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SAP Best Practices for Human Capital Management v1.

605 (United States)


SAP Best Practices

General Information
SAP Best Practices for Human Capital Management (HCM) was developed for small and midsize companies to implement a solution quickly and easily. With a focus on the primary workforce management business processes this package gives you built-in support for the best business practices across all industries Functionalities The SAP Best Practices for HCM V1.605 package supports your business in the following areas :
Organizational

Management

Personnel Administration

Benefits Administration
Time

Management

Payroll Administration HCM

Reporting

Employee Manager

Self Services

Self services / Talent Management

Performance

2011 SAP AG. All rights reserved.

SAP Best Practices for HCM V1.605 (US) Solution Scope


Baseline
Enterprise Structure External Financial Accounting Basic Overhead Cost Controlling

Workforce Management
Maintain Company Organizational Structure Personnel Administration for Limited HCM New Hire/Rehire Administration Employee Transfer Administration Leave of Absence Processing Employee Terminations Maintain Employee Information

Workforce Time Management


Time Entry Time Administration Time Processing - CATS Time Evaluation Processing

Workforce Benefits Administration


Benefits Administration

Workforce Reporting
SAP ERP Reporting for HCM

Period End Closing for HCM

Workforce Payroll Administration


Payroll and Post Payroll Processing Retroactive Payroll Processing Offcycle Payroll Processing FMLA Processing

Workforce Employee Self Service


Personnel Information Payments Working Time

Performance/Talent Management
Pre-defined Performance Process

Workforce Manager Self Service


Approve employee time & leave requests

Legend:

Existing Scenario New Scenario/Functionality

2011 SAP AG. All rights reserved.

Industry-Specific Scenarios (1 of 2)
SAP BP for HCM V1.605 (US) provides the following cross -industryspecific scenarios:
560: 562: 563: 567: 568: 569: 570:

Maintain Company Organizational Structure


Personnel Management for Limited HCM New Hire/Rehire Administration Employee Transfer Administration Leave of Absence (LOA) Processing Employee Terminations Maintain Employee Information

564:
571: 572:

Time Entry
Time Administration Time Entry Cross Application Timesheet (CATS)
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2011 SAP AG. All rights reserved.

Industry-Specific Scenarios (2 of 2)
SAP BP for HCM V1.605 (US) provides the following cross-industryspecific scenarios:
573: 575: 566: 576: 577: 578: 559: 580: 582: 583: 584

Time Evaluation Processing Benefits Administration Payroll and Post Payroll Processing Retroactive Payroll Processing

Offcycle Payroll Processing


FMLA Processing SAP ERP Reporting for HCM Period End Closing for HCM Employee Self Services Manager Self Services

Employee Performance Management


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2011 SAP AG. All rights reserved.

Maintain Company Organizational Structure (560)


Purpose and Benefits:
Purpose
To complete processing of Organizational Changes as required by the Enterprise.

Benefits
Organizational structures in the system are kept in alignment with the actual enterprise Employee records are kept in real time alignment with organizational structures so reports and financial reporting remain timely and accurate

Key process flows covered


Maintain organizational structure

2011 SAP AG. All rights reserved.

Personnel Management for Limited HCM (562)


Purpose and Benefits:
Purpose
Ability to create an employee mini master record for time recording and travel management purposes

Benefits
Leverage basic HCM to support other SAP functions Enables time recording using the cross application timesheet (CATS)

Key process flows covered


Create employee mini master record Time Recording using Cross Application Time Sheet (CATS) Approval of Working times Time Sheet: Transfer to Target Components

SAP 2008 / Page 7

2011 SAP AG. All rights reserved.

New Hire/Rehire Administration (563)


Purpose and Benefits:
Purpose
This scenario describes the typical processes used to Hire candidates and Rehire employees using Hire Personnel Actions.

Benefits
The employee master record is created / updated Employee records are kept in real time alignment with organizational changes so time management, payroll, and other functions perform as needed

Key process flows covered


New Hire / Rehire Administration

2011 SAP AG. All rights reserved.

Employee Transfer Administration (567)


Purpose and Benefits:
Purpose
Maintain organizational and employee master records as the dynamic Enterprise evolves.

Benefits
Employee master data records remain current Employee records are kept in real time alignment with organizational changes so payroll is timely and accurate Reports and postings to financials remain accurate

Key process flows covered


Organizational Change Administration

2011 SAP AG. All rights reserved.

Leave Of Absence Processing (568)


Purpose and Benefits:
Purpose
This scenario describes the typical process used when employees take leaves of absence (LOA).

Benefits
Employee records are kept in real time alignment, so payroll is timely and accurate. Automated, efficient processing with complete history of employees transactions.

Key process flows covered


LOA Administration

2011 SAP AG. All rights reserved.

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Employee Terminations (569)


Purpose and Benefits:
Purpose
This scenario describes the typical process when an employee has decided to retire from the company or has been separated.

