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SAPRUN Simple.
ABSTRACT
SAP, has evolved from a
small German start-up to
the world's leading
provider of enterprise
solution software over
course of last three
decades. Today, its offices
are located in more than
130 countries in worldwide.
The pristine intention was
to provide customers with
the dexterity to interact
with a common corporate
database for all wall-to-wall
range of working functional
areas (like Financial,
Logistics, Sales &
Distribution, Human
Resource etc.) into single
database. Now it’s been
used by many companies
in their everyday activities.
https://www.sap.com
SAP-R/3
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Contents
A) Introduction............................................................................................................. 4
SAP Developments in Version’s - ..........................................................................................4
 SAP R/1 (1972)............................................................................................................5
 SAP R/2 (1979)............................................................................................................5
 SAP R/3 (1992)............................................................................................................6
 SAP–ERP (2004)..........................................................................................................7
 SAP HANA (2015)........................................................................................................9
How does SAP helpful in business actions? ........................................................................10
B) Understanding Functional Modules in SAP –............................................................11
SAP-HR module ...................................................................................................................14
A. Foundation – ............................................................................................................14
B. Organization Management – ...................................................................................16
C. Personal Administration –........................................................................................17
D. Time Management –................................................................................................20
E. Payroll –....................................................................................................................20
F. Global Employment –...............................................................................................22
G. Performance Management System – ......................................................................22
H. Enterprise Compensation Management –...............................................................23
I. Reporting in SAP –....................................................................................................23
J. Authorization –.........................................................................................................24
C) SAP Consulting process –.........................................................................................25
SAP Single-phase Implementation Cycle - ..........................................................................25
SAP Multiphase Implementation – .....................................................................................26
D) Business Problem Statement...................................................................................27
Statement to the problem – ...............................................................................................27
E) Solution for the Business problem-..........................................................................27
Step by step process of creating enterprise structure –.....................................................28
Some of the screenshots .................................................................................................31
Bibliography ..................................................................................................................33
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List of Figure –
Figure 1-SAP Developments in Version’s........................................... 4
Figure 2 - SAP R/1.............................................................................. 5
Figure 3 - SAP R/2.............................................................................. 5
Figure 4 - SAP R/3.............................................................................. 6
Figure 5 - mySAP.com........................................................................ 6
Figure 6 - SAP R/3 Server................................................................... 7
Figure 7 - SAP-ERP ............................................................................. 7
Figure 8 - SAP-ERP BusinessOne ........................................................ 8
Figure 9 - SAP- ERP By Designed........................................................ 9
Figure 10 - SAP-HANA........................................................................ 9
Figure 11 - SAP Centralized Systems R/3 ......................................... 10
Figure 12 - SAP-HCM........................................................................ 12
Figure 13 - SAP-HCM key modules................................................... 13
Figure 14 - HR- Foundation.............................................................. 14
Figure 15 - SAP- Easy Access............................................................ 15
Figure 16 - SAP Display IMG............................................................ 16
Figure 17 - Organization Management (OM)................................... 16
Figure 18 - SAP T-Code PPOME........................................................ 17
Figure 19 - Enterprise Structure in PA ............................................. 18
Figure 20 - Personal Structure in PA ................................................ 18
Figure 21 - Organization structure in PA.......................................... 19
Figure 22 – Integration of OM & PA ................................................ 19
Figure 23- Time management.......................................................... 20
Figure 24 - Payroll............................................................................ 21
Figure 25 - Performance Management Process............................... 22
Figure 26 - Single Phase SAP Implementation Cycle........................ 25
Figure 27 - Multi-phase SAP Implementation Cycle......................... 26
Figure 28 - Case Study - Enterprise structure .................................. 28
Figure 29 - PA, PSA's etc.; Scree shots ............................................. 31
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A) Introduction
SAP a German based company with lengthen as “Systems Applications and Products” in
data processing; German elucidate as “Systeme, Anwendungen, Produkte”. On start by 5
IBM engineers called Hopp, Wellenreuther, Hector, Tschira and Platnner in 1970s ad
hoc cerebration the want for the common software which works as common solution for all
Industrial & Corporate database requirements. There pristine intention was to provide
customers with the dexterity to interact with a common corporate database for a wall-to-wall
range of applications.
Now, SAP is known worldwide for its unique innovations that help the customers run their
business with high efficiency. Some of its facts and figures stand as follows − More than
263,000 customers in 188 countries. More than 68,800 employees in more than 130
countries. Annual revenue (IFRS) of €1682 billion. Listed under the symbol "SAP" on stock
exchanges, including the Frankfurt Exchange & NYSE.
SAP Developments in Version’s -
Figure 1-SAP Developments in Version’s
R1 • 1972
R2 • 1979
R3 • 1992
ERP • 2004
S/4
HANA
• 2015
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The SAP applications consist of several installable units called SAP components. SAP ERP is
largest SAP application, & SAP ERP Central Components (SAP ECC) is the largest
components of SAP ERP.
SAP with different version –
 SAP R/1 (1972) – Here R refers to Real-Time Data Processing and 1 refers to 1 layer
Architecture in which 3 layers called Presentation, Application and Database which
were installed in one System/Server.
Figure 2 - SAP R/1
 SAP R/2 (1979) – Along with their Dialogue Based Business application, was and a
mainframe which included again 3 layers called Presentation, Application and
Database where it was installed in 2 different servers.
Figure 3 - SAP R/2
SAP R/1
Presentation Application Database
(1972)
SAP R/2
Dialogue
Based Server
Presentation Application Database
1979
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 SAP R/3 (1992) – Here it was an up gradation to both of the versions. Where all the
layers are installed in 3 different servers. Presentation- server 1, Application- server 2
& Database- server 3.
Figure 4 - SAP R/3
A new dimension products based on net over. The new R/3 provide the capability to manage
financial, asset, and cost accounting, production operations and materials, personnel,
plants, & archived documents. It runs on a number of platforms including Windows 2000 to
latest versions & uses the client/server model. SAP has recently recast its product offerings
under a comprehensive Web interface, called mySAP.com, and added new E-Business
applications, including Customer Relationship Management (CRM) & Supply Chain
Management (SCM).
Figure 5 - mySAP.com
SAP R/3
Server 1
Presentation
Server 2
Application
Server 3
Database
1992
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Until 1996 SAP R/3 was traditionally presented. There was an area representing financial
applications, an area for logistics, and one for human resources; the central area represented
the basis and development system. In CLIENT/SERVER based application, utilizing a 3-
tiered model. A Presentation Layer, Client & Interfaces with the user. SAP R/3 is arranged
into distinct functional modules, covering the typical functions in place in an organization.
Each module handles specific business tasks on its own, but are also linked to the others
applicable areas.
Figure 6 - SAP R/3 Server
 SAP–ERP (2004) – An ERP (Enterprise Resource Planning) a software which is
built for organization regardless of its Industry, Size and Strength. A standards based
software for business solutions some are as follows –
Figure 7 - SAP-ERP
SAP R/3 SERVER
Presentation Layer Interfaces with the USER Client
SAP-ERP
BusinessOne ByDesigned Business Suite
Business All in
One
2004
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1. Business One – Standalone version of ERP for SME (Small & Medium Enterprise).
One single, affordable business management solution that integrates the entire business
across Finances, Sales, customer & Operations in the business.
Figure 8 - SAP-ERP BusinessOne
Advantages of SAP Business One –
 Rapid Implementation
 Lower Costs
 Increased Productivity and cost control
 Sound business designs
 Scalability
2. By Designed – Hosted version of SAP for SME. The cloud designed for small
businesses and subsidiaries of large companies. Uses two-tier ERP deployment
model; On the Premise (HQ.) & Cloud (Subsidiaries).
Sales & Service
Inventory &
Distribution
Purchasing &
Operations
Accounting &
Financials
Management &
Administration
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Figure 9 - SAP- ERP By Designed
 SAP HANA (2015) – It’s a Hybrid in-memory database that combines row-based,
column based & object-based database technology. It is optimized to exploit the
parallel processing capabilities of new multi-core CPU architectures and technologies.
SAP HANA is a data-source-agnostic and flexible application that enables customers
to analyze and process large volumes of data from SAP and non-SAP systems in real
time.
