Final HR Report | Enterprise Resource Planning | Sap Se

A Practical Training Report On SAP R/3 –Human Resource (HR) Taken at

DCM SHRIRAM CONSOLIDATED LTD TRAINING HELD FROM (May 21st 2009 to June 20th 2009) Rajrani Kala & Vyavsayik Prashikshan Sansthan, Kota Submitted to:
Mr. M. S. Rau (Additional General Manager) Shriram Training Centre ISD

Submitted to:
Mr. R.S. Malik (Assist. General Manager)

Submitted By:
Mayank Saini

Maharishi Arvind Inst. Of Eng. and Technology, jaipur

I owe a huge debt of thanks to a large number of people without whom this practical training of mine would not have been possible. I express my sincere gratitude to the management of DSCL, Kota for giving me the opportunity to get a first hand technical knowledge. I am extremely grateful to Dr. M.S.Rau, for permitting me to take training at their prestigious organization. I am also grateful to Mr. K.R.S. Khinchi, without whom my training at this organization would not have been possible. I would like to express my sincere thanks to Mr. R S Malik, Miss Neha Sharma & all for their able guidance in the core subject matter & scholarly suggestions, prudent admonition, effective management which made my training process smoother. I would like to thank everyone who helped me in every way and made me feel much better & comfortable at the training place.

Mentor: Neha Sharma

A very important element of the curriculum of an IT student is the Practical Training. As a part of the academic syllabus of 3 year degree course of B.Tech, each student under the Maharishi Arvind Inst. Of Eng. And Technology, jaipur DSCL, Kota. The object of this training is to provide a chance to the student to have an insight in the practical working environment in an industry. Such type of training helps the student to prepare herself for working in the real & practical industry environment where she has to apply the knowledge she has taken during the degree course. This helps the students to be more confident & efficient when she faces the real industry after completion of her degree course. I take pleasure in submitting this report on “ SAP R/3 -Human Resource”. In the present era, the ERP application software package SAP backbone of every IT/Non-IT Company. I hope this report will give a brief idea on SAP Management at DSCL, Kota is now the is required to undergo a practical training of 30 days after completion of VI Sem. , of the course. I underwent this training at

Mayank Saini Date:

o Acknowledgement o Preface o History of DSCL o Company Profile o History of Organization (Kota Unit) o Enterprise Resource Planning • Preamble • Evolution of ERP • Need of ERP • Feature of ERP • Components of ERP • Implementation of ERP • Functionality in different ERP Software’s • Benefits of ERP • Suppliers of ERP o Introduction to SAP o Basic SAP modules o PROGRAMMING ABAP/4 o Architecture of SAP R/3 o Quick Tour of the SAP User Interface o Human Resource

• Overview • Module of HR • Structure of Personnel Administration • Info type Group • Action hiring • HR T-codes • Payroll basics • Payroll performance • Payroll Driver • Payroll schema • Payroll relevant files • Internal tables for payroll • Period parameters • Data modifier • Payroll period • Period number • Retroactive accounting • Payroll past • Retroactive accounting limit • Retroactive accounting relevance • Retroactive accounting recognition • Status indicator

o Important points o Conclusion o References


Nothing can better sum up the homage paid to great philanthropist Sir Shri Ram who began as a humble worker and went on to setup one of India’s largest business houses – THE DCM GROUP. Not only did Lalaji achieve great height in business enterprise but also participated in crucial early stages of nation building. Everyone is familiar with the multiple facets industries and institutions on which he left his imprint like DCM limited, Bengal Potteries, Jay Engineering Works, Sindri Fertilizers, Lady Shri Ram College, Shriram College of Commerce, Delhi School of Economics, many sugar mills and umpteen others. The Delhi Cloth and General Mills Co. Ltd. (DCM) was founded in 1889 with the establishment of a spinning mill at Delhi. Thereafter, the company expanded and diversified into large segments of industrial areas and played a leading role in the industrialization of India. In 1990, to create more manageable business entities DCM Ltd. was restructured into four separate companies. DCM Shriram Consolidated ltd. (DSCL) took over 1/3rd of the businesses by merging of following units of erstwhile DCM: • Shriram Fertilizer & Chemicals, Kota - Fertilizers, Plastics, Chlor Alkali and Power. • Shriram Cement Works, Kota – Cement. • Swatantra Bharat Mills and DCM Silk Mills, Delhi – Textiles. In decade 1990-2000 DSCL added the following units to its portfolio: • Shriram Alkali & Chemicals, Bharuch - Chlor Alkali.

• Shriram Environment & Allied Services, Gurgaon – Environment and allied services. • Ghaghagra Sugar, Lakhimpur Kheri – Sugar. • Shriram Bioseed Ltd., Hyderabad – Seeds. • DSCL ESCO Ltd., Delhi – Energy Services Company. • Hariyali Kisan Bazar. • Fenesta Windows.

The main units of DSCl now comprise of:

Agri businesses: Sugar, Urea, Agri Inputs, Bioseeds, Hariyali Kisan Bazar. Energy Intensive Business: Chemicals, PVT Resins, Cement. Value Added Businesses: Fenesta Building Systems, PVC Compounds, Energy Services. Other Businesses: Textiles.

• •

Company Profile

DSCL is a Rupees 15.50 billion, public listed company, based in North India with a core sector business portfolio comprising fertilizers, chlor alkali, chemicals, plastics, cement, textiles and sugar. A leading Indian organization, DSCL aspires to become a world-class enterprise that is responsive to change, outward looking, competitive, delivers superior quality at low cost, with focused businesses and robust financials. DSCL has been built on core values of being caring, credible and fair with all stakeholders, committed to continuous improvement; and being a responsible corporate citizen. DSCL has built an enabling work culture and believes in releasing human energy within the organization through participation, teamwork, professionalism, entrepreneurship, openness and upholding human dignity. The Company is committed to enhancing the employability of individuals through competence building via continuous training and development activities. DSCL believes in a pro-active Industrial Relations policy and has an enviable track record in this field. Employee welfare is given utmost priority and is institutionalized across the organization. DSCL has initiated several management initiatives in the recent past for upgrading the organization, the major ones being Institution Building, Quality Management.

