SAP-System-Screenshot
2.2.1.2 Personnel Subareas

A personnel subarea is an organizational unit that represents a specific area of the company
organized according to certain aspects of personnel, time management, and payroll. The fol-
lowing business subtasks belong to the personnel subarea:
- defining of pay scale and wage type structure
- defining planned working hours
- defining appraisal criteria
Example:
The Berlin site of Company X is physically separated by a railroad line. This could mean that
two different tax or employment offices are responsible for the respective areas. In this case,
you would define a personnel area "Berlin" and two personnel subareas.
Choose
Enterprise Structure  Definition  Human Resource Management  Personnel Subar-

eas ( Create Personnel Subareas)
A dialog is displayed, asking for which personnel area you want to display the subareas. Enter
personnel area 1000 in the work area field and press Enter.
You can see that no personnel subareas for personnel area 1000 exist. Due to missing rights,
you cannot create them on your own.

Personnel subareas are not necessarily required for the structure of personnel administration,
since they merely structure a personnel area.
2.2.2 Personnel Structures in SAP HCM

The administrative personnel structure in human resources is primarily relevant for work
hours and compensation.
2.2.2.1 Employee Groups

The employee group allows you to divide your employees into groups and allows you to de-
fine their relationship to the enterprise. The following essential organizational functions can
be carried out by using the employee group:
- generating default values when entering data; for example, for the payroll accounting
area or for the basic pay of the employee
- generating a selection criterion for evaluations
- generating a unit for the authorization check
Example:
You want to distinguish your employees between persons who are actively employed, pen-
sioners, and early retirees. The standard SAP system contains some samples of employee
groups.
Choose
Enterprise Structure  Definition  Human Resource Management  Employee Groups
In this table, you can see all data objects representing employee groups. Thus, the employee
groups active, pensioner, and early retiree, etc. exist within the IDES group.
Figure 18: Personnel Structure – Employee Groups: SAP-System-Screenshot

Technically speaking, employee groups are atomic data structures, i.e., they do not contain
further data, but consist only of a description. In detailed customizing (master data, process
customizing), these data structures are used to state, which actions or processes can be run for
an employee group. For example, you can set that in SAP ERP only those persons receive
salary, whose status is 1 (active).
2.2.2.2 Employee Subgroups

The employee subgroup represents a subdivision of the employee group. When you define
employee subgroups, you have essentially begun to set up your personnel structure. Features
are allocated to this in later steps. These steps are dealt with at the spot where they are estab-
lished in a business sense.
The following business subtasks are provided among other things:
- specification of processing in payroll accounting
- specification of validity of primary wage types
- specification of validity of work schedules
- specification of validity of pay scale groups
- specification of validity of time quota types
Example:
Within the employee group active, you want to distinguish between industrial workers, pay
scale employees, trainees, and executive employees. This distinction enables you to do the
following:
- You can carry out evaluations for which certain employee subgroups can be included
or excluded.
- Certain personnel administrators should only be allowed to edit the data of certain
employee subgroups.
- Depending on the employee subgroup, you can generate different default values in
master data processing (e.g., executive employees have entitlement to more leave than
pay scale employees).
You can display the employee subgroups of IDES group under
Enterprise Structure  Definition  Human Resource Management  Employee Sub-

groups ( Define Employee Subgroups)
Employee subgroups are atomic structures as well. In combination with employee groups,
they offer options for detailed personnel administration.

Figure 19: Personnel Structure – Employee Subgroups: SAP-System-Screenshot
Leave the SAP implementation guide and take a closer look at the organizational structure.

2.3 Practice: Organizational Structures in SAP HCM

Despite the good order situation, management of the IDES group decided to
increase marketing measures for the Speedstar and the Speedstarlett. Therefore,
a new department is supposed to be set up that focuses on marketing and distri-
bution activities regarding the two products. For this reason, the respective
organizational structure needs to be entered into the SAP ERP system and the personnel for
vacant jobs needs to be hired.
Firstly, get an overview of the navigation and the basic structures and terms in HCM. Based
on that, you will get to know the important concepts of SAP ERP human resources manage-
ment in an integrative case study.
Your first task is to enter the organizational structure of the new department into the SAP sys-
tem and to assign it to existing organizational structures. Again, replace xxyy with your user
ID when processing the case study.
2.3.1 Organizational Structure in SAP CO

To create the new department, you need a cost center to which you can assign the new de-
partment. The cost center is necessary, since costs occurring in your new department must be
posted to an accounting object for SAP CO.
You will initially maintain an own profit center, which will be assigned to hierarchy node
H1300 (marketing and sales and distribution) in the standard hierarchy of the IDES group.
Figure 20: Process Overview: Organizational Structures in Controlling
2.3.1.1 Display Profit Center Standard Hierarchy

Standard hierarchies serve the unique assignment and hierarchical relations of CO objects,
e.g.:
- cost centers
- processes
- profit centers
Display the profit center standard hierarchy of the IDES group. Therefore, call up the fol-
lowing transaction:
Accounting  Controlling  Profit Center Accounting  Master Data  Standard Hier-

archy  Display (KCH6N)

1. In case you are prompted to enter a controlling area, enter controlling area 1000.
2. Expand the organizational structure tree in the right window so that you can see the
node H1100 External Services (H1  HE  H1100). Your new profit center is sup-
posed to be assigned to this profit center hierarchy node. Next, create a profit center
with reference to this hierarchical level.
In case you do not see the desired hierarchical nodes when calling up the
transaction KCH6N or later, the transaction OKENN (OKEON) (depending on
the settings of your user), you can search for the root organizational unit H1 by
using the search assistant for the profit center group (for OKENN, cost center
group). From this root node, you can expand and navigate to the respective node.
Figure 21: Search Profit Center: SAP-System-Screenshot
The best search strategy in SAP systems is to use Asterisks (*). If you search
for an object and you know any string in the description of this object, you can
enclose the string in Asterisk. Thereby, the system looks for all objects contain-
ing this string.
Example: You search for any object you created. You know that you used always the string
xxyy in your objects. You can search for your objects using *xxyy* in the search field. The
system will display all objects containing xxyy.
If you are, e.g., user WIP-99-99 and you search for your Speedstar in transaction MM02, you
use the F4 help. In the material id search field you enter *9999* and press search. The system
will display all materials you created: Speedstar-9999, Basis-Module-9999, etc.
This search strategy can be used for any object in SAP. If you, e.g., look for the employee
Taymaz Khatami in the personnel administration (transaction PA30), but you do not know his

personnel ID, you use the F4-Help in the personnel ID field and enter *Taymaz* in the name
field. The system displays all employees with that name.
2.3.1.2 Create Profit Center

A profit center is an organizational unit of accounting, which structures the company in a
management-oriented manner, i.e., for internal controlling purposes. You can analyze profits
and losses for a profit center that are calculated using either period accounting or the cost-of-
sales approach. You can analyze your company’s fixed assets by profit center and, thus, use
them as investment centers.
Create a profit center. Therefore, call up the following transaction
Accounting  Controlling  Profit Center Accounting  Master Data  Profit Center 

Individual Processing  Create (KE51)
1. Name the profit center PROF-xxyy. Use the profit center 1015 in accounting area
1000 as template (Copy from field). Press Enter.
2. Enter the following data:
- Analysis Period from 01.01. of this year
- Analysis Period to 31.12.9999
- Name Bicycle-xxyy
- Long text Bicycle-xxyy
- Person Respons. Your name
- Profit Ctr. Group H1100 (External Service)
- Segment MANF
3. Save your entries. A message is displayed, stating that the profit center is inactive. Ac-
tivate your profit center with the button.
Check the standard hierarchy of the profit center again (transaction KCH6N). A new entry
with your profit center should be listed.
Figure 22: Profit Center in the Standard Hierarchy: SAP-System-Screenshot
Now that you created the profit center, you can maintain the respective cost center.

2.3.1.3 Display Cost Center Standard Hierarchy

Now, display the standard hierarchy of cost centers of the IDES group. Therefore, call up the
following transaction:
Accounting  Controlling  Cost Center Accounting  Master Data  Standard Hierar-

chy  Change (OKEON)
Only one user can change the standard hierarchy at a time. Pay attention to pos-
sible error messages like "… is worked on by user WIP-xx-yy". In that case wait
until that user has finished his work and repeat the step then. All users can dis-
play the standard hierarchy at the same time.
1. Expand the node H1  H1000  H1300 (marketing, sales and distribution).

2. Create a new node directly below H1300 by clicking the node H1300 with the
right mouse button and then select the option Create Group (Lower Level).
Figure 23: Create Cost Center Group (1): SAP-System-Screenshot
3. Enter H1xxyy in the Group Name field and the description Marketing and SD Bi-
cycle-xxyy on the lower part of the screen.
Figure 24: Create Cost Center Group (2): SAP-System-Screenshot

4. Save your entries. Your new hierarchy node should be displayed below node
H1300.
Figure 25: Standard hierarchy IDES group: SAP-System-Screenshot
2.3.1.4 Create Cost Centers

The new department is supposed to contain three organizational units to each of which one
cost center is assigned. In organizational management, three organizational units will be en-
tered, one for marketing, one for SD, and one root organization.
Correspondingly, start with creating three new cost centers. The cost centers will be assigned
to profit center PROF-xxyy. To create cost centers, choose:
Accounting  Controlling  Cost Enter Accounting  Master Data  Cost Center 

Individual Processing  Create (KS01)

- Cost Center CCMSD-xxyy
- Valid from 01.01. (!) of the current year
- Valid to 31.12.9999
- Confirm with Enter.
- Name Mark-SD-xxyy
- Description Marketing and SD root xxyy
- Person Responsible your name
- Cost center category 5
- Hierarchy area H1xxyy
- Company code 1000
- Business area vehicles (3000)
- Profit center PROF-xxyy
3. Save your entries.

Figure 26: Create Cost Center: SAP-System-Screenshot
Cost center Marketing

- Cost Center CC-MA-xxyy
- Valid to 31.12.9999
- Name Marketing-xxyy
- Description Marketing Department xxyy
- Company code 1000
Cost center SD
- Cost Center CC-SD-xxyy
- Valid to 31.12.9999


- Name SD-xxyy
- Description Sales and Distribution Department xxyy
- Company code 1000
When displaying the standard hierarchy of cost centers once again (transaction OKENN),
your new cost centers should be assigned to the respective hierarchical area.
Figure 27: Hierarchical Assignment of Cost Centers: SAP-System-Screenshot
Now that you created the cost centers and the profit center, you have the required structures to
carry out organizational management from a HR department point of view.
2.3.2 Organizational Structure in SAP HCM

You have learned a lot about the Enterprise Structure and the Personnel Structure in SAP
HCM. However, these structures refer to the same SAP organizational model you got ac-
quainted with in the other teaching units. There, we referred to the organizational units as or-
ganizational levels. Organizational levels are defined in customizing. Additionally to the or-
ganizational levels, SAP HCM contains the Organizational Structure. While the organization-
al levels map the company in terms of legal structures, the Organizational Structure maps the
hierarchical structure of the company in HCM based on functional aspects. Aspects like:
- What position does an employee have in a company?
- What job is the employee assigned to?
- What tasks does this employee have?
The Organizational Structure is also important for the HCM reporting.
Your new department is referred to as Dep-bike-xxyy and represents the root organizational
unit. The department consists of two areas: Marketing-xxyy and SD-xxyy. The cost center

CC-MA-xxyy is assigned to the marketing department and the cost center CC-SD-xxyy is as-
signed to the SD department, both originating from company code 1000.
Figure 28: Process Overview: Organizational Structures in Human Capital Management
Despite the fact that it is somewhat unrealistic that a differentiated scope of duties is only car-
ried out by few employees, we assign only two positions to each area due to reasons of sim-
plification. Both the marketing and the SD area will feature a position for the department
chief and a secretary position.
The following figure is supposed to clarify the organization of your new department:
Figure 29: Organization Department Marketing and SD
As you can see from the figure above, you need to create the following organizational struc-
tures in the next step:
3 organizational units:
1. Root organization: Dep-bike-xxyy
2. SD area: SD-xxyy
3. Marketing area: Mark-xxyy
2 jobs:
1. Job for the department chief: Manage-xxyy
2. Job for the secretary: Secretary-xxyy

As explained earlier, jobs are generic object types that facilitate the creation of positions.
Thereby, the position inherits all characteristics of the assigned job.
4 Positions:
1. Position for the department chief SD: SD-DC-xxyy
2. Position for the department chief Marketing: MA-DC-xxyy
3. Position for the secretary SD: SD-SE-xxyy
4. Position for the secretary Marketing: MA-SE-xxyy
4 Tasks:
Different tasks must be assigned to the respective positions. As you might guess, identical
tasks for positions can be assigned directly from the corresponding job.
1. You can assign the tasks correspondence and organization to job Secretary-xxyy.
2. You can assign the tasks management functions to job Manage-xxyy.
3. The tasks client acquisition and advertising efforts are not generic and, thus, need to
be assigned directly to positions.
In the next step, you will transfer this organizational structure for your new department to the
SAP system.
2.3.2.1 Create Organizational Units

Therefore, call up the following transaction:
Human Resources  Organizational Management  Organizational Plan Organization

and Staffing  Create (PPOCE)
1. Enter the validity from 01.01. of the current year until 31.12.9999 and press Enter.
2. Select Settings  Query Time Period/ Create Several Objects from the menu.
Figure 30: Activate Query Time Period: SAP-System-Screenshot
3. In the main window, you can see an icon with the name new organizational unit. This
will be your organizational root. Click the icon and enter the following information
on the lower part of the screen:
- Basic data tab:
Name: DepBike-xxyy
additional description: Department Bike-xxyy + your name

- Account assignment tab:

Cost center: CCMSD-xxyy
Company code: 1000
Personnel area: 1000
Figure 31: Create Root Organization: SAP-System-Screenshot
4. Create another organizational unit below the newly created organizational unit by
clicking the organizational root with the right mouse button and selecting create.
Choose Is line supervisor of organizational unit from the pop-up window.
Figure 32: Create Subsidiary Organizational Units: SAP-System-Screenshot
5. Skip the following pop-up with Enter. Enter the following information for the SD de-
partment:

- Basic data tab:

Organizational unit: SD-xxyy
additional description: SD-xxyy + your name
Cost center: CC-SD-xxyy (change the cost center in account
assignment, click replace cost center: )
company code: 1000
personnel area: 1000
6. Repeat steps 4 and 5 for the marketing department. This should be located below the
organizational root as well.
- Basic data tab:
Name: Mark-xxyy
additional description: Marketing-xxyy + your name
cost center: CC-MA-xxyy
company code: 1000
personnel area: 1000
- Save your organizational structure.
Your hitherto created organizational structure should look like this:
Figure 33: Organizational Structure: SAP-System-Screenshot
When leaving transaction PPOCE, you can display and edit your hitherto cre-
ated objects by using transaction PPOME and the search function in the upper
left side of the screen. The search function can be used to search for all object
types. When selecting organizational unit and entering DepBike-xxyy, the
search result is displayed in the left lower window.

Figure 34: Searching Organizational Objects: SAP-System-Screenshot
Another useful function is the column configuration. With this, you can dis-
play additional data regarding your organizational units. In the following fig-
ure, you can see the additional selection of the object ID. This is helpful since
it is unique in the SAP system and, correspondingly, easier to find from other
functions within the HCM application.
Figure 35: Example Column Configuration: SAP-System-Screenshot
2.3.2.2 Create Jobs and Assign General Tasks

Now that the three organizational units are created, your next task is to create jobs. At this
point, you could start directly with creating positions, however, our positions are supposed to
inherit tasks from generic jobs. Thus, this step is required.
In case you left the transaction (PPOCE) already, call up transaction PPOME and display
YOUR organizational structure as described in the hint above.

1. Select Edit  Create Jobs from the menu bar. In the following selection window, en-
ter the subsequent data:
Valid from: 01.01 of the current year until 31.12.9999
Object abbreviation: Manage-xxyy and Secret-xxyy
Name: Management Function xxyy and Secretary xxyy
Figure 36: Create Jobs: SAP-System-Screenshot
2. Display the job Manage-xxyy by using the search function (job).
Figure 37: Search Jobs: SAP-System-Screenshot
The search results are displayed in a hit list on the lower left frame of the screen. Se-
lect your job Manage-xxyy with a double-click.

3. Select your job in the main window and select the create button ( ) to define new
tasks. Enter the following data on the bottom part of the screen:
Valid from: 01.01of the current year until 31.12.9999
Short text: Mgmt-xxyy
Name: Management Tasks xxyy
Confirm with Enter.
Figure 38: Create Tasks (1): SAP-System-Screenshot
4. Independently create the two tasks for the job secretary.

Short text: Corresp-xxyy and orga-xxyy
Name: Correspondence xxyy and Organization xxyy
Figure 39: Create Tasks (2): SAP-System-Screenshot

2.3.2.3 Create Positions

Now you can create positions. The positions are assigned to the organizational units SD-xxyy
and Marketing-xxyy, respectively.
Display your organizational root DepBike-xxyy again (by using the search function Organiza-
tional Unit). You have already learned how to create a new object from an organizational unit.
This time select Incorporates Position.
1. Select the sales and distribution organizational unit (SD-xxyy) and create two new po-
sitions below with the following specifications:
Position: SD-DC-xxyy and SD-SE-xxyy
Description: Department chief SD xxyy and Secretary SD xxyy
Figure 40: Create Position: SAP-System-Screenshot
2. Select the newly created position SD-DC-xxyy in the basic data view. Enter your new-
ly created job Manage-xxyy in the Job field. Confirm with Enter. Select your position
SD-SE-xxyy and enter your newly created job Secret-xxyy in the Job field. Confirm
with Enter.
3. You can see that in the tasks tab, for this position, the task of the job was inherited.