Figure 10 - SAP-HANA
SAP HANA
Speed Scale Flexible
2015
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How does SAP helpful in business actions?
The SAP application will use a centralized system which will be interlinked with a single
server which help us to work on. It will be helpful in all the departments in the business level
where a common Server database will be stored and be interlink to work all the business
related within the organization.
Figure 11 - SAP Centralized Systems R/3
Benefits of it –
 Eliminates the duplication, discontinuity & redundancy in data.
 Provides information across departments in real time.
 Provides control over various business process.
 Increases productivity, better inventory management, promotes quality, reduced
material cost, effective human resource management, reduced overhead boosts
profits.
 Better customer interaction, increased throughput. Improves customer services.
Centralized
System R/3
Inventory
Finance
HR
Shop Floor
Executive
Vendors
Production
Planning
Sales
• CUSTOMERS
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B) Understanding Functional Modules in SAP –
1. SAP FICO
2. SAP MM
3. SAP SD
4. SAP HR
5. SAP CRM
 SAP FICO (Financial Accounting and Controlling)
SAP FICO is the important module where both Finance and Controlling records
financial transaction data. FI collects, records and processes the financial transaction
and information on a real-time basis and provides reports for statutory reporting
purpose.
 SAP MM (Material Management)
Material Management is one of the important topic in SAP which deals with
Procurement and inventory function occurring in the day to day transaction of an
organisation. It involves many other aspects like purchasing of goods receiving of
goods managing day-to-day consumption etc. MM is integrated with all other modules
in SAP.
 SAP SD (Sales & Distribution)
Another important module in SAP is S&D which handles the order processing, pre-
sale activities, receiving and managing sales orders, delivering products to customers,
generating bills managing shipment and distribution of goods to consumers.
 SAP HR (Human Resource)
This module deals with human resource management of organisation where this topics
deals with the hiring of an employee to till his termination from the organisation. It
consist of sub topics like as Payroll, Personnel Management, Recruitment, Time
Management & Organisation management.
 SAP CRM (Customer Relationship Management)
A very important topic to a real world business to a software also. SAP CRM is such
module which deals with the managing the customer relationship. This module help
business become more knowledgeable about the customer.
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SAP-Human Capital Management (SAP-HCM) – It’s one among important objective of
master data administration of SAP and is also called SAP Human Resource (HR) or SAP
Human Resource Management System (SAP-HRMS). SAP-HCM have many sub modules
bifurcations & all these modules are integrated with one another.
Figure 12 - SAP-HCM
SAP
HCM
Organizational
Management
(OM)
Personnel
Administration
(PA)
Time
Management
(PT)
Training &
Event
Management
(TM)
Recruitment
(PB)
PayrollPersonal
Development
Workforce
Planning
Compensation
Management
ESS
MSS
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The key modules SAP HCM are as follows,
Figure 13 - SAP-HCM key modules
•Personnel development, personnel cost planning, event
management, etc.
Organizational Management(OM)
•Personal & organizational structure, infotypes, integration
with time & payroll, etc.
Personnel Administration (PA)
•Time recording, Attendance, time schedule, shift
management, etc.
Time Management (PT)
•Payroll types, payroll group configuration, primary and
secondary wages, gross pay, bonus, etc.
Payroll
•Hiring an employee, maintaining HR master data, etc.
Recruitment (PB)
•Identifying training needs, scheduling training, training cost
management, etc.
Training and Event Management (TM)
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SAP-HR module –
A. Foundation
B. Organization Management
C. Personal Administration
D. Time Management
E. Payroll
F. Global Employment
G. Performance Management System
H. Enterprise Compensation Management
I. Reporting in SAP
J. Authorization
A. Foundation –
In SAP as base we have two type of foundation as in the following figure below,
Figure 14 - HR- Foundation
Administration Guides –
They are intended for administrators who work with the product regularly. Some of its
transaction code are PA30 - Maintain HR Master Data, OOAC - HR: Authorization main
switch, OOSB -User (Structural Authorization), PRMS - Display HR Master Data, PBAW -
Maintain T750B, PBAE - Applicant pool. SAP implementation partners and SAP
consultants should also see the Implementation section below,
Action Search - Enabling, using, and managing action search
Admin Center - Enabling and using the Admin Center
Batch Rules Processing - Using OffCycleEventBatch
Configuring Custom Navigations
Deeplinks
Directory Search Version Comparison
Extension Center - Enabling and using the Extension Center
Instance Synchronization - Using and monitoring instance synchronization
Job Profile Builder
New Home Page Upgrade Information
People Profile - Configuring the people profile UI for employee profile
Presentations
Public Profile - Enabling and managing the public profile for employee profile
SAP HCM
Administration
Guides
Implementation
Guides
Foundation
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Role - Based Permissions (RBP)
SAP SuccessFactors Mobile Deployment Guide
SAP SuccessFactors Mobile Security Guide
SuccessFactors Home Page - Configuring and managing the SuccessFactors home
page
Theme Manager.
Using Business Rules in SuccessFactors.
Using the Performance Metrics Portal.
V12 Profile - Enabling and managing the V12 profile UI for employee profile.
Figure 15 - SAP- Easy Access
Implementation Guides –
These are available for SAP implementation partners and SAP consultants.
Document Management
Implementing Business Rules in SuccessFactors
Instance Synchronization - Enabling and configuring instance synchronization
Metadata Framework (MDF)
Role-Based Permissions (RBP)
SAP HANA Cloud Platform, Extension Package for SuccessFactors
Scheduled Job Reporting Tool
Talent Search
SAP Easy Access
• Master Data Entry
• Transaction Data Entry
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Figure 16 - SAP Display IMG
B. Organization Management –
It’s a sub module of SAP which enables the organization to:
 Depict the organization and reporting structure and current organizational plan
 Analyze Current organizational plan
 Create additional organizational plan
 Create effective workflow management
Figure 17 - Organization Management (OM)
Where Configuration
Takes Place
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The T Code PPOME allows the user to view the data in a hierarchical view. Objects can be
created or maintained in this view.
The screen contains four distinct sections. Descriptions of the sections are below.
 Search Area-allows the user to search for objects in the system. By clicking on the
particular object, the user may conduct a variety of searches.
 Selection Area-displays the results of the search.
 Overview Area-displays the specific search result that is highlighted in Selection
Area
 Detail Area-displays the specific item highlighted in Overview Area
An organizational plan can be made with many object types, although the five basic
Object types are the building blocks.
Figure 18 - SAP T-Code PPOME
C. Personal Administration –
It is a sub-module of SAP-HCM. It handles the task of administration of Employees related
data. It saves time and cost by easing regular administrative task on employee related data and
functions.
 It stores the complete employee related data in a structured way and automatically
checks the integrity of data.
 Using Personnel Administration, employee administration will be easy and effective.
 It manages the functions like Employee Master Data maintenance, payroll calculations,
employee benefits, their personal data etc.
 It also helps to track various details like cost and compensations spend for employees.
 It helps he large organizations to deal the employees in a standardized way.
 All the data about an employee will be stored in HR info-types.
 Administrator can search, edit, and delete the records.
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Structures in PA –
 Enterprise Structure
 Personnel Structure
 Organizational Structure
Enterprise structure – It is bifurcation of the employees according to their work location and
Geographical region
Figure 19 - Enterprise Structure in PA
Personal structure – It is the bifurcation of employees in terms of the type of relationship an
employee holds with the company or the level of employment.
Figure 20 - Personal Structure in PA
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Organization Structure –
It is the hierarchical presentation of an organization into various departments according to the
functionality and Business Process
Figure 21 - Organization structure in PA
Integration of Personnel Administration and Organizational Management
If you integrate PA and OM, you can enter a position in the Actions Infotype (0000)
Figure 22 – Integration of OM & PA
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D. Time Management –
In Time Management, Employee working times are –
 Calculated
 Valuated
 Used in business processes
Components of time management are as follows,
 Shift planning
 Cross-Application time sheet
 Time data recording and administration
 Time Evaluation
 Incentive Wages
Figure 23- Time management
E. Payroll –
You can use this component to calculate remuneration for work done for each employee. The
system calculates the gross and net pay, which comprises the individual payments &
deductions that are calculated during a payroll period, and are received by an employee. The
payments and deductions are included in the calculation of the remuneration using different
wage types. After the remuneration payroll you can carry out various subsequent activities.
