Part7 - Human Capital Management

Integrated business processes with SAP ERP
Script 7: Human capital management in SAP ERP
Prof. Dr. Heimo H. Adelsberger

Dipl.-Wirt.-Inf. Pouyan Khatami
Dipl.-Wirt.-Inf. Taymaz Khatami
Table of contents
Table of contents ........................................................................................................................ 2
Table of figures .......................................................................................................................... 4
Copyright .................................................................................................................................... 6
1. Introduction: Human capital management in SAP ERP .................................................... 7
1.1 Unit objectives Human capital management in SAP ERP ....................................... 7
1.2 Scenario ....................................................................................................................... 8
2
Human capital management with SAP ERP .................................................................... 10
2.1 Theory Organizational structures in human capital management .......................... 10
2.1.1 Enterprise structure in SAP human capital management ................................... 11
2.1.1.1
Personnel areas ............................................................................................ 12
2.1.1.2
Personnel subareas ...................................................................................... 13
2.1.2 Personnel structure ............................................................................................. 13
2.1.2.1
Employee groups ........................................................................................ 14
2.1.2.2
Employee subgroups ................................................................................... 15
2.1.2.3
Payroll areas ................................................................................................ 16
2.1.3 Organizational structure ..................................................................................... 16
2.1.3.1
Jobs ............................................................................................................. 17
2.1.3.2
Positions ...................................................................................................... 18
2.1.3.3
Persons ........................................................................................................ 19
2.1.3.4
Personal administration and planning ......................................................... 20
2.2 Practical application Organizational structures in human capital management ..... 21
2.2.1 Excursus Enterprise and personnel structures ................................................. 21
2.2.1.1
Personnel area ............................................................................................. 21
2.2.1.2
Personnel subareas ...................................................................................... 22
2.2.1.3
Employee groups ........................................................................................ 22
2.2.1.4
Employee subgroups ................................................................................... 23
2.2.2 Organizational structure ..................................................................................... 23
2.2.3 Standard hierarchy.............................................................................................. 24
2.2.3.1
Create profit center...................................................................................... 25
2.2.3.2
Create cost center ........................................................................................ 26
2.2.4 Create an organizational structure ...................................................................... 28
2.2.4.1
Create organizational units ......................................................................... 29
2.2.4.2
Create jobs and assign tasks ........................................................................ 32
2.2.4.3
Create positions ........................................................................................... 33
2.3 Theory Infotypes..................................................................................................... 37
2.3.1 Infotype maintenance ......................................................................................... 37
2.3.2 Initial entry screen for maintaining infotypes .................................................... 38
2.3.3 Personnel file ...................................................................................................... 39
2.3.4 Organizational Assignment ................................................................................ 39
2.4 Practical application Infotypes ............................................................................... 41
2.5 Theory Processes in human capital management ................................................... 44
2.5.1 From vacancy to hiring an applicant .................................................................. 44
2.5.1.1
Hiring an applicant ...................................................................................... 45
2.5.1.2
Application via Internet .............................................................................. 46
2.5.2 Personnel development and qualifying actions .................................................. 47
2.5.2.1
Qualifications and requirements ................................................................. 48
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Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/

2.5.2.2
Training proposals for qualification deficits ............................................... 49
2.5.2.3
Processes in training ad event management ................................................ 50
2.5.2.4
Career and succession planning .................................................................. 51
2.5.2.5
The continuous performance feedback process .......................................... 51
2.5.3 Time management .............................................................................................. 52
2.5.3.1
Types of time data ....................................................................................... 53
2.5.3.2
What is CATS? ........................................................................................... 54
2.5.3.3
The CATS process ...................................................................................... 55
2.5.4 Areas of compensation management .................................................................. 56
2.5.4.1
Long-term incentives .................................................................................. 56
2.5.4.2
Benefits ....................................................................................................... 57
2.5.5 Personnel cost planning and simulation ............................................................. 58
2.5.5.1
Payroll accounting ...................................................................................... 59
2.5.5.2