Figure 41: Assign Job to Position: SAP-System-Screenshot
4. Click your position SD-DC-xxyy with the right mouse button and select Goto/task as-
signment.
Figure 42: Job Assignment: SAP-System-Screenshot
Select your position once again and create a new task by selecting create from the
right-mouse-menu and then select Is described by task:

Short text: acquise-xxyy
Description: customer acquisition xxyy

Figure 43: Task Assignment (1): SAP-System-Screenshot
5. Optional (if function is not disabled): Select your task Management Task (expand
the job management bike xxyy below your position) and push the right mouse button
and select change percentage. Set the percentage of the task to 50 %. Repeat this step
for the second task (acquisition). Thus, you can ensure that a position takes only the
maximum 100 % of work time.
6. Save your changes.
Figure 44: Task Assignment (2): SAP-System-Screenshot
7. Repeat steps 1-6 for the other positions to complete the organizational structure of the
initial overview (Figure 29: Organization Department Marketing and SD). You need
to complete the following steps:
- Create Positions MA-DC-xxyy and MA-SE-xxyy.
- Assign Jobs Manage-xxyy and Secret-xxyy to the respective position.
- Create Task Advert-xxyy (Advertisement) for the Marketing Chief position.
8. Finally, your organizational unit should be similar to the following figure. Do not for-
get to save.

Figure 45: Organizational structure SD and marketing: SAP-System-Screenshot
To complete, list the object IDs of your four positions on your data sheet.
PositionID SD-DC-xxyy: _________________________________________________
PositionID SD-SE-xxyy: _________________________________________________
PositionID MA-DC-xxyy: _________________________________________________
PositionID MA-SE-xxyy:_________________________________________________
If you do not see the Object IDs of your positions, check figure 35 in this
script.

2.4 Elucidation
What have we learned so far?
The major outcomes of this section were the organizational levels (Enterprise
Structure), the Personnel Structure, and especially the Organizational Structure
that are relevant in SAP HCM.
2.4.1 Organizational Structures of SAP ERP HCM

The mapping of organizational structures of SAP ERP regarding the Human Capital Man-
agement application differs from the other applications. There are three major fields for or-
ganizational modeling in SAP HCM: enterprise structure, personnel structure, and organiza-
tional structure.
Enterprise structure: defined in customizing (transaction SPRO)

- represents the structure of the enterprise’s hierarchy
- contains the legal and financial structures of the company
- The highest level is the company code.
- Personnel areas are assigned to exactly one company code.
- Personnel subareas sub-divide personnel areas and are assigned to exactly on per-
sonnel area.
- Employees must be assigned within the enterprise structure first.
Personnel structure: defined in customizing (transaction SPRO)

- less hierarchically but rather relationally built
- Organizational elements of the personnel structure are employee groups, employee
subgroups, and payroll areas.
- For personnel administrative purposes, employees are grouped by their status (e.g.,
active or inactive) and by the type of contract (e.g., salary or hourly) into employee
groups.
- Employees must be assigned to the personnel structure.
Organizational structure: defined in organizational management (transaction PPOCE)

- functional structure representing a company based on tasks (task-related, functional
structure)
- This organizational plan is used in order to carry out business and human resources
processes.
- Employees must be assigned to the organizational structure.
When entering employee data in the system (e.g., when hiring personnel), you first uniquely
assign the employee to all three organizational structures. These assignments are carried out
in infotype organizational assignment (0001).
The information of the organizational assignment of an employee is important regarding
- authorization checks
- entry of additional data

- time management accounting

- payroll accounting
What an infotype is will be disclosed in the next section in detail.
2.4.2 Enterprise Structure in SAP Human Capital Management

The enterprise structure for processes of Human Capital Management contains the following
organizational elements:
Client
Company code
Personnel area
- is exclusively used in SAP HCM for personnel administration
- Each personnel area must be assigned to one company code.
- Enterprise structure below company code level in SAP HCM is organized using per-
sonnel areas.
- The individual personnel areas of a company code are identified by using a four-digit
alphanumeric key and, thus, are unique within a client.
- Generally in SAP, the personnel area corresponds to an actual workplace site, whether
it is a factory, a research laboratory, a regional or head office, or a remote sales office.
It can also be used to differentiate between different divisions within a company.
- The personnel area has the following functions:
o You can generate default values for data entry, e.g., for payroll accounting ar-
ea.
o It is used as a selection criterion for reporting in HCM.
o It represents a unit for authorization checks.
Personnel subarea
- A personnel subarea is exclusively used in personnel administration.
- Personnel areas can be further divided into personnel subareas.
- Multiple personnel subareas can be assigned to one personnel area.
- A personnel subarea is identified by a four-digit alphanumeric key as well.
- At this level, the organizational control of pay scale, wage type structures, work
schedule, and planning takes place.
- In general, the personnel subarea refers to an area in a workplace, in which a group of
people, work under similar conditions of employment. For example, within head of-
fice, most people will work a standard eight-hour day, five days a week. Therefore, the
entire head office is classified under one personnel subarea. However, on a factory
site, there will be people with different employment conditions. For example, the cler-
ical staff works five days a week, while production workers work rotating shifts on a
40 hour/week schedule. In such an instance, different personnel subareas are needed.
- For personnel subareas, groupings are defined. These groupings determine which en-
tries from subsequent settings can be used for employees assigned to a particular com-
pany code or personnel area. Groupings affect time management and payroll account-
ing directly or indirectly.

- The most important organizational functions of personnel subareas are:

o Specify country groupings. The master data entry as well as setting up and
processing of wage types and pay scale groups depend on country groupings.
The grouping must be unique for each company code.
o Assignment of a legal person to differentiate between companies in legal
terms.
o Determination of groupings for time management to, for example, set up work
schedules and substitution, absence and leaving types.
o Generation of default pay scale types and area for an employee’s basic pay.
o Definition of a public holiday calendar.
o Definition of specific wage types for each personnel subarea.
2.4.3 Personnel Structure

- indicates the employees status in the organization, for example, whether the employee
is an active and salaried employee
- is primarily relevant for work hours and compensation
- The personnel structure consists of the three elements: employee groups, employee
subgroups and payroll areas.
Employee groups
- Are used for general division of employees and defines the relationship of an employ-
ee in a company.
- represent different types of employees, e.g., active employees, retirees and contractors
- The main organizational functions of an employee group are:
o to generate default values for data entry, for example, for payroll area and
basic pay of an employee
o It is a selection criterion for reporting.
o It is a unit of authorization checks.
- Employee groups available in the standard SAP system can be extended according to
individual customer requirements in customizing.
Employee subgroups
- subdivide employee groups according to the employee’s status
- are the second level of the personnel structure and are used to define different payroll
procedures, e.g., hourly and salaried
- Within the active workforce, for example, a distinction can be made between the em-
ployee group for industrial workers, salaried workers, and hourly workers. Employee
subgroups should be designed on the basis that an employee does not fit into more
than one employee subgroup. For example, it would not be necessary to have a sub-
group for weekly paid employees and industrial workers (as most factory workers are
paid on a weekly basis). The same principal applies to salaried employees and man-
agement (as a certain group of employees would fit into both categories).
- On employee subgroup level, all administration features of the personnel structure are
defined. The most important characteristics are:

o Using the grouping of employee subgroups for the personnel calculation rule,
you can determine different payroll procedures for different employee sub-
groups. Thus, you can, for example, control whether an employee is paid hour-
ly or monthly.
o The employee subgroup grouping of primary wage types controls the validity
of wage types for employee subgroups, while the grouping for the collective
agreement provisions restricts the validity of pay scale groups to particular
employee groups.
o You can define default values for data entry using employee subgroups, e.g.,
for the payroll area.
Payroll area
- The payroll area represents an organizational unit for performing a payroll run (pay-
ment of the employees). Based on organizational assignment, payroll areas group pay-
roll data for employees according to when their payroll should be run. The payroll ar-
ea provides two pieces of information, namely which set of employees needs to be
considered for the payroll run and the exact dates of their accounting period. The dates
of the accounting period are determined as follows:
o The payroll period is stored as a period modifier per payroll area. Payroll can
be run, for example, on a monthly, weekly, or bi-weekly basis.
o The exact dates are stored for each valid accounting period.
o The exact dates of the current accounting period are determined by using a
payroll control record. The payroll control record keeps track of which period
needs to be processed. Each payroll area has its own control record.
- The system determines the number of employees for whom payroll is to be run by us-
ing the infotype organizational assignment (0001). Among other things, this infotype
contains the respective payroll area in the personnel master record.
2.4.4 Organizational Structure

- Representation of the reporting structure and the distribution of tasks using organiza-
tional units (e.g., departments) in an enterprise.
- Dynamic (can be changed at any time without the need of customizing) model of the
structural and personnel environment of a company that can be evaluated at any time.
- In contrast to the enterprise structure, the organizational structure is created in the SAP
Easy Access menu (transaction PPOCA).
- indicates the job (description) which the employee holds, in relation to the internal
company structure and, thus, represents functional hierarchies with in a company:
o The organizational structure of the enterprise: The organizational structure
represents the hierarchy between the different organizational units of a compa-
ny. The organizational structure is created by creating and maintaining organi-
zational units and linking them to each other.
o The individual positions and the reporting structure (chain of command):
A reporting structure represents a given line structure of an enterprise. The re-

porting structure is created by creating and maintaining positions and linking

them to each other.
- The organizational plan of a company in the SAP ERP system is created by using
organizational units and positions. Jobs and tasks are used for describing positions.
Organizational Unit
- Represents a functional unit in your enterprise (e.g., marketing department). Accord-
ing to how tasks are divided up within an enterprise, this could be a department,
group, or project team, for example.
- Organizational units differ from other units in an enterprise such as personnel areas,
company codes, business areas, etc. These are used to depict structures (e.g., admin-
istration or accounting) in the corresponding components.
- You depict the functional units of your enterprise with organizational units. You cre-
ate an organizational structure by assigning these organizational units to each other.
The highest organizational unit in an organizational structure is the root organizational
unit.
- You can store characteristics for each organizational unit. These can be
o evaluated using reports
o inherited by subordinate positions (work schedules, for example)
- To define characteristics of an organizational unit, you can store time-specific data for
the following areas in the Organization and Staffing view:
o Basic Data
o Account Assignment (i.e., Cost Center Assignment)
o Cost distribution
o Address
o Work schedule
o Quota planning
Jobs
- Jobs represent a unique classification of tasks or responsibilities in a company.
- Positions are concrete and can be held by persons in an enterprise (e.g., purchasing
administrator). Jobs, in contrast, are classifications of functions in an enterprise (e.g.,
administrator), which are defined by the assignment of characteristics. Jobs serve as
job descriptions that apply to several positions with similar tasks or characteristics.
- Jobs are used in the following application components:
o shift planning
o personnel cost planning
o personnel development
- Tasks are assigned to Jobs to describe what the responsibilities of the job are.
- Jobs are used in the position creation. Positions inherit tasks (among other settings)
from a job assigned to the position.
Positions
- Represents a post that can be occupied by a person (employee) in the staff assignments
of an organizational unit (purchasing administrator, for example).

- Positions differ from jobs. A job is not concrete, but rather the basis for the creation of
various positions with similar tasks and characteristics.
- When creating a new position (e.g., purchasing administrator), you can relate it to a
job that already exists (e.g., administrator). The position then automatically inherits
the tasks and characteristics of the job.
- This relationship will make it easier for you to create positions that are similar or the
same as you will not have to assign tasks and characteristics to each individual posi-
tion. You can also assign additional tasks and characteristics directly to positions.
- As a general rule, each position in the organizational plan represents one employee. It
is possible for one position to be occupied by multiple employees.
Persons
- An individual, who is listed as an employee in Personnel Administration.
- By assigning a person (employee) to a position, you determine:
o where a person (employee) is functionally assigned in your enterprise
o which tasks a person (employee) performs
- By assigning a person (employee) to a position, you implement integration between
Organizational Management (Organizational Structure) and Personnel Administration
(hiring, firing, developing employees, etc. - will be discussed later).
- In personnel administration, infotypes for persons are maintained. In the infotype or-
ganizational assignment (0001), in the organizational structure section, the position
held by a person is entered.
- Additional default values in personnel administration such as infotype of the employee
group and employee subgroup (1013) can be derived from data of the organizational
management.
User
- ID of a user. Users are maintained in User Maintenance.
- By assigning a user to a position, you determine
o where a user is organizationally (functionally) assigned in your enterprise
o which tasks are assigned to a user
o which users are to be forwarded tasks in a workflow
- Example of a user: WIP-xx-yy.
Tasks
- activity, which is performed within an organizational unit
- Using tasks, you can describe the task profile of organizational units in the Organiza-
tion and Staffing view.
- You can assign a task to
o an organizational unit if it is to apply to all subordinate positions
o a job if it is to apply to all positions described by the job
o a position if it is to apply to those persons (employees) or users who hold
the position
o a person (employee) if it is to apply to this person
o a user if it is to apply to this user

- You can also combine tasks to form task groups.
Cost Center
- An organizational object of Controlling (SAP CO) that is responsible for the cost ac-
counting of, e.g., a department, a work center, etc.
- You assign cost centers to organizational units or positions.
- Note that a Cost Center is not an element of the Organizational Structure of HCM.
- Higher level organizational units bequeath the cost center assigned to them along the
organizational hierarchy by default. That is, when you create an organizational unit or
position and assign it to a higher level organizational unit, the lower level organiza-
tional unit (or position) inherits the cost center of the higher level organizational unit
by default. You can change this cost center assignment manually.
- Organizational units can have multiple cost center assignments/percentages.
Personal Administration and Planning

- The system simplifies the processing of complex personnel procedures such as hiring
a new employee by using personnel actions. They help to integrate personnel admin-
istration and personnel planning.
- You can use personnel actions to:
o hire an employee
o change the organizational assignment of an employee
o change the employee’s pay
o set an employee’s status to early retiree or pensioner
o document when an employee leaves or re-enters the enterprise
- Personnel actions combine several related infotypes into one infotype group. Exam-
ples of personnel action types include the following:
o hiring an employee
o organizational reassignment
o an employee leaving the enterprise.
- With the Actions infotype (0000), you can display an overview of all the important
changes related to an employee, and you can, thus, document the most important stag-
es that an employee passes through in your enterprise.
- You can store information on the following in the Actions infotype (0000):
o Position
o Personnel area
o Employee group
o Employee subgroup
- The fields job, organizational unit, or cost center cannot be overwritten. They deter-
mine the relation to the position.
- The default values for the fields personnel area, personnel subarea, employee group,
and employee subgroup can be supplied by using the organizational unit or the posi-
tion.

Employee Records and Infotypes
3 Employee Records and Infotypes

The following section will give you an understanding of infotypes and their use in SAP ERP
HCM.
3.1 Theory: Employee Records and Infotypes (SAP HCM PA)

Infotypes are used in the Personal Administration (SAP HCM PA) and they are
the central source for storing employee (and applicant) based data.
Last name, first name, or date of birth, represent individual information and this
information is defined in data fields in SAP ERP. Data fields are combined
according to content-related information to data groups or information units.
In human resources, we refer to these information units as information types or short, info-
types.
Data in Human Capital Management are recorded in logically related groups according to
their content. For example, place of residence, street and house number of an employee who
has represented his or her address and are, thus, stored in the address infotype (along with
other information).
Infotypes have a name and a four-digit numeric key. For example, the address infotype has
the key 0006, the organizational assignment infotype has the key 0001.
Figure 46: Infotypes
3.1.1 Infotype Maintenance

ERP software must keep employee data up-to-date. When maintaining infotypes, you can
display, correct and supplement employee data. Human capital management stores employee
data in infotype records and provides each infotype with certain validity. Usually, that is a
validity interval or a key date.
There are three options to maintain infotypes:

- single screen maintenance

- personnel actions
- fast entry
Single screen maintenance (individual infotype maintenance):

For single screen maintenance, one single infotype is called up to maintain data for a certain
situation or subject. In single screen maintenance, an infotype is maintained for one personnel
number.
Personnel actions:
Personnel actions are used when a subject or situation is rather complex and when more than
one infotype is to be maintained. When carrying out a personnel action, the system displays
all respective infotypes to be maintained subsequently, one after another.
Fast entry:
Using fast entry, you can maintain an infotype for more than one personnel number at the
same time.
Figure 47: Infotype Maintenance
3.1.2 Initial Entry Screen for Maintaining Infotypes

The infotypes that are most frequently used in HCM are grouped according to their content
and assigned to static menus. An infotype can be included in more than one menu. Rarely
used infotypes might not be included in any menu at all. Menus are called up by selecting the
respective tab page in transaction PA30. The green check marks next to infotypes in the menu
list indicate that there are already records present for this personnel number.

Figure 48: Initial Entry Screen for Maintaining Infotypes
3.1.3 Personnel File

His or her personnel number (or personnel ID) uniquely identifies an employee in the SAP
ERP system. A personnel file exists for each personnel number that contains all infotypes for
which records are stored. When displaying the personnel file, all infotypes are displayed in
ascending numerical order.
In case several records exist for one infotype, the records within the infotype are displayed
one after another. Then, the system proceeds to the next infotype.
At the end, the system returns to the initial screen. In the personnel file, you can scroll for-
wards and backwards.
Figure 49: Personnel File

3.1.4 Organizational Assignment

When maintaining and saving the infotype personnel data (0002), the system automatically
displays the infotype organizational assignment (0001).
The following fields are already filled in by the organizational assignment:
- company code
- personnel area
- personnel subarea
- business area
- employee group and
- employee subgroup
Additional missing data can be entered manually.
In case the position was not recorded in the actions infotype (0000), this can be done here in
infotype organizational assignment (0001). The position is entered in infotype organizational
assignment in the organizational structure section of the infotype.
The entered position and its existent relationships to a job, an organizational unit, and cost
center, are imported to infotype 0001 automatically. The fields job, organizational unit, and
cost center can, therefore, not be overwritten manually.
Figure 50: Infotype Organizational Assignment

3.2 Practice: Infotypes

An infotype is the compilation of data related by its content, e.g., address,
bank account, supplemental payment. From a user point of view it is a mask
for data entry. An infotype can carry out plausibility checks, it can contain
required fields, it can be structured in subtypes, and it always has a validity
period. Maintaining personnel data is carried out almost entirely by using infotypes. Infotypes
feature a four-digit key along with their names.
- 0000-0999: Personnel administration
- 1000-1999: personnel planning and development
- 2000-2999: Time management
- 3000-3999: Logistics integration
- 4000-4999: Recruitment
- 9000-9999: Customer-individual infotypes
Figure 51: Process overview: Infotypes
To display the infotypes of an employee of IDES AG, choose
Human Resources  Personnel Management  Administration  HR Master Data 

Maintain (PA30)
- Enter personnel number 1001 and confirm with Enter.