Those are like remuneration statement, Lists and evaluations.
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Figure 24 - Payroll
Prerequisites of Payroll
 Data Required for Customizing Payroll
 Enterprise structure (Personnel area, Personnel sub area)
 Organization Management
 Personnel Administration (Payroll area, Control Record)
 Time Management (Infotype 0007)
 Payroll procedure in the Company
 Taxes and Statutory compliances
Payroll is based on payroll driver; the country specific payroll drivers take the statutory and
administrative regulation of a country into account. Since the payroll driver has a module
structure, you can use the customizing functions to quickly modify the payroll procedure to
meet the requirements of your enterprise.
Payroll driver - you can use run payroll. In SAP payroll system, you have country specific
payroll drivers with the technical names.
1. RPCALCX0 - It contains No data about TAX social insurance regards for NET
remuneration
2. HXXCALC0 - It contains data about Tax and social insurance regulations for net
remuneration.
Note - "X" is the country specific.
Ex - USA - RPCALCU0, India - HINCALC0
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F. Global Employment –
 Global Employment refers to an employee scenario where an employee can have
multiple number of personnel assignments in several different countries.
 Most cases, only two countries will be involved. However, it is possible to have
multiple countries involved.
 In such cases, the employee is placed on an international assignment and may return
after a certain period of time.
Components of SAP Global Employment Solution
 Person ID Concept: Each employee receives a unique Identification number.
 Management of Global Employees: An employee has various personnel assignments
in different countries. The new assignment is planned and monitored through the
Infotype 0705 Checklist
 Payroll for Global Employees: The payroll solution for global employees is called
the Payroll for global employees. The payroll in the different countries can be run
simultaneously and can exchange Information between one another, if necessary.
G. Performance Management System –
The PMS is one of the important module in SAP HCM. It includes all the managerial aspects
including individual level, team/project level, organization level. The following table below
is representation of Performance Management Process,
Figure 25 - Performance Management Process
Benefits of PMS are as follows –
 Simulate performance
 Manage goals
 Review Goals
 Appraise Performance
Setting
Corporate
Goals
Setting
Departmental
Goals
Setting
Individual
Objectives
Mid Year
Review
Self Evaluation
360 Degree
Feedback
Final
Evaluation
Follow Up
Process
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H. Enterprise Compensation Management –
Compensation is a key factor in attracting and keeping the best employees and ensuring that
an organization has the competitive edge in an increasingly competitive world. Compensation
includes all forms of direct wages, salaries, incentives, commissions and bonuses given to
the workforce of an organization. Compensation management is one of the key activity that
support workforce performance and talent management process.
Compensation Administration –
 Perform compensation reviews including fixed pay, variable pay, and LTIs.
 Apply eligibility rules and guidelines based on different criteria such as performance
ratings.
 Implement approval cycles if required feedback, and compensation administration.
Long-Term Incentives –
 Administer LTI processes such as granting, vesting, life events, and taxation.
Budgeting –
 Create and maintain monetary and non-monetary budgets for the compensation
planning and LTI granting process.
Job Pricing –
 Export employee salary data for participation in salary surveys.
 Import salary survey data and create market composite results.
 Age and weight market data, compare internal and external pay and adjust company
pay structure if required.
I. Reporting in SAP –
SAP Human Resources provides you with more than 200 standard reports. They enable you
to perform standard reporting simply, and without you having to spend time and money on
development. This section gives you an overview of the standard reports that are available in
the following areas of Human Resources Management:
 Personnel Management
 Time Management
 Payroll
 Training and Event Management
 Organizational Management
The term report is used in the HR Reporting manual to mean executable programs that read
data from the database and then report on the data without changes being written to the
database. Reports in HR can be ABAP reports or queries.
Activities
A report is usually executed as follows:
1. You start the report from the SAP Easy Access menu, an info system, an application,
or the ABAP Editor, for example.
2. This takes you to the selection screen, in which you enter the required selection
parameters. By doing so, you determine the conditions that apply when the report is
executed. If you only want to report on a specific group of employees, for example,
you enter an organizational unit.
3. You start the report.
Design Enterprise structure in Personnel Administration
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4. The system reads data from the database, processes it in accordance with the report
you specified, and outputs the result.
5. Depending on how the data is output, you can continue processing, print, and export
the data.
J. Authorization –
In certain contexts, you may need several authorizations to perform an operation in the SAP
system. The resulting contexts can be very complex. The SAP authorization concept has been
realized on the basis of authorization objects to provide an understandable and easy-to-follow
procedure. Several system elements that are to be protected from an authorization object.
Authorization objects enable complex checks with multiple conditions for an authorization
that allows the user to perform an action. An authorization object groups up to ten
authorization fields that are checked in anANDrelationship. For an authorization check to be
successful, all field values of the authorization object must be maintained in the user master
data. Authorization objects are assigned to object classes for purposes of clarity. The
authorization objects for mySAP HR belong to the HR (Human Resources) object class.
You can display or edit the authorization objects and their fields using transaction SU21. You
can also use this transaction to create new object classes and authorization objects. The
authorization objects of the HR (Human Resources) object class have, as with all SAP
authorization objects, up to ten fields that are read by the system during an authorization check.
The P_ORGIN object (HR: Master Data) used in the standard SAP system consists of the
following fields:
Table 1 - Authorization
AUTHORIZATION
FIELD
LONG TEXT
INFTY Info type
SUBTY Subtype
AUTHC Authorization level
PERSA Personnel area
PERSG Employee group
PERSK Employee subgroup
VDSK 1 Organizational key
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C) SAP Consulting process –
Consulting with SAP Project Lifecycle with Different stages approach by Business to
implement SAP into their business is as follows,
SAP Single-phase Implementation Cycle -
Figure 26 - Single Phase SAP Implementation Cycle
A typical SAP project undergoes the following stages in its lifecycle –
Evaluation – Evaluation may be a decision to choose between different software vendors or
selection of products from a single vendor.
Project Preparation – Since a SAP implementation intends to map the organization processes
to the ones defined by SAP, the implementation needs to have on-board people with complete
knowledge of the organization business processes. The project preparation phase, amongst
other things, aims to identify this team.
Business Blueprint – A business blueprint includes what modules of a SAP product would
be used and the mapping of the existing business processes to the processes provided by SAP.
Design Enterprise structure in Personnel Administration
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Realization – The actual work of customizing the SAP software to be in sync with the
organizations business processes is done in this phase. It includes customization of existing
SAP package and solution along with the development of new objects based on requirement.
Testing – The changes made in the realization phase need to be tested in isolation as well as
in a consolidated manner using real-time data. This is done in the testing phase.
Final Preparation – The production system is prepared using the changes from the realization
and testing phases. Certain activities need to be done directly in the production system as well.
These activities take place during the final preparation phase.
Go-live – In this stage, the final product is released to the end-users. The go-live may be done
in a Big Bang (all modules at one go) or in a phase-by-phase manner.
Sustain / Support – The project now moves into the “sustain and support” phase where the
end-users’ issues would be resolved and ongoing maintenance of the system would be taken
care of.
SAP Multiphase Implementation –
Figure 27 - Multi-phase SAP Implementation Cycle
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D) Business Problem Statement
Case Study –
Design Enterprise Structure:
Organization B has offices in Delhi, Mumbai, Ahmedabad and Bangalore. All these offices
have employees in Sales and Corporate Communications department. Employees in Sales
office have public holidays as per the holidays followed by local market and employees in
Corporate communications department have public holidays as per holidays followed by the
respective state government. Holidays followed by local market and state governments are
different.
Organization B is implementing PA, OM and Time Management
How will you design the Enterprise structure? What will be the PA, PSAs and explain with
reasons.
Statement to the problem –
In the above case we have to create an enterprise structure naming “SIMS Industry Ltd”.