ISO 9000 Certification and implementation of SAP R/3 ERP package Information Technology. The Company provides aspiring professionals opportunities to grow in a challenging and up-to-date environment. DSCL’s recruitment policy values merit, are egalitarian, do not differentiate on the basis of sex, caste or religion, and targets the best professionals. Compensation is commensurate to qualifications, experience and ability.


As for back in 1961 the fledgling beginning of one of the company’s biggest Chemical complex took its roots at Kota by laying the foundation stone in Vinyl and Chemical Industries which is known today as SHRI RAM FERTILIZERS AND CHEMICALS. The company under the continuous expansion programs diversified from chemical to fertilizers and cement. Cement plant is the first of its kind in the Country and second in the world because of its Calcium Hydroxide sludge based technology instead of conventional lime stone raw material. The chronological history of its growth is detailed below: Year 1962 1963 1964 1964 1969 Activity The foundation stone was laid for PVC plants. Caustic soda and calcium carbide plant were put on stream. PVC plant was commissioned The foundation stone was laid for fertilizer plant Urea fertilizers plant of 70 tons/day.

1970 Power plant commissioned and inaugurated by Late Smt. Indira Gandhi 1971 1972 1974 The capacity of the Fertilizer plant was increased to 930 TDP. The capacity of the caustic soda plant was increased to 100 TDP. The caustic soda fusion Plant was commissioned.

1976 India’s largest 20 MV indigenous carbide furnace was commissioned.

1978 1979

PVC Plant capacity increased to 65 TPD. The capacity of PVC Plant was increased to 100 TDP.

1984 Cement plant of 600 TDP using calcium Hydroxide waste from carbide plant was commissioned. 1984 Commissioning of bag house in calcium carbide plan and ESP for 35 MW. 1988 Power plant and cement plant for controlling the pollution. 1989 1996 1997 1997 1997 1997 Adsorption unit for Ammonia recovery in Urea Plant Certification for compounding. Certification of Fertilizer group. Certification of Shriram Cement Work. Certification of Chloral Alkali Group. Certification of Shriram Environment and allied services.

1998 World class Enterprise wide Resource Planning (ERP software SAP R/3) implementation with best business practices. 1998 PVC compounding capacity is being increased from 75 MT/PM to 2000 MT/PM. 1999 2000 Installation of Hydrogen bottling facility. Commissioning of 30 TPD stable balancing Power Plant.

2001 Poly Aluminum chloride Plant established. They have as many as 230 wholesalers and 463 retailers for marketing its products. It has its divisional office in all-metropolitan cities and important cities


Preamble: Enterprise Resource Planning is the latest high end solution, information technology has lent to business application. The ERP solutions seek to streamline and integrate operation processes and information flows in the company to synergies the resources of an organization namely men, material, money and machine through information. Initially implementation of an ERP package was possible only for very large Multi National Companies and Infrastructure Companies due to high cost involved. Today many companies in India have gone in for implementation of ERP and it is expected in the near future that 60% of the companies will be implementing one or the other ERP packages since this will become a must for gaining competitive advantage.

Evolution of ERP

In the ever-growing business environment the following demands are placed on the industry:  Aggressive Cost control initiatives  Need to analyze costs / revenues on a product or customer basis  Flexibility to respond to changing business requirements  More informed management decision making  Changes in ways of doing business Difficulty in getting accurate data, timely information and improper interface of the complex natured business functions have been identified as the hurdles in the growth of any business. Time and again depending upon the velocity of the growing business needs, one or the other applications and planning systems have been introduced into the business world for crossing these hurdles and for achieving the required growth. They are:  Management Information Systems (MIS)  Integrated Information Systems (IIS)  Executive Information Systems (EIS)  Corporate Information Systems (CIS)  Enterprise Wide Systems (EWS)  Material Resource Planning (MRP)  Manufacturing Resource Planning (MRP II)  Money Resource Planning (MRP III) The latest planning tool added to the above list is Enterprise Resource Planning.

Need for ERP
Most organization in the world have realized that in the rapidly changing environment, it is impossible to create and maintain a custom designed software package which will cater to all their requirement and also be completely up-to date. Realizing the requirement of user organizations some of the leading software companies have designed ERP software which will offer: • An integrated software solution to all functions of an organization. • Since ERP solutions address the entire organizational needs, and not selected island of the organization • ERP introduction brings a new culture, cohesion, and vigor to the organization. • After ERP introduction the line managers would no longer have to chase information, check compliance, rules or conformance to budget. • ERP systems similarly would relieve operating managers of routine decisions and leave them with lots of time to think, plan, and execute vital long-term decisions of an organization.

ERP systems lead to significant cost savings by continuously monitoring the

organizational health. The seemingly high initial investments become insignificant in the face of hefty long-term returns. • ERP provides best business practices in the industry thus overcoming shortened life cycle which calls for continuous design improvement, manufacturing flexibility, and super efficient logistics control; in short a better management of the entire supply chain.

Features of ERP
Some of the major features of ERP and what ERP can do for the business system are as below:  ERP facilitates company-wide Integrated Information

System covering all functional areas like Manufacturing, Selling and distribution, Payables, Receivables, Inventory, Accounts, Human resources, Purchases etc.,  ERP performs core corporate activities and increases customer service and thereby augmenting the Corporate Image.  ERP bridges the information gap across the organization.  ERP provides for complete integration of Systems not only across the departments in a company but also across the companies under the same management.  ERP is the only solution for better Project Management.  ERP allows automatic introduction of latest technologies like Electronic Fund Transfer(EFT), Electronic Data Interchange(EDI), Internet, Intranet, Video conferencing, ECommerce etc.  ERP eliminates the most of the business problems like Material shortages, Productivity enhancements, Customer service, Cash Management, Inventory problems, Quality problems, Prompt delivery etc.,  ERP not only addresses the current requirements of the company but also provides the opportunity of continually improving and refining business processes.