- The following figure shows the personnel master data of employee Michaela Maier.
The personnel number is 1001. In the Core Employee Info tab you can see that info-
types Actions, Organizational Assignment, Personnel Data, Addresses, and Bank
Details were maintained. They are marked with green check marks. By selecting an
infotype and clicking one of the symbols on the upper left hand side of the screen, in-
fotypes can be created , changed , displayed , copied , delimited , or
deleted .

Figure 52: Personnel Master Data: SAP-System-Screenshot
- The individual infotypes are grouped by particular criteria (tabs).

- You can also use the Infotype Direct Selection to maintain or create personnel data.
The Action infotype is used to perform Personnel Actions upon a person, e.g., for
hiring personnel. It is an integration point between personnel administration (for per-
sons already working for the company = employees) and personnel planning (persons
who are not (yet) working for the company = applicants, etc.).
Example: When hiring a person, the master data records of the applicant from the per-
sonnel planning are transferred to the personnel administration master data records.
Therefore, a Personnel Action must be executed either in transaction PA40 (Personnel
Actions) or in transaction PBA7 (Direct Data Transfer). The data (e.g., organizational
unit, position, employee group) entered in the Personnel Action for hiring are trans-
ferred to infotype Action (0000) and create a relevant record there. A Personnel Ac-
tion normally executes several steps that belong together. Thus, it performs changes to
multiple infotypes.
However, you can also perform the change of one single infotype in transaction PA30
directly. For hiring, you must use infotype Action (0000) and the subtype Hire (01).

Figure 53: Infotype Maintenance (Infotype Action - 0000): SAP-System-Screenshot
Not every infotype has Action Subtypes. For instance, the infotype Organizational As-
signment does not have any subtypes, since you can only perform one action with this
infotype.
Figure 54: Infotype Action (0000) - Action Subtype Hire (01): SAP-System-Screenshot

- Now, select the infotype organizational assignment and choose display .

- You can see that Ms. Maier is assigned to the following organizational units
Enterprise structure:
a. Company code 1000
b. Personnel area 1300
c. Cost center 2100
d. Business area 9900
Organizational structure:
e. Position 50000076
f. Job 50011880
g. Organizational unit 50000073
Personnel structure:
h. Employee group 1 (active employee)
i. Employee subgroup DU (salaried staff)
j. Payrol area D2 (Salaried employees)
Figure 55: Display Organizational Assignment: SAP-System-Screenshot

- Return to the previous step and look for the infotype basic pay. What is the standard
salary of Ms. Maier? List the amount on your data sheet.
Basic pay Ms. Maier: ____________________________________
- You can execute the personnel file from the menu (Goto  Personnel File). On the
next screen press the display-button ( ). Skim through the infotypes. What is the
second infotype in Ms. Maier's personnel file?
Second infotype Ms. Maier: ____________________________________
Figure 56: Personnel File: SAP-System-Screenshot

3.3 Elucidation
You have learned what infotypes are, how they are structured, and how they are
used in SAP HCM.
3.3.1 Infotypes
- An infotype is a group of multiple data fields that logically belong together.
- Examples:
o Organizational Assignment (infotype 0001)
o Personal Data (infotype 0002)
o Addresses (infotype 0006)
o Education (infotype 0022)
o Other/Previous ERs (infotype 0023)
o Qualifications (infotype 0024)
o Bank Details (infotype 0009)
o etc.
- In transaction PA30, where you can maintain the personnel master data of an employ-
ee, the infotypes are grouped content-based on tabs. Thereby, an infotype can be on
two tabs at the same time.
- The tabs contain the most frequently used infotypes for personnel master data.
- You can access all infotypes through direct selection.
- Important: EACH infotype record has a validity date. That is, when creating, e.g., an
infotype for basic payment, you must enter the validity date from and date to for
which the salary is valid. If you create overlapping time intervals, the system issues a
warning and deletes existing infotype records if applicable. You can also maintain
multiple infotype records with disjunctive validity period parallel.
3.3.2 Infotypes Maintenance

- To keep personnel data up-to-date, you can display, edit, create, delimit, and delete
employee data.
- Each infotype record has certain validity. Usually, that is a validity interval or a key
date.
There are three options to maintain infotypes:

- Single screen maintenance (individual infotype maintenance):
o You perform this in transaction PA30 by selecting an infotype (either from a
tab or through direct selection) and pressing one of the function buttons (cre-
ate, edit, etc.).
o Thereby, you maintain ONE single infotype at a time ( single screen mainte-
nance).

o In single screen maintenance, one infotype is maintained for one personnel

number (employee).
- Personnel actions:
o You perform this in transaction PA40.
o Personnel actions are used when an action needs to be performed on a person-
nel master record that is rather complex and, thus, more than one infotype is
involved.
o Example: When changing the organizational assignment of an employee, e.g.,
the infotypes basic data, organizational assignment, basic payment, etc., might
need changes. In that case, you use personnel actions.
o When carrying out a personnel action, the system displays all respective info-
types that must be maintained or changed for this action, one after another.
o Using personnel actions, multiple infotypes are maintained for one personnel
number (employee).
- Fast entry:
o You perform this in transaction PA70 or PA42
o With fast entry, you can maintain one infotype for multiple personnel numbers
(employees) at the same time.
3.3.3 Initial Entry Screen for Maintaining Infotypes

- In transaction PA30, where you can maintain the personnel master data of an employ-
ee, the infotypes are grouped content-based on tabs. Thereby, an infotype can be on
two tabs at the same time.
- Rarely used infotypes might not be included in any menu at all.
- The tabs that contain the most frequently used infotypes for personnel master data.
- You can access all infotypes through direct selection.
- The green check marks next to infotypes in the menu list (tabs) indicate that there are
already records present for this personnel number.
3.3.4 Personnel File

- The personnel number uniquely identifies an employee in the SAP ERP system.
- A personnel file exists for each personnel number that contains all infotypes for which
records are stored; that is, all infotypes marked with the green checkmark are stored in
the personnel file.
- When displaying the personnel file, all infotypes are displayed in ascending numerical
order.
- In case several records exist for one infotype, the records within the infotype are dis-
played one after another. Then, the system proceeds to the next infotype.
- At the end, the system returns to the initial screen. In the personnel file, you can scroll
forwards and backwards.

3.3.5 Organizational Assignment

- The Organizational Assignment infotype (0001) deals with the incorporation of the
employee into the enterprise structure, the organizational structure, and the personnel
structure.
- This data is very important for the authorization and control of payroll.
- The fields for company code, personnel area, and cost center are not ready for input
here. If you want to edit these fields, you must perform a personnel action.
- Thus, the following fields are already filled in by the organizational assignment:
o company code
o personnel area
o personnel subarea
o business area
o employee group
o employee subgroup
- Additional missing data can be entered manually.
- In case the position was not recorded in the actions infotype (0000), this can be done
in infotype organizational assignment (0001).
- The entered position and its existent relationships to a job, an organizational unit, and
cost center, are imported to infotype 0001 automatically.

Processes in Human Capital Management
4 Processes in Human Capital Management

In times of increasing decentralization and the globalization of markets, an efficient and
transparent administration for personnel data is a decisive advantage. This section introduces
the fundamental functions of SAP ERP Human Capital Management.
4.1 Theory: Processes in Human Capital Management

The ability to meet personnel requirements is a key for enterprises. The success
of an enterprise depends on such factors as quality and availability of person-
nel. It is particularly important for the development and success of expanding
enterprises that they have quick access to adequate personnel.
The following figure displays several (not all) processes in Human Capital Management with
the functional subarea they belong to. The following components are discussed in detail in
this section
- Personnel Management (SAP HCM PA)
o Organizational Management (SAP HCM PA-OM)
o Recruiting (SAP HCM PA-RC)
o Personnel Administration (SAP HCM PA-PA)
o Personnel Cost Planning and Simulation (SAP HCM PA-CPS)
o Personnel Development (SAP HCM PA-PD)
- Training and Event Management (SAP HCM PE)
- Travel Management (SAP FI TV)
- Time Management (SAP HCM PT)
- Payroll Administration (SAP HCM PY)
- Reporting
- Employee Self-Services (SAP HCM ESS)
Figure 57: Processes in Human Capital Management

4.1.1 Personnel Management (SAP HCM PA)

The functional subarea Personnel Management (SAP HCM PA) is the central component for
recruiting new and managing existing employees.
4.1.1.1 Recruitment (SAP HCM PA-RC)

The component Recruitment (SAP HCM PA-RC) of SAP HCM PA has all the functions you
need for working through the entire recruitment process, from creating applicant data to fill-
ing vacant positions. The Recruitment component contains an entire range of powerful, flexi-
ble functions that you can use to implement an effective – and largely automated – recruit-
ment strategy.
The Recruitment component can be utilized to recruit human resources according to a compa-
ny's requirements, at any time. The number of applicants available for the company to choose
from can be increased by advertising for personnel (e.g., using job advertisements) or by re-
ceiving unsolicited applications. The applicants can be included then in the selection proce-
dure for vacancies and applicants that have not been deemed suitable for a particular vacancy
can be stored in the applicant pool, where they can be considered for other or future vacan-
cies.
From Vacancy to Hiring an Applicant

The recruitment component organizes the entire recruiting process in SAP, from the initial
data entry until filling vacant positions. Thereby, the SAP system features
- identification of personnel requirements
- creating job advertisements
- screening applicants
- managing applicant correspondence
When an applicant is hired, the data entered in recruiting can be transferred to personnel ad-
ministration as employee data.
Line managers can use the manager’s desktop to record decisions about applicants and to
trigger further administration in the HR department efficiently. External applicants can use
the Web application employment opportunities and employees can use the Employee Self-
Service component job advertisements to electronically attach application documents to
online applications.

Figure 58: From Vacancy to Hiring an Applicant
Application via Internet

The Recruitment component also features Web applications that support a company’s re-
cruitment strategy requirements. Thereby, external applicants can use the internet for job ap-
plications, leading to a fast and cost-effective medium from which both the company and the
external applicants profit.
SAP PA-RC provides the following Web applications:
- Employment Opportunities Web Application: With this application, external
applicants can display job advertisements of a company, apply for vacant positions of
the company, or change their application data.
- Application Status Web Application: This application enables a cost-effective and
efficient recruitment procedure by allowing applicants to check the status of their job
applications over the Internet. Hence, a part of the company's administrative duties can
be dispensed.
The internet application Employment Opportunities allows companies to enable users to par-
ticipate in the recruitment process by:
- presenting company's job vacancies to users and
- accept direct applications for positions
Moreover, applicants can display only vacancies for a certain region or all vacancies in the
company. Each advertisement contains a short description of the position and its require-
ments. The system refers to the advertisements stored in Recruitment for information on the
position.
Applicants can either apply directly in response to an advertisement or submit an unsolicited

application. For applications via internet, the applicant enters data concerning person, experi-
ence, qualifications, education, and training. The system automatically transfers these data to
the SAP ERP system. The applicant can attach application documents electronically with this
internet function. Since SAP R/3 Enterprise, an applicant can also add or change any entered
data.

Figure 59: Application via Internet
Hiring an Applicant
When hiring an applicant, data entered in the application process can be transferred from ap-
plicant master data to Personnel Administration (SAP HCM PA-PA). The data is transferred
directly from the applicant database to the employee database and is available in the new per-
sonnel master record for the newly hired employee. After data transfer, the system copies all
data that were recorded as default values in the Recruiting infotype (SAP HCM PA-RC) in
Personnel Administration (SAP HCM PA-PA). Thus, all data entered during the application
phase can be used and further maintained after hiring that applicant. This results in considera-
bly decreasing administration efforts.
In integrated systems, data are transferred either directly in recruiting or directly in personnel
administration. Additional data such as information regarding work hours and salary can be
added in personnel administration later. You also have the option to generate contracts for
applicants that you want to hire in SAP ERP automatically.
Figure 60: Hiring an Applicant

4.1.1.2 Personnel Administration (SAP HCM PA-PA)

You can manage all modern personnel administration tasks with the application component
Personnel Administration (SAP HCM PA-PA). Personnel Administration relieves you from
the daily administrative routine activities, which are costly and time consuming, while simul-
taneously supporting you in demanding planning activities.
Once the data of an applicant was transferred to the Personnel Administration, the data can be
used there for further processing. The main functions in SAP HCM PA-PA are the continuous
maintenance of the employee data (infotypes maintenance) as well as integration and alloca-
tion of the employee master records for other important functions in Personnel Management,
like Personnel Development.
4.1.1.3 Personnel Cost Planning and Simulation (SAP HCM PA-CPS)

Cost Planning enables a company to plan costs and create cost previews for organizational
units and cost centers.
This application allows simulating changes regarding personnel costs in the future for a com-
pany. Projected changes can be done on a percent or absolute basis. These simulations enable
you, e.g., to increase or decrease the number of positions and the figures of different employ-
ee payments. The simulated plan can be stored in different versions and then be compared to
other versions to retrieve trends, compare outcomes of reorganizations, etc.
Personnel cost planning and simulation is based on a wide data basis. It is integrated with
other applications in the SAP ERP system. Thus, this component can support cross-
department and cross-application business processes.
Payment information required to create personnel cost plans, can be derived from different
sources. This includes basic payments, payroll results, simulated reclassifications, recurring
payments, and on-time payments. For example, the results of payroll can be used as a data
source for Personnel Cost Planning. Planned payment data for the positions and jobs in Or-
ganizational Management can also be used as data.
Once the planning process has been executed, managers can make additional adjustments to
the plan. They can make the adjustments by using a web-based front end as a simple user in-
terface for planning (a phase of the detailed planning).
After plan release, SAP HCM users can use the data for the following:
- create a training budget for training and event management
- transfer data to accounting
- Extracting the cost projections for further analyses in the SAP NetWeaver Business
Warehouse

Figure 61: Personnel Cost Planning and Simulation
4.1.1.4 Personnel Development (SAP HCM PA-PD)

The personnel development function in SAP Human Capital Management increases the em-
ployees’ ‘value’ for a company by planning and implementing development and training
measures for employees. This increases motivation and satisfaction of employees by taking
into account individual preferences and suitability for jobs. The personnel development com-
ponent ensures that a company has all required qualifications and capabilities. This is
achieved by setting up qualification potentials.
A company can determine the development requirements of an employee by comparing job

requirements with current qualifications and development preferences of employees. The in-
formation required for the comparison is stored in profiles.
The management can aim at particular results with these development activities. For example,
using career and succession planning measures, you can determine whether an employee
should be transferred to a certain post. General measures can include the extension of existing
capabilities and knowledge of employees or ensuring that employees keep pace with techno-
logical changes.
Qualifying actions (training courses, job rotation, etc.) can be grouped to development plans
(e.g., trainee program for sales employees) and assigned to an employee. These qualifying
actions are referred to as general development plans, since they affect all employees of a
company. When general development plans are available in the SAP system, you can adjust
them to the individual requirements of employees.
In addition, you can praise employee performance and conduct. You can perform objective
setting. The appraisal results can provide input for planning an employee’s further career de-
velopment (input for employee's development plan).

Figure 62: Personnel Development and Qualifying Actions
Qualifications and Requirements

With the Qualifications and Requirements component, you define, structure and manage a
qualifications catalog. Based on this qualifications catalog and the organizational structure of
the company (and, if required, other information) profiles are created. These profiles can be
used to manage, evaluate, and compare object characteristics (employee vs. position). There-
by, profiles are used to show both the requirements of a position and the qualifications and
career goals (preferences) of a person. Furthermore, profile match-ups between an employee's
(person) and positions profile can be run to find out how suitable certain persons are for a
certain position in the company. If the result of a profile match-up reveals qualification defi-
cits, further training measures can be planned for the person in question.
Qualifications: Skills, knowledge or ability that is of interest to an employer. Qualifications

are used to define both qualifications profiles and requirements profiles. This means that it is
possible to compare an employee’s qualifications at a specific point in time with the require-
ments of his or her present or future occupation.
Requirements: Skills, knowledge, or ability required for a job or position. You can compare
the requirements and qualifications of objects against each other and thus establish whether
objects are suitable (e.g., persons for positions) or whether qualification deficits exist.
You can assign qualifications to both employees and positions. For employees, you refer to
them as qualifications; for positions, you refer to them as requirements. All qualifications
(and requirements) are stored centrally in a catalog. Both refer to the same (technical) object,
but from a different point of view. That is, you can compare qualifications of a person with
requirements defined for a position.

Editing the qualification catalog is carried out in customizing for personnel

development. You can still enter modifications after the system has already
gone live by choosing current settings from the menu.
Figure 63: Qualifications and Requirements

Training Proposals for Qualification Deficits
In case personnel development is linked to Training and Event Management, you can use the
generate training proposals functions from the personnel development component. The sys-
tem proposes possible training courses (business events) to gain missing qualifications. You
can book employees for courses directly or pre-book employees for business event types.
The system can also propose and assign development plans that impart required qualifica-
tions. Consequently, particular actions from this general development plan can be copied to
an individual development plan of an employee.
The system only proposes events and development plans that aim at least at the same or at a
higher degree of expertise and qualification (in comparison to the current ones of the respec-
tive employee in his/her infotype qualification).
Example: A mechanical engineer is supposed to work in Japan for a longer period of time.
When comparing her profile with the requirements of the tasks in Japan, it becomes apparent
that she does not have the required language skills. Since personnel development is linked to
training and event management, the system proposes a Japanese class that will provide the
engineer with the skills she will need for her new tasks. The administrator directly books her
for one of these classes.