Which have office in Delhi, Mumbai, Ahmedabad and Bangalore all these have offices
employees in Sales and Corporate Communications department. Employees in Sales office
have public holidays as per the holidays followed by local market and employees in Corporate
communications department have public holidays as per holidays followed by the respective
state government. Holidays followed by local market and state governments are different.
Hence we cave to create an PA, PSA’s which runs sales & Corporate Communication Dept.
assigning Personal administration (PA), Organizational management (OM), Time
management (TM) to each of the PSA’s as they are following the work timing of respective
state gov. and local market. As the have to be assigning the position and set of Jobs pertaining
to respective work.
E) Solution for the Business problem-
Below is a diagram representing the enterprise structure in an tabular format as follows,
Design Enterprise structure in Personnel Administration
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Figure 28 - Case Study - Enterprise structure
As shown in the above diagram SIMS Industry Ltd. is considered as Personal Area (PA) of an
organization level, Personal Sub-Area as Delhi, Mumbai, Ahmedabad and Bangalore with cost
center or Headquarters (HQ) as Bangalore. Where we need to manage an individual office
functions to each Personal Sub-Area’s (PSA’s). Implementing SAP functions with Personal
Administration, Organization Management & Time Management. For each PSA’s whose area
function is to work on Sales office which have public holidays as per the holidays followed
by local market & Corporate Communication department Office follow public holidays as per
holidays followed by the respective state government. Hence the above s scenario represent
both Local as well as the respective state government.
Step by step process of creating enterprise structure –
Step 1 – Create an Org. Unit company code 50006456 as SIMS Industry Ltd. Whose
cost center will be Bangalore.
Step 2 – Create a PA –
 50012306 - SIMS Mumbai Industry Ltd.
 50012307 - SIMS Bangalore Industry Ltd
 50012308 - SIMS Delhi Industry Ltd
 50012309 - SIMS Ahmedabad Industry Ltd
(Which helps to follow the work timing according to Location area wise)
Step 3 – Create a PSA’s –
1. Sales
2. Corporate Communications department
SIMS Industry Ltd.
Bangalore
Sales
Corporate
Communication
Dept.
Munbai
Sales
Corporate
Communication
Dept.
Ahmedabad
Sales
Corporate
Communication
Dept.
Delhi
Sales
Corporate
Communication
Dept.
Bangalore as Cost Center(H.Q.)
Design Enterprise structure in Personnel Administration
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Step 4 – Create positions & jobs for both functionalities
Step 5 – Assign Personal Administration, Organization management (OM), Time
Management (TM) to each of the PSA’s
Step 6 – Assigning holidays to those PSA’s according to the local and state government. In
IMG. Some of the holidays are as follows,
Key – National holiday Regional holiday
Mumbai –
Local market
Different areas of the city are closed on different days. For example, Shops in South Mumbai
are closed on Sundays, Bandra is closed on Thursdays, Dadar and Central Mumbai are
closed on Mondays.
State gov –
Sun feb19 Chhatrapathi Shivaji Maharaja Jayanti Maharashtra only
Thu Jan26 Republic day commemorates the establishment of the constitution of India
Tus Mar28 Ugadi Telugu and Kannada New Year. Maharashtra only
Mon May01 Maharashtra day Maharashtra only. Commemorates formation of the
state of Maharashtra on 1may 1960
Wed May10 Buddha Purnimaa Birth of Buddha
Mon June26 Idul Fitr many states
Tue Aug15 Independence day
Mon Oct02 Mahatma Gandhi birthday Gandhi Jayanthi
Sun Oct01 Muhrram (10th
day) Day of Ashurah
Thu Oct19 Deewali Maharashtra (Lakshmi pujan)
Fri Oct20 Deepavali Karnataka, Maharashtra
Mon Dec25 Christmas day Observed in all states
Delhi – Local market & State gov.
Thu Jan05 350th
birthday of Guru Gobind Singh Delhi. Govt. only
Sat Jan14 Pongal also known as Makar Sankranthi, Lohri, Bihu, Hadaga, Poki
Thu Jan26 Republic day commemorates the establishment of the constitution of India
Tue Aug15 Independence day
Thu Oct05 Mahatishi Valmiki birthday Delhi, Karnataka
Mon Oct02 Mahatma Gandhi birthday Gandhi Jayanthi
Mon Dec25 Christmas day observed in all states
Bangalore – Local market & State gov
Sat Jan14 Pongal also known as Makar Sankranthi, Lohri, Bihu, Hadaga, Poki
Thu Jan26 Republic day commemorates the establishment of the constitution of
India
Wed Mar29 Ugadi Kannada New Year Karnataka
Fri Apr14 Good Friday Friday before Easter Sunday
Design Enterprise structure in Personnel Administration
30
Sat Apr29 Basava Jayanthi Karnataka only the most imp festival of the
Lingayaths
Tue Aug15 Independence day
Sat Sep 02 Idul Juha many states
Tue Sep19 Mahalaya Karnataka only
Sat Sep30 Vijaya Dashami Karnataka
Mon Oct02 Mahatma Gandhi birthday Gandhi Jayanthi
Thu Oct05 Mahatishi Valmiki birthday Delhi, Karnataka
Wed Oct18 Naraka Chaturdashi Karnataka
Fri Oct20 Deepavali Karnataka & Maharashtra
Wed Nov01 Kannada Rajyothsava Bangalore only, Karnataka formation
day
Mon Nov06 Kanakadasa Jayanthi Karnataka only
Mon Dec25 Christmas day observed in all states
Ahmadabad – Local market & State gov.
Thu Jan26 Republic day Commemorates the establishment of the constitution of
India
Fri Apr28 Parashurama Jayanti Gujarat only
Tue Aug15 Independence Day
Mon Oct02 mahatma Gandhi birthday Gandhi Jayanthi
Fri Oct20 Vikram Samvat New year Gujarat only
Sat Oct21 Bhai Bij Gujarat only
Mon Dec25 Christmas day Observed in all states
Separate –
Thu sep21 Muharram observed mainly by the Shia Muslim
community
Note –
 Only the secular holiday of republic day, Independence Day and Mahatma Gandhi’s
birthday are observed nationally. Public holiday in India tend to be observed on a
strictly regional basis. The above dates are government of India holidays, when
government offices will be closed nationwide. In addition, there are numerous
festivals and fairs which are also observed in some states as holidays, the dates of
which change from year to year.
 Muslim festivals are timed according to local sightings of various phases of the moon
and the dates given above are the latest known dates
 Although not Government official’s holiday, Christmas day and New Year’s Day are
observed nationally.
Design Enterprise structure in Personnel Administration
31
Some of the screenshots are as follows,
Figure 29 - PA, PSA's etc.; Scree shots
Above figure is showing the PA – SIMS Industry Ltd. And PSA’s – SIMS Mumbai,
Bangalore, Delhi and for Ahmedabad.
Showing the PSA’s –
Position & Work team’s
Design Enterprise structure in Personnel Administration
32
OM - Creating
Employee group &
Employee Sub-group.
Time Management (TM) –
creating holiday & work time
according to both Local market
& respective State Gov.
Design Enterprise structure in Personnel Administration
33
Bibliography
Books –
Agrawal, P. (1 December 2010). SAP HR Personal Administration and Recruitment:
Technical reference and learning guide. PHI; 2nd edition edition.
S, G. K. (25 June 2014). SAP HCM - A Complete Tutorial. Packt Publishing.
Mahn, K. (2 January 2007). SAP R/3 HR Human Resource Management. GRIN Verlag; 1
edition.
Websites -
Point, T. T. (2016). Tutorials Point. Retrieved from www.tutorialspoint.com:
https://www.tutorialspoint.com/sap/index.htm
guru99. (n.d.). sap-training-hub. Retrieved from guru99: http://www.guru99.com/sap-
training-hub.html
Solution-HCM, S. L. (2016). SAP Learning Solutions - Human Capital Management.