Combination of remuneration elements ...................................................... 59
2.5.5.3
Payroll: overview ........................................................................................ 60
2.5.6 Travel management ............................................................................................ 61
2.5.7 Cost planning run ............................................................................................... 63
2.5.8 Employee self service (EES) .............................................................................. 63
2.5.9 Integration with other SAP ERP components .................................................... 64
2.6 Practical application Processes in human capital management .............................. 66
2.6.1 Create and perform job advertisements .............................................................. 66
2.6.2 Recruitment ........................................................................................................ 68
2.6.2.1
Initial entry of applicant master data (PB10) .............................................. 69
2.6.2.2
Maintaining the qualifications of the applicant (PB30) .............................. 70
2.6.2.3
Maintain applicant master data (PB30) ....................................................... 71
2.6.2.4
Vacancy assignment .................................................................................... 71
2.6.2.5
Applicant activities ..................................................................................... 72
2.6.3 Hiring ................................................................................................................. 74
2.6.3.1
Prepare transfer of applicant data (PB40) ................................................... 74
2.6.3.2
Check applicant activities (PB60) ............................................................... 74
2.6.3.3
Check and complete master data (PB30) .................................................... 75
2.6.3.4
Hiring an applicant ...................................................................................... 75
2.6.3.5
Display personnel master data (PA20)........................................................ 79
2.6.4 Personnel planning and development ................................................................. 79
2.6.4.1
Change requirements profile for position ................................................... 80
2.6.4.2
Display career opportunities (PPCP) .......................................................... 81
2.6.4.3
Perform succession planning for positions (PPSP) ..................................... 81
2.6.4.4
Compare profiles ......................................................................................... 82
2.6.4.5
Profile evaluation ........................................................................................ 82
2.6.5 Employee appraisal ............................................................................................ 83
2.6.6 Training and event management ........................................................................ 84
2.7 Theory Reporting and analyses .............................................................................. 87
2.7.1 Information system reports................................................................................. 87
2.7.2 Managers desktop ............................................................................................. 88
3
Completion ....................................................................................................................... 90
4
Reflections ........................................................................................................................ 91
4.1 Questions ................................................................................................................... 91
4.2 Standard solution ....................................................................................................... 92
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Table of figures
Figure 1-1: Process overview: Human capital management ...................................................... 9
Figure 2-1: Enterprise, personnel, and organizational structures ............................................. 11
Figure 2-2: Enterprise structure in SAP human capital management ...................................... 12
Figure 2-3: Personnel areas ...................................................................................................... 12
Figure 2-4: Personnel subareas ................................................................................................ 13
Figure 2-5: Personnel structure ................................................................................................ 14
Figure 2-6: Employee groups ................................................................................................... 15
Figure 2-7: Employee subgroups ............................................................................................. 15
Figure 2-8: Payroll areas .......................................................................................................... 16
Figure 2-9: Organizational plan ............................................................................................... 17
Figure 2-10: Jobs ...................................................................................................................... 18
Figure 2-11: Positions .............................................................................................................. 19
Figure 2-12: Persons................................................................................................................. 19
Figure 2-13: Personal administration and planning ................................................................. 20
Figure 2-14: Enterprise structure Personnel areas: SAP-System-Screenshot ....................... 22
Figure 2-15: Personnel structure employee groups: SAP system screenshot ....................... 23
Figure 2-16: Process overview: Organizational structures in Controlling ............................... 24
Figure 2-17: Search profit center: SAP system screenshot ...................................................... 24
Figure 2-18: Search profit center: SAP system screenshot ...................................................... 25
Figure 2-19: Profit center standard hierarchy: SAP system screenshot ................................... 25
Figure 2-20: Create cost center group: SAP system screenshot ............................................... 26
Figure 2-21: Standard hierarchy IDES group: SAP system screenshot ................................... 26
Figure 2-22: Hierarchical assignment cost centers: SAP system screenshot ........................... 28
Figure 2-23: Process overview: Organizational structures in human capital management ..... 28
Figure 2-24: Organization department marketing and SD ....................................................... 28
Figure 2-25: Organizational structure: SAP system screenshot ............................................... 31
Figure 2-26: Example column configuration: SAP system screenshot .................................... 31