 ERP provides business intelligence tools like Decision Support Systems (DSS), Executive Information System (EIS), Reporting, Data Mining and Early Warning Systems (Robots) for enabling people to make better decisions and thus improve their business processes

Components of ERP
To enable the easy handling of the system the ERP has been divided into the following Core subsystems:  Sales and Marketing  Master Scheduling  Material Requirement Planning  Capacity Requirement Planning  Bill of Materials  Purchasing  Shop floor control  Accounts Payable/Receivable  Logistics  Asset Management  Financial Accounting

Implementation of ERP
Implementing an ERP package has to be done on a phased manner. Step by step method of implementing will yield a better result than bigbang introduction. The total time required for successfully implementing an ERP package will be anything between 18 and 24 months. The normal steps involved in implementation of an ERP are as below:  Project Planning  Business & Operational analysis including Gap analysis  Business Process Reengineering  Installation and configuration  Project team training  Business Requirement mapping  Module configuration  System interfaces  Data conversion  Custom Documentation  End user training  Acceptance testing  Post implementation/Audit support

1. Initiation

6. Operations

2. Planning

5. Transition

3. Analysis & process design


Benefits of ERP
The benefits accruing to any business enterprise on account of implementing are unlimited. According to the companies like NIKE, DHL, Tektronix, Fujitsu, Millipore, Sun Microsystems, following are some of the benefits they achieved by implementing ERP packages:  Gives Accounts Payable personnel increased control of invoicing and payment processing and thereby boosting their productivity and eliminating their reliance on computer personnel for these operations.  Reduce paper documents by providing on-line formats for quickly entering and retrieving information.  Improves timeliness of information by permitting, posting daily instead of monthly.  Greater accuracy of information with detailed content, better presentation, fully satisfactory for the Auditors.  Improved Cost Control  Faster response and follow up on customers

 More efficient cash collection, say, material reduction in delay in payments by customers.  Better monitoring and quicker resolution of queries.  Enables quick response to change in business operations and market conditions.  Helps to achieve competitive advantage by improving its business process.  Improves supply-demand linkage with remote locations and branches in different countries.  Provides a unified customer database usable by all applications.  Improves International operations by supporting a variety of tax structures, invoicing schemes, multiple currencies, multiple period accounting and languages.  Improves information access and management throughout the enterprise.  Provides solution for problems like Y2K and Single Monitory Unit(SMU) or Euro Currency.

Suppliers of ERP
There are many numbers of ERP suppliers who are very active in the market. Some of the companies offering renowned international ERP products include:  Baan  CODA  D&B  IBM  JD Edwards  Marcarn  Oracle  People soft  Platinum  Ram co  SAP  SMI

 Software 2000

Oracle: The heavyweight of the database software market, Oracle has built a solid enterprise applications business, which accounted for $2.1 billion of the firm’s $7.9 billion revenues in 1998. Second to SAP in the enterprise software market, Oracle applications serve over 5,000 customers in 140 countries. Oracle has been a leader in re-focusing its ERP solutions around the Internet, and it recently launched a version of its applications suite which is accessible from a standard Web browser. Further, Oracle was the first JBOPS company to integrate front-office applications with its ERP offering. PeopleSoft: Started as a software firm for human resource management in 1987, PeopleSoft gradually expanded its software to cater to other corporate functions. The company’s revenues grew fast, reaching $1.3 billion in 1998 up forty-fold from $32 million in 1992. The firm’s most recent enterprise system, PeopleSoft 7.5, provides enterprise solutions for finance, materials management, distribution, supply chain planning, manufacturing, and human resources. J.D. Edwards: Founded in 1977 by three partners from an accounting firm, J.D. Edwards addresses business processes in finance, manufacturing, distribution/logistics and human resources, and encompasses the entire supply chain from planning and scheduling through execution. Growing from $120 million in revenues in 1992 to

$934 million in 1998, the software maker has served over 5,000 customers in over 100 countries. Its flexible, technologically-advanced One World system has been a recent success. Baan: The Baan Company was founded in The Netherlands in 1978 making financial software. Baan’s products have been simpler to use than SAP’s, which led to the company’s growth in the early nineties. Today, the company operates in 80 countries, serving more than 2800 customers. Baan’s net revenues have increased from &47 million in 1992 to $747 million in 1998.baan series is its primary enterprise system, which incorporates a variety of functionalities from sale order management and manufacturing to supply chain management. Choosing the right ERP package is not easy. The selection process starts with an identification of system scope, business objectives and business processes. Certain ERP packages provide better solutions in certain functional areas. For example, SAP began as manufacturing software and still excels along that dimension. solutions that are geared to those industries. Figure 4 summarizes the recommendations of Benchmarking Partners’ consultants on industries that are well-served by the different ERP packages. Moreover, different ERP vendors have experience in different industries, and offer

