Topic : SAP Human Resources Configuration

Objectives:

1. Review Enterprise Structures in SAP - Human Resources

2. Create Personnel Structures in SAP Human Resources

Enterprise structures in Human Resources

In the SAP – Human Resources System the various components of the Enterprise structure are
Client, Company code, Controlling area, Personnel area and Personnel sub – area.

Enterprise Structure

Client

Company Company
Code Code

Figure 1.1

Client

The client is the highest level in the SAP System hierarchy. Specifications that you make or data
that you enter at this level are valid for all company codes and for all other organizational
structures. This reduces redundancy of data and the need for entering data more than once.
Maintaining this information centrally ensures standardized data.

Each client is a self-contained unit with separate master records and a complete set of tables. A
client key is used in all master records, which ensures that they are stored per client.

Users must enter a client key when they log on to the system. By doing so, they are telling the
system the client in which they wish to work. All the entries you make are stored per client and
data processing and analysis is also carried out per client.

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Company Code

The company code is the smallest organizational unit for which a complete self-contained set of
accounts can be drawn up for purposes of external reporting. This includes the entry of all
transactions that must be posted and the creation of all items for legal individual financial
statements, such as the balance sheet and the profit and loss statement. A company code can,
for example, be a company or subsidiary.

More than one company code can be set up per client, enabling you to carry out accounting for
several separate companies simultaneously.

Controlling Areas

Controlling area is an organizational unit from the Accounting component in the SAP System,
used to represent a closed system for cost accounting purposes.

In the standard SAP System, the controlling area constitutes the framework for planning,
allocation and monitoring of costs.

A controlling area may include single or multiple company codes that may use different
currencies.

The company code can correspond to exactly one controlling area

Enterprise Structure

Controlling
Area

Company
Code

Figure 1.2

 Several company codes can correspond to one controlling area

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 Controlling
Area

Company Company
Code Code

Figure1.3

The controlling area can be determined according to the company code by assigning the
controlling area directly to the company code.

Personnel Area

Personnel Area represents a division of a company code into subunits. Personnel Area may
represent the various geographical locations for an enterprise. The pay structure, the list of
holidays, etc vary with location and therefore they need to be configured separately.

Eg. Personnel area 1000 is for employees in Hamburg, 1100 is for employees in Berlin.

Controlling
Area (NA00)

Company
Code (US00)

Personnel Area Personnel Area

DL00 - Dallas MI00 - Miami

Figure 1.4

Personnel Subarea

Personnel subarea is a further subdivision of Personnel area. It may represent the various
departments or functions under a particular personnel area.

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 Controlling
Area (NA00)

Company
Code (US00)

Personnel Area Personnel Area

DL00 - Dallas MI00 - Miami

Personnel Subarea Personnel Subarea Personnel Subarea

Personnel Subarea
FI00 - Finance HR00 - Human PU00 - Purch.
Dept. Resource Dept. SD00 - Sales Dept. Dept.

Figure 1.5

Personnel Structures in Human Resources

The personnel structure for human resources relates primarily to work hours and
compensation. The components are Employee group, Employee sub- group and Payroll
accounting area.

Employee Groups

Divides or groups employees into various categories.

E.g.
 Active Employee
 Applicant
 Retired Employee

Employee Subgroups

It is a further sub-classification of the employee group.

E.g.
 Salaried employees
 Hourly employees

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 Employee Group 1 -
Active

Employee Sub group - Employee Sub group -

Salaried Hourly

Figure 1.6

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 Exe
rcises for creating Organizational and Administrative elements in SAP HR

Exercise : Review Company Code

Navigation
SAP menu Tools  Customizing  IMG  Execute Project 
Enterprise Structure
DefinitionFinancial AccountingEdit, Copy, Delete, Check
Company Code
Transaction code

 Double Click on Edit Company Code Data

Edit company Code Data

 Double Click on Edit Company Code Data

 Click on
 Enter company code : US00

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  Press Enter
 Select your company code US00
 Click on details
 Click on Address
 Press Enter.

 Press Save.

Record the following:

Company Code: ____________ Company Name: ____________________

 Press Exit

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Exercise : DEFINE PERSONNEL AREA

Navigation
SAP menu Tools  Customizing  IMG  Execute Project 
Enterprise Structure Definition  Human Resources
Management Personnel Areas
Transaction SPRO
code

 Click on
 Enter Personnel Area : DL00
 Press Enter
 Select your Personnel Area DL00
 Click on details
 Review Detailed Address
 Press Exit

Exercise : DEFINE PERSONNEL SUB-AREAS

Navigation
SAP menu Tools  Customizing  IMG  Execute Project 
 Enterprise Structure  Definition Human Resources
Management Personnel Sub areas
Transaction SPRO
code
 Double Click on : Create personnel subareas
 Enter Personnel Area : DL00
 Press Enter.

 Press Exit
Exercise : REVIEW EMPLOYEE GROUPS

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Navigation
SAP menu Tools  Customizing  IMG  Execute Project 
Enterprise Structure Definition  Human Resources
ManagementEmployee Groups
Transaction SPRO
code
The employee groups that we are going to use in the transactions in future are already
created. We can create new Employee groups by clicking on button.

 Press Exit

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Exercise : REVIEW EMPLOYEE SUBGROUPS

Navigation
SAP menu Tools  Customizing  IMG  Execute Project 
Enterprise Structure Definition  Human Resources
Management Employee Subgroups
Transaction
code

 Double click on Define Employee Subgroups

 Click on
 We are using employee subgroup as (Salaried Employee).
 Enter EE Subgroup :

 Press Enter.

 Press Exit

By doing the above activities we are done with the review of Organizational and
Administrative Elements of HR. Now we will proceed with the assignment of organizational
elements.

Exercise : Review Assigning Personnel Area to Company Code

Navigation
SAP menu Tools  Customizing  IMG  Execute Project 
Enterprise Structure Assignment Human Resources
ManagementAssignment of Personnel Area to Company Code
Transaction SPRO
code
 Click on
 Select your Personnel Area : DL00
 Country grouping controls the Master data maintenance and Wage types.

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  Press Exit

Exercise : Review Assignment of Employee Subgroup to Employee Group

Navigation
SAP menu Tools  Customizing  IMG  Execute Project 
Enterprise Structure Assignment Human Resources
ManagementAssignment of Employee Subgroup to Employee
Group
Transaction SPRO
code

 Click on
Enter the following details
 EE group : 1 (Active)
 EE subgroup : (Salaried Employee)
 Press Enter.
 Select the line
 Press Exit

Exercise : Review Employee subgroup grouping for Activity/Employment/Training status/

Employee Attributes

Navigation
SAP menu Tools  Customizing  IMG  Execute Project 
Personnel Management Personnel Administration 
Organization Data Organization Assignment Define Employee
Attributes
Transaction
code

 Select Define employee attributes

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  Select country Grouping : 10
 Press Enter

 In this table we have to maintain Activity Status, Employment Status and Training Status
for all our EEs and ESGs. Activity Status is a mandatory field.

 Press Save.
 Press Exit

Possible Entries under:

Activity Status 1 Active Employee
2 Retiree
3 Early Retiree
9 Other
4 Part-time work for retirees

Employment Status 1 Industrial Worker/hourly paid worker

2 Salaried employee
3 Civil Servant
9 Other

Training Status 1 Trainee/apprentice

2 Trained
9 Other

The above mentioned Configuration is mandatory to hire an employee for your Company
Code.

With the above configuration you can hire an employee and test the configuration for your
company code.

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