Retrieved from SAP SE: https://help.sap.com/lso
Tutorials, S. O. (n.d.). SAP Online Tutorials. Retrieved from SAP Online Tutorials:
http://www.saponlinetutorials.com/
YouTube. (2005, Oct 18). Retrieved from https://www.youtube.com/:
https://www.youtube.com/user/SAP/videos

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SAP- HCM mini project report on - Design Enterprise Structure in Personnel Administration

  • 1. SAPRUN Simple. ABSTRACT SAP, has evolved from a small German start-up to the world's leading provider of enterprise solution software over course of last three decades. Today, its offices are located in more than 130 countries in worldwide. The pristine intention was to provide customers with the dexterity to interact with a common corporate database for all wall-to-wall range of working functional areas (like Financial, Logistics, Sales & Distribution, Human Resource etc.) into single database. Now it’s been used by many companies in their everyday activities. https://www.sap.com SAP-R/3
  • 2. Design Enterprise structure in Personnel Administration 2 Contents A) Introduction............................................................................................................. 4 SAP Developments in Version’s - ..........................................................................................4  SAP R/1 (1972)............................................................................................................5  SAP R/2 (1979)............................................................................................................5  SAP R/3 (1992)............................................................................................................6  SAP–ERP (2004)..........................................................................................................7  SAP HANA (2015)........................................................................................................9 How does SAP helpful in business actions? ........................................................................10 B) Understanding Functional Modules in SAP –............................................................11 SAP-HR module ...................................................................................................................14 A. Foundation – ............................................................................................................14 B. Organization Management – ...................................................................................16 C. Personal Administration –........................................................................................17 D. Time Management –................................................................................................20 E. Payroll –....................................................................................................................20 F. Global Employment –...............................................................................................22 G. Performance Management System – ......................................................................22 H. Enterprise Compensation Management –...............................................................23 I. Reporting in SAP –....................................................................................................23 J. Authorization –.........................................................................................................24 C) SAP Consulting process –.........................................................................................25 SAP Single-phase Implementation Cycle - ..........................................................................25 SAP Multiphase Implementation – .....................................................................................26 D) Business Problem Statement...................................................................................27 Statement to the problem – ...............................................................................................27 E) Solution for the Business problem-..........................................................................27 Step by step process of creating enterprise structure –.....................................................28 Some of the screenshots .................................................................................................31 Bibliography ..................................................................................................................33
  • 3. Design Enterprise structure in Personnel Administration 3 List of Figure – Figure 1-SAP Developments in Version’s........................................... 4 Figure 2 - SAP R/1.............................................................................. 5 Figure 3 - SAP R/2.............................................................................. 5 Figure 4 - SAP R/3.............................................................................. 6 Figure 5 - mySAP.com........................................................................ 6 Figure 6 - SAP R/3 Server................................................................... 7 Figure 7 - SAP-ERP ............................................................................. 7 Figure 8 - SAP-ERP BusinessOne ........................................................ 8 Figure 9 - SAP- ERP By Designed........................................................ 9 Figure 10 - SAP-HANA........................................................................ 9 Figure 11 - SAP Centralized Systems R/3 ......................................... 10 Figure 12 - SAP-HCM........................................................................ 12 Figure 13 - SAP-HCM key modules................................................... 13 Figure 14 - HR- Foundation.............................................................. 14 Figure 15 - SAP- Easy Access............................................................ 15 Figure 16 - SAP Display IMG............................................................ 16 Figure 17 - Organization Management (OM)................................... 16 Figure 18 - SAP T-Code PPOME........................................................ 17 Figure 19 - Enterprise Structure in PA ............................................. 18 Figure 20 - Personal Structure in PA ................................................ 18 Figure 21 - Organization structure in PA.......................................... 19 Figure 22 – Integration of OM & PA ................................................ 19 Figure 23- Time management.......................................................... 20 Figure 24 - Payroll............................................................................ 21 Figure 25 - Performance Management Process............................... 22 Figure 26 - Single Phase SAP Implementation Cycle........................ 25 Figure 27 - Multi-phase SAP Implementation Cycle......................... 26 Figure 28 - Case Study - Enterprise structure .................................. 28 Figure 29 - PA, PSA's etc.; Scree shots ............................................. 31
  • 4. Design Enterprise structure in Personnel Administration 4 A) Introduction SAP a German based company with lengthen as “Systems Applications and Products” in data processing; German elucidate as “Systeme, Anwendungen, Produkte”. On start by 5 IBM engineers called Hopp, Wellenreuther, Hector, Tschira and Platnner in 1970s ad hoc cerebration the want for the common software which works as common solution for all Industrial & Corporate database requirements. There pristine intention was to provide customers with the dexterity to interact with a common corporate database for a wall-to-wall range of applications. Now, SAP is known worldwide for its unique innovations that help the customers run their business with high efficiency. Some of its facts and figures stand as follows − More than 263,000 customers in 188 countries. More than 68,800 employees in more than 130 countries. Annual revenue (IFRS) of €1682 billion. Listed under the symbol "SAP" on stock exchanges, including the Frankfurt Exchange & NYSE. SAP Developments in Version’s - Figure 1-SAP Developments in Version’s R1 • 1972 R2 • 1979 R3 • 1992 ERP • 2004 S/4 HANA • 2015
  • 5. Design Enterprise structure in Personnel Administration 5 The SAP applications consist of several installable units called SAP components. SAP ERP is largest SAP application, & SAP ERP Central Components (SAP ECC) is the largest components of SAP ERP. SAP with different version –  SAP R/1 (1972) – Here R refers to Real-Time Data Processing and 1 refers to 1 layer Architecture in which 3 layers called Presentation, Application and Database which were installed in one System/Server. Figure 2 - SAP R/1  SAP R/2 (1979) – Along with their Dialogue Based Business application, was and a mainframe which included again 3 layers called Presentation, Application and Database where it was installed in 2 different servers. Figure 3 - SAP R/2 SAP R/1 Presentation Application Database (1972) SAP R/2 Dialogue Based Server Presentation Application Database 1979
  • 6. Design Enterprise structure in Personnel Administration 6  SAP R/3 (1992) – Here it was an up gradation to both of the versions. Where all the layers are installed in 3 different servers. Presentation- server 1, Application- server 2 & Database- server 3. Figure 4 - SAP R/3 A new dimension products based on net over. The new R/3 provide the capability to manage financial, asset, and cost accounting, production operations and materials, personnel, plants, & archived documents. It runs on a number of platforms including Windows 2000 to latest versions & uses the client/server model. SAP has recently recast its product offerings under a comprehensive Web interface, called mySAP.com, and added new E-Business applications, including Customer Relationship Management (CRM) & Supply Chain Management (SCM). Figure 5 - mySAP.com SAP R/3 Server 1 Presentation Server 2 Application Server 3 Database 1992