Introduction to SAP
SAP the company was founded in Germany in 1972 by five ex-IBM engineers. In case you’re ever asked, SAP stands for Systems, Applications, and Products in Data Processing. So now you know! Being incorporated in Germany, the full name of the parent company is SAP AG. It is located in Walldorf, Germany which is close to the beautiful town of Heidelberg. SAP has subsidiaries in over 50 countries around the world from Argentina to Venezuela (and pretty much everything in between). SAP America (with responsibility for North America, South America and Australia - go figure!) is located just outside Philadelphia, PA. The original five founders have been so successful that they have multiplied many times over such that SAP AG is now the third largest software maker in the world, with over 17,500 customers (including more than half of the world's 500 top companies). SAP employs over 27,000 people worldwide today, and had revenues of $7.34 billion and Net Income of $581 million in FY01. SAP is listed in Germany (where it is one of the 30 stocks which make up the DAX) and on the NYSE (ticker: SAP). There are now 44,500 installations of SAP, in 120 countries, with more then 10 million users! So what made this company so successful? Back in 1979 SAP released SAP R/2 (which runs on mainframes) into the German market. SAP R/2 was the first integrated, enterprise wide package and

was an immediate success. For years SAP stayed within the German borders until it had penetrated practically every large German company. Looking for more growth, SAP expanded into the remainder of Europe during the 80's. Towards the end of the 80's, client-server architecture became popular and SAP responded with the release of SAP R/3 (in 1992). This turned out to be a killer app for SAP, especially in the North American region into which SAP expanded in 1988. The success of SAP R/3 in North America has been nothing short of stunning. Within a 5 year period, the North American market went from virtually zero to 44% of total SAP worldwide sales. SAP America alone employs more than 3,000 people and has added the names of many of the Fortune 500 to it’s customer list (8 of the top 10 semiconductor companies, 7 of the top 10 pharmaceutical companies etc). SAP today is available in 46 country-specific versions, incorporating 28 languages including Kanji and other double-byte character languages. SAP also comes in 21 industry-specific versions. SAP R/3 is delivered to a customer with selected standard process turned on, and many other optional processes and features turned off. At the heart of SAP R/3 are about 10,000 tables which control the way the processes are executed. Configuration is the process of adjusting the settings of these tables to get SAP to run the way you want it to. Think of a radio with 10,000 dials to tune and you’ll get the picture. Functionality included is truly enterprise wide including: Financial Accounting (e.g. general ledger, accounts receivable etc), Management Accounting (e.g. cost centers, profitability analysis etc), Sales, Distribution, Manufacturing, Production Planning, Purchasing,

Human Resources, Payroll etc. All of these modules are tightly integrated which – as you will find out – is a huge blessing ... but brings with it special challenges. SAP Modules R/3's applications are modules. They can be used either alone or combined with other solutions. The integration capability of these applications increases the benefits derived for any company.

Logistics comprises all processes involved in purchasing, materials management, manufacturing, warehousing, quality management, plant maintenance, service management and sales and distribution. All applications access a shared consistent database, supported by production data management. SD: Sales & Distribution SD actively supports sales and distribution activities with outstanding functions for pricing, prompt order processing, and on-time delivery, interactive variant

configuration, and a direct interface to profitability analysis and production.

PP: Production Planning and Control PP provides make-to-order, and assemble-to-order production,

comprehensive process for all types of manufacturing: from repetitive, through process, lot and make-to-stock manufacturing, to integrated supply chain management with functions extended MRP || and electronic kanban, plus optional interfaces to PDC, process control systems, CAD and PDM.

Production Planning and Control

PS: Project System PS coordinates and controls all

phases of a project, in direct cooperation with Purchasing and Controlling, from quotation to design and approval, to resource management and cost settlement.

MM: Materials Management MM optimizes all purchasing supplier evaluation, lowers procurement and

processes with workflow-driven processing functions, enables automated warehousing costs with accurate inventory and warehouse management, and integrates invoice verification.

QM: Quality Management QM monitors, captures, and

manages all processes relevant to quality assurance along the entire supply chain, coordinates inspection processing, initiates corrective measures, and integrates laboratory information systems.

PM: Plant Maintenance PM provides planning, control,

and processing of scheduled maintenance, inspection, damagerelated maintenance, and service management to ensure availability of operational systems, including plants and equipment delivered to customers.

SM: Service Management SM provides highly integrated

customer service functionality to compete in today's global markets.

PDM: Product Data Management PDM supports in

creating and managing product data throughout the product life cycle.

Financials Financials is a suite of integrated financial application components encompasses controlling. FI: Financial Accounting FI collects all the data in relevant to accounting, providing complete all aspects of financial accounting, investment management, controlling, treasury management, and enterprise


documentation and comprehensive information, and is at the same an up-to-the-minute basis for enterprise-wide control and planning. CO: Controlling CO is a complete array of compatible

planning and control instruments for company-wide controlling systems, with a uniform reporting system for coordinating the contents and procedures of company's internal processes. IM: Investment Management IM offers integrated

management and processing of investment measures and projects from planning to settlement, including pre-investment analysis and depreciation simulation.

TR: Treasury TR is a complete solution for efficient

financial management that ensures the liquidity of worldwide company, its structures, financial assets, profitability and minimizes risks.

EC: Enterprise Controlling EC continuously monitors

company's success factors and performance indicators on the basis of specially prepared management information. Financial Information Flow

FI Features  Strong control capabilities and audit support  Multi-currency/multi-national  Online budgeting/planning  Supports country-specific requirements  Real-time daily world-wide p&L reporting  Activity-based costing  World-wide assets management  Inter-company consolidations  Support for transfer pricing logic  Complete integration with other modules

Human Resources HR provides solutions planning and managing company's human resources, using integrated applications that cover all personnel management tasks and help simplify and speed the process.

PM: Personnel Management PM is a complete solution

for personnel administration, recruitment management, travel management, benefits administration and salary administration.







maintaining an accurate picture of organization's structure, no matter how fast it changes. It is systematic and forward planning tool that considers the final effects of all personnel events thus it's complete solution for personnel cost planning.

PA: Payroll Accounting PA addresses payroll functions

from a global point-of-view and gives the capability to centralize payroll processing or decentralize the data based on country or legal entities. TM: Time Management TM is integrated with payroll

accounting, controlling, production planning, plant maintenance, project system, external services and shift planning. It provides with a variety of standard reports that will assist in tracking and analyzing employee time with completeness and accuracy.