Figure 64: Training Proposals for Qualification Deficits
Career and Succession Planning

The main objectives of career and succession planning are to promote personnel development
of employees and to staff positions adequately. Thus, it supports, on one hand, determining
how employees can develop within the company in order to change their roles (positions) and,
on the other hand, determines if there are suitable successors in the company for a specific
position. Career planning and succession scenarios are based on qualifications, preferences,
careers, potentials, dislikes and designations stored in the profiles of positions and persons.
Career and succession planning aims at two things:
- encouraging the professional development of employees
- ensuring of a sufficient number of employees
Career planning includes the determination of possible career objectives for employees as
well as planning their professional development. In succession planning, suitable candidates
to fill vacant positions are determined.
Figure 65: Appraisals

Appraisal System
SAP HCM provides an Appraisal Systems that can be used as a personnel development in-
strument for evaluating employees of a company in a planned, formalized, and standardized
manner. Evaluations of a company's personnel are usually carried out by trained persons,
commissioned especially for this purpose.
The Appraisal Systems contains personnel appraisals, which are used to obtain information on
the characteristics, behavioral traits, and performance of members of a company. These ap-
praisals form the basis for planning and making decisions that apply both to individuals and to
organizational members in general. Furthermore, personnel appraisals can be used to monitor
the success of human resource measures that have already been implemented. As a personnel
development instrument, therefore, they can be used both to evaluate the past, and plan for the
future.
An appraisal process usually encompasses several steps, such as planning, review, and execu-
tion, as well as evaluation of the appraisals submitted. Appraisals in SAP HCM can be
thought of as forms, which can be used to evaluate employees on a standardized basis. There-
fore, you define appraisal reusable templates in the appraisals catalog, which are then used to
create employee-related appraisal documents. In the appraisal documents, you can incorporate
objective-setting agreements as planned specifications, to which you can add information ei-
ther manually or by means of integration with other SAP components.
The Appraisal System in SAP HCM has the following integration points:
- Integration with SAP ERP HCM Personnel Development (PA-PD) enables you to
transfer requirements profiles from positions or qualifications in the qualifications
catalog directly to your employees’ individual objective-setting agreements.
- Integration with SAP Strategic Enterprise Management (SAP SEM) enables you to
display the department goals derived from the higher-level corporate goals in the
balanced scorecard and transfer relevant strategic goals directly to the object-setting
agreements for your employees.
- Once the appraisal process is complete, you can use integrated, automated follow-on
processes, such as updating the employee’s qualification profile in Personnel
Development, or adjusting his or her remuneration.
- Integration with Compensation Management enables you to automatically adopt
default compensation adjustments.
- Integration with SAP NetWeaver Business Warehouse (SAP NetWeaver BW) enables
you to compile special analyses of the appraisal results.
4.1.2 Processes in Training and Event Management (SAP HCM PE)

With the Training and Event Management component, you can plan and accomplish events
such as classroom trainings, trade fairs, conferences, etc. Training and Event Management
contains four major processes:
- In business event preparation, all master data required for creating the business
event catalog are recorded and maintained. This includes time schedules, event loca-

tions, resources, etc. Additionally, business event groups and types can be created that
constitute the basis of the event catalog.
- The second major process is the creation of the business event catalog. Individual
event dates can be planned and created with or without resources and in a single
process, multiple event dates can be planned according to existing demand.
- After that, day-to-day activities are carried out. In this process, you can
- book internal and external participants
- pre-book participation
- replace bookings
- cancel attendance
For each process, you can send an appropriate notification to participants. SAP
provides templates, which you can change to suit your requirements.
- Recurring activities include associated activities that need to be executed
periodically. This process step is closely integrated with the day-to-day activities.
Thereby events can be fixed, locked, and unlocked. This major process also involves
the management of follow-up. This includes appraisals written by the participants after
an event took place, or in the case of internal participants, the newly acquired
qualifications can be transferred to sub-profiles in Personnel Development.
Each of these processes is supported by HCM reporting.
Figure 66: Processes in Training and Event Management
Integration with other SAP ERP Components

A high level of integration with other SAP components qualifies the Training and Event Man-
agement component as an ideal tool for constantly extending and updating the employees’
knowledge. For instance, the link with Personnel Development enables identifying qualifica-
tion deficits and reacting with targeted training programs in Training and Event Management.
The link to the SAP Learning Solution enables you to combine traditional classroom training

in Training and Event Management with web-based learning methods that can be realized
regardless of time and location. The Training and Event Management component in SAP
HCM has the following integration points:
- Sales and distribution: billing of attendance fees, use of attendee types customer and
contact person
- Materials management: set of materials from the material master as resources for
business events, generation of purchase requisitions, and material reservations
- Personnel development: check for and transfer of qualifications as well as use of ap-
praisal systems from personnel development
- Time management: recording and checking participation (of internal event partici-
pants and instructors)
- Organizational management: use of organizational units to represent event partici-
pants and organizers of business events
- Personnel administration: use of persons from the HR master as participants and in-
structors
- Appointment calendar: automatic generation of entries in appointment calendar for
attendance bookings and instructor activities
- SAP Knowledge Warehouse: displaying information material from the knowledge
warehouse such as training materials, documentations, videos, and the linked self-
service applications
- Cost accounting: internal activity allocation of participation fees, instructor costs, and
transfer postings for business event costs
The SAP Learning Solution is a separate SAP software product. You can inte-
grate it with Training and Event Management. The broad palette of Training
and Event Management functions is very user-friendly. To ensure that it is as
intuitive as possible, Training and Event Management uses what are known as
dynamic menus. These menus enable you to access the individual functions of
the application directly via the objects in the business event catalog. You can right-click to
access the most frequently used functions such as the day-to-day activities in the dynamic
attendance menu.
4.1.3 Time Management (SAP HCM PT)

In a Human Capital Management application, it is essential to have options to evaluate work
carried out by employees and to determine employee availability. This information is also
essential for other areas in a company such as controlling (e.g., activity allocation in control-
ling) or logistics (e.g., capacity planning) and impact enterprise-wide decision-making. In
addition, time data can be integrated with other areas of HCM (such as Training and Event
Management)
The Time Management component offers flexible options for displaying and recording data.
This component supports all human resources processes, involving the planning, recording,
and valuation of internal and external employees’ work performed and absence times.

Time Management contains user-oriented interfaces, which support centralized and decentral-
ized entry and administration of time and labor data. Thereby, time and labor data of employ-
ees, can be processed centrally by administrators in the human resources department or they
can be processed by the individual departments by time administrators such as supervisors,
secretaries, and employees themselves. A special time evaluation program can evaluate mas-
ter data and time data and update time accounts (such as a flex time account). Information
about performed work is included in the calculation of the gross wage in payroll.
Time Management also enables you to record time and labor data online or using self-service
applications. The self-service applications range from the classic time recording subsystem,
through web applications, to mobile business applications. Employees can use these applica-
tions to request leave, record working-times, e.g., for orders or projects, and display their key
time accounts.
Figure 67: Time Management
The Time Data Recording and Administration component contains several methods for
recording and managing time data effectively and efficiently. This component encompasses a
comprehensive and effective business concept and related processes for manual and automatic
recording of personnel times. Time recording allows entering employee time data for working
time, leave, business trips, and substitutions by using different methods. This data can be en-
tered as clock times or in hours and can contain account assignment specifications for other
SAP applications.
There are various options (methods) available for recording time data such as hours worked,
vacation, off-site work, or substitutions:
- online by the time administrator (e.g., using the Time Manager’s Workplace)
- using front-end time recording systems

- using the Cross-Application Time Sheet (CATS)

- using Employee Self-Service (ESS) applications
In order to capture time data for an employee, special time infotypes must be available in the
employee's master data. Time data is stored in these infotypes in the same way that HR master
data is stored. The Planned Working Time infotype is the central time management infotype
and contains the working times when the employee is scheduled to work, according to the
work schedule assigned. The work schedule specifies when employees have to work and
when they are permitted to have breaks. The work schedule also covers days off and public
holidays. The work schedule is one of the prerequisites to run Time and also Payroll process-
es for an employee. Thus, the work schedule must be defined prior to entering it in the work
schedule field in the Planned Working Time infotype.
4.1.3.1 Cross-Application Time Sheet (CATS)

The Cross-Application Time Sheet (CATS) is a tool, which is used across multiple applica-
tions in SAP ERP. It is used for recording working times and tasks and enables the user to
control all business processes concerning employees’ tasks. This includes among others pay-
ing the employees, monitoring the progress of a project, and creating invoices. Although the
Time Sheet is primarily meant for central data recording, for example, by secretaries or time
administrators its main strength is that it enables employees to record their own data and,
thus, eases the time administrators’ workload. The data recorded by your employees is pro-
cessed in the target components.
Hence, CATS is another form of Employee Self-Service. CATS is an application that allows
for a consistent and cross-component working time record. That is, you can use this tool not
only in HCM, but also in Logistics, Project System, Financials, etc.
The time sheet has the following advantages:
- cross-application standard screens for entering working times
- simple use for all users
- default values and data entry templates
- integrated approval procedures
- correction options
- SAP extensions for increased flexibility regarding the definition of authorization
checks, plausibility checks, and default values
Using the time sheet (SAP CATS), working time information regarding performed working
hours can be made available for the following components:
- attendance and absence in HR (human resources)
- internal accounting and statistical key figures of CO (controlling)
- confirmations of PM/CS (maintenance/customer service)
- confirmations of PS (project system)
- activity input of MM-SRV (service)
Note that employees who are working with CATS should also have authorizations for the
target application with which the time and work data is exchanged.

Figure 68: Time Sheet CATS
4.1.3.2 The CATS Process

Working times are always entered for employees.
If a company does not use the Human Resources application within their SAP ERP installa-
tion, at least a mini master with some employee data is required. This mini master contains
the following infotypes:
- Actions (0000),
- Organizational Management (0001),
- Personal Data (0002) and
- the optional (but helpful) Time Sheet Defaults (0315)
If the Human Resources application is implemented within SAP ERP, the employee data is
already there. The employee master data then contains all necessary infotypes to capture and
process time and work data. It is always recommended to use the infotype Time Sheet De-
faults (0315), which supports the recording of time data with defaults for the Logistics and
Controlling components.
Furthermore, data entry profiles are required to enter times. It is possible to set up as many
profiles as necessary. The profile defines the layout and entry fields for recording times. Ad-
ditionally, it impacts the CATS process steps used by entering times via the specific profile.
Finally, authorizations play a central role in CATS. That is, you must assign the necessary
authorizations to the users that must have access to the CATS and target application (e.g., in
CO and FI).
The Cross-Application Time Sheet process consists of the following steps:

- entry of time data into the time sheet
- release of time data

- approval of time data (also possible via workflow)

- transfer of time data to target application
The steps “release time data” and “approve time data“ are optional.
1. Time Data Entry: Usually an employee enters his or her own data or a supervisor does it
for other employees.
2. Release: After entering times, they need to be checked. Only when the employee is sure
about the correctness of his or her data, does release the employee the data. This means
the data is ready to be approved.
3. Approval: Only approved data can be transferred to the target applications. Normally, a
supervisor or manager approves the employees’ time data. After approval, CATS data is
passed to interface tables of the target applications.
4. Transfer: The last step takes the CATS data (from the interface tables) and stores it in the
respective areas of the target application. Mention that even if there are four steps, it is not
necessary to perform each step separately. It is possible to skip steps. This can be defined
within a data entry profile. Authorizations can of course be used to allow the different
steps.
Figure 69: The CATS Process
4.1.4 Payroll Accounting (SAP HCM PY)

Payroll Accounting calculates the payment for work performed by each employee. A payroll
run is executed based on the payroll areas in the enterprise structure. That is, when executing
a payroll run, you do this for all employees of the specified payroll area.
The payroll run uses various employee master and time data. Furthermore, a payroll run in-
cludes multiple work processes such as creation of payroll results and remuneration state-
ments, bank transfers and check payments.

Within the payroll procedure, there are two basic parts of the payroll run: first, the calculation
of remuneration elements and second, the calculation of deductions. An employees’ remuner-
ation is calculated in two steps:
- grouping the remuneration elements, that is, the gross payroll
- legal and voluntary deductions, that is, the country-specific net payroll
Remuneration elements of an employee are derived from individual wage and salary types
that are used during the payroll period. The remuneration calculation includes payments such
as basic pay, different bonuses and gratuities. Deductions are possible for a company-owned
flat, day care or similar benefits. Whether these factors increase or decrease the taxable in-
come depends on the law of a country or, in some countries, on company regulations.
An employee’s remuneration consists of all wage and pay types determine individually during
a payroll period.
Payment is then, e.g., made by bank transfer or check and the employee is sent a notification
in the form of the remuneration statement or can view the information online by using an Em-
ployee Self-Service application.
Figure 70: Payroll Accounting
4.1.5 Travel Management (SAP FI-TV)

The travel management component contains all functions required for processing business
trips such as travel requests, approval, and settlement, and if necessary, corrections and retro-
active accounting. It is also possible to create travel requests prior to travel and trip planning
(hotel, airfare, etc.) right in the system. Corporate policies such as per diem rates will be taken
into consideration.
HCM master data, control parameters stored in views, and recorded travel facts are used in
travel planning and travel expenses. A reservation of travel services and booking by using an
external reservation system can be carried out. That is, the SAP ERP system can be linked out

to a travel provider such as Amadeus to book flights, hotels, etc. Subsequent revisions are also
possible.
The settlement (accounting) results can be transferred to financial accounting (SAP FI), pay-
roll, or to external systems. Payment using data medium exchange is also possible.
An employee must have the infotype Travel Privileges (0017) maintained in his employee
master data to allow expenses to be entered. This infotype can include control parameters for
trip cost accounting such as the car rule, reimbursement class, and reimbursement group for
employees.
Figure 71: Travel Management
Travel expenses
With the Travel Expenses function, you settle the travel expenses incurred by employees tak-
ing business trips. This component also includes the reimbursing of expenses to the employee.
Depending on the organization model of the company, the expense receipts are entered,
checked, and settled centrally by the expenses department, or (in the decentralized model) the
employee who took the trip enter the data himself with central monitoring of the trip data and
information. Depending upon the individual demands of the company's task structure or coun-
try specifications, the employees can choose from a range of different entry scenarios.
Using the travel expenses settlement program, you can settle all trips with the status ap-
proved/ to be settled. For test purposes, you can also settle individual trips if the end date of
the trip does not fall in a future payroll period.
For trips in particular payroll periods, the payroll program determines settlement results (es-
pecially the reimbursement amounts) by using the entered travel dates and stores the results in
the PCL1 (Data Cluster on the database containing HCM time data). To be settled, these trips
must end before the end date of the payroll period.

Figure 72: Travel Expenses
4.1.6 Employee Self-Service (EES)

Employee Self-Service (ESS) provides an intuitive interface for employees based on the SAP
Enterprise Portal (SAP EP) technology. SAP Employee Self-Service features many applica-
tions and allows employees to display, to create, and to maintain data in the SAP system over
the intranet.
SAP ESS has more than 70 services that can be used immediately.
Employees can use SAP ESS to:

- Search the Who’s Who
- View the calendar
- Check workflow work items
- Submit travel expenses
- Enter work times
- Enroll for benefits
The following employee information is available by using SAP ESS:

- personal data (payroll, time management, travel expenses, qualifications, and so on)
- public information (Who’s Who, calendar, education and training offers, open internal
vacancies, etc.)
Some benefits of SAP ESS include:

- well-informed employee decisions
- reduced administrative costs and shorter cycle times
- accurate employee records
- time and resources saved for strategic HR initiatives

Figure 73: SAP Employee Self-Service
Manager's Self-Service
SAP Manager Self-Service is an intuitive, easy-to-use application that supports managers in
their daily work. Manager's Self-Service is also based on the SAP Enterprise Portal (SAP EP)
technology. SAP Manager Self-Service comprises multiple intuitive Web applications that
enable managers to display, create, and edit data in SAP systems using a browser.
SAP Manager Self-Service covers the following subject areas:
- Employee reviews
- Employees’ change requests
- Monitoring
- Reporting
- Recruitment
- Compensation planning
- Quota planning
SAP Manager Self-Service provides managers throughout your enterprise with tools that help
them accomplish these goals quickly and easily, which has a profound impact a company. All
managers become more efficient, effective, and proactive. And these tools enable them to run
their departments in line with the enterprise’s objectives. Central departments such as control-
ling or Human Capital Management can make personalized information available in the user’s
portal, so that managers find their information in their portal, in the right place at the right
time.
Figure 74: Manager Self-Service

4.1.7 SAP HCM Reporting and Analyses

Reports can be used to create information such as lists or statistics. Some reports also produce
graphics and others change data. Furthermore, report results (lists, statistics) can be passed to
MS Excel or MS Word for further processing.
Using Ad Hoc Queries, you can create reports. As of SAP R/3 (4.6C), the ad hoc query is
part of the SAP query. Although this application is referred to as InfoSet query in other SAP
ERP components, in HCM the term remains Ad Hoc Query.
Standard reports can be called from the SAP easy access menu or using the general report
selection. The Human Resources Information System (HIS) allows for accessing all HCM
reports from Structural Graphics. Moreover, the Manager’s Desktop is available in SAP.
This is a tool, tailored to the special requirements of managers for analyses and changes of
data.
Finally, the Business Warehouse (SAP BW) is another option to carry out reports and anal-
yses. The Business Warehouse is a system that is independent of SAP ERP, in which analyses
can be carried out. SAP provides business relevant contents as SAP BW Business Content.
The BW system is an additional product of SAP AG and serves as data warehouse for data
analyses. It can be integrated with SAP ERP.
Figure 75: Reporting and analyses
4.1.7.1 Information System Reports

Besides tools for the creation of reports, SAP features numerous standard reports for all SAP
applications. These reports are accessed from the main information system in the SAP easy
access menu or from an information system of a component or sub-component.
After calling up the information system for human resources, a standard report can be started.
It is also possible to independently create a report with one of the provided tools (Ad Hoc
Query, SAP Query, HIS). Reports created with Ad Hoc Query or SAP Query can be saved
and integrated into the standard report structure. Standard reports can be defined in customiz-
ing. The Ad Hoc Query in Human Resources provides users with the possibility to interac-

tively create his or her own reports without programming. The Ad Hoc Query is based on the
ABAP Query, which is a more expert way of creating reports, however, still without pro-
gramming.
To access a particular report, different hierarchical levels must be present in components.

Usually, reports are located on the lowest level of an information system from which they can
be carried out.
Figure 76: Information System Reports: SAP-System-Screenshot
4.1.7.2 Manager’s Desktop

With the Manager’s Desktop, SAP ERP provides a tool for managers, which displays all the
information managers need to independently carry out decentralized tasks. Transparency and
up-to-date information is offered at the touch of a button. Integrated reports support decision-
making and make it easier to control and check personnel processes in the department.
Examples:
- A line manager can call up area-specific organizational structures online and display
directly and indirectly subordinate employees. At the same time he can get infor-
mation about the salary structures in his entire area of responsibility.
- Manager’s Desktop provides line managers direct access to the personnel data of indi-
vidual employees, or displays budget overviews that allow them to compare planned
and actual personnel costs.
- With the Manager’s Desktop, you can display the current leave situation of employees
and, thus, use this information as a reliable basis for making decisions about employ-
ees’ leave requests.