  • 7. Design Enterprise structure in Personnel Administration 7 Until 1996 SAP R/3 was traditionally presented. There was an area representing financial applications, an area for logistics, and one for human resources; the central area represented the basis and development system. In CLIENT/SERVER based application, utilizing a 3- tiered model. A Presentation Layer, Client & Interfaces with the user. SAP R/3 is arranged into distinct functional modules, covering the typical functions in place in an organization. Each module handles specific business tasks on its own, but are also linked to the others applicable areas. Figure 6 - SAP R/3 Server  SAP–ERP (2004) – An ERP (Enterprise Resource Planning) a software which is built for organization regardless of its Industry, Size and Strength. A standards based software for business solutions some are as follows – Figure 7 - SAP-ERP SAP R/3 SERVER Presentation Layer Interfaces with the USER Client SAP-ERP BusinessOne ByDesigned Business Suite Business All in One 2004
  • 8. Design Enterprise structure in Personnel Administration 8 1. Business One – Standalone version of ERP for SME (Small & Medium Enterprise). One single, affordable business management solution that integrates the entire business across Finances, Sales, customer & Operations in the business. Figure 8 - SAP-ERP BusinessOne Advantages of SAP Business One –  Rapid Implementation  Lower Costs  Increased Productivity and cost control  Sound business designs  Scalability 2. By Designed – Hosted version of SAP for SME. The cloud designed for small businesses and subsidiaries of large companies. Uses two-tier ERP deployment model; On the Premise (HQ.) & Cloud (Subsidiaries). Sales & Service Inventory & Distribution Purchasing & Operations Accounting & Financials Management & Administration
  • 9. Design Enterprise structure in Personnel Administration 9 Figure 9 - SAP- ERP By Designed  SAP HANA (2015) – It’s a Hybrid in-memory database that combines row-based, column based & object-based database technology. It is optimized to exploit the parallel processing capabilities of new multi-core CPU architectures and technologies. SAP HANA is a data-source-agnostic and flexible application that enables customers to analyze and process large volumes of data from SAP and non-SAP systems in real time. Figure 10 - SAP-HANA SAP HANA Speed Scale Flexible 2015
  • 10. Design Enterprise structure in Personnel Administration 10 How does SAP helpful in business actions? The SAP application will use a centralized system which will be interlinked with a single server which help us to work on. It will be helpful in all the departments in the business level where a common Server database will be stored and be interlink to work all the business related within the organization. Figure 11 - SAP Centralized Systems R/3 Benefits of it –  Eliminates the duplication, discontinuity & redundancy in data.  Provides information across departments in real time.  Provides control over various business process.  Increases productivity, better inventory management, promotes quality, reduced material cost, effective human resource management, reduced overhead boosts profits.  Better customer interaction, increased throughput. Improves customer services. Centralized System R/3 Inventory Finance HR Shop Floor Executive Vendors Production Planning Sales • CUSTOMERS
  • 11. Design Enterprise structure in Personnel Administration 11 B) Understanding Functional Modules in SAP – 1. SAP FICO 2. SAP MM 3. SAP SD 4. SAP HR 5. SAP CRM  SAP FICO (Financial Accounting and Controlling) SAP FICO is the important module where both Finance and Controlling records financial transaction data. FI collects, records and processes the financial transaction and information on a real-time basis and provides reports for statutory reporting purpose.  SAP MM (Material Management) Material Management is one of the important topic in SAP which deals with Procurement and inventory function occurring in the day to day transaction of an organisation. It involves many other aspects like purchasing of goods receiving of goods managing day-to-day consumption etc. MM is integrated with all other modules in SAP.  SAP SD (Sales & Distribution) Another important module in SAP is S&D which handles the order processing, pre- sale activities, receiving and managing sales orders, delivering products to customers, generating bills managing shipment and distribution of goods to consumers.  SAP HR (Human Resource) This module deals with human resource management of organisation where this topics deals with the hiring of an employee to till his termination from the organisation. It consist of sub topics like as Payroll, Personnel Management, Recruitment, Time Management & Organisation management.  SAP CRM (Customer Relationship Management) A very important topic to a real world business to a software also. SAP CRM is such module which deals with the managing the customer relationship. This module help business become more knowledgeable about the customer.
  • 12. Design Enterprise structure in Personnel Administration 12 SAP-Human Capital Management (SAP-HCM) – It’s one among important objective of master data administration of SAP and is also called SAP Human Resource (HR) or SAP Human Resource Management System (SAP-HRMS). SAP-HCM have many sub modules bifurcations & all these modules are integrated with one another. Figure 12 - SAP-HCM SAP HCM Organizational Management (OM) Personnel Administration (PA) Time Management (PT) Training & Event Management (TM) Recruitment (PB) PayrollPersonal Development Workforce Planning Compensation Management ESS MSS
  • 13. Design Enterprise structure in Personnel Administration 13 The key modules SAP HCM are as follows, Figure 13 - SAP-HCM key modules •Personnel development, personnel cost planning, event management, etc. Organizational Management(OM) •Personal & organizational structure, infotypes, integration with time & payroll, etc. Personnel Administration (PA) •Time recording, Attendance, time schedule, shift management, etc. Time Management (PT) •Payroll types, payroll group configuration, primary and secondary wages, gross pay, bonus, etc. Payroll •Hiring an employee, maintaining HR master data, etc. Recruitment (PB) •Identifying training needs, scheduling training, training cost management, etc. Training and Event Management (TM)
  • 14. Design Enterprise structure in Personnel Administration 14 SAP-HR module – A. Foundation B. Organization Management C. Personal Administration D. Time Management E. Payroll F. Global Employment G. Performance Management System H. Enterprise Compensation Management I. Reporting in SAP J. Authorization A. Foundation – In SAP as base we have two type of foundation as in the following figure below, Figure 14 - HR- Foundation Administration Guides – They are intended for administrators who work with the product regularly. Some of its transaction code are PA30 - Maintain HR Master Data, OOAC - HR: Authorization main switch, OOSB -User (Structural Authorization), PRMS - Display HR Master Data, PBAW - Maintain T750B, PBAE - Applicant pool. SAP implementation partners and SAP consultants should also see the Implementation section below, Action Search - Enabling, using, and managing action search Admin Center - Enabling and using the Admin Center Batch Rules Processing - Using OffCycleEventBatch Configuring Custom Navigations Deeplinks Directory Search Version Comparison Extension Center - Enabling and using the Extension Center Instance Synchronization - Using and monitoring instance synchronization Job Profile Builder New Home Page Upgrade Information People Profile - Configuring the people profile UI for employee profile Presentations Public Profile - Enabling and managing the public profile for employee profile SAP HCM Administration Guides Implementation Guides Foundation
  • 15. Design Enterprise structure in Personnel Administration 15 Role - Based Permissions (RBP) SAP SuccessFactors Mobile Deployment Guide SAP SuccessFactors Mobile Security Guide SuccessFactors Home Page - Configuring and managing the SuccessFactors home page Theme Manager. Using Business Rules in SuccessFactors. Using the Performance Metrics Portal. V12 Profile - Enabling and managing the V12 profile UI for employee profile. Figure 15 - SAP- Easy Access Implementation Guides – These are available for SAP implementation partners and SAP consultants. Document Management Implementing Business Rules in SuccessFactors Instance Synchronization - Enabling and configuring instance synchronization Metadata Framework (MDF) Role-Based Permissions (RBP) SAP HANA Cloud Platform, Extension Package for SuccessFactors Scheduled Job Reporting Tool Talent Search SAP Easy Access • Master Data Entry • Transaction Data Entry
  • 16. Design Enterprise structure in Personnel Administration 16 Figure 16 - SAP Display IMG B. Organization Management – It’s a sub module of SAP which enables the organization to:  Depict the organization and reporting structure and current organizational plan  Analyze Current organizational plan  Create additional organizational plan  Create effective workflow management Figure 17 - Organization Management (OM) Where Configuration Takes Place
  • 17. Design Enterprise structure in Personnel Administration 17 The T Code PPOME allows the user to view the data in a hierarchical view. Objects can be created or maintained in this view. The screen contains four distinct sections. Descriptions of the sections are below.  Search Area-allows the user to search for objects in the system. By clicking on the particular object, the user may conduct a variety of searches.  Selection Area-displays the results of the search.  Overview Area-displays the specific search result that is highlighted in Selection Area  Detail Area-displays the specific item highlighted in Overview Area An organizational plan can be made with many object types, although the five basic Object types are the building blocks. Figure 18 - SAP T-Code PPOME C. Personal Administration – It is a sub-module of SAP-HCM. It handles the task of administration of Employees related data. It saves time and cost by easing regular administrative task on employee related data and functions.  It stores the complete employee related data in a structured way and automatically checks the integrity of data.  Using Personnel Administration, employee administration will be easy and effective.  It manages the functions like Employee Master Data maintenance, payroll calculations, employee benefits, their personal data etc.  It also helps to track various details like cost and compensations spend for employees.  It helps he large organizations to deal the employees in a standardized way.  All the data about an employee will be stored in HR info-types.  Administrator can search, edit, and delete the records.