PD: Personnel Development PD assists with planning, business events, registration and booking, price

monitoring, and analyzing scheduled seminars, training courses, and determination and invoicing. PROGRAMMING ABAP/4 ABAP/4 is the programming language used by SAP’s developers to build the transactions that make up the R/3 application. It’s also used by corporations to customize the R/3 application. In general, ABAP/4 isn’t used by customers of SAP to develop complex applications from scratch, but instead to provide additional business functionality. For example, it’s not necessary for a customer to write a program in ABAP/4 to manage inventory levels, because SAP has already written transactions to accomplish this objective. The two most common uses for ABAP/4 are producing custom reports and developing custom interfaces for SAP. In this context, a report is an ABAP/4 program that reads specific data from SAP’s database and then displays the data via a computer screen or a printed page. An interface, on the other hand, is an ABAP/4 program that moves data into SAP, or reads data from SAP and writes it out to a system file to be transferred to an external computer system, such as a legacy mainframe. Other uses for ABAP/4 include conversion programs that change data into a format usable by SAP, and custom transactions similar to the SAP transactions that make up the R/3 application, but are written by users to fulfill some business function not provide by SAP.

HOW ABAP/4 AND DATA INTERACT IN SAP Almost all ABAP/4 programs manipulate data from the SAP database to some extent. SAP):  Master data is information that usually corresponds to physical objects, such as materials, vendors, customers, or plants.  A document is information that usually corresponds to an event such as a purchase order, an invoice, a change in inventory, or a sales order. Documents can be identified in the system by a document number, which can be externally assigned or assigned by SAP, depending on the configuration. Master data is needed in order to create any document; for example, an invoice can’t be created without a vendor to issue it. A change in inventory, referred to in SAP as a material movement, must refer to a material and a plant. Each SAP module has master data that it manages and documents that are created in the course of normal business operations. For example, the FI module, which manages finances and accounting, manages master data such as general ledger accounts and documents such as journal entries and check payments. Data manage by SAP is often broken into two categories: master data and transactional data (called documents in

Linking SAP R/3 to Other Applications: BAPIs SAP does not solve everything. For example, the firm s forecasting or customer relationship management processes may not be modeled within SAP. Where SAP does not provide a solution, it is possible to bolt-on another application to attain the required functionality. SAP has an open, component-based architecture that enables integration with other applications. This architecture consists of two key elements: 1. SAP Business Objects are essentially black boxes that contain SAP R/3 data and business processes, while suppressing the details of their data structure or specific implementation details, and 2. BAPIs (Business Application Programming Interfaces) define how the application links to SAP R/3.The result is a standard method of communication between SAP R/3 and other applications. Business Objects are the business-application versions of real-world entities, such as a sales order or an employee. The core of the business object is the actual data (for instance, an employee s name and id number.) The interface is a set of clearly defined methods, each specifying what operations can be performed on this data (including the possibility of altering it).

Architecture of SAP R/3

The R/3 Basis system is a multi-tier client/server system. The individual software components are arranged in tiers and function, depending on their position, as a client for the components below them or a server for the components above them. The classic configuration of an R/3 System contains the following software layers: Database Layer The database layer consists of a central database system containing all of the data in the R/3 System. The database system has two components - the database management system (DBMS), and the database itself. SAP does not manufacture its own database. Instead, the R/3 System supports the following database systems from other suppliers: ADABAS D, DB2/400 (on AS/400), DB2/Common Server, DB2/MVS,INFORMIX, Microsoft SQL Server, ORACLE, and ORACLE Parallel Server.

The database does not only contain the master data and transaction data from your business applications, all data for the entire R/3 System is stored there. For example, the database contains the control and Customizing data that determine how your R/3 System runs. It also contains the program code for your applications. Applications consist of program code, screen definitions, menus, function modules, and various other components. These are stored in a special section of the database called the R/3 Repository, and are accordingly called Repository objects. You work with them in the ABAP Workbench. Application Layer The application layer consists of one or more application servers and a message server. Each application server contains a set of services used to run the R/3 System. Theoretically, you only need one application server to run an R/3 System. In practice, the services are distributed across more than one application server. This means that not all application servers will provide the full range of services. The message server is responsible for communication between the application servers. It passes requests from one application server to another within the system. It also contains information about application server groups and the current load balancing within them. It uses this information to choose an appropriate server when a user logs onto the system. Presentation Layer The presentation layer contains the software components that make up the SAPgui (graphical user interface). This layer is the interface between the R/3 System and its users. The R/3 System uses the

SAPgui to provide an intuitive graphical user interface for entering and displaying data. The presentation layer sends the user’s input to the application server, and receives data for display from it. While a SAP GUI component is running, it remains linked to a user’s terminal session in the R/3 System.

Quick Tour of the SAP User Interface

The SAP R/3 system presents a Windows interface with several of the familiar Windows functions for screen manipulation. The apparent simplicity of the interface hides the power of the menus residing within the menu bar at the top of the screen. The initial screen shows a menu bar with the following selections. The first level sub menus are listed below to give you an idea of where to start:

 

Workplace Telephone Integration

   

Appointment Calendar Room Reservations Start Workflow Business Documents

Logistics Materials Management  Sales/distribution  Logistics Execution  Production  Production-process  Plant Maintenance  Customer Service  Quality Management  Logistics controlling  Project Management  Environment Health & Safety  Central Functions Accounting  Financial Accounting  Treasury  Controlling  Enterprise Control  Investment Mgt.  Project management  Real Estate

Human Resources  Managers Desktop  Personnel admin.  Time management  Payroll  Training and Event Management  Organizational Management  Travel  Information system Information Systems  Executive Information Systems  Logistics  Accounting  Human Resources  Project System  Ad Hoc Reports

General Report System

             

ABAP/4 Workbench Accelerated SAP Administration ALE Business Communication Business Documents Business Framework Business Workflow CCMS Web Development SAP Script Hypertext Find

(HR Module) Overview: Human Resource is a complete integrated system for supporting the planning and control of personnel activities. The Human Resources personnel modules and provide an integrated human and resources personnel management system, covering personnel planning and recruitment, salary administration, payroll development.

