SAP HCM includes modules for organization management, personnel management, time management, and payroll management. It uses an integrated ERP system approach with a common database. Key components of SAP HCM include organization structures to define employee roles and hierarchies, master employee data stored in infotypes, personnel actions to record changes, time recording and attendance, work schedules, and payroll processing functionality.

1. SAP HUMAN CAPITAL MANAGEMENT
Organization Management
Personnel Management
Time Management
Payroll Management

2. Enterprise Resource
Planning- ERP
• Enterprise Resource Planning is a business management
software- usually a suite of integrated applications- that a
company can use to collect, store, manage and interpret data from
many business activities such as:
• Product Planning, cost, development
• Manufacturing, or service delivery
• Marketing & Sales
• Inventory Management
• Human Capital Management
• Characteristics:
• It is an integrated system that operates in real time without
relying on periodic updates
• A common database that supports all applications
• A consistent look and feel throughout modules

3. SAP HCM
HCM Organization Structure
HCM Master Data
HCM Processes

4. HCM Organization Structure
• Represents the structural and personnel organization of the company
• Consists of organization units
• Illustrates the organizational structures and hierarchies
• Illustrates employee responsibilities
• Is a precondition of various personnel process implementation
• Consists of 3 parts:
o Enterprise Structure
o Personnel Structure
o Organization Plan

5. Enterprise
Structure
• Represents formal and financial structures in a company
• Each employee needs to be assigned to the enterprise
structure
• Basically, consist of client, company code, personnel area,
personnel sub area.
• Client: An independent environment in the system
• Company Code: Smallest Org Unit for which you can
maintain a legal set of books
• Personnel Area: Represents a company area differentiated
between personnel administrative, time management and
expenses organizational aspects
• Personnel Subarea: Represents part of a personnel area. It
also represents a company area differentiated between
personnel administration, time management and payroll
accounting aspects

6. Enterprise Structure For HCM

7. HCM Personnel Structure
• Describes an employee's position within
the organization
• Personnel Structure is defined by
employee group and employee subgroup
• Employee Group:
• Organizational unit for which personnel
related regulations can be specified.
• Example: Active Employee , External,
Retirees
• Employee Subgroup:
• Organizational unit within the employee
group for which personnel related
regulations are specified
• Example: Industrial employees ,
Commercial clerks or Laboratory assistants

8. 1
2
3
4

9. HCM Organization Management
ORGANIZATION PLAN:
• Describes which function the employee is acting
• Is object oriented; i.e., each element is represented by an object
• Object can be assigned to each other
• Objects are Organization Unit, Position, Person, Cost Center and Job
o Organization Unit (O): Can be grouped according to functional and regional aspects
o Position (S): They are assigned to organizational units and filled by employees. For example: Position
Accounting clerk inAccounts Department
o Person (P): They are the employees, and they fill positions
o Cost Center (K): Originates from controlling and can be linked with positions and organizational units
o
o Job (C): It is the general description of tasks which employees should perform.They are assigned to positions.
For example, Position Head of Department.

10. HCM Organization Plan

11. PERSONNEL NUMBER:
• It is used in SAP as a central identifier for an
employee
• Can comprise upto 8 digits
• Can be assigned either by system or manually
• All employee data available in the system are
identified on the basis of employee number
HCM PERSONNEL ADMINISTRATION

12. REFERENCE PERSONNEL NUMBER
• This helps to map different contractual
relationships
• Creates an existing employee newly in the
system with new personnel number
• The old personnel number serves as a
reference number
• Certain data can be copied and assigned to a
new number
• In case of concurrent employment, the
employee is identified through person ID

13. INFOTYPES
• HR Master Data is structured in Infotypes
• They are collection of data fields that are logically linked
• They are used to process employee data in an effective structure in accordance with business
requirements.
• Each infotype has an explicit four-digit ID, Example InfotypeAddresses 0006
• An infotype can have subtypes, which represents the sub variant of the infotype
• There are predefined number ranges that SAP has defined for Infotype.
• HR and Payroll Data Infotype → 0000 to 0999
• Organizational Data → Infotype 1000 to 1999
• Time Data → Infotype 2000 to 2999
• ImportantT Codes:
• PA30- (Maintain HR Data)To create Infotype
• PA20- (Display HR Data)To display an Infotype