- More transparency is available due to the integration of Manager’s Desktop with the
InfoSet Query in HR. This integration allows managers evaluating all employee-
related data and seeing customer-specific reports.
- Managers can also retrieve comprehensive information about accounting data, since
the Manager's Desktop is integrated with Financial Accounting and Controlling. In
this way, they can call up budget data or request cost center reports.
The initial screen of the Manager’s Desktop offers an overview of the default main scenario in
the Manager’s Desktop that consists of the five theme categories displayed in the figure be-
low. In customizing, you can organize these categories with function code according to cus-
tomer-specific hierarchies. Categories can also be extended with customer-individual func-
tions. Moreover, a user can deactivate unnecessary functions and categories on the initial
screen as well as on the screens of the different application components. You can always
switch between individual and default settings. The initial screen can be adjusted to customer
requirements in customizing. It can, for example, be enhanced with a company logo and/or a
background image.
Figure 77: Manager’s Desktop

4.2 Practice: Processes in Human Capital Management

In this exercise, you will accomplish the whole recruitment process, from ad-
vertising the vacant position in your company to hiring an applicant, and apply
several personnel administration functions upon the newly hired employee.
4.2.1 Recruitment
You are looking for a new employee for your sales and distribution department. First of all,
you are going to check the Staffing status of the position in your organizational plan. It should
be set to "Vacancy open". Then you will create an advertisement for the vacant position.
Note that all Transaction regarding Recruitment start with PB, whereas Transactions regard-
ing Personnel Administration start with PA.
Figure 78: Process Overview: Recruitment
4.2.1.1 Check Vacancy Status

First of all, check the Staffing status of your position. Therefore, select
Human Resources  Organizational Management  Organizational Plan  Organiza-

tion and Staffing  Change (PPOME)
1. Search for your Organizational Unit DepBike-xxyy. You should know by now how the
search function works.
2. Expand the nodes of your organizational plan and double-click on the position De-
partment Chief SD xxyy.
3. In the position details, the Staffing status should be V Vacancy open. Note the posi-
tion ID for yourself; you will need it in the following processes.

Figure 79: Staffing Status Vacancy Open (1): SAP-System-Screenshot
4. Leave the transaction.
You also can check vacancies in the Recruitment component by selecting
Human Resources  Personnel Management  Recruitment  Advertising  Vacancy

 Maintain (PBAY)

- Data selection period from current day
- Data selection period from 31.12.9999
- Vacancy ID of the position of SD chief
- Press Execute.
6. In this transaction you can see the vacancy status, you can change it, or you can create
a new vacancy. This was only meant to show you that employees who only have au-
thorization for the Recruitment component can also access the vacancies of the com-
pany, since that is the primary focus of their job.
Figure 80: Staffing Status Vacancy Open (2): SAP-System-Screenshot
7. Leave the transaction.

4.2.1.2 Create and Perform Job Advertisements

Within master data maintenance, it is now your job to create and perform the advertisement
for the new position of chief SD. The corresponding transaction is:
Human Resources  Personnel Management  Recruitment  Advertising  Adver-

tisement  Maintain (PBAW)
1. Create a new Job advertisement. Therefore, choose Execute or press F8.

2. In the next dialog, choose create advertisement ( ) or F7.
3. Let the system propose the next free advertisement number, by clicking the respec-
tive button ( ).
4. List the advertisement number on your data sheet.
Advertisement number:________________________________________________
5. Select Instrument FAZ (00000001).

6. Choose currents date as publication date.
7. Advertisement end is currents date + 1 week.
8. Publication costs amount to 15,000.00 EUR.
9. Enter job advertisement Sales Manager xxyy as Text name.
10. Maintain a text of your choice choosing maintain text ( ). Note that you
can only maintain the text if you have installed Microsoft Word. If you do not have
this software, leave this step out. Save the maintained text and go back to the adver-
tisement screen.
Figure 81: Create Job Advertisement: SAP-System-Screenshot

11. Press to add the vacant position to the advertisement.

12. In the following pop-up, search ( ) for YOUR position of Department Chief SD
xxyy (use the Asterisk search method). Mark the row and press the green checkmark
( ). Skip possible system messages with Enter.
Figure 82: Add Vacancy to Advertisement (1): SAP-System-Screenshot
13. The vacancy should now be stated in the Vacancies published field.
Figure 83: Add Vacancy to Advertisement (2): SAP-System-Screenshot
14. Save your advertisement.
Your boss requests a list of all advertisements existing in the system.

15. Export the list to an HTML-document (Local File) with the name JobAdvert-xxyy.
Figure 84: Export Advertisement List: SAP-System-Screenshot
Submit the document JobAdvert-xxyy together with the data sheet to your tutor at
the conclusion of this case study.
If you are a JavaGUI user, then this option is not available. In that case you do
not need to submit the document.
16. Additionally, export the file to office  private folders by clicking the export button
again and then select office. By using the Move button, your document is stored in
your private folder. Leave the transaction and return to the easy access menu.
Figure 85: SAP Business Workplace (1): SAP-System-Screenshot

17. Click the SAP Business Workplace button from the function menu ( ).
Figure 86: SAP Business Workplace (2): SAP-System-Screenshot
Definition of the SAP Business Workplace

Using SAP Business Workflow, you can easily structure business processes that
are not yet included in the SAP System. These may be simple release or approval
procedures, or more complex business processes such as creating a material
master and the associated coordination of the departments involved. SAP Busi-
ness Workflow is particularly suitable for situations in which work processes have to be run
through repeatedly, or situations in which the business process requires the involvement of a
large number of agents in a specific sequence.
Features
SAP Business Workflow provides a number of tools for defining and analyzing workflows as
well as for monitoring operation. You can also use SAP Business Workflow / WebFlow over
the Internet.
With SAP Business Workflow, you can define suitable agents for each step of the workflow
while the workflow is being executed. You can use deadline monitoring for the start and exe-
cution of all steps, so that each missed deadline provokes an individual reaction. Using an ad
hoc workflow, you can quickly create a workflow while the system is in operation.
The end user receives information about the activities that they are to be carried out in their
Business Workplace. This provides them with a central overview of all the activities that they
are authorized to carry out. They can commence the activities from here.
4.2.1.3 Initial Entry of Applicant Master Data

After creating and performing the advertisement, you received applications for the vacant job.
The application process is completed and many applicants applied for the sales manager job.
You already have a favorite candidate. Next, you have to deal with the recruiting process.
Now, enter and maintain applicant master data.

Choose the following transaction to initially enter applicant master data:
Human Resources  Personnel Management  Recruitment  Appl. Master Data 

Initial Data Entry (PB10)
1. Firstly, maintain the master data of an applicant using your own name.
2. Then, on the basic data initial entry screen, enter the subsequent data:
Reason 04 (New application)

Per. area 1000 (Hamburg)
Ap. group 1 (Active (external))
Appl range 3 (Managerial staff)
Pers. off DAU (Helmut Dauber)
Title Ms/Mrs/Mr
F.name Your first name
Last name Your last name
Birth dt. Your date of birth
Language DE (German)
Nationality DE (German)
Street Universitaetsstrasse xxyy
Postal code 45141
City Essen
Telephone +49201 - 333xxyy
Email [email protected]
Country DE (Germany)
Advertisement Your advertisement number
3. Next, select .
4. List the Applicant number that the system displays. Leave the transaction.
Applicant number:______________________________________________
4.2.1.4 Maintaining the Qualifications of the Applicant

After you initially entered data for your applicant, you need to maintain further data. Now,
you want to maintain the applicant's qualifications. Therefore, call up the following transac-
tion:

Maintain (PB30)
1. On the initial screen, enter your applicant number and press Enter.
2. You see that several infotypes are already maintained ( ) due to the initial entry of
applicant data in transaction PB10. You can check the entries by marking a maintained
infotype and press the display button ( ). For instance, you see that the Application
infotype holds the assignment to the job advertisement.

3. To maintain the qualifications of your applicant, select the qualifications infotype,

which are not maintained yet, and select the create button ( ) on the upper left hand
side of the screen.
Figure 87: Infotypes maintained: SAP-System-Screenshot
4. On the new screen you see the tabs Qualification, Potentials, Preferences, Dislikes,
and Appraisals. Now, maintain the qualifications tab. The applicant has the following
qualifications that you have to find by using the search function.
- Excellent Management Experience
- Very high Project Management Skills
- Above-average Communication Skills
- High Knowledge of Excel
5. Therefore, choose create from the lower menu and enter *Management* in the search
field. Press Enter.
Figure 88: Create new Qualification (1): SAP-System-Screenshot

6. In the result list, search for the Qualification Management Experience and select it.
Confirm with the green checkmark. The Qualification is added to the applicants Quali-
fication Profile.
7. Now, add the proficiency value 0009 (Excellent) in the field Proficny.
8. Now, maintain the remaining three Qualifications on your own. Use the following da-
ta.

Object ID Name of Qualification Proficiency

50025440 Communication Skills Above average
50025402 Project management Very high
50000551 Knowledge of Excel High
You can also use the Object IDs in your search. Since the Object IDs are
unique identifiers, the search is more efficient and you do not need to use the
Asterisks. However, consider that you probably would not know the Object IDs
in real work life, at least not all.
If the Object ID is not displayed, select View/Key on from the menu.
9. The result should look like this. Save after completing the qualification entries.
10. Now, maintain the remaining tabs on your own. Save when prompted.
Tab Type Object ID Qualification

Potentials Qualification 50000405 Market Research Skills
Preferences Qualification 30010189 Knowledge in Wordprocessing/Winword
Dislikes Qualification 50034171 French
Dislikes Qualification 50010176 Presentation Software
11. Save the data and leave the transaction.
4.2.1.5 Maintain Applicant Master Data

Now, you can see that on the initial screen of the Maintain applicant master data screen, the
qualifications for the applicant were maintained (green checkmark).
1. In transaction PB30 call up the recently entered master data of the applicant again
and check his dates. There should be a green checkmark for the following applicant
data:
- Applicant actions

- Application
- Organizational Assignment
- Personnel Data
- Qualifications
- Addresses
2. Call up the short profile ( ) and check regarding completeness.
3. Save the short profile of your applicant via System/List/Save/Office folders to your
private folder.
Figure 92: Short Profile: SAP-System-Screenshot
4. Also save the short profile as ShortProf-xxyy.htm as Local File.
Submit the document ShortProf-xxyy together with the data sheet to your tutor at
4.2.1.6 Vacancy Assignment

Now, the vacancy (SD-DC-xxyy) you created in organizational management is supposed to be
filled with your applicant (PB30). Add the new information to your applicant’s data from the
previous task and maintain the applicant master data again.
1. Select the Vacancy Assignment infotype and choose .
- Start date Current date
- To date 31.12.9999

- Vacancy priority 1
- Vacancy ID of your position SD-DC-xxyy
- Vac.assign.stat 1 (in process)
- Status reason 04 (new application)
3. Save the infotype.
Figure 93: Vacancy Assignment: SAP-System-Screenshot
4.2.1.7 Applicant Activities

You check the applicant activities transaction and want to notify the applicant regarding ap-
plication receipt by sending him a letter. Therefore, you need to maintain applicant activi-
ties within recruiting. Call up the following transaction:
Human Resources  Personnel Management  Recruiting  Applicant Activity 

Maintain (PB60)
1. On the Maintain Applicant Activities initial screen, enter your applicant number and
choose Execute ( ).
2. On the lower screen part you see the Planned Activities. On the upper screen part you
have the Completed Activities. You have the activity receipt of application in the
Planned Activities area. Select the line and press to maintain the activity. En-
ter your vacancy number (ID of your position SD-DC-xxyy) in the vacancy field if it
is not presented there.

Figure 94: Maintain Applicant Activities: SAP-System-Screenshot
In case you do not have Microsoft Word on your computer, skip document crea-
tion (step 3). However, if you have Microsoft Word on your local computer, you
should still consider that the integration of the Word templates on the SAP system
with your Word installation might not work very well. If you receive an error
message, skip step 3, too.
3. Create a Word document ( ), complete the text and save the document locally
as Receipt-xxyy. Add the receipt of application letter to your documentation.
Submit the document Receipt-xxyy together with the data sheet to your tutor at
4. Now that you have created the receipt notification, you can confirm the activity and
mark the applicant activity as completed. Therefore, select the line with the Receipt
activity and press and confirm the next screen. Thus, the activity
is labeled completed and transferred from the lower window to the upper one.
Figure 95: Complete Activity: SAP-System-Screenshot

5. Save the applicant activity.
4.2.1.8 Evaluating Applicants

Next, you want to gain an overview of the applicants and check their suitability. However,
regarding the vacant position, you are only interested in applicants that have a certain profile.
Your next task is to create a list with all applicants to be considered. Therefore, call up the
following transaction:
Human Resources  Personnel Management  Recruiting  Selection Procedure 

Applicant Pool  Via Qualifications  External Applicants (PBAQ)
Display a list containing all possible applicants that possess at least very high project man-
agement skills and at least above-average knowledge in Excel. Thereby, the first require-
ment is essential.
1. Search Qualifications for Knowledge of Excel and Project Management.
2. Enter the proficiencies.
3. Select the comparison option (higher or equal to).
4. Select whether qualification is essential or not.
5. Execute the comparison.
Figure 96: Generate Applicant List: SAP-System-Screenshot
6. Display a short profile of the applicant(s).

7. Export the list (List on the left-hand side of the menu) for further processing in
HTML to your local computer and add them to your documentation. Save the file as
ShortProf2-xxyy.
8. Store the short profiles in your personnel folder.

Submit the document ShortProf2-xxyy together with the data sheet to your tutor
at the conclusion of this case study.
4.2.1.9 Making a Decision in the Selection Process

Now, make a decision in the selection process and invite an applicant for an interview. First-
ly, maintain another applicant activity. Then, create the next planned activity (subsequent
activity to receipt of application confirmation), i.e., the invitation for today via telephone;
Mike Anderson is in charge of this activity. Again, select

Maintain (PB60)
1. Enter your applicant number and press Execute.

2. Select the activity that is already completed (Receipt) and choose . Se-
lect tel. invitation planned and confirm with Enter.
3. Delete the standard text if necessary and choose Mike Anderson as person in charge.
Figure 97: Create Follow-up Activity: SAP-System-Screenshot
4. Please make sure that the vacancy is entered and confirm with Enter.
5. Save the activity.

After a successful telephone interview, you are enthusiastic about the applicant and decide to
invite him/her for a personal interview.
Making a decision regarding a personal interview

Create another applicant activity as follow-up to the telephone invitation.
6. The follow-up activity to telephone invitation is the Interview Invitation.

- The person in charge of this activity is Mike Anderson.
- Please make sure that the Vacancy is entered and confirm with Enter.
The applicant was strongly convincing and, thus, your next task is to prepare hiring. Before
that, you need to mark all previous tasks as completed (PB60).
7. Mark the activities telephone invitation and invitation to personal interview as com-
pleted. Save.
Figure 98: Complete Activities: SAP-System-Screenshot

4.2.2 Hiring
You have decided to hire the applicant. Within recruiting, you have to prepare to hire the
applicant and then transfer the applicant data to the Personnel Administration.
Figure 99: Process Overview: Hiring
4.2.2.1 Prepare Transfer of Applicant Data

To allow for the transfer of applicant master data to the personnel master record, you need to
maintain the applicant activity for hiring. Therefore, call
Human Resources  Personnel Management  Recruiting  Applicant Master Data 

Applicant Actions (PB40)
1. On the initial screen applicant activities enter your applicant number.

2. Enter the current date. Since the contract is supposed to be open-ended, accept
31.12.9999 as end date (on the next screen).
3. Select applicant action type prepare to hire and Execute (F8).
4. Save and skip the warning message with Enter.
4.2.2.2 Check Applicant Activities

Check the applicant activities for your applicant. Select

Maintain (PB60)
1. By running the activity prepare hiring, only two new activities should be planned
under planned activities. In case the activities transfer data and hiring date occur
more than once each select and delete repetitive entries ( ).

Figure 100: Planned Activities: SAP-System-Screenshot
4.2.2.3 Check and Complete Master Data

Prior to data transfer, check the applicant data regarding completeness and if necessary, add
required information. Select

Maintain (PB30)
1. Display infotype Applicant Actions within the applicant master data regarding com-
pleteness. The Applicant Action type should be 06 Prepare to hire. Go one step
back.
2. Maintain the infotype Bank Details of the applicant. Therefore, mark the bank details
infotype and press Create ( ).
3. Using the search function (F4), look for Deutsche Bank Frankfurt (bank name
search field) to find out the Bank Key for the Deutsche Bank in Frankfurt.
4. The bank account is 129xxyy. Enter purpose salary payment and press Save.
5. Next, maintain all entries concerning the Other/Previous Employers where the ap-
plicant was hired from 01.01.2005 until the end of the previous month.
Employer Linde AG
City Essen
Country Key DE (Germany)
Industry HITE (High Tech.)
Job 13 Manager
6. Finally, maintain infotype Education. Create the data at your discretion. However,
please note that education must not end later than 31.12.2004.
7. Check whether all master data (infotypes) were maintained (green ticks!).

Figure 101: Completed Applicant Master Data: SAP-System-Screenshot
4.2.2.4 Hiring the Applicant

Now that all preparations are completed, the applicant can be added to the personnel master.
This is your next task.
Transferring applicant data to the active personnel master requires that you
have completed the applicant activity at the beginning of the chapter hiring.
Call up the following transaction:

Transfer Applicant Data  Execute (PBA7)
1. You are now in the Direct Data Transfer screen. To transfer the applicant data to the
personnel master directly, enter 01 (hiring) in the Action for hiring field and enter
your applicant number in the field Applicant number. Execute the transaction.