Figure 2-27: Search jobs: SAP system screenshot ................................................................... 32
Figure 2-28: Create tasks: SAP system screenshot .................................................................. 33
Figure 2-29: Create position: SAP system screenshot ............................................................. 33
Figure 2-30: Job assignment: SAP system screenshot ............................................................. 34
Figure 2-31: Job assignment: SAP system screenshot ............................................................. 35
Figure 2-32: Organizational structure SD and marketing: SAP system screenshot ................. 35
Figure 2-33: Infotypes .............................................................................................................. 37
Figure 2-34: Infotype maintenance .......................................................................................... 38
Figure 2-35: Initial entry screen for maintaining infotypes ..................................................... 38
Figure 2-36: Personnel file ....................................................................................................... 39
Figure 2-37: Infotype organizational Assignment ................................................................... 40
Figure 2-38: Process overview: Infotypes ................................................................................ 41
Figure 2-39: Personnel master data: SAP system screenshot................................................... 42
Figure 2-40: Maintaining personnel master data: SAP system screenshot .............................. 43
Figure 2-41: Processes in human capital management ............................................................ 44
Figure 2-42: From vacancy to hiring an applicant ................................................................... 45
Figure 2-43: hiring an applicant ............................................................................................... 46
Figure 2-44: Application via Internet ....................................................................................... 47
Figure 2-45: Personnel development and qualifying actions ................................................... 48
Figure 2-46: Qualifications and requirements .......................................................................... 49
Figure 2-47: Training proposals for qualification deficits ....................................................... 50
Figure 2-48: Processes in training and event management ...................................................... 51
Figure 2-49: Career and succession planning .......................................................................... 51
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Figure 2-50: The continuous performance feedback process ................................................... 52
Figure 2-51: Time management ............................................................................................... 53
Figure 2-52: Types of time data ............................................................................................... 54
Figure 2-53: Time sheet CATS ................................................................................................ 55
Figure 2-54: The CATS process ............................................................................................... 55
Figure 2-55: Areas of compensation management ................................................................... 56
Figure 2-56: Long-term incentives ........................................................................................... 57
Figure 2-57: Benefits ................................................................................................................ 58
Figure 2-58: Personnel cost planning and simulation .............................................................. 59
Figure 2-59: Payroll accounting ............................................................................................... 59
Figure 2-60: Combination of remuneration elements .............................................................. 60
Figure 2-61: Payroll ................................................................................................................. 61
Figure 2-62: Travel management ............................................................................................. 62
Figure 2-63: Travel expenses ................................................................................................... 62
Figure 2-64: Cost planning run ................................................................................................ 63
Figure 2-65: SAP EES highlights............................................................................................. 64
Figure 2-66: integration with other SAP ERP components ..................................................... 65
Figure 2-67: Process overview: Recruitment ........................................................................... 66
Figure 2-68: Export advertisement list: SAP system screenshot ............................................. 67
Figure 2-69: SAP business workflow: SAP system screenshot ............................................... 68
Figure 2-70: Process overview: Recruiting .............................................................................. 69
Figure 2-71: Add qualifications: SAP system screenshot ........................................................ 70
Figure 2-72: Applicant activities receipt of application: SAP system screenshot ................ 72
Figure 2-73: Display applicant list: SAP system screenshot .................................................... 73
Figure 2-74: Process overview: Hiring .................................................................................... 74
Figure 2-75: Planned activities: SAP system screenshot ......................................................... 75
Figure 2-76: Transferring applicant data: SAP system screenshot .......................................... 76
Figure 2-78: Organizational assignment: SAP system screenshot ........................................... 78
Figure 2-79: Process overview: Personal planning and development ...................................... 80
Figure 2-80: Create position profile: SAP system screenshot .................................................. 81
Figure 2-81: Process overview: Training and event management ........................................... 84
Figure 2-82: Booking a communication course: SAP system screenshot ................................ 85
Figure 2-83: Reporting and analyses ........................................................................................ 87
Figure 2-84: Information system reports: SAP system screenshot .......................................... 88
Figure 2-85: Managers Desktop.............................................................................................. 89
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Copyright
-
This document is mostly based on publications for the TERP10 course mySAP ERP
integrated business processes those parts are subject to the copyright of SAP AG.