HR provides solutions, planning and managing company’s human resources using integrated applications that cover all personnel management task and helps to simplify and speed the process. Modules of Human Resource (HR): • Personnel management (PM): PM is the complete solution for personnel administration, recruitment management, travel management, benefits administration and salary administration. • Organizational Management (OM): OM assist in maintaining an accurate picture of organization’s structure, no matter how fast it changes. It is systematic and forward planning tool that considers the final effects of all personnel events. Thus it is a complete solution for personnel cost planning. • Payroll Accounting (PA): PA addresses payroll functions from a global point of view and gives the capability to centralize payroll processing or decentralize the data based on country or legal entities.In DSCL payroll functions as:
Release Payroll

Start Payroll Yes Run OK? No Exit Payroll Corrections

Subsequent action Payroll

Change the Master data

• Time Management (TM): TM is integrated with payroll accounting, controlling, production planning, plant maintenance, project system, external services and shift planning. It provides with the variety of standard reports that will assist in tracking and analyzing employee time with completeness and accuracy.

• Personnel Development (PD): PD assist with planning, monitoring and analyzing scheduled seminars, training courses, business events, registration and booking, price determination and invoicing. Structure of Personnel Administration: Administrative perspective For giving the definition of organization from the administrative control perspective we define the following terms: • Personal Area: Division of company into sub units based on geographical ares or administrative units. For eg in DSCL, SFC KOTA, Corporate office etc. • Personal Sub Area: Sub division of personal areas into departments or employee work centre.

Organization perspective • Employee Group: It is based on the category of employment. For eg regular, seasonal, temporary.

• Employee Sub Group: It is the sub classification of employee group into various grades of employment. For eg Vice President, Sr. Manager, Asst Manager etc. • Payroll Area: Groups of employees for whom the payroll is executed at one point of time. For eg Workmen, Managers Etc. Info type group Definition: An info type group or info group is a sequence of related info type that is displayed one after the other for maintenance purposes when a personal action is performed. Usage: The info group guarantees that during the personal action all information needed for the business process is stored.

• Personal Data (Info type 0002) This info type stores data for identifying an employee.

Addresses (Info type 0006) In this we store the address data of an employee. It contains the following addresses: • • • • • Subtype 1: Permanent residence Subtype 2: Temporary address Subtype 3: Home address Subtype 4: Emergency address Subtype 5: Mailing address

• Bank details(Info type 0009) Enter the payee for the net pay or the travel expenses from the payroll and the bank details. The standard contains the bank details type: • Subtype 0: Main bank • Subtype 1: Other bank details • Subtype 2: Travel expenses

• Personal Action (Info type 0000) Personal actions simplify the administration of complex

personnel procedures, such as hiring a new employee. It can perform: • Hire an employee • Change the organizational assignment of an employee. • Change an employee’s pay • Set an employee’s status to early retiree or pensioner

• Document




leaves or reenters an enterprise

• Basic Pay (Info type 0008) We can store the employee’s basic pay in this info type. We can get an overview of the employee’s payroll history using the info type history. Standard system contains the following reference types: • Subtype contract 0: Basic

• Subtype



main contract • Subtype 2: Comparable domestic pay • Subtype 3: Refund of the costs in foreign currency.

Organization Assignment (Info type 0001): The organizational assignment info type deals with the incorporation of the employee into the organizational structure and the

personal structure. The data is very important for the authorization and control of payroll.

Education (Info type 0022) We can store what education and training qualifications an employee or an applicant has passed in this info type.

Action hiring This action is performed by filling a form which has a path as: Human Resources—Personnel Management—Administration—HR

master data—PA 40 (personal action) • To maintain the data for an employee • Enter personnel no. • Enter the info type no.

• Enter the sub type • Enter the start and the end dates. HR TRANSACTION CODES (T-Codes) • PA10: Personnel file • PA20: Display HR data • PA30: Maintain HR master Data • PA40: Personal events • PA41: Change hiring data

Payroll Basics (PY – XX – BS) Purpose: The payroll is based on an international payroll driver. This payroll driver was modified for each country. The country- specific payroll drivers take the statutory and administrative regulations of a country into account. Process Flow: When you access Payroll, the payroll driver calls the accompanying payroll schema, which consists of a sequence of functions. For each activity, the individual functions import data from internal tables and payroll relevant files. Payroll performance

• The system updates the database and imports the master data relevant to payroll. • If Off-Cycle Payroll is to take place, the system deletes the internal table IT. • The system imports the last payroll result. • The system calculates the gross wage and considers the shift schedule, shift change compensation and valuation bases. Any master data relevant to payroll is included in the calculation at this point. • The system calculates the partial period factors, lump-sums and salary elements and cumulates the gross results. • The system calculates the net remuneration and performs retroactive accounting if specific master data has been changed in previous payroll periods. Results: After the payroll run, we can transfer the payroll results to financial accounting, or perform evaluation and create list and statistics. Payroll Driver Definition: Program which is used to run payroll. Structure: For each payroll country version there is a country specific payroll driver with a technical name RPCALCx0 or HxxCALC0. For programs with the technical name RPCALCx0 the x is replaced with the country indicator. For eg D for Germany, F for France or X for other countries.