14. PERSONNEL ACTIONS:
• A Personnel action is a transaction that helps you record the HR processes
such as
• Hiring,
• Promotion,
• Transfer, and
• Termination.
• Personnel actions are performed for all the Infotypes that require the data to
be entered in HR system.
• ImportantT codes:
• PA 40-To perform Personnnel Actions

15. TIME CONSTRAINTS OF INFOTYPES:

16. TIME MANAGEMENT
• SAP time management is a module, which is used by employees for time tracking and management across
departments.
The key features of SAPTime management are −
•Monitors Human Costs as per time booking for a project.
•Documents Progress of Process.
•Process of Invoices.
•Records External Employees’ Services.
•Maintains Planning and Progress.
•Confirms Service Management Orders.
•Collects Data Plans and Sheets.
The main advantages or tasks that are performed under SAPTime management are as follows −
•Time Recording and Evaluation.
•Negative & PositiveTime Recording.
•Work schedules & work schedules Rules.
•Public holiday Calendar, counting rules.
•Attendance Absences.
•Shift Management in HR.
•Overtime and Breaks Schedules underTime Management.

17. TIME RECORDING
Time recording in time management
• Allows the entry of employee time data
• Manually
• Automatically
• Allows data to be entered as clock times
• Allows data to be entered as hours
• Time data is entered in time recording infotypes
• Time recording infotype range 2000 -2999
Methods:
• Time Sheet Entry using ESS
• Electronic data capture (Employee use machines to punch a card)
• Importable file formats (Time admin submits data in importable file format)

18. TIME RECORDING & EVALUATION
• There are various types of time recordings that can be performed in Time management system i.e. number of
hours worked in a project, leave and absence, holidays, business trips, etc.
• You can book two types of absences inTime management −
• Quota driven absences − This absence type includes the leave taken from the allocated limit in a specific time
period. Example: Casual Leaves, Earned Leaves.
• Non quota driven absences − This absence type includes all unplanned leaves and are not a part of allocated limit
in a time frame. Example: Leave without pay, Study leave. Etc.
Absences 2001
Attendance 2002
Various Infotypes are defined in SAP system for time recording −
• Time evaluation is used to record the attendance of an employee and to record his absence from work.
• Time recording is required to process the payroll.
• Tcode: PT60To runTime Evaluation

19. WORK SCHEDULES & RULES
• The Daily Work Schedule specifies the working times and breaks. It is the smallest unit of work schedule.
• A Period Work Schedule is a fixed pattern of DailyWork Schedules
• A work schedule rule links the following elements:
o Public Holiday calendar
o Period work schedule
o Daily work schedule
o Work break schedule
o Personnel sub area grouping
o Employee sub group grouping
• The work schedule rule can be defaulted on infotype0007
• Tcodes:
• PT01: Generate theWork Schedule
• PT02: Change the Work Schedule
• PT03:Display theWork Schedule

20. TIME MANAGEMENT INFOTYPES
o IT 0007 (PlannedWorking time)
o IT 2007 (Attendance Quota)
o IT 0050 (Time Recording Info )
o IT 2010(Employee Remuneration)
o IT 0416 (Time Quota Compensation)
o IT 2011 (Time Events)
o IT 2001(Absences)
o IT 2002(Attendances)
o IT 2003(Substitutions)
o IT 2004(Availability)
o IT 2005(Overtime)
o IT 2012 (TimeTransfer Specifications)
o IT 2013 (Quota Correction)

21. PAYROLL MANAGEMENT
Payroll is one of the key components in SAP HR module and is used to process payroll of employees in
an organization.
o Important features are as follows −
• Payroll can be integrated with Personnel administration, time management, wages and accounting.
• Data retention allows you to use master data and other payroll related data from Personnel
Administration.
• Time data fromTime Management is included in Payroll and is used during the payroll run.
• IncentiveWages component is used to process payroll directly.
• Expenses and payable information from SAP Payroll component is posted directly in Financial
Accounting FICO to assign a cost centre for all the costs.
• SAP Payroll system also calculates the gross pay and the net pay. It consists of payments for each
employee and deductions made during a payroll period. All payments and deductions are included
in the remuneration calculation using different wage types.