Benefits
The organizational structures in the system are kept in alignment to the actual enterprise The employee master records are updated, so payroll and benefits administration remain accurate

Key process flows covered


Employee Separation Administration Processing

2011 SAP AG. All rights reserved.

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Maintain Employee Information (570)


Purpose and Benefits:
Purpose
This scenario describes the typical process used to create and maintain employee master records which contains all personal data, time data, benefit data and payroll data

Benefits
Employee master record is updated Automated, efficient processing with complete history of employees transactions

Key process flows covered


Maintain Employee Administration Processing

2011 SAP AG. All rights reserved.

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Time Entry (564)


Purpose and Benefits:
Purpose
This scenario describes three methods of entering time data. Time Entry Manual - This scenario describes typical processes to create and maintain employee time information using the HR infotypes directly. This may be used by administrators when CATS time entry is not in use, or for entering an absence that spans multiple days. It is important to understand that any entries made here will not be reflected in CATS. Cross-Application Time Sheet (CATS) CATS is one of the tools used for recording time worked by an employee. This scenario describes the entry of time to various absence and attendance types for transfer to the Human Capital Management (HCM) module. The checks configured in the HCM module, such as quota entitlements, will be performed at time of entry using CATS. CATS can also be used to record time to projects and other cost objects for transfer to other SAP modules such as Controlling, Project Systems, and Plant Maintenance. Time Managers Workplace - The Time Managers Workplace is an optional user interface for time entry. TMW features a user-friendly and task-oriented interface for maintaining time data and processing time evaluation messages. This interface was specifically designed to meet the needs of time administrators in a decentralized enterprise. The trigger for this activity is typically a manual time card submitted to the manager or time administrator. The manual time card may be a paper time sheet, and email message, or other electronic time sheet such as an Excel workbook.

2011 SAP AG. All rights reserved.

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Time Entry (564) continued


Purpose and Benefits, contd:
Benefits
Enables employees to record working times and tasks Enables time administrators to record working times for employees Enables managers to develop work schedules for employees Enables companies to control time management processes flexibly and efficiently

Key process flows covered


Workforce Time Entry Time Management

2011 SAP AG. All rights reserved.

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Time Administration (571)


Purpose and Benefits:
Purpose
This scenario describes the typical processes used in Time Management to review and process quota balances.

Benefits
Employees of an enterprise may be granted different attendance/absence time-limited entitlements for vacation leave, sick leave and training day, and so on. These time-limited entitlements can be maintained in HCM Time Management as - Time Quotas. HCM Time Management - provides an enterprise the ability to -: Get a clear overview of an employee's current attendance/absence quota entitlements. See detailed information on quota entitlements that have been generated automatically. Have the option of correcting quota entitlements manually. Get a simulated projection of future quota entitlements. Have the ability to print an overview of the projected quota entitlements.

Key process flows covered


Workforce Time Administration Time Management

2011 SAP AG. All rights reserved.

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Time Processing Cross Application Timesheet (CATS) (572)


Purpose and Benefits:
Purpose
This scenario describes additional processing steps necessary for time recorded using the Cross Application Time Sheet (CATS). It includes the following steps: Allow the supervisor or time administrator to review and approve the employees time. This step may not be necessary depending upon the settings configured in the CATS data entry profile that was used to record the time. Transfer the time to the various SAP modules depending on the data recorded.

Benefits
Enables employees to record working times and tasks Enables managers to control all business process concerning an employee Paying the employee Monitoring the progress of a project Creating an invoice

Key process flows covered


Workforce Time Processing - CATS Time Management

2011 SAP AG. All rights reserved.

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Time Evaluation Processing (573)


Purpose and Benefits:
Purpose
This scenario will evaluate employee time including overtime, holiday time, shifts, time off entitlements (quotas), etc. It is recommended that time evaluation always be processed immediately prior to processing payroll to ensure consistency in the results.

Benefits
Employees working times are valuated Time evaluation calculates planned times and overtime, administrates time accounts and forms wage types, updates time quotas, and is used to check working time specifications.

Key process flows covered


Workforce Time Evaluation Processing Time Management

2011 SAP AG. All rights reserved.

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Benefits Administration (575)


Purpose and Benefits:
Purpose
This scenario describes the typical process performed by the Benefits Administrator to modify and update, employees Benefit Plans information. This scenario describes the typical process performed by the Human Resources department to enroll employees to the available Benefit Plans and then to discontinue the plans upon departure of the employee.

Benefits
Employee benefits plans are updated Employee master record is updated with the qualified life adjustment reasons Employee is enrolled into benefits and retirement savings plans Employee master records are updated, and the payroll deductions are timely and accurate Benefits vendor interfaces can be processed accurately and timely, thus minimizing confusion and employee coverage updates

Key process flows covered


Benefits Administration Processing Benefits Enrollment and Termination Processing
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Payroll and Post Payroll Processing (566)


Purpose and Benefits:
Purpose
To calculate the gross and net pay, which comprises the individual payments and deductions that are calculated during a payroll period, and are received by an employee Execute and manage payroll processing which encompasses (starting payroll, payroll corrections, remuneration statements, payroll journal, garnishment reporting, wage type report) Execute bank transfer activities (Data Medium Exchange (DME) Processing and Print Check functionality Execute third party remittance for taxation, benefit vendors and garnishment processing Support management of FMLA using the FMLA workbench Full integration and payroll posting to SAP FI/CO