  • 18. Design Enterprise structure in Personnel Administration 18 Structures in PA –  Enterprise Structure  Personnel Structure  Organizational Structure Enterprise structure – It is bifurcation of the employees according to their work location and Geographical region Figure 19 - Enterprise Structure in PA Personal structure – It is the bifurcation of employees in terms of the type of relationship an employee holds with the company or the level of employment. Figure 20 - Personal Structure in PA
  • 19. Design Enterprise structure in Personnel Administration 19 Organization Structure – It is the hierarchical presentation of an organization into various departments according to the functionality and Business Process Figure 21 - Organization structure in PA Integration of Personnel Administration and Organizational Management If you integrate PA and OM, you can enter a position in the Actions Infotype (0000) Figure 22 – Integration of OM & PA
  • 20. Design Enterprise structure in Personnel Administration 20 D. Time Management – In Time Management, Employee working times are –  Calculated  Valuated  Used in business processes Components of time management are as follows,  Shift planning  Cross-Application time sheet  Time data recording and administration  Time Evaluation  Incentive Wages Figure 23- Time management E. Payroll – You can use this component to calculate remuneration for work done for each employee. The system calculates the gross and net pay, which comprises the individual payments & deductions that are calculated during a payroll period, and are received by an employee. The payments and deductions are included in the calculation of the remuneration using different wage types. After the remuneration payroll you can carry out various subsequent activities. Those are like remuneration statement, Lists and evaluations.
  • 21. Design Enterprise structure in Personnel Administration 21 Figure 24 - Payroll Prerequisites of Payroll  Data Required for Customizing Payroll  Enterprise structure (Personnel area, Personnel sub area)  Organization Management  Personnel Administration (Payroll area, Control Record)  Time Management (Infotype 0007)  Payroll procedure in the Company  Taxes and Statutory compliances Payroll is based on payroll driver; the country specific payroll drivers take the statutory and administrative regulation of a country into account. Since the payroll driver has a module structure, you can use the customizing functions to quickly modify the payroll procedure to meet the requirements of your enterprise. Payroll driver - you can use run payroll. In SAP payroll system, you have country specific payroll drivers with the technical names. 1. RPCALCX0 - It contains No data about TAX social insurance regards for NET remuneration 2. HXXCALC0 - It contains data about Tax and social insurance regulations for net remuneration. Note - "X" is the country specific. Ex - USA - RPCALCU0, India - HINCALC0
  • 22. Design Enterprise structure in Personnel Administration 22 F. Global Employment –  Global Employment refers to an employee scenario where an employee can have multiple number of personnel assignments in several different countries.  Most cases, only two countries will be involved. However, it is possible to have multiple countries involved.  In such cases, the employee is placed on an international assignment and may return after a certain period of time. Components of SAP Global Employment Solution  Person ID Concept: Each employee receives a unique Identification number.  Management of Global Employees: An employee has various personnel assignments in different countries. The new assignment is planned and monitored through the Infotype 0705 Checklist  Payroll for Global Employees: The payroll solution for global employees is called the Payroll for global employees. The payroll in the different countries can be run simultaneously and can exchange Information between one another, if necessary. G. Performance Management System – The PMS is one of the important module in SAP HCM. It includes all the managerial aspects including individual level, team/project level, organization level. The following table below is representation of Performance Management Process, Figure 25 - Performance Management Process Benefits of PMS are as follows –  Simulate performance  Manage goals  Review Goals  Appraise Performance Setting Corporate Goals Setting Departmental Goals Setting Individual Objectives Mid Year Review Self Evaluation 360 Degree Feedback Final Evaluation Follow Up Process
  • 23. Design Enterprise structure in Personnel Administration 23 H. Enterprise Compensation Management – Compensation is a key factor in attracting and keeping the best employees and ensuring that an organization has the competitive edge in an increasingly competitive world. Compensation includes all forms of direct wages, salaries, incentives, commissions and bonuses given to the workforce of an organization. Compensation management is one of the key activity that support workforce performance and talent management process. Compensation Administration –  Perform compensation reviews including fixed pay, variable pay, and LTIs.  Apply eligibility rules and guidelines based on different criteria such as performance ratings.  Implement approval cycles if required feedback, and compensation administration. Long-Term Incentives –  Administer LTI processes such as granting, vesting, life events, and taxation. Budgeting –  Create and maintain monetary and non-monetary budgets for the compensation planning and LTI granting process. Job Pricing –  Export employee salary data for participation in salary surveys.  Import salary survey data and create market composite results.  Age and weight market data, compare internal and external pay and adjust company pay structure if required. I. Reporting in SAP – SAP Human Resources provides you with more than 200 standard reports. They enable you to perform standard reporting simply, and without you having to spend time and money on development. This section gives you an overview of the standard reports that are available in the following areas of Human Resources Management:  Personnel Management  Time Management  Payroll  Training and Event Management  Organizational Management The term report is used in the HR Reporting manual to mean executable programs that read data from the database and then report on the data without changes being written to the database. Reports in HR can be ABAP reports or queries. Activities A report is usually executed as follows: 1. You start the report from the SAP Easy Access menu, an info system, an application, or the ABAP Editor, for example. 2. This takes you to the selection screen, in which you enter the required selection parameters. By doing so, you determine the conditions that apply when the report is executed. If you only want to report on a specific group of employees, for example, you enter an organizational unit. 3. You start the report.
  • 24. Design Enterprise structure in Personnel Administration 24 4. The system reads data from the database, processes it in accordance with the report you specified, and outputs the result. 5. Depending on how the data is output, you can continue processing, print, and export the data. J. Authorization – In certain contexts, you may need several authorizations to perform an operation in the SAP system. The resulting contexts can be very complex. The SAP authorization concept has been realized on the basis of authorization objects to provide an understandable and easy-to-follow procedure. Several system elements that are to be protected from an authorization object. Authorization objects enable complex checks with multiple conditions for an authorization that allows the user to perform an action. An authorization object groups up to ten authorization fields that are checked in anANDrelationship. For an authorization check to be successful, all field values of the authorization object must be maintained in the user master data. Authorization objects are assigned to object classes for purposes of clarity. The authorization objects for mySAP HR belong to the HR (Human Resources) object class. You can display or edit the authorization objects and their fields using transaction SU21. You can also use this transaction to create new object classes and authorization objects. The authorization objects of the HR (Human Resources) object class have, as with all SAP authorization objects, up to ten fields that are read by the system during an authorization check. The P_ORGIN object (HR: Master Data) used in the standard SAP system consists of the following fields: Table 1 - Authorization AUTHORIZATION FIELD LONG TEXT INFTY Info type SUBTY Subtype AUTHC Authorization level PERSA Personnel area PERSG Employee group PERSK Employee subgroup VDSK 1 Organizational key
  • 25. Design Enterprise structure in Personnel Administration 25 C) SAP Consulting process – Consulting with SAP Project Lifecycle with Different stages approach by Business to implement SAP into their business is as follows, SAP Single-phase Implementation Cycle - Figure 26 - Single Phase SAP Implementation Cycle A typical SAP project undergoes the following stages in its lifecycle – Evaluation – Evaluation may be a decision to choose between different software vendors or selection of products from a single vendor. Project Preparation – Since a SAP implementation intends to map the organization processes to the ones defined by SAP, the implementation needs to have on-board people with complete knowledge of the organization business processes. The project preparation phase, amongst other things, aims to identify this team. Business Blueprint – A business blueprint includes what modules of a SAP product would be used and the mapping of the existing business processes to the processes provided by SAP.