22. PAYROLL CONTROL RECORD
• Payroll control record is used to run the payroll process in HR system.
• Payroll Control record is used to lock the master data during the payroll run and thus lock the changes during
payroll processing.
• You have to set up Payroll control record manually for each part of payroll run.
• Payroll Status − This determines the status of payroll run. It also defines the current payroll period and number of
times a payroll has been run.
• Earliest retro acctg period − This indicates the greatest earliest payroll period for retroactive accounting.
• Last change to personnel control record − This shows the details of the person who has changed Payroll Control
Record and what kind of changes are made.
• The Payroll control record is necessary for payroll run −
• Release mode − If you want to run payroll in update status, release mode should be used.
• Corrections − means data can be changed. Must subsequently move into release mode to update that data
change.
• Check payroll results − You can’t change the data in this mode. It is used to run the reports related to payroll.
• Exit mode − When payroll run is completed, exit model is selected.

23. BASIC PAY INFOTYPE
• Basic pay information of an employee is stored in basic pay Infotype (0008).
• An employee’s payroll history can be checked using Infotype history.
• In case an employee leaves an organization, the basic payroll data for that employee remains in the system to
ensure accuracy of any retroactive account runs to be performed.
• A basic pay Infotype 0008 can be processed itself with a personnel action.
• To create a new record you need to enter payment type on maintain HR master data screen.

24. Pay Scale Structure
• A pay scale Structure consists of the following components − (defined in Customizing Personnel administration)
• Pay Scale Area:
A pay scale area is used to define a geographical area where a collective agreement is valid. The geographical area is
determined by the size of pay scale area.
• Pay ScaleType:
A Pay scale type is used to define the area of economic activity for which an agreement is valid. The geographical area
in which it is valid is applied to the full company.
• Pay Scale Group and Level:
A Pay scale groups and pay scale levels are used to define the criteria to classify data for job evaluations and indirect
valuations. Each pay scale groups is further divided in pay scale levels.

25. Payroll Process
The payroll process in the SAP system includes the following steps:
1.Release the payroll.
2.Start the payroll run.
3.Check the results.
4.Perform corrections and repeat the payroll process until the payroll is error-free.
5.Exit the payroll.
During a payroll run, the payroll program reads the master data and time data infotypes.
Any changes made to the master data or time data during the payroll run can lead to
inaccuracies in the payroll results.To avoid this, the system does not permit any changes
in the master data and time data that affect the payroll past and present.

26. WageTypes
Wage type is one of the key components in payroll processing. Based on the
way they store information; wage type can be divided into two categories.
1. Primary WageType
Primary wage type is defined as wage type for which data is entered in
Infotype. Primary wage types are created by copying model wage types
provided by SAP.There are different type of primary wage types −
• Time wage type
Time wage type is used to store the time related information. This wage type
is used to combine payroll and time management. Time wage type is
generated at time evaluation and configure through T510S or using custom
PCR.
• DialogueWageType
These wage type includes basic pay IT0008, recurring payments and
deductions IT0014, and additional payments IT0015.
2. SecondaryWage orTechnicalWageType
• Secondary wage types are predefined wage types in SAP system and starts
with a slash (/).These wage types are created during payroll run.
• These wage types are system generated and cannot be maintained online.
• /559 BankTransfer

27. Payroll
Troubleshoots
Examples of problems that may occur in payroll run:
Delay time record sheets
Retroactive employee transfer
Change in payroll area
Missing basic pay infotype
Planned working time infotype
error
Payroll administrator error
Partial period factoring