Figure 102: Transferring Applicant Data: SAP-System-Screenshot
2. On the next screen Create Action, check

- Personnel area should equal 1000
- Position should correspond to your position SD-DC-xxyy
- Enter the personnel number 12xxyy and list the personnel number on your
datasheet.
Personnel number: ___________________________________________
- Leave Reason for action and Reference Pers no. fields empty.
- Enter the employee group 1 (active) and the employee subgroup DS (mana-
gerial employees).

Figure 103: Create Action: SAP-System-Screenshot
- Save the entry.
3. Add the missing data in the subsequent window as follows:
Title Mr./Mrs./Miss
Initials Your initials
Maiden name Leave blank
Place of birth Your place of birth
Country of birth Your country of birth
Your nationality Your nationality, if not German
Marital status single
Religion - No church tax liability
Number of children Leave blank
Save the infotype.
4. Next is the Organizational Assignment view, check the organizational assignment of

your employee to
- CoCode 1000
- Pers. area 1000
- Cost Ctr CC-SD-xxyy
- EE group 1
- EE subgroup DS
- Payr.area D2
- Position Your Position of SD-DC-xxyy
- Job key Manage-xxyy
- Org. Unit SD-xxyy

Add the following data on the Organizational Assignment screen:

- Subarea Cancel any entry (!)
- Contract 01 Comm. employee
- PersAdmin 001 (Hilde Person)
- Time 002 (Thomas Zeit)
- PayrAdmin 003 (Gerhardt Abrechner)
List the following organizational data.

- Percentage: _________________
- Position: _________________
- Job key: _________________
- Org. Unit: _________________
- Org.Key _________________
- Save the infotype and delimit the vacancy by selection yes from the pop-up
menu delimit vacancy.
Figure 104: Organizational Assignment: SAP-System-Screenshot
5. In the Create Addresses view, maintain the distance to the place of work as 20 (km).
Save the infotype and skip a possible system message.
6. In the next view, maintain the Planned Working Time. Therefore, enter 8 hours dai-
ly working hours and 5 weekly work days. Save the infotype.
7. In the creating basic pay view, maintain the applicant’s salary. The hired applicant
has the following data:
- pay scale Type 10

- pay scale Area 01

- pay scale Group AT
- Wage Type MA90 (Non-standard salary)
- Amount 10,800.00 EUR
- Save your entries.
Figure 105: Create Basic Pay: SAP-System-Screenshot
8. You already maintained the next view Bank Account. Consequently, you do not have
to change anything here, but save the view.
9. Skip the next steps until the system confirms the direct transfer of applicant data.
These views concern
- Capital formation ( + )
- Fiscal data( )
- Social insurance ( )
- DEUEV ( )
- Contract Elements (press save)
- Monitoring of Tasks (press save)
- Absence quotas (press save)
- Travel privileges (press save)
- Time Sheet Defaults (press save)
- Education (press save)
- Previous Employers (press save)
- Communication (press save and skip message with enter)
You might have noticed that with the execution of transaction PBA7 multiple subsequent
screens were maintained. As you know from the theory of chapter "infotypes", this is due to
the usage of a Personnel Action. The Personnel Action in this case was the "01" you entered
in the initial screen of PBA7 in the field action for hiring. This Personnel Action grouped all

necessary infotypes to be maintained upon data transfer from Recruiting to Personnel Admin-
istration.
The views you just saved without altering or the view you just skipped were
either already maintained or they are not relevant to this case study or would
require much differentiated entries, respectively.
With the last saving operation, your data should be accepted and the status is
O.K. However, if the status presented differs from O.K., this is not dramatically
at all. Check the employee's master data in the next step, to see if you can go on with the case
study.
4.2.2.5 Display Personnel Master Data

Finally, check whether your applicant was entered correctly into the system (Personnel Ad-
ministration) and maintain further infotypes if required. Therefore, call up the following
transaction and enter your new personnel number:

Maintain (PA30)
In case data from the applicant master or from the information of section
4.2.2.4 (hiring applicant), steps 3-9 are missing (e g., because the process of
transferring applicant data was not completed), maintain these data manually.
At least, the following infotypes should be maintained (green checkmark):
Basic data person: activities, organizational assignment, personnel data, address, bank ac-
count
Basic data work relationship: organizational assignment, personnel data, planned working
time, travel privileges
Payroll gross/net: basic pay
Payroll net: organizational assignment, payroll status
Payroll extras: organizational assignment, payroll status
Planning data: organizational assignment, education, qualifications

Figure 106: Check Transfer Results: SAP-System-Screenshot

4.2.3 Cross-Application Time Sheet (CATS)

Your new employee has now finished his first working day. Use the CATS functionality to
capture his/her working times.
Figure 107: Process Overview: Cross-Application Time Sheet
4.2.3.1 Create Infotype Time Sheet Defaults

Now, you want to create the infotype Time Sheet Defaults (0315) in the employee's master
data. This infotype is optional but recommended using since it can carry many default settings
for the time sheet application. However, in our case we will only assign the plant to the em-
ployees master data. Select

Maintain (PA30)
1. Enter the personnel ID of your new employee 12xxyy.

2. In the Direct selection area enter 0315 in the field Infotype and press the Create ( )
button.
3. Enter today's date as Start date and press Enter.
4. Enter Plant 1000 and press Enter.
5. Press Enter to skip any system warning messages if necessary.
Figure 108: Infotype Time Sheet Defaults: SAP-System-Screenshot

6. Save the infotype and return to the employees master data.
4.2.3.2 Capture Time Data

Your new employee has endured his/her first working day. Enter the following time data for
the new employee in the Cross-Application Time sheet using the “HR” profile. Thereby, the
employee worked 3.5 hours, had a doctor's appointment for 2 hours and another absence time
of 2 hours (you should have checked her/him out better before hiring;-))
Select
Human Resources Time Management  Time Sheet  CATS Classic  Record Work-
ing Times (CAT2)
1. Enter the following data

- Data Entry Profile HR
- press Enter
- Personnel Number your new employee 12xxyy
-Select the enter times icon ( ). If necessary, acknowledge system messages
by selecting the continue icon.
2. The Time Sheet screen is now displayed. Scroll to the right until you see the date col-
umns.
3. Enter 3,5 in the first row of the column with today's date (or if it is a weekend, enter
the dates in the next working day! To see the next week in the calendar use )
and press Enter to confirm. The system automatically proposes the attendance/absence
subtype 0800, which is Attendance Hours.
Figure 109: Attendance Time: SAP-System-Screenshot
4. On the next line, for today’s date, enter absence subtype (A/A Type column) 0230
(Partial Day Doctor’s Appointment) and 2 hours under the hours column (today's date
column) and press Enter.
5. In the third row, enter leave subtype 0100 in the Attendance/Absence Type column
(A/A Type) and enter 2 hours in the hours column. Press Enter.

Figure 110: Absence Time: SAP-System-Screenshot
Now check your entries and release the times for approval through a manager.
6. Switch to the Release View by choosing the Release View icon at the bottom of the
screen . Check that all the values are correct for the given situa-
tions. Then select the rows with your three entries and choose the Release icon at the
top of your screen ( ).
Figure 111: Release Time Data: SAP-System-Screenshot
7. Save your entries by selecting the Save icon. Return to the Easy Access Menu by se-
lecting the Back icon.
4.2.3.3 Approve and Transfer Time Data

Now, a line manager is going to approve the time data you entered and released. Select
Human Resources  Time Management  Time Sheet  Approval  Approve Working

Times (CATS_APPR_LITE)
1. In the Personnel Number field enter 12xxyy and Execute ( ) the report.
2. Select all (hold the control button on your keyboard and click on each row) rows and
approve the time by selecting the Approve Icon ( ).

Figure 112: Approve Time Data: SAP-System-Screenshot
3. Return to the Easy Access Menu.
Now, transfer the approved times to the HR system. Select
Human Resources  Time Management  Time Sheet  Transfer  Human Resources

(CAT6)
4. In the Personnel Number field, enter 12xxyy and run the report by selecting the Exe-
cute icon ( ).
5. Review the Log. How many times were transferred?
Times transferred: ____________________________________
6. Return to the Easy Access Menu.
Check the transferred time data in Time Management. Check whether the transferred time
data is entered in the “Attendances and Absences” infotypes for your employee. Select
Human Resources  Time Management  Administration  Time Data  Maintain

(PA61)
7. Enter personnel number 12xxyy and display the overview of the Absences infotype by
entering 2001 in the Infotype field in the direct selection area.
8. In the Period section, select the “All” radio button.
9. View the data by selecting the Overview icon ( ).

Figure 113: Absence Time Overview: SAP-System-Screenshot
10. Repeat steps 7 to 9 for infotype 2002 and view the overview of the Attendance info-
type.
Which number (percentage of planned work hours) is stated in the column "Att. day" for
the attendance record?
From when to when has the system recorded the Attendence time (columns From and To)?

4.2.4 Personnel Planning and Development

Now that your new employee commenced work, it is time to tap his full potential. Corre-
spondingly, the next section deals with personnel development. Moreover, you search an em-
ployee to manage the marketing department. This job is supposed to be filled with an internal
applicant. An employee from IDES group, Ms. Anja Müller, is interested in this job and an-
nounces her interest.
Figure 114: Process Overview: Personal Planning and Development

You first task is to create a requirements profile for the vacant job, to state Ms. Müller’s fur-
ther career and development opportunities and to check her suitability for the job in suc-
cession planning.
4.2.4.1 Maintain Requirements Profile for Position

Definition: Profile
Using a profile, specific characteristics, and information regarding an object can be main-
tained. Each profile consists of several sub-profiles (for persons, e.g., qualifications, poten-
tials) and some standard information regarding an object (for persons, e.g., name, personnel
number).
Usage
You can use profiles and sub-profiles to assign particular characteristics to objects. Thus, you
can, for example, assign qualifications and potentials to a person and requirements to a posi-
tion. Sub-profiles of objects can be compared and evaluated. Thus, you can determine suita-
bility or deficits of objects (e.g., of persons for positions). Each sub-profile and the complete
list of sub-profiles can be displayed graphically and printed.
To create the requirements profile for the Marketing position, call up the following transac-
tion:
Human Resources  Personnel Management  Personnel Development  Profile 

Change (PPPM)
1. Under position, look for your position department chief marketing xxyy (MA-DC-
xxyy).
2. In the requirements tab, enter the following qualification requirements with respec-
tive values :

Qualification/Requirement name Object ID Proficiency

Ability to organize and act 30000442 Average
Management Experience 50027189 Adequate
Verbal, written communicative skills 30000444 Adequate
MBA 30000680 Yes
Company Finance knowledge 30000402 Rudimentary
HR Management skills 30000401 Very good
Customer Service Orientation 50016737 High
Modification readiness 50025437 Average
Figure 115: Create Position Profile: SAP-System-Screenshot
4.2.4.2 Display Career Opportunities

Ms. Anja Müller is department manager in HR and she is looking for career opportunities in
IDES AG both on horizontal as well as on vertical level. You want to point out possible ca-
reer steps along the career model – without paying attention to her suitability profile. To carry
out career planning for your employees, call up transaction
Human Resources  Personnel Management  Personnel Development  Planning 

Career (PPCP)
1. Career planning is carried out for an individual Person (P). Enter Ms. Anja Müller
(personnel ID: 1000). Select the include career option on the career planning screen.
Execute planning.
2. The system proposes possible career paths and proposes several Positions available at
the company. Hereby, the system matches Anja Müller’s Qualification Profile with the
Requirements Profiles of all (vacant) Positions in IDES.

Figure 116: Career Planning: SAP-System-Screenshot
3. Position the cursor on the Area Header Data on the name Anja Müller. Select Go-
To/Ranking List from the menu. What is the most suitable position for Ms. Müller
proposed by the system? What is the matching percentage?
Most suitable Position: _____________________________________________

Matching Percentage: _____________________________________________
4. Gain all information required for the further career path of Ms Müller by choosing
Goto/Profile from the menu. Check, which qualifications she needs for this position.
Qualifications needed: _____________________________________________
4.2.4.3 Perform Succession Planning for Positions

Even though Ms. Müller is more suitable for another Position in your company, she applies
for the job of the Marketing department chief. However, after identifying career opportunities

for Ms. Müller, you want to determine whether there is a more suitable candidate within IDES
AG for the Marketing post. Using the recently created requirements profile for the vacant po-
sition, you will perform a profile match-up the other way around this time by comparing all
employees with the given Position. Look for a potential employee whose qualifications
matches best the profile of the vacant position.
To find a suitable employee for the position in marketing, call up the following transaction:
Human Resources  Personnel Management  Personnel Development  Planning 

Succession (PPSP)
1. Succession planning is carried out for the Position department chief marketing xxyy
(MA-DC-xxyy).
2. In the planning criteria, select Business Career as Additional Career. Execute plan-
ning. An alphabetical list of all employees to be considered is displayed.
Figure 117: Succession Planning: SAP-System-Screenshot
3. This time, the system proposes all candidates that might be interesting for the Market-
ing Position.

Figure 118: Interesting Candidates for the Marketing Position: SAP-System-Screenshot
4. Again, display a ranking regarding suitability. Carry out a ranking by choosing Go-
To/Ranking List.
- Which person seems to be most suitable for the position?
- Check her suitability in the To/% column.
- What is the percentage of the best applicant?
5. List the name and suitability percentage of the two most suitable employees on your
data sheet.
Name and suitability percentage two best applicants: ________________________
6. Display the Profile of the best suitable applicant by marking the row with the person
and pressing .
7. Go directly to the personnel master data of the best applicant (GoTo/HR Master Da-
ta). To what Position is the best applicant assigned organizationally in IDES AG?
Position best applicant: _____________________________________________
8. To which cost center is the best applicant assigned? List the number on your data
sheet and leave the transaction.
Cost center best applicant: ____________________________________________

4.2.4.4 Compare Profiles

It seems like Ms. Müller is not the only candidate for the vacant position. Display now the
profile of the employee who is best for the position. Call up the following transaction
Human Resources  Personnel Management  Personal Development  Profile  Dis-

play (PPPD)
1. Display the profile of the employee that you are interested in. Find the person by using
the Find by Person Search Term.
2. Which qualification has Ms. Schnuck? – Display a list of qualifications (menu: Qual-
ifications/List) and save the list locally ( ) as QualiSchnuck-xxyy.htm. Go one step
back.
Submit the document QualiSchnuck-xxyy together with the data sheet to your
tutor at the conclusion of this case study.
3. Again, go directly to the personnel master data of Ms. Schnuck. When was Ms.
Schnuck born? List the date on your data sheet.
BDay Ms Schnuck:_________________________________________
To determine which employee you promote to the Marketing head of department job, display
a comparison of both employee profiles.
4.2.4.5 Profile Matchup using Reports

Perform a profile evaluation of Ms. Anja Müller and Ms. Schnuck using a HR Report.
Therefore, select
Human Resources  Personnel Management  Personnel Development  Information

System  Reports  Profile Matchup (PEPM)
1. On the left side, select P Person and select Anja Müller and Hannah Schnuck. Add
them to the left-hand list.
2. On the right side, add the S Position MA-DC-xxyy to the right-hand list. Press Exe-
cute.

Figure 119: Profile Match-up (1): SAP-System-Screenshot
3. The system now presents a matching of both persons with the position. Hereby, the
individual qualifications are matched against the requirements of the position and a
Difference is calculated.
4. Select the column Difference and press the sum button . The system calculates the
total sum of all differences.
5. Since this value has no meaning at all, you want the differences to be presented differ-
entiating between the two persons. Therefore, select the column Object name and
then press the subtotals button . Now you get a better view on who is more suitable
for the position.

6. Which employee would you pick? Substantiate your decision and list your answer in
one sentence on your data sheet.
Hiring decision: _____________________________________________________
4.2.4.6 Employee Appraisal

Your new department chief SD was convincing until now. You need to create an appraisal of
his/her performance. Create a first appraisal for your new employee (we are talking here about
the employee you hired in the Recruitment process, not Ms. Schnuck or Ms. Müller). There-
fore, call up the following transaction:
Human Resources  Personnel Management  Personal Development  Appraisal 

Create (APPCREATE)
1. Select the appraisal form Managers Appraisal Khatami with a double-click.

2. The Manager is Alexander Meier (search Meier); the Employee is your newly hired
employee for the SD-DC-xxyy Position (not Ms. Müller or Ms. Schnuck), i.e., your-
self (12xxyy).
3. The period appraised starts with the day of hiring the new employee until today.
4. Assign the following appraisals for his competencies:
Communication Skills: rudimentary
Leadership: average
Problem Solving: excellent
Authority: very high
Department/Proj. Productivity: above average

Process Management: excellent

Operational Improvement: high
Willingness to learn: adequate
5. For willingness to learn, enter the following note:
Final appraisal after employee interview.
Figure 122: Perform Appraisal: SAP-System-Screenshot
6. Execute the appraisal.

7. Save and leave the transaction.
After an individual talk with the respective employee, Mr. Meier thinks about it and wants to
appraise the willingness to learn:
Human Resources  Personnel Management  Personal Development  Appraisal 

Change (APPCHANGE)
1. Call up the newly created appraisal. As Appraisal template select Managers Ap-
praisal Khatami.
2. Appraiser is again person Alexander Meier, appraise is person your employee and
the status of the appraisal is in process.
3. Press Execute.
4. Double-click the present appraisal and change the currently adequate willingness to
learn to above average and add in your note: Appraisal changed after employee in-
terview.
5. The appraisal elements Management Skills and Organizational / Development Skill
are generic terms for subordinate appraisal criteria. Their value is determined by an
average value.
6. Which values are shown for the overall appraisal (Managers_Appraisal_Khatami)?
List the numbers on your data sheet.

Value overall appraisal: _________________________________
7. Complete the appraisal by pressing .

4.2.5 Training and Event Management and Travel Management

You concluded that your employee has deficits regarding his communication skills. Thus, you
want to book him for a training course. Carry out training and event management in SAP
ERP.
Figure 123: Process Overview: Training and Event Management
4.2.5.1 Create Business Event

Now, you will create an own business event. This exercise is only meant to show you how
business events are created. In reality, you would of course attend an existing course and not
create an own course to visit it.
To create a Business Event select
Human Resources  Training and Event Management  Business Events  Dates 

Create without Resources (PV11)
1. Enter the following date:

- Business event type 50010630
- Business event xxyy
- Start date today's date
- Press .
2. On the next screen maintain the following data:
- Name Train-xxyy Training-xxyy
- Location 50000484 (Walldorf)
- Language English
- Number of Attendees Min 1
- Internal Price 1700 EUR
3. Press the button .

