Configuring SAP HCM involves multiple modules, each with its specific configuration steps.

Below is a
detailed guide on configuring the core modules in SAP HCM:

1. Organizational Management (OM)

1.1 Define Organizational Units (Transaction: PPOCE, PPOME)

 Path: SAP Easy Access → Human Resources → Organizational Management → Organizational

Plan → Create.

 Create and maintain organizational units to represent the company's structure.

 Assign positions and jobs to organizational units.

1.2 Define Jobs (Transaction: PP01)

 Path: SAP Easy Access → Human Resources → Organizational Management → Organizational

Plan → Create.

 Define jobs as a general classification of tasks (e.g., Manager, Engineer).

1.3 Define Positions (Transaction: PP01)

 Path: SAP Easy Access → Human Resources → Organizational Management → Organizational

Plan → Create.

 Positions are specific instances of jobs (e.g., HR Manager, IT Engineer).

 Assign employees to positions.

1.4 Define Relationships (Transaction: PP01)

 Path: SAP Easy Access → Human Resources → Organizational Management → Organizational

Plan → Create.

 Define relationships between objects (e.g., position belongs to an organizational unit).

1.5 Maintain Plan Versions (Transaction: OOHAP_BASIC)

 Path: SAP Easy Access → Human Resources → Organizational Management → Tools → Basic
Settings → Maintain Plan Version.

 Manage different versions of organizational plans for testing and future scenarios.

2. Personnel Administration (PA)

2.1 Define Enterprise Structure (Transaction: SPRO)

 Path: SAP Easy Access → Human Resources → Personnel Management → Personnel

Administration → Organizational Data → Define Enterprise Structure.
  Define company codes, personnel areas, and personnel subareas.

2.2 Define Personnel Structure (Transaction: SPRO)

 Path: SAP Easy Access → Human Resources → Personnel Management → Personnel

Administration → Organizational Data → Define Personnel Structure.

 Define employee groups (e.g., active, retired) and employee subgroups (e.g., full-time, part-time).

2.3 Configure Infotypes (Transaction: PM01)

 Path: SAP Easy Access → Human Resources → Personnel Management → Personnel

Administration → Customizing Procedures → Infotypes → Infotype Catalog.

 Maintain standard infotypes like 0000 (Actions), 0001 (Organizational Assignment), and 0002
(Personal Data).

 Create custom infotypes if needed.

2.4 Define Actions (Transaction: SM30 – Table View V_T529A)

 Path: SAP Easy Access → Human Resources → Personnel Management → Personnel

Administration → Customizing Procedures → Actions → Set Up Personnel Actions.

 Define personnel actions (e.g., hiring, transfer) and assign reasons for these actions.

2.5 Set up Features (Transaction: PE03)

 Path: SAP Easy Access → Human Resources → Personnel Management → Personnel

Administration → Customizing Procedures → Features.

 Configure key features like ABKRS (default payroll area) and PINCH (default position).

3. Time Management (TM)

3.1 Define Public Holiday Calendar (Transaction: SCAL)

 Path: SAP Easy Access → Human Resources → Time Management → Work Schedules →
Holidays → Create Holiday Calendar.

 Set up public holidays and assign them to holiday calendars.

3.2 Define Work Schedules (Transaction: SPRO)

 Path: SAP Easy Access → Human Resources → Time Management → Work Schedules → Work
Schedule Rules and Work Schedules.

 Define daily work schedules, period work schedules, and work schedule rules.

3.3 Configure Time Data Recording (Transaction: SPRO)

  Path: SAP Easy Access → Human Resources → Time Management → Time Data Recording and
Administration.

 Set up time recording methods (Positive/Negative).

 Maintain infotypes like 2001 (Absences), 2002 (Attendances), and 2011 (Time Events).

3.4 Configure Time Evaluation (Transaction: SPRO)

 Path: SAP Easy Access → Human Resources → Time Management → Time Evaluation.

 Define time evaluation rules, schemas (e.g., TM00 for positive time management), and personnel
calculation rules (PCRs).

 Set up quota accruals and deductions.

3.5 Define Absence and Attendance Types (Transaction: SPRO)

 Path: SAP Easy Access → Human Resources → Time Management → Attendance/Absence →

Absence Types.

 Create and configure different absence types (e.g., sick leave, vacation) and attendance types.

4. Payroll Configuration

4.1 Define Payroll Areas (Transaction: SPRO)

 Path: SAP Easy Access → Human Resources → Payroll → Payroll Organization → Payroll
Areas.

 Define payroll areas and their periods.

 Assign employees to payroll areas.

4.2 Define Wage Types (Transaction: SPRO)

 Path: SAP Easy Access → Human Resources → Payroll → Payroll Data → Basic Pay → Wage
Types.

 Set up wage types for different earnings, deductions, and benefits.