  • 26. Design Enterprise structure in Personnel Administration 26 Realization – The actual work of customizing the SAP software to be in sync with the organizations business processes is done in this phase. It includes customization of existing SAP package and solution along with the development of new objects based on requirement. Testing – The changes made in the realization phase need to be tested in isolation as well as in a consolidated manner using real-time data. This is done in the testing phase. Final Preparation – The production system is prepared using the changes from the realization and testing phases. Certain activities need to be done directly in the production system as well. These activities take place during the final preparation phase. Go-live – In this stage, the final product is released to the end-users. The go-live may be done in a Big Bang (all modules at one go) or in a phase-by-phase manner. Sustain / Support – The project now moves into the “sustain and support” phase where the end-users’ issues would be resolved and ongoing maintenance of the system would be taken care of. SAP Multiphase Implementation – Figure 27 - Multi-phase SAP Implementation Cycle
  • 27. Design Enterprise structure in Personnel Administration 27 D) Business Problem Statement Case Study – Design Enterprise Structure: Organization B has offices in Delhi, Mumbai, Ahmedabad and Bangalore. All these offices have employees in Sales and Corporate Communications department. Employees in Sales office have public holidays as per the holidays followed by local market and employees in Corporate communications department have public holidays as per holidays followed by the respective state government. Holidays followed by local market and state governments are different. Organization B is implementing PA, OM and Time Management How will you design the Enterprise structure? What will be the PA, PSAs and explain with reasons. Statement to the problem – In the above case we have to create an enterprise structure naming “SIMS Industry Ltd”. Which have office in Delhi, Mumbai, Ahmedabad and Bangalore all these have offices employees in Sales and Corporate Communications department. Employees in Sales office have public holidays as per the holidays followed by local market and employees in Corporate communications department have public holidays as per holidays followed by the respective state government. Holidays followed by local market and state governments are different. Hence we cave to create an PA, PSA’s which runs sales & Corporate Communication Dept. assigning Personal administration (PA), Organizational management (OM), Time management (TM) to each of the PSA’s as they are following the work timing of respective state gov. and local market. As the have to be assigning the position and set of Jobs pertaining to respective work. E) Solution for the Business problem- Below is a diagram representing the enterprise structure in an tabular format as follows,
  • 28. Design Enterprise structure in Personnel Administration 28 Figure 28 - Case Study - Enterprise structure As shown in the above diagram SIMS Industry Ltd. is considered as Personal Area (PA) of an organization level, Personal Sub-Area as Delhi, Mumbai, Ahmedabad and Bangalore with cost center or Headquarters (HQ) as Bangalore. Where we need to manage an individual office functions to each Personal Sub-Area’s (PSA’s). Implementing SAP functions with Personal Administration, Organization Management & Time Management. For each PSA’s whose area function is to work on Sales office which have public holidays as per the holidays followed by local market & Corporate Communication department Office follow public holidays as per holidays followed by the respective state government. Hence the above s scenario represent both Local as well as the respective state government. Step by step process of creating enterprise structure – Step 1 – Create an Org. Unit company code 50006456 as SIMS Industry Ltd. Whose cost center will be Bangalore. Step 2 – Create a PA –  50012306 - SIMS Mumbai Industry Ltd.  50012307 - SIMS Bangalore Industry Ltd  50012308 - SIMS Delhi Industry Ltd  50012309 - SIMS Ahmedabad Industry Ltd (Which helps to follow the work timing according to Location area wise) Step 3 – Create a PSA’s – 1. Sales 2. Corporate Communications department SIMS Industry Ltd. Bangalore Sales Corporate Communication Dept. Munbai Sales Corporate Communication Dept. Ahmedabad Sales Corporate Communication Dept. Delhi Sales Corporate Communication Dept. Bangalore as Cost Center(H.Q.)
  • 29. Design Enterprise structure in Personnel Administration 29 Step 4 – Create positions & jobs for both functionalities Step 5 – Assign Personal Administration, Organization management (OM), Time Management (TM) to each of the PSA’s Step 6 – Assigning holidays to those PSA’s according to the local and state government. In IMG. Some of the holidays are as follows, Key – National holiday Regional holiday Mumbai – Local market Different areas of the city are closed on different days. For example, Shops in South Mumbai are closed on Sundays, Bandra is closed on Thursdays, Dadar and Central Mumbai are closed on Mondays. State gov – Sun feb19 Chhatrapathi Shivaji Maharaja Jayanti Maharashtra only Thu Jan26 Republic day commemorates the establishment of the constitution of India Tus Mar28 Ugadi Telugu and Kannada New Year. Maharashtra only Mon May01 Maharashtra day Maharashtra only. Commemorates formation of the state of Maharashtra on 1may 1960 Wed May10 Buddha Purnimaa Birth of Buddha Mon June26 Idul Fitr many states Tue Aug15 Independence day Mon Oct02 Mahatma Gandhi birthday Gandhi Jayanthi Sun Oct01 Muhrram (10th day) Day of Ashurah Thu Oct19 Deewali Maharashtra (Lakshmi pujan) Fri Oct20 Deepavali Karnataka, Maharashtra Mon Dec25 Christmas day Observed in all states Delhi – Local market & State gov. Thu Jan05 350th birthday of Guru Gobind Singh Delhi. Govt. only Sat Jan14 Pongal also known as Makar Sankranthi, Lohri, Bihu, Hadaga, Poki Thu Jan26 Republic day commemorates the establishment of the constitution of India Tue Aug15 Independence day Thu Oct05 Mahatishi Valmiki birthday Delhi, Karnataka Mon Oct02 Mahatma Gandhi birthday Gandhi Jayanthi Mon Dec25 Christmas day observed in all states Bangalore – Local market & State gov Sat Jan14 Pongal also known as Makar Sankranthi, Lohri, Bihu, Hadaga, Poki Thu Jan26 Republic day commemorates the establishment of the constitution of India Wed Mar29 Ugadi Kannada New Year Karnataka Fri Apr14 Good Friday Friday before Easter Sunday
  • 30. Design Enterprise structure in Personnel Administration 30 Sat Apr29 Basava Jayanthi Karnataka only the most imp festival of the Lingayaths Tue Aug15 Independence day Sat Sep 02 Idul Juha many states Tue Sep19 Mahalaya Karnataka only Sat Sep30 Vijaya Dashami Karnataka Mon Oct02 Mahatma Gandhi birthday Gandhi Jayanthi Thu Oct05 Mahatishi Valmiki birthday Delhi, Karnataka Wed Oct18 Naraka Chaturdashi Karnataka Fri Oct20 Deepavali Karnataka & Maharashtra Wed Nov01 Kannada Rajyothsava Bangalore only, Karnataka formation day Mon Nov06 Kanakadasa Jayanthi Karnataka only Mon Dec25 Christmas day observed in all states Ahmadabad – Local market & State gov. Thu Jan26 Republic day Commemorates the establishment of the constitution of India Fri Apr28 Parashurama Jayanti Gujarat only Tue Aug15 Independence Day Mon Oct02 mahatma Gandhi birthday Gandhi Jayanthi Fri Oct20 Vikram Samvat New year Gujarat only Sat Oct21 Bhai Bij Gujarat only Mon Dec25 Christmas day Observed in all states Separate – Thu sep21 Muharram observed mainly by the Shia Muslim community Note –  Only the secular holiday of republic day, Independence Day and Mahatma Gandhi’s birthday are observed nationally. Public holiday in India tend to be observed on a strictly regional basis. The above dates are government of India holidays, when government offices will be closed nationwide. In addition, there are numerous festivals and fairs which are also observed in some states as holidays, the dates of which change from year to year.  Muslim festivals are timed according to local sightings of various phases of the moon and the dates given above are the latest known dates  Although not Government official’s holiday, Christmas day and New Year’s Day are observed nationally.
  • 31. Design Enterprise structure in Personnel Administration 31 Some of the screenshots are as follows, Figure 29 - PA, PSA's etc.; Scree shots Above figure is showing the PA – SIMS Industry Ltd. And PSA’s – SIMS Mumbai, Bangalore, Delhi and for Ahmedabad. Showing the PSA’s – Position & Work team’s
  • 32. Design Enterprise structure in Personnel Administration 32 OM - Creating Employee group & Employee Sub-group. Time Management (TM) – creating holiday & work time according to both Local market & respective State Gov.
  • 33. Design Enterprise structure in Personnel Administration 33 Bibliography Books – Agrawal, P. (1 December 2010). SAP HR Personal Administration and Recruitment: Technical reference and learning guide. PHI; 2nd edition edition. S, G. K. (25 June 2014). SAP HCM - A Complete Tutorial. Packt Publishing. Mahn, K. (2 January 2007). SAP R/3 HR Human Resource Management. GRIN Verlag; 1 edition. Websites - Point, T. T. (2016). Tutorials Point. Retrieved from www.tutorialspoint.com: https://www.tutorialspoint.com/sap/index.htm guru99. (n.d.). sap-training-hub. Retrieved from guru99: http://www.guru99.com/sap- training-hub.html Solution-HCM, S. L. (2016). SAP Learning Solutions - Human Capital Management. Retrieved from SAP SE: https://help.sap.com/lso Tutorials, S. O. (n.d.). SAP Online Tutorials. Retrieved from SAP Online Tutorials: http://www.saponlinetutorials.com/ YouTube. (2005, Oct 18). Retrieved from https://www.youtube.com/: https://www.youtube.com/user/SAP/videos