Benefits
Automated, efficient processing of employees payroll Automated processing of banking activities Automated processing of third party remittance Integration with SAP Financials Sample payroll forms

Key process flows covered


Maintain Master Data and Time Data Run US Payroll Run Simulations and production runs for FI/CO Posting and 3rd Party Remittance Pre-DME, DME Management and check processing Third Party Remittance Posting to FI/CO activities Payroll journal reporting

2011 SAP AG. All rights reserved.

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Retroactive Payroll Processing (576)


Purpose and Benefits:
Purpose
To calculate the when there is a change of earnings for the past, payroll results need to be recalculated to correct tax and earnings amounts The system performs a retrocalculation of payroll results when you make a retroactive master data change that affects an employee's past earnings If you change the master and time data of an HR master record for a pay period for which the payroll has already run, the existing payroll results must be rechecked during the next regular payroll run and then included in the payroll again. The system automatically performs retroactive accounting for the payroll past.

Benefits
Automated calculation of retroactive changes

Key process flows covered


Retroactive Employee Master Data Change Run US Payroll Run Simulations and production runs for FI/CO Posting and 3rd Party Remittance Pre-DME, DME Management and check processing Third Party Remittance Posting to FI/CO activities Payroll journal reporting

2011 SAP AG. All rights reserved.

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Offcycle Payroll Processing (577)


Purpose and Benefits:
Purpose
To complete processing of employee Off-cycle Payroll Run payroll for payments including bonuses and other one-time payments, advance payments (multiple pay periods), and absence payments (days within a payroll period) Execute a correction payroll when changes have been made to an employee's master data Process payroll data for a check that was manually created outside of the system View an employee's payroll history Replace payments Reverse payments Adjust W2 data of individual employee during the year end process

Benefits
Ability to reissue, void, or create payments in a single workbench Automated, efficient processing with complete history of employees payroll

Key process flows covered


Reversal / Void Check Replacement

2011 SAP AG. All rights reserved.

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FMLA Processing (578)


Purpose and Benefits:
Purpose
To complete processing of employee FMLA events

Benefits
Compliance with FMLA requirements Automated, efficient processing with complete history of employees transactions

Key process flows covered


FMLA Processing

2011 SAP AG. All rights reserved.

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SAP ERP Reporting for HCM (559)


Purpose and Benefits:
Purpose
Ability to recognize the most common SAP standard HCM reports

Benefits
Allow organizations to perform on demand reporting using the HR ad-hoc query tool Assists organizations with performing audits in HR

Key process flows covered


Workforce HCM Reporting Flexible HCM Ad-hoc queries Audit Reporting in HCM

SAP 2008 / Page 23

2011 SAP AG. All rights reserved.

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Period End Closing for HCM (580)


Purpose and Benefits:
Purpose
The closing operations component helps you prepare and carry out the activities required for daily/month-end, quarterly -end and year-end closing in payroll. For this purpose, the system provides a series of standard reports that can be used to generate evaluations and analyses of payroll. For quarterly and year end closing a number of payroll tax reports can be generated using tax reporter functionality

Benefits
The system helps you to carry out the following: Review payroll results and wage type details Reconcile payroll postings Execute quarterly reports and year end W-2 activities

Key process flows covered


day-end closing, month-end closing Quarterly closing and year-end closing.

2011 SAP AG. All rights reserved.

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Employee Self Services (582)


Purpose and Benefits:
Purpose
To allow employees to update and maintain their own information using employee self services using the NWBC User Interface

Benefits
Employees get to access and change their own data. Using the NWBC client negates the need for a portal solution. The user is allowed to see and update the necessary information. A new navigation pattern has reduced the number of clicks and an intuitive in-place navigation from Overview to the Detail screen.

Key Process Steps


Employee Self Services

2011 SAP AG. All rights reserved.

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Manager Self Services (583)


Purpose and Benefits:
Purpose
To enable Managers the ability to manage their direct employees using self services applications via the NWBC client user interface

Benefits
Managers get to access and approve or reject timesheets and leave requests. Using the NWBC client negates the need for a portal solution. The user is allowed to see and update the necessary information. A new navigation pattern has reduced the number of clicks and an intuitive in-place navigation from Overview to the Detail screen.

Key Process Steps


Manager Self Services

2011 SAP AG. All rights reserved.

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Employee Performance Management (584)


Purpose and Benefits:
Purpose To support employee performance reviews as required by the company. Benefits

Use of a standardized performance management process

Pre-defined corporate goals and core values are automatically cascaded through all levels of the enterprise
Utilization of workflows for notification of employees and managers Portal access via Manager and Employee Self Service Availability of pre-defined templates Integration with other talent management modules of SAP e.g. Enterprise learning

Key Process Steps

Objectives setting and performance appraisal

2011 SAP AG. All rights reserved.

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2011 SAP AG. All rights reserved

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