Abbildung 1: Create Business Event: SAP-System-Screenshot
4. Enter 1-DAY in the field Schedule and confirm with .

5. Save your event.
4.2.5.2 Book Business Event

Now, book your own business event. Therefore, call up
Human Resources  Training and Event Management  Attendance  Attendance

menu (PSV1)
1. Select Management and Leadership Development  Business Leadership  Com-

munication.
2. Search your own business event. Click on the right mouse button and select book from
the menu.

Figure 124: Booking a Communication Course (1): SAP-System-Screenshot
3. In the person field, enter your personnel number 12xxyy and choose book/payment
info.
4. Skip a possible message regarding a not attended class with Enter and choose the free
of charge option from the following dialog (fee and assignment). If prompted, enter
cost center 1000 in the first line of cost distribution in the cost center column.
5. Save your entry.
6. Leave the window “book attendance: data” with cancel ( ).
Figure 125: Booking a Communication Course (2): SAP-System-Screenshot

4.2.5.3 Traveling Costs

Your employee attended the course. Thus, travel expenses occurred that you have to settle.
Therefore, choose
Human Resources  Travel Management  Travel Manager (TRIP)
If you receive a message that travel privileges are not available for your em-
ployee 12xxyy, then go to transaction PA30 and create the Infotype Travel
Privileges for your employee 12xxyy.
1. Enter your personnel number 12xxyy and confirm with Enter.

2. Choose Create travel expense report. Confirm the next pop up.
3. Enter any future dates as start date and end date as trip dates.
4. Enter Walldorf as first destination.
5. Enter Training as reason for the trip.
6. In the lower window expense receipts, subsequently enter the following data and con-
firm with Enter:
- expense receipt Flight, amount 500
- expense receipt Hotel, amount 150, any description
- expense receipt Entertainment, amount 200, fill in all required fields
Figure 126: Create Expense Report: SAP-System-Screenshot
7. Save the expense report.

8. Return back to the travel manager. You can now see the reimburse amount.

9. Finally, choose the option change travel expense report in the very right column. In
the title bar, you can see the number of your travel expense report. List the number on
your data sheet.
Travel expense report number:_______________________________________

4.3 Elucidation
You got acquainted with several components of the SAP HCM application and
the processes that can be run in these applications. The main focus of this sec-
tion was on the personnel administration component.
4.3.1 Processes in Human Capital Management

Processes in the following components are relevant in the context of this course:
- Personnel Management (SAP HCM PA)
o Organizational Management (SAP HCM PA-OM)
o Recruiting (SAP HCM PA-RC)
o Personnel Administration (SAP HCM PA-PA)
o Personnel Cost Planning and Simulation (SAP HCM PA-CPS)
o Personnel Development (SAP HCM PA-PD)
- Training and Event Management (SAP HCM PE)
- Travel Management (SAP FI TV)
- Time Management (SAP HCM PT)
- Payroll Administration (SAP HCM PY)
- Reporting
- Employee Self-Services (SAP HCM ESS)
4.3.2 Personnel Management (SAP HCM PA)

Recruitment (SAP HCM PA-RC)
- Contains all functions needed for the entire recruitment procedure
o Workforce Requirement and Advertising
o Administration of applicant data
o Screening and selection of applicants
o Administration of applicant communication
o Filling vacant positions and
o Transferring applicant data to Personnel Administration
- Integration with
o Personnel Administration: for applicant data transfer
o Manager’s Desktop: for recording decisions about applicants and triggering
further administration in the HR department
o Personnel Development: for searching for applicants with particular qualifica-
tions
o Organizational Management: for maintaining vacancies
- Application via Internet:
The Web application employment opportunities allows external applicants (and com-
pany own employees) to do the following:
o Display job advertisements from your company (regional, total).
o Apply for vacant positions in your company.

o Submit unsolicited applications to your company.

o Create attachments (application documents with passport photograph).
o Create and change application data as required: Applicants can create an own
profile, entering data concerning person, experience, qualifications, education,
and training.
The application status Web application allows applicants to check the status of their
job applications over the Internet.
- Hiring an Applicant
When hiring an applicant, the data from the applicant master record is transferred to
Personnel Administration into an employee master record. Thereby, maintained info-
types are transferred to the matching infotypes of the employee master record (e.g.,
personnel data to personnel data or position from vacancy to position in organizational
assignment).
o This step is the integration point between Recruiting and Personnel Admin-
istration
o Using transaction PBA7 data from the applicant master record is transferred
directly to the employee database, creating a new personnel number.
o All data recorded in infotypes of the applicant are stored in the matching info-
types of Personnel Administration.
o Additional data such as information regarding work hours and salary can be
added later in personnel administration.
o Optional: System can automatically generate contracts for applicants.
Personnel Administration (SAP HCM PA-PA)

- management of all administration tasks regarding employees
- continuous maintenance of the employee data (infotypes maintenance)
- integration and allocation of the employee master records for other applications
Personnel Cost Planning and Simulation (SAP HCM PA-CPS)

- enables executing operational personnel cost planning and, thus, plan costs and create
cost previews for organizational units and cost centers
- You plan the development of your, e.g.
o employees’ wages and salaries
o employee benefit costs
o employer contributions to social insurance
o further education and training costs
o changes in personnel numbers (simulate personnel increase/decrease)
- Payment information required to create personnel cost plans can be derived from dif-
ferent sources: basic payments, payroll results, simulated reclassifications, recurring
payments, and on-time payments.
- enables simulation of different planning scenarios that are based on various assump-
tions and analyze the effects they have on the company
- personnel Cost Planning and Simulation enables supporting strategic personnel man-
agement and the overall strategy of your company

Features of Personnel Cost Planning and Simulation:

- You can include payment-relevant data in planning for the following standard cost ob-
jects:
o Employees
o Positions
o Jobs
o Organizational Units
- You can use different planning scenarios to compare various assumptions for person-
nel costs such as different salary increases or increases to ancillary payroll costs. This
enables you to simulate new compensation models and analyze their effects in detail.
- You can execute cost planning runs for individual organizational units, parts of an or-
ganizational structure, or for the entire organizational structure.
- You can decentralize parts of planning. Line managers can use a Web application to
view, change, and enhance planning for their area of responsibility.
- SAP Business Information Warehouse (SAP BW) enables you to monitor the plan
continuously and execute detailed reports.
- After plan release, SAP HCM users can use the data for the following:
o Create a salary budget for compensation management.
o Create a training budget for training and event management.
o Transfer data to accounting.
o Extract the cost projections for further analyses in the SAP NetWeaver Busi-
ness Warehouse.
Personnel Development and Qualifying Actions (SAP HCM PA-PD)

- Maximize employees’ utility within your company.
- Plan and implement specific personnel and training measures and, thus, promote your
employees’ professional development.
- Ensure that staff qualification requirements are met and planned.
- By taking into account an employees’ preferences and suitability, you can increase job
satisfaction.
- Personnel development sets out to ensure that all of the employees in all of the func-
tional areas in your company are qualified to the standards required at present, and
will remain so in the future. This is achieved by developing qualification potentials.
Personnel Development comprises the following components:

- Qualifications and Requirements
o You can store the most useful qualifications for your company in a qualifica-
tions catalog, and group them together into user-defined qualification groups.
o You can also define the proficiency scales you require.
o You can use the following sub-profiles to store information on objects:
 Qualifications enable you to map the abilities and skills of a person on
the basis of the type of skill involved and the degree of proficiency.
The qualifications are assigned to Employees/Persons. Qualifications
are defined in the qualifications catalog.

 Requirements enable you to map the typical requirements of a position

(or, job, work center, task) on the basis of the type of requirement and
the degree of proficiency involved. Requirements are qualifications as-
signed to Positions/Organizational units. Requirements are defined in
the qualifications catalog as well and, thus, are technically the same
objects as Qualifications (Qualification = Requirement)!
 Potentials are used to forecast the suitability of person, and his poten-
tial for and direction of development. Potentials can be taken into ac-
count in career and succession planning scenarios.
 Preferences can be used to store the individual preferences, aspirations,
and goals of persons with regard to their professional development.
Preferences can be taken into account in career and succession planning
scenarios.
 Dislikes can be used to store the individual dislikes of persons with re-
gard to their professional development. Dislikes can be taken into ac-
count in Career and Succession Planning.
o You can perform the following evaluations:
 Profile Matchups: This allows you to compare the requirements of,
e.g., Positions and Qualifications of, e.g., a Person against one another
and, thus, establish whether objects are suitable or whether qualifica-
tion deficits exist.
 Qualifications Catalog: This allows you to display the qualifications
catalog.
 Profile Evaluations: This function enables you to display in graphic
form an overview list of profiles for persons, positions, etc.
 Finding Objects for Qualifications: This allows you to search for per-
sons, etc., who possess a specific qualification, and who are available.
 Reports: This allows you to choose from other reporting options, in-
cluding some at the organizational unit level.
- Development Plans (Training Proposals for Qualification Deficits)
o You use this component to map general and individual personnel development
plans in your system. You can use these development plans to plan and man-
age short-term and long-term personnel development measures.
o The personnel development measures that you can depict by means of devel-
opment plans include:
 training programs (plans for apprenticeships, trainee programs and so
on)
 further education and training (training courses, workshops, and so on)
 on-the-job training, job rotation and so on
 individual development plans
o Individual development plans can be created for every employee and updated
continually. In this way, the entire training history of the employee in question
is recorded.
o You can store the following information on every item and every general de-
velopment plan within an individual development plan:

 Status (to monitor progress)

 Notes
 Validity period
You can automate status management for items to a certain extent. You can
use the status of an item to trigger further processing modules (e.g., to tempo-
rarily transfer an employee to a position automatically).
o Once a person has passed through a development plan successfully, any new
qualifications gained can be assigned to this person’s profile.
- Career and Succession Planning
o Enables you to create, implement and evaluate succession planning scenarios.
o Possible career goals can be identified and career plans can be set for employ-
ees.
o You use Succession Planning to find people to fill unoccupied positions. Ca-
reer and Succession Planning has two main goals:
 One is to advance employees’ professional development within a com-
pany,
 the other is to ensure that staffing requirements are met.
o The Career and Succession Planning component provides you with the follow-
ing functions:
 You can create careers. These describe the various career paths possible
within a company. Careers are used in career and succession planning
scenarios.
 You can define user parameters to specify whether essential require-
ments, alternative qualifications or depreciation meter information
should be taken into account in career planning scenarios.
 To identify career and development goals, you can carry out career
planning for persons and for other object types.
 To identify potential successors, you can carry out succession planning
for positions. You can analyze the knock-on effects of succession plan-
ning by conducting a simulation.
- Appraisal System
o With an appraisal, you evaluate characteristics, behavioral traits, and perfor-
mance of employees in a planned, formalized and standardized manner. Fur-
thermore, personnel appraisals can be used to monitor the success of human
resource measures that have already been implemented.
o Appraisals are defined as templates in the appraisal catalog and consist of key
figures, characteristics and evaluation scales. You use an appraisal form (ap-
praisal document) to evaluate the employee regarding these characteristics and
key figures (e.g., team working capabilities) on the given scale (e.g., very high,
high…very low).
o Appraisals are the basis for planning and making decisions that apply both to
individuals and to organizational members in general.
o An appraisal process usually encompasses the following steps
 planning,
 review,

 execution,
 and evaluation
4.3.3 Processes in Training and Event Management (SAP HCM PE)

The Training and Event Management component functions enable planning and managing all
kinds of business events (e.g., training events, conventions).
Training and event management contains four major processes:

- Business Event Preparation
o Create all of the necessary master data (such as resources).
o Set up a hierarchically structured business event catalog.
- Business Event Catalog
o Determine the demand for events and plan event dates based on this demand.
o Create and plan business event dates.
o Manage resources.
o Allocate resources automatically.
o Lock resources.
o Calculate business event costs and propose prices.
o etc.
- Day-to-Day Activities:
o Process all types of booking activities: prebook, book, rebook, replace and
cancel (levy cancellation fees optionally).
o Prioritize bookings.
o Book individual and group attendees.
o Check attendees for attendance prerequisites and time conflicts, etc.
o Output correspondence automatically or manually.
o Activity Allocation and Billing.
 Perform actual cost transfer posting for event costs.
 Perform internal activity allocation for attendance fees.
 Perform internal activity allocation for instructor function.
 Billing
o etc.
- Recurring Activities
o Generate attendance lists.
o Output confirmation of attendance notifications.
o Appraise attendees.
o etc.
- Reporting:
o Request reports for all relevant data on attendance, business events and re-
sources.
o Direct connection to Microsoft Word for all correspondence and publications
(such as event brochure, attendance lists or correspondence).
Integration with other SAP ERP Components

- Training and Event Management is an integral part of SAP HR and has interfaces to
all of the relevant SAP application components, making it a basis for extending and
updating your employees' skills and knowledge. Integration with Personnel Develop-
ment lets you convert training proposals directly into bookings for employees with
qualification deficits or needs. Integration points are:
o Sales and distribution: Attendance fees can be billed; customers and contact
persons can be booked as attendee types.
o Materials management: Materials from the Material Master can be reserved
as resources for business events; purchase requisitions and material reserva-
tions can be generated.
o Personnel development: Qualifications can be checked and transferred to at-
tendees. Users can also use the appraisal functions of the Personnel Develop-
ment component.
o Time management: Attendance records are stored and compatibil-
ity/availability checks can be carried out for internal employees and instruc-
tors.
o Organizational management: Organizational units can be booked as at-
tendees and can organize business events.
o Personnel administration: Persons from the HR master data record can be
booked as attendees or as instructors.
o Appointment calendar: When employees are booked as attendees or instruc-
tors for events, these appointments can be automatically generated in the SAP
Appointment Calendar.
o SAP Knowledge Warehouse: Info objects (training materials, documentation
or videos) can be displayed directly from Training and Event Management and
its Self-Service applications.
o Cost accounting: Attendance and instructor fees can be settled by using Inter-
nal Activity Allocation.
4.3.4 Time Management (SAP HCM PT)

- Provides support in performing all human resources processes involving the planning,
recording, and valuation of internal and external employees’ work performed and ab-
sence times.
- Provides other SAP applications with planning data and delivers information to busi-
ness processes such as:
o determining personnel costs (SAP CO)
o creating invoices (SAP FI)
o confirmations (SAP PP/ SAP CO)
o service entry of external employees (SAP CS)
o capacity planning (SAP PP)
o training and event management (SAP HCM)
o Cost assignment (SAP CO)
Features

- Planning employee time and labor

o Shift Planning enables to plan working times, shifts, and absences for the em-
ployees taking the employees' qualifications, working time preferences, laws,
guidelines, and cost factors into account.
o Make sure that enough qualified employees are available (change schedules,
put employees at the disposal of other departments)
o Simulate shift planning to, e.g., check and valuate the anticipated amount of
overtime.
o Provide employees and supervisors with planning overviews.
- Recording and administering time and labor data: Several methods of time recording
are available for entering time and labor data:
o Employees post their working times at external or frontend time recording
subsystems and the data is transferred to SAP ERP using the HR-PDC inter-
face.
o Employees use the Cross-Application Time Sheet (CATS) to record infor-
mation on their working times. These data can be used for further business
processes in Human Resources, Logistics and Controlling.
o Employee Self-Services: Employees use Web applications or mobile devices
to record their working times and receive information about their planned and
actual working times.
o Your time administrators such as supervisors and secretaries, use the Time
Manager's Workplace to decentrally correct and complete the time data of the
employees assigned to them.
o Your time administrators in the Human Resources department use the Main-
tain Time Data transaction to check and complete employees’ time data cen-
trally.
- Evaluating time and labor data:
o Time evaluation enables to valuate time data and provide bonus and overtime
wage types for SAP HR Payroll or a third-party payroll system.
o Time evaluation manages all kinds of time accounts, such as the flextime bal-
ance, overtime accounts or lifetime working time accounts.
o Simulations enable you to valuate future work and leave entitlements.
- Calculating incentive wages data
o Incentive Wages can be used to enter, prepare, and valuate payroll-relevant da-
ta for employees who are paid incentive wages or a premium wage. Both forms
of payment take account of employees’ performance.
o Incentive wages can be implemented for individuals or for groups. In individu-
al incentive wages, the amount of remuneration depends on one individual’s
performance only, whereas in group incentive wages, the result of the entire
group is taken into account.
o Payroll-relevant data can be transferred from a logistics system to the human
resources system. This is especially relevant for work confirmations from the
following SAP logistics systems:
 Production Planning (PP) and Process Industries (PP-PI)
 Plant Maintenance (PM) and Customer Service (CS)

 Project System (PS)

- Information on Time and Labor
o Time Management Information System provides extensive options for evaluat-
ing time data, including simple standard reports such as leave overviews and
attendance checks for time administrators.
o You can put together datasets for human resources analysts that provide specif-
ic views of attendances and absences, balances, and wage types.
o The data warehouse application SAP Business Information Warehouse pro-
vides you with cross-departmental and cross-component data for analyzing
time and labor data and personnel costs. It delivers important key figures for
valuating productivity, costs, and absence times, for example.
- Time data is stored in the Planned Working Time infotype in the employees master.
It contains the working times and the work schedule assigned
Figure 127: Planned Working Time Infotype: SAP-System-Screenshot
Cross-Application Time Sheet (CATS)

- another form of Employee Self-Service
- cross-application tool for recording working times and tasks, i.e., can be used in sev-
eral SAP ERP applications
o attendance and absence in HR (human resources)
o internal accounting and statistical key figures of CO (controlling)
o confirmations of PM/CS (maintenance/customer service)
o confirmations of PS (project system)
o activity input of MM-SRV (service)
- enables controlling of all business processes concerning employees’ tasks (from pay-
ing the employees, through monitoring the progress of a project, to creating invoices)
- The time sheet has the following advantages:
o cross-application standard screens for entering working times

o simple use for all users, providing several user interfaces (Classic, Web inter-
face, Mobile interface, Service Provider interface)
o default values and data entry templates
o integrated approval procedures
o correction options
o SAP extensions for increased flexibility regarding the definition of authoriza-
tion checks, plausibility checks and default values
The CATS Process