For programs with the technical name HxxCALC0 the xx is replaced with the ISO code of the respective country. For e.g. MX for Mexico or ID for Indonesia. The program RPCALCx0 (payroll driver international) contains no data about tax and social insurance regulations for net remuneration calculation. The other payroll drivers contain this data. Payroll Schema Definition: The payroll schema contains calculation on rules to be based by the payroll driver during payroll. SAP has developed country specific schemas which are based on schema X000. With country-specific reports, the first character in the name refers to the country indicator. For e.g. D for Germany and F for France. Structure: A schema consists of following parts: Initialization: System performs the following steps: • Update the databases • Imports required Info types • Gross calculation of pay. Then system performs the following steps: • Processes basic data and time data • Queries off-cycle payroll runs • Reads payroll account of the last period accounted • Processes time data and calculates individual gross values • Performs factoring

• Net calculation of pay. Then system performs the following steps: • Calculates net remuneration • Performs bank transfers Payroll Relevant Files Definition: A payroll file contains data for payroll and payroll results. Structure: The system requires the following files for payroll:

Pnnn (nnnn = number of the info type): The Pnnnn files contain data that has been entered in the respective info types for an employee. PCL1: The PCL1 file contains primary information, in order words, data from the master data and time recording systems. PCL2: The PCL2 file contains the secondary information, in other words derived data and all generated schema.

Internal Tables for Payroll

Definition: Tables that are used for storing data during the payroll run. Use: Within payroll, data is processed in internal tables that the system files reads during the payroll run. The system also changes the data in these tables during the payroll run. The results of processing are then available for other steps. The read and change access to these tables is enabled using functions that are executed in a personnel calculation schema and using operations that are executed in personnel calculation rules. Period Parameters Definition: A two-digit parameter that determines the interval for which the payroll is run for payroll area. If we assign period parameter 01 to the salaried employee area, payroll runs each month for the payroll area. If we assign period parameter 03 to the industrial employee payroll area, payroll runs each week for the payroll area. Use: The standard SAP R/3 system contains period parameters for all the payroll periods that are commonly used in various countries. If we need our own period parameters in our system specify it in customizing for payroll by Choosing Basic setting payroll organization and define period parameters. To assign just one period parameter to each payroll area in our system, access customizing for payroll and choose basic settings payroll organization check payroll area. In this way we can determine how the regular payroll runs for this payroll area. We can run assign the same period parameter to all payroll areas if the payroll periods are

the same for all the employees. We can run report RPUCTP00 (generation of payroll periods) in our system to generate payroll periods for every period parameter that we have assigned to a payroll area. In this way we determine the concrete start and end date and the pay day for each period. We generate by accessing the customizing for payroll and choosing basic settings payroll organization generate payroll periods.. Data modifier Definition: A distinguishing feature that enables us to specify different pay days for different employee groups for which payroll runs with the same periodicity. Payroll runs on a monthly basis at our enterprise. The payday is 15th of the month for industrial employees and 25th of month for salaried employees. The payroll periodicity is the same for both employee groups so the system requires two date modifiers as distinguishing features in order to determine different paydays. Use: If we require date modifiers, specify them in customizing for payroll by choosing basic settings payroll organization define date modifiers. We assign the date modifier to every payroll area in our system by accessing customizing for payroll by choosing basic setting payroll organization check payroll area. If we use the same payday for all payroll areas, assign the SAP standard modifier to all payroll areas. If we use different paydays for different payroll area, assign different date modifiers created for our enterprise to these payroll areas.

We must run report RPUCTP00 (generation of payroll periods) in our system to generate payroll tolls separately for each combination of period parameter and date modifier that we assign to a payroll area. We generate by accessing customizing for payroll by choosing basic settings payroll organization generate payroll periods. When we start payroll and the payroll driver selection screen is displayed, enter the payroll area for which payroll must run. Using the date Modifier that we assign to this payroll area, the system determines whether the different date specifications exist for the payroll area. Payroll period Definition: The period for which payroll regularly runs. In an abstract sense, payroll period is the name given to the interval for which the payroll regularly runs, such as weekly or monthly payroll periods. Specifically the payroll period is an interval from a start date to end date. For e.g. the monthly payroll period from Oct 1st to Oct 31st. Use: We specify concrete payroll period for our enterprise, each with a period no, start date, end date and payday in customizing for payroll by choosing basic setting payroll organization generate payroll periods and running report RPUCTP00 (generation of payroll periods). The generation of payroll periods is dependent on the period parameter and date modifier. The report enters the start and end date of every payroll period in the table T549Q (payroll periods), and the payday in the table T549S (personnel date specification per payroll period).

The system automatically creates the payday for all countries when we generate the payroll periods, however the payday only has a role to play in some countries. This is the case if for eg the transfer date of original payroll runs (as opposed to retroactive runs) are relevant to taxation. When we start payroll and the payroll driver selection screen is displayed, enter the payroll area for which the payroll must run. Using the payroll control record of this payroll area, SAP R/3 determines the next period for which the payroll must run. The procedure is as follows: • The system reads the current value that is contained in the payroll period field of the payroll control record. • Using this value, it reads the previous payroll period field in table T549Q (payroll period). • It determines which period follows this previous period in accordance with table T549Q. The subsequent period is the current payroll period. • The system also determines the concrete start and end date of the current payroll period using the same table.. Period number Definition: A two digit numerical parameter that together with the date clearly identifies a concrete payroll period. The period number 08, together with the year 2000, denotes the eighth payroll period in the year 2000. It can depend on the system settings. For e.g. the calendar month August or the week from 14th through 20th Feb.

Use: In the payroll control record, the system continuously increases the period numbers of the payroll periods for a fiscal year. Every time you set the status of the payroll control record to release the payroll, the period number is increased by one. In this way the system identifies the current payroll period. At the start of a new fiscal year the period number is reset to 01. The period number that a payroll period contains depends on the following criteria that you enter when generating the payroll periods.

Period parameter (for example, weekly or


• Start of fiscal year In most countries the fiscal year starts on 01 January. However, it starts on 6th April in the United Kingdom. • Indicator for determining the period number This indicator specifies the payroll period date the system should use to determine the period number. • Start date • End date • Payday Retroactive Accounting Use: If you change the master and time data of an HR master record for a payroll 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.

