SAP Best Practices for Human Capital Management

General Information SAP HCM Solution Scope

General Information

Functionalities
The SAP Best Practices for HCM supports your business in the following areas : 
    

Organizational Management Personnel Administration Benefits Administration Time Management Payroll Administration HCM Reporting

CATS Time Evaluation Processing Workforce Benefits Administration Benefits Enrollment and Administration Benefits Administration Workforce Payroll Administration Payroll and Post Payroll Processing Retroactive Payroll Processing Offcycle Payroll Processing FMLA Processing Workforce Reporting SAP ERP Reporting for HCM Period End Closing for HCM .SAP Best Practices for HCM Solution Scope Workforce Management Maintain Organizational Structure Personnel Administration for Limited HCM New Hire/Rehire Administration Organizational Change Administration Leave of Absence Administration Employee Separation Administration Maintain Employee Information Workforce Time Management Time Entry Time Administration Time Processing .

Maintain Organizational Structure 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 .

Personnel Management for Limited HCM 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 5 .

payroll. and other functions perform as needed Key process flows covered  New Hire / Rehire Administration . Benefits   The employee master record is created / updated Employee records are kept in real time alignment with organizational changes so time management.New Hire/Rehire Administration Purpose and Benefits: Purpose  This scenario describes the typical processes used to Hire candidates and Rehire employees using Hire Personnel Actions.

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

Benefits   Employee records are kept in real time alignment.Leave Of Absence Administration Purpose and Benefits: Purpose  This scenario describes the typical process used when employees take leaves of absence (LOA). efficient processing with complete history of employee¶s transactions. Key process flows covered  LOA Administration . so payroll is timely and accurate. Automated.

Employee Separation Administration 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 .

efficient processing with complete history of employee¶s transactions Key process flows covered  Maintain Employee Administration Processing .Maintain Employee Information Purpose and Benefits: Purpose  This scenario describes the typical process used to create and maintain employee master records which contains all personal data. benefit data and payroll data Benefits   Employee master record is updated Automated. time data.

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

Time Entry continued Purpose and Benefits. cont·d: 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 .

 Have the option of correcting quota entitlements manually. Benefits    Employees of an enterprise may be granted different attendance/absence time-limited entitlements for vacation leave. These time-limited entitlements can be maintained in HCM Time Management as .Time Administration Purpose and Benefits: Purpose  This scenario describes the typical processes used in Time Management to review and process quota balances. sick leave and training days etc. HCM Time Management .³Time Quotas´.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 ability to print an overview of the projected quota entitlements. Key process flows covered   Workforce Time Administration Time Management .  Get a simulated projection of future quota entitlements.

 Transfer the time to the various SAP modules depending on the data recorded.CATS Time Management . It includes the following steps:  Allow the supervisor or time administrator to review and approve the employee¶s time. 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 . This step may not be necessary depending upon the settings configured in the CATS data entry profile that was used to record the time.Time Processing ² Cross Application Timesheet (CATS) Purpose and Benefits: Purpose  This scenario describes additional processing steps necessary for time recorded using the Cross Application Time Sheet (CATS).

It is recommended that time evaluation always be processed immediately prior to processing payroll to ensure consistency in the results. Key process flows covered   Workforce Time Evaluation Processing Time Management . etc. holiday time. Benefits   Employee¶s working times are valuated Time evaluation calculates planned times and overtime. time off entitlements (quotas). shifts. updates time quotas. and is used to check working time specifications. administrates time accounts and forms wage types.Time Evaluation Processing Purpose and Benefits: Purpose  This scenario will evaluate employee time including overtime.

thus minimizing confusion and employee coverage updates Key process flows covered  Benefits Enrollment and Termination Processing . and the payroll deductions are timely and accurate Benefits vendor interfaces can be processed accurately and timely. Benefits    Employee is enrolled into benefits and retirement savings plans Employee master records are updated.Benefits Enrollment and Termination Purpose and Benefits: Purpose  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 Key process flows covered  Benefits Administration Processing . employee¶s Benefit Plans information.Benefits Administration Purpose and Benefits: Purpose  This scenario describes the typical process performed by the Benefits Administrator to modify and update.

and are received by an employee Execute and manage payroll processing which encompasses (starting payroll.Payroll and Post Payroll Processing Purpose and Benefits: Purpose       To calculate the gross and net pay. benefit vendors and garnishment processing Support management of FMLA using the FMLA workbench Full integration and payroll posting to SAP FI/CO Benefits      Automated. payroll corrections. garnishment reporting. wage type report) Execute bank transfer activities (Data Medium Exchange (DME) Processing and Print Check functionality Execute third party remittance for taxation. 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 Payroll Run Simulations and production runs for FI/CO Posting and 3rd Party Remittance Pre-DME. remuneration statements. payroll journal. DME Management and check processing Third Party Remittance Posting to FI/CO activities Payroll journal reporting . which comprises the individual payments and deductions that are calculated during a payroll period.

Retroactive Payroll Processing 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. 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 . The system automatically performs retroactive accounting for the payroll past. the existing payroll results must be rechecked during the next regular payroll run and then included in the payroll again.

advance payments (multiple pay periods). efficient processing with complete history of employee¶s payroll Key process flows covered  Reversal / Void  Check Replacement . void. 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. or create payments in a single workbench  Automated.Offcycle Payroll Processing Purpose and Benefits: Purpose  To complete processing of employee Off-cycle Payroll  Run payroll for payments including bonuses and other one-time payments.

SAP ERP Reporting for HCM 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 21 .

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