- If a company does not use the Human Resources application within their SAP ERP in-
stallation, at least a mini master with the following infotypes is required for using
CATS and time management:
o Actions (0000),
o Organizational Management (0001),
o Personal Data (0002) and
o the optional (but helpful) Time Sheet Defaults (0315)
- It is always recommended to use the infotype Time Sheet Defaults (0315) which sup-
port the recording of time data with defaults for the Logistics and Controlling compo-
nents.
- Data entry profiles are required to enter times. The profile defines the layout and entry
fields for recording times.
- Authorizations for CATS and target application (e.g., in CO and FI) must be assigned
to the users that are eligible to enter working times.
The Cross-Application Time Sheet process consists of the following steps:

- entry of time data into the time sheet
- optional: release of time data
- optional: approval of time data (also via workflow)
- transfer of time data to target application
4.3.5 Payroll Accounting (SAP HCM PY)

- You can use this component to calculate the remuneration for work, done for each
employee. However, Payroll does not just involve the calculation of remuneration, but
consists of a variety of processes that are becoming increasingly important due to the
employer’s increased obligation to supply benefits and medical welfare. These bene-
fits are products of:
o Labor law
o Tax law
o Contribution law
o Benefits law
o Civil law
o Reporting law
o Information law
o Statistics law

- Calculation of Remuneration Elements

o The System calculates the gross and net pay, which comprises the individual
payments and deductions that are calculated during a payroll period, and are
received by an employee. These payments and deductions are included in the
calculation of the remuneration using different wage types.
o The remuneration calculation includes payments such as basic pay, different
bonuses, and gratuities. Deductions are possible for a company-owned flat, day
care, or similar benefits. Whether these factors increase or decrease the taxable
income depends on the law of a country or, in some countries, on company
regulations.
o An employee’s remuneration consists of all wage and pay types determine in-
dividually during a payroll period.
- Payroll Accounting includes multiple work processes:
o You release one or several Payroll Areas for payroll:
The system increases the period number in the payroll control record of the re-
spective payroll area by 1. You cannot change the master and time data for the
personnel numbers belonging to this payroll area if it affects the payroll past or
present. Changes affecting the future are still possible.
o You run payroll:
The system calls up a country-specific payroll program. It determines the cur-
rent payroll period from the payroll control record and performs payroll using
the values you entered in the payroll program.
o You check whether payroll has run correctly, or determine where errors have
occurred:
If the payroll has not run without errors, the system displays error messages
indicating where the errors have occurred. If necessary, you can set the status
of the payroll to Check Payroll Results during this phase. This way you make
sure that no changes are made to payroll-relevant data which could affect the
payroll past or present. In addition, the payroll area in question is locked for
payroll.
o You correct master or time data for personnel numbers which contain errors,
and which the payroll program could not process:
During the payroll run, the System flags the Payroll Correction field in the
Payroll Status infotype (0003) for all rejected personnel numbers. When you
correct master or time data for a personnel number, this field is also flagged. In
a payroll correction run, payroll only takes place for the corrected personnel
numbers.
o You release payroll again.
o You perform a payroll correction run.
o You post results to Accounting (SAP FI) and exit Payroll.
- Results: Payroll accounting includes further subsequent activities, for example:
o Transfer of payroll results to Financial Accounting
o Different evaluations, e.g., evaluation of payroll account
o Transfer of payments to third-parties, e.g., taxes

4.3.6 Travel Management (SAP FI-TV)

- Travel Management is an interface function between SAP HCM and SAP FI (Finan-
cial Accounting). In the employee master data in Personnel Administration (SAP
HCM PA-PA) the infotype Travel Privileges must be maintained for this process.
- It handles all processes involved in handling of business trips.
- It is integrated with settlement, taxation and payment processes.
- Travel Management enables
o requesting trips
o approving trips
o planning trips
o making reservations
o booking trips
o cancel trips
o creating travel expense reports
o transferring expense data to other functional areas
- You can use external reservation systems.
- Settlement results can be transferred to financial accounting (SAP FI), Payroll or to
external systems.
- Payment using data medium exchange is also possible.
- An employee must have the infotype Travel Privileges (0017) maintained in his em-
ployee master data to allow expenses to be entered.
Travel expenses
- The Travel Expenses function allows for settling the travel expenses incurred by em-
ployees taking business trips. The process of reimbursing the expenses to the employ-
ee is also improved.
- Depending on the organization model of your company, the expense receipts are en-
tered, checked, and settled centrally by the expenses department, or (in the decentral-
ized model) travelers enter the data themselves with central monitoring of the trip data
and information.
- Integration: You can:
o post travel expenses to SAP Financial Accounting (FI)
o allocate travel expenses to SAP Controlling (CO)
o allocate travel expenses to SAP Funds Management (FM)
o calculate taxation in SAP Payroll (HR)
4.3.7 Employee Self-Service (EES)

Employee Self-Service (ESS) provides an intuitive interface for employees based on the SAP
Enterprise Portal (SAP EP) technology. SAP Employee Self-Service features many applica-
tions and allows employees to display, to create and to maintain data in the SAP system over
the intranet.
SAP ESS has more than 70 services that can be used immediately.

Employees can use SAP ESS to:

- search the Who’s Who
- view the calendar
- check workflow work items
- submit travel expenses
- enter work times
- enroll for benefits
The following employee information is available using SAP ESS:

- Personal data (payroll, time management, travel expenses, qualifications, and so on)
- Public information (Who’s Who, calendar, education and training offers, open internal
vacancies, etc.)
Some benefits of SAP ESS include:

- well-informed employee decisions
- reduced administrative costs and shorter cycle times
- accurate employee records
- time and resources saved for strategic HR initiatives
Figure 128: SAP Employee Self-Service
Manager's Self-Service
SAP Manager Self-Service is an intuitive, easy-to-use, application that supports managers in
their daily work. Manager's Self-Service is also based on the SAP Enterprise Portal (SAP EP)
technology. SAP Manager Self-Service comprises multiple intuitive Web applications that
enable managers to display, create, and edit data in SAP systems using a browser.
SAP Manager Self-Service covers the following subject areas:

- Employee reviews
- Employees’ change requests
- Monitoring

- Reporting
- Recruitment
- Compensation planning
- Quota planning
SAP Manager Self-Service provides managers throughout your enterprise with tools that help
them accomplish these goals quickly and easily, which has a profound impact a company. All
managers become more efficient, effective, and proactive. And these tools enable them to run
their departments in line with the enterprise’s objectives. Central departments such as control-
ling or Human Capital Management can make personalized information available in the user’s
portal, so that managers find their information in their portal, in the right place at the right
time.
Figure 129: Manager Self-Service
4.3.8 SAP HCM Reporting and Analyses

Efficient Human Resources Management requires complete up-to-the-minute information on
employees in a company. SAP ERP HCM contains all relevant employee data. Thereby, it
provides several reporting tools and functions.
The following table displays the features of each reporting tool (Source: help.sap.com). How-
ever, you do not learn all the features. This is just an overview to clarify the differences be-
tween the tools.

Reporting Purpose Advantages Limitations

tool
Standard Provide solutions for your most fre- Can be used immediately Limited flexibility
Reports quent reporting requirements No developments required Output fields cannot be selected as
required
HIS Hierarchies are displayed as graphics User-friendly method of displaying hierar- Limited flexibility
Reports are executed using selected chical structures Tool is used to execute standard
structures or substructures, that is, Integration with InfoSet Query and standard reports and customer reports
using preselected sets of objects reports It cannot be used to create reports
No need to switch from one HR application to
another if you want to execute reports from
different applications
Little training required
InfoSet Query Intuitive, general SAP reporting tool User-friendly interface InfoSets and user groups must be
used to create customer reports Very easy to use defined in SAP Query before you
Enables you to create reports for all No programming required can use InfoSet Query
areas of HR If integrated with SAP Query, you can contin- Multiline lists cannot be displayed
When InfoSet Query is accessed from ue processing queries using SAP Query
Human Resources (HR), the Work Area Set operations enable you to create sets of
and User Group parameters already objects as required for which data must be
contain values and you can only per- output
form ad hoc reporting. If InfoSet Can be included in roles using a suitable
Query is accessed this way, it is called InfoSet
Ad Hoc Query in HR
SAP Query General SAP reporting tool used to Extremely flexible Restricted to data from the SAP
create customer reports No programming required System
Individual definition of user groups, Queries can be provided in the SAP Easy Each HR query can process data
InfoSets, and queries Access menu from just one HR logical database:
Includes numerous options for aggregating  Administration, Time Man-
data, performing calculations, and displaying agement, and Payroll
graphics  Generally for all areas, but
Enables you to display multiline lists particularly suitable for reporting
Enables you to define one basic list and on data from Personnel Planning
several statistics and ranked lists for each  Recruitment
query Requires much more training than
other options
Business Analytical reporting tool used for Extremely flexible Data is extracted from OLTP
Information information and decision-making Facilitates complex calculations (calculation systems, that is, real-time data is
Warehouse purposes of averages, time series comparisons) not accessed
Enables you to access non-SAP data
Easy to use
Uses OLAP technology
Includes detailed Business Content (HR
extractors, InfoCubes, key figures, and stand-
ard queries)
Manager’s Desktop
The Manager's Desktop is not primarily a Reporting Tool but can be used as such as well.
Manager's Desktop assists in the performance of administrative and organizational manage-
ment tasks. In addition to functions in Personnel Management, Manager's Desktop also covers
other application components like Controlling and Financial Accounting.
In the Personnel Administration task area, Manager’s Desktop provides all the information
managers need to independently carry out decentralized tasks: transparency and up-to-date
information at the touch of a button. Integrated reports support decision-making and make it
easier to control and check personnel processes in the department.
The range of processes that line managers can initiate from their desk by using Manager’s
Desktop, is extremely varied. They can plan and modify positions, carry out reorganizations,
and initiate transfers, plan personnel resources or adjust wages and salaries. For personnel

tasks, line managers usually use Manager’s Desktop to initiate a process, which is then exe-
cuted centrally by the personnel department.
The executable functions in Manager’s Desktop (reports, transactions, access to URLs and the
workflow inbox, etc.) are subdivided according to content into the following theme catego-
ries:
- Employees
- Organization
- Costs & Budget
- Recruitment
- Workflow Inbox
- Special Interests

Data Sheet
5 Data Sheet
Congratulations! You completed the Human Capital Management case study.
The subsequent case studies are based on the results of this case study. In case your data dif-
fers from the description in the script, please contact your tutor prior to processing another
case study.
Finally, please submit the carefully completed data sheet to your tutor (use support email
address from the welcome mail) for the case study Human Capital Management.
Please comply with the naming rules. Non-compliant data sheets will not be accepted; i. e. re-
name the document that you downloaded from this course’s download area as follows:
07-human_capital-xxyy-zzz-surname.doc
Thereby, you need to replace xxyy with your user number without the “WIP“ and without the
hyphen (WIP-xx-yy) and replace zzz with the number of the client you are working on.
Example:
Your name is Max Mustermann, you are working on client 901, and your user number is
WIP-99-99. Then, name the document as follows:
07-human_capital-9999-901-Mustermann.doc
Also submit the following files along with the data sheet. For better organization please
add all files to one zip-archive.
- JobAdvert-xxyy.htm
- ShortProf-xxyy.htm
- Receipt-xxyy.doc
- ShortProf2-xxyy.htm
- QualiSchnuck-xxyy.htm

Reflexion
6 Reflexion
Test your knowledge. In this section you are confronted with some question re-
garding the theoretical chapters of this teaching unit. Try to answer the questions
on your own before taking a look at the standard solutions.
6.1 Questions
Comprehension Questions
1. What are the three structures that you define in Human Capital Management?
2. Name four steps in CATS?
Fill in the blanks to complete the sentence.
3. The steps in Cross-Application Time Sheet process are: __________________________,

and ________________.
4. The pages of a personnel file that make up an employee’s master data record and that are
created via a personnel action are called _________.
5. Infotype ___________ is for organizational structure.
6. The _____________ group employees according to how often they are paid.
True /False
7. A job represents a unique classification of responsibilities in your organization and is used

in defining positions.
8. When an infotype is updated, the old data is lost.

Reflexion
9. The employee group is an organizational unit defined for the purposes of payroll account-
ing.
10. The Personnel Area is a subunit of a Company Code
11. Employee subgroups are used to define payroll procedures.
12. When creating an employee master record, organizational assignment has the highest pri-
ority.
13. Infotypes that are required for a personnel action are grouped together.
14. Can you see which views were maintained on the screen maintenance?
Multiple Choice Questions
15. Which of the following statements about Employee Groups are correct?
(4 correct answers)
a. It is Used for reporting selection criteria.
b. It provides default values.
c. It divides employees by status.
d. It is used for authorization checks.
e. It is used for Payroll accounting.
16. Which of the following statements about maintaining employee master data are true?
(2 correct answers)
a. Data can only be stored for the present.
b. It is possible to have more than one of the same infotype.
c. Employees may maintain their own data through Employee Self Service.
d. Once hired, an employee may never change their organizational assignment.
17. Which of the following statements are correct with respect to a position?
(2 correct answers)
a. It needs to be occupied 100%.
b. One position can’t be occupied by more than one person.
c. Several positions can be based on the same job.
d. Usually one person is hired for one position.

Reflexion
18. Which of the following is correct regarding a payroll accounting area?

(3 correct answers)
a. It defines the type of payroll to be run.
b. It defines when payroll is to be run.
c. Employees can change payroll accounting areas.
d. It is a sub division of the personnel subarea.

Reflexion
6.2 Standard Solution
Comprehension Questions
1. What are the three structures that you define in Human Capital Management?
Enterprise, personnel and organizational structures
2. Name four steps in CATS?

Answers: Time Data Entry
Release
Approval
Transfer
Fill in the blanks to complete the sentence.
3. The steps in Cross-Application Time Sheet process are: Time data entry, release, ap-
proval, and transfer.
4. The pages of a personnel file that make up an employee’s master data record and that are
created via a personnel action are called infotypes.
Human capital management has hundreds of standard infotypes. Custom user-defined

infotypes can be created. Infotypes can be created via personnel actions or maintained
individually.
5. Infotype 0001 is for organizational structure.
6. The Payroll Accounting Area group employees according to how often they are paid.
True /False
7. A job represents a unique classification of responsibilities in your organization and is used

in defining positions.
True – a job represents a unique classification of responsibilities in your organization

and is used in defining positions.

Reflexion
8. When an infotype is updated, the old data is lost.
False. When an infotype is updated, data is not lost. Instead, it remains in the system so
that you can perform historical evaluations. Each infotype is stored with a specific valid-
ity period.
9. The employee group is an organizational unit defined for the purposes of payroll account-
ing.
False. The employee group is a general division of employees. The payroll accounting
area is used for the purpose of payroll accounting.
10. The Personnel Area is a subunit of a Company Code
Answer: True
11. Employee subgroups are used to define payroll procedures.
Answer: True
12. When creating an employee master record, organizational assignment has the highest pri-
ority.
Answer: True
13. Infotypes that are required for a personnel action are grouped together.
Answer: True
14. Can you see which views were maintained on the screen maintenance?
Answer: True – they have a green checkmark

Reflexion
Multiple Choice Questions
15. Which of the following statements about Employee Groups are correct?
(4 correct answers)
a. It is used for reporting selection criteria.
b. It is provides default values.
c. It divides employees by status.
d. It is used for authorization checks.
e. It is used for Payroll accounting.
Answers: a, b, c, d
16. Which of the following statements about maintaining employee master data are true?
(2 correct answers)
a. Data can only be stored for the present.
b. It is possible to have more than one of the same info type.
c. Employees may maintain their own data through Employee Self Service.
d. Once hired, an employee may never change their organizational assignment.
Answers: b, c
17. Which of the following statements are correct with respect to a position?
(2 correct answers)
a. It needs to be occupied 100%.
b. One position can’t be occupied by more than one person.
c. Several positions can be based on the same job.
d. Usually one person for one position is hired.
Answers: c, d
18. Which of the following is correct regarding a payroll accounting area?

(3 correct answers)
a. It defines type of payroll to be run.
b. It defines when payroll is to be run.
c. Employees can change payroll accounting areas.
d. It is a sub division of the personnel subarea.
Answers: a, b, c


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Integrated Business Processes with SAP ERP

Script 7: Human Capital Management

Tutor: Dipl.-Wirt.-Inf. Taymaz Khatami

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

4.2.3 Cross-Application Time Sheet (CATS) ............................................................... 115

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

Figure 50: Infotype Organizational Assignment ...................................................................... 58

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

Figure 101: Completed Applicant Master Data: SAP-System-Screenshot ............................ 108

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

1 Human Capital Management in SAP ERP

Educational objectives in this unit:

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

Figure 1: Process Overview: Human Capital Management

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

2 Organizational Structures in Human Capital Man-

2.1 Theory: Organizational Structures of SAP ERP HCM (SAP

The organizational structure is a functional structure, representing your enterprise based on

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

zational structure. The information of the organizational assignment of an employee is im-

Figure 2: Enterprise, Personnel, and Organizational Structures

2.1.1 Enterprise Structure in SAP Human Capital Management

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

Figure 3: Definitions Enterprise Structure

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

The most important organizational functions of personnel subareas are:

Figure 4: Example of Enterprise Structure in SAP Human Capital Management

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

2.1.2 Personnel Structure

Figure 5: Personnel Structure

2.1.2.1 Employee groups

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

Figure 6: Employee Groups

2.1.2.2 Employee Subgroups

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

Figure 7: Employee Subgroups

2.1.2.3 Payroll areas

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Figure 8: Payroll Areas

2.1.3 Organizational Structure

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

The organizational plan represents hierarchies with in a company:

Figure 9: Organizational Plan

2.1.3.1 Organizational Units

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

Figure 10: Organizational Units

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

Figure 11: Jobs

A job is used as a template from which positions inherit particular characteris-

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

Figure 12: Positions

Figure 13: Persons

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

2.1.3.5 Cost Center

Figure 14: Cost Center

2.1.3.6 Personal Administration and Planning

Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

Figure 15: Personal Administration and Planning