 Configure wage type characteristics, processing classes, and evaluation classes.

4.3 Configure Payroll Schemas and Rules (Transaction: PE01, PE02)

 Path: SAP Easy Access → Human Resources → Payroll → Payroll Schemas → Edit Schemas.

 Modify or create payroll schemas (e.g., copy standard schema U000 for the U.S. payroll) and
personnel calculation rules (PCRs).

 Customize payroll processing steps as per business requirements.

4.4 Set up Payroll Posting to Financial Accounting (Transaction: SPRO)

 Path: SAP Easy Access → Human Resources → Payroll → Integration with Financial
Accounting → Posting to Accounting.

 Configure symbolic accounts and their mapping to general ledger accounts.

 Set up posting variants and document types.

4.5 Configure Tax and Social Insurance (Country-Specific)

 Path: SAP Easy Access → Human Resources → Payroll → Tax and Social Insurance.

 Set up tax models, wage types, and social insurance contributions according to local regulations.

5. Benefits Management (Optional)

5.1 Define Benefit Areas (Transaction: SPRO)

 Path: SAP Easy Access → Human Resources → Benefits → Basic Settings → Define Benefit
Area.

 Set up benefit areas and their related grouping.

5.2 Configure Benefit Plans (Transaction: SPRO)

 Path: SAP Easy Access → Human Resources → Benefits → Plans.

 Define and configure health plans, insurance plans, and savings plans.

 Assign eligibility rules and define plan attributes like coverage, cost, and employee contributions.

5.3 Define Eligibility Rules (Transaction: SPRO)

 Path: SAP Easy Access → Human Resources → Benefits → Eligibility → Define Eligibility
Rules.

 Create eligibility rules for different benefit plans based on employee groups, age, service years,
etc.

6. Personnel Development (PD)

6.1 Define Qualifications (Transaction: OOQA)

 Path: SAP Easy Access → Human Resources → Personnel Management → Personnel

Development → Master Data → Qualifications → Create.

 Set up the qualifications catalog, including qualifications and their proficiency levels.

 Assign qualifications to employees.

6.2 Configure Appraisal System (Transaction: PHAP_CATALOG)

 Path: SAP Easy Access → Human Resources → Personnel Management → Personnel

Development → Appraisal System.

 Define appraisal templates, criteria, and weightings.

 Set up appraisal processes and forms for performance evaluations.

6.3 Set up Career and Succession Planning (Transaction: PPSS)

 Path: SAP Easy Access → Human Resources → Personnel Management → Personnel

Development → Career and Succession Planning.

 Define career paths and succession plans.

 Assign potential successors to positions and manage development plans.

7. Reporting and Analytics

7.1 Standard HR Reports (Transaction: S_PH0_48000513)

 Path: SAP Easy Access → Human Resources → Information System → Reports → Standard HR
Reports.

 Use standard reports for analysis of employee data, organizational structure, time data, etc.

7.2 Custom Reports (Transaction: SE38, SQ01)

 Path: SAP Easy Access → Human Resources → Information System → Ad Hoc Query.

 Develop custom reports using ABAP or SAP Query.

 Set up custom queries and logical databases.

7.3 Ad Hoc Query (Transaction: SQ01, SQ02)

 Path: SAP Easy Access → Human Resources → Information System → Ad Hoc Query.

 Create ad hoc queries for specific HR reporting needs.

 Define user groups and authorization for queries.

8. Testing and Validation

8.1 Unit Testing

 Test individual configurations, such as infotype setups, payroll processing, and time management.

 Document results and adjust configurations as needed.

8.2 Integration Testing

  Test the integration between various modules, such as OM and PA, PA and Payroll, Time
Management and Payroll.

 Ensure data flows correctly across modules.

8.3 User Acceptance Testing (UAT)

 Conduct UAT with end-users to verify that the system meets their business requirements.

 Gather feedback and make necessary adjustments before go-live.

9. Go-Live and Post-Implementation Support

9.1 Data Migration (Transaction: LSMW, PA40)

 Migrate legacy data into SAP HCM using tools like LSMW (Legacy System Migration
Workbench).

 Validate data accuracy and completeness.

9.2 Go-Live Preparation

 Conduct final checks, including data consistency, authorizations, and performance.

 Plan for system downtime, if necessary, and communicate the go-live schedule to stakeholders.

9.3 Post-Go-Live Support

 Provide ongoing support to address any issues that arise after go-live.

 Monitor system performance and user satisfaction, and make further adjustments as needed.

10. Training and Documentation

10.1 End-User Training

 Develop training materials and conduct training sessions for HR personnel and end-users.

 Provide hands-on training and create user guides.

10.2 Documentation

 Document all configuration settings, business processes, and custom developments.

 Maintain a knowledge base for future reference and updates.