To prevent all changes from triggering a retroactive accounting run, changes are check from retroactive accounting relevance. This ensures that retroactive accounting is only triggered by changes that require a correction of the payroll results. Retroactive changes in customizing do not trigger retroactive accounting. To force retroactive accounting for personnel numbers use the Forced Retroactive Accounting as a field on the selection screen of the payroll program. Scope of function: The retroactive accounting run is restricted by basic data.

Payroll Past The payroll past includes all payroll periods for which you have already run and exited payroll. Retroactive Accounting Limit We can determine a common retroactive accounting limit for all employees assigned to particular payroll area, and then determine a more recent retroactive accounting date for individual employees. The employee’s absolute retroactive accounting limit is his hiring date. The retroactive accounting limit determines the exact up to which we may change master and time data in the payroll past and up to which the system can perform retroactive accounting. We can change the retroactive accounting limit as:

• For an employee by using the Earl.pers.RA date (earliest personal retroactive accounting date) field in info type 0003 payroll status. • For a payroll are by using the earliest possible retroactive accounting period field in the payroll control record (see Change Earliest Possible Retroactive Accounting Period). The system uses the following values to determine the retroactive accounting limit:

For each payroll area, the system uses the earliest possible retroactive accounting period that is stored in the corresponding payroll control record. For each employee, the system uses the earliest possible retroactive accounting date that is stored in the Payroll Status info type (0003). For each employee, the system uses the hiring date of employee.

The system uses these values to select most recent date. For e.g. determining the retroactive accounting limit.

Retroactive Accounting Relevance We can determine retroactive accounting relevance per info type or per info type field. To determine which info types or fields are relevant to retroactive accounting, access Customizing for Personnel Administration and choose Customizing Procedures Info types Define Retroactive Accounting Relevance.

If we edit info types that are relevant to retroactive accounting, we must take note of some particular details. For e.g. Processing Payroll-Relevant HR Master Data. Retroactive Accounting Recognition It consists of: • If we edit an info type that is relevant to the retroactive accounting, the system enters the start date of change info type record in the following field of info type 0003 payroll status: • payroll run) • MD chng.bonus (earliest payroll relevant master data change (bonus)). This field is only displayed for specific country groupings; it is not displayed for all personnel numbers. • During the next regular payroll run or correction run (off cycle payroll type B), the system determines whether the date in the earliest MD change and (if applicable) MD chng.bonus fields come before the date in the Accounted to field. • If this is the case, the system performs retroactive accounting. It starts with payroll period in which the date entered in the Earliest MD change and MD chng.bonus fields occurs. The system recalculates all payroll periods that lie between the date in the earliest MD change and MD chng.bonus fields and the date in the accounted to field. Status Indicator Earliest MD change (Earliest Master Data since last

Definition: Distinguishing feature of payroll results with the same for-period. Use: The system assigns a status indicator of each payroll result. If a payroll result is no longer up to date because retroactive accounting was performed, it is not deleted. Instead, it is assigned a different status indicator by the system. Structure: There are three different status indicators: • A for the current result • P for previous result • O for all other results.

IMPORTANT POINTS As we open the SAP LOGON we are asked following things: Primary configuration considerations: • Client, company and company code Once a business has decided to use SAP, there are several Configurations prerequisite steps that must be completed. Determining the organizational structure is one of the first steps in setting up the business functions in SAP as well as your reporting requirements. The Organizational structure is created by defining the organizational units consisting of the following: • Client

• Company • Company Code • Business Area A Client is the highest unit within an SAP system and contains Master records and Tables. Data entered at this level are valid for all company code data and organizational structures allowing for data consistency. User access and authorizations are assigned to each client created. Users must specify which client they are working in at the point of logon to the SAP system. A Company is the unit to which your financial statements are created and can have one to many company codes assigned to it. A company is equivalent to your legal business organization. Consolidated financial statements are based on the company’s financial statements. Companies are defined in configuration and assigned to company codes. Each company code must use the same COA (Chart of Accounts) and Fiscal Year. Also note that local currency for the company can be different.

Company Codes are the smallest unit within your organizational structure and is used for internal and external reporting purposes. Company Codes are not optional within SAP and are required to be defined. Financial transactions are viewed at the company code level. Company Codes can be created for any business organization whether national or international. It is recommended that once a Company Code has been defined in Configuration with all the required settings then other company codes later created should be copied

from the existing company code. You can then make changes as needed. This reduces repetitive input of information that does not change from company code to company code as well as eliminate the possibility of missed data input. When defining company codes, the following key areas must be updated:

Company Code Key- identifies the company code and consists of four alpha-numeric characters. Master data and business transactions are created by this key. Company Code Name- identifies the name of the business structure. organization within your organizational

Address- identifies the street address, city, state, zip code for the company code created. This information is also used on correspondence and reports. Country- identifies the country to which your business is based. Country codes within SAP are based on ISO Standards. Country currency- identifies the local currency for the company code that you have defined. Language- identifies the language to be used for you company code and is also used for text in your documents. SAP unlike other applications, offers over thirty languages including EN( English) , ES (Spanish), FR (French), DE (German), EL (Greek), IT(Italian), AR( Arabic), ZH (Chinese) , SV (Swedish) , and JA (Japanese) to name a few.

In the present era ERP application software package SAP R/3 has now become the backbone of every manufacturing company and all other IT initiative firms. SAP has typically focused on the best practice methodologies for driving its software processes, but has more recently expanded into vertical markets. In these situations, SAP produces specialized modules geared towards a particular market segment, such as utilities or retail. By specializing in software development, SAP hopes to provide a better value to corporations than they could if they attempted to develop and maintain their own applications. DSCL has embarked on a number of initiatives to continuously improve itself to respond to the increasing competitive environment and transform into the world class Indian organization. REFRENCES

• • • • • • dsclnet (intranet of DSCL)

Sign up to vote on this title
UsefulNot useful