All figures used within this course are created in the style of TERP10, if not labeled
else wise. Those parts are subject to the copyright of SAP AG.
All screenshots used within this document, even if displayed in extracts, are subject to
the copyright of SAP AG.
Distribution and reproduction of this document or parts of this document in any
form is prohibited without the written permission of Prof. Dr. Heimo H.
Adelsberger, Dipl.-Wirt.-Inf. Pouyan Khatami, and Dipl.-Wirt.-Inf. Taymaz
Khatami.
page 6
1. Introduction: Human capital management in SAP ERP

1.1 Unit objectives Human capital management in SAP ERP
This unit aims at giving you an understanding of human capital management in the SAP ERP
system.
At the conclusion of this unit, you will be able to
- define the organizational structures in human capital management
- maintain employee records
- describe the basic business processes in human capital management
- name the interfaces and links to other ERP processes
- explain the reporting and analyses tools in human capital management
Note:
It is vital for the successful completion of this case study that you are familiar with the
navigation basics in SAP ERP systems (cf. unit Introduction/Navigation). This includes that
you are able to handle the SAP Easy Access Menu as well as an understanding of the SAP
transaction concept. Your knowledge about help options and further documentation is to
enable you to mostly discover the complexity and potential of the system independently
albeit you have to study with given scenarios.
Note:
Please avoid to merely clicking through the described steps of the case studies without
thinking carefully about what you are doing to make sure you achieve sustained learning
success. Try to clarify at each step what is done and why it is done. Therefore, you should
regularly use the F1 and F4 help functions as well as the SAP online librarys help menu
(cf. introduction chapter, Help) to display further information and explanations regarding the
particular processes. Since we arranged the case studies neatly, not all entries that you need
to enter on the different screens can be explained in detail. Thus, you should try to get a
profound knowledge using the F1 and F4 keys regarding the meaning of the particular fields
and entries.
Please unconditionally use the SAP Easy Access Menu instead to the transaction codes. Thus,
you will quickly understand the structure and logic of SAP ERP. When you are a bit more
experienced using the SAP system, it is advisable to use the transaction codes. Please read the
case studies and advises carefully, since careless mistakes causing huge problems happen
quite often.
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1.2 Scenario
In the practical application of this unit, you will firstly maintain the organizational structures
in controlling. This includes a profit center and three cost centers. From this point on, you will
maintain an own department in human capital management. This department is in charge of
marketing, and sales and distribution of your bicycle production.
Additionally, you will work with the infotypes concept in the SAP ERP system to recruit
personnel and maintain applicant master data. Based on the applicant master data, you will
hire a new employee for your department.
In the area of personnel planning and development, you will carry out a succession planning
scenario and create a personnel appraisal. Deficits of your employee are supposed to be
resolved by a particular training course. Finally, you will settle travel expenses resulting from
this.
The following figure shows the entire process that you will complete in the practical
application chapters of this unit using the SAP ERP system. Except for the in depthmaintenance of the organizational structures of controlling, you will focus exclusively on the
functional area human capital management.
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Figure 1-1: Process overview: Human capital management
page 9
2 Human capital management with SAP ERP

2.1 Theory Organizational structures in human capital
management
The SAP ERP module human capital management is a complete personnel administration
system. As such, it allows for modeling the hierarchical structures of a company and the
relationships within these hierarchies as well as storing and managing employee data. The
SAP ERP system differs between the enterprise structure, organizational structure, and
personnel structure.
The enterprise structure in SAP ERP represents the structure of the enterprises hierarchy
(regarding personnel). It contains the legal and financial structures of the company. The
highest level is the company code, which is divided into personnel areas and personnel
subareas in human capital management. When entering personnel data in SAP ERP the
respective employees must be assigned within the enterprise structure first.
The personnel structure is less hierarchical but rather relational built. The organizational
elements of the personnel structure are employee groups, employee subgroups, and payroll
areas. For personnel administration purposes, employees are grouped by their status (e.g.,
active or inactive) and by the type of contract (e.g., salary or hourly) into employee groups.
Assigning employees to the structures of a company has the highest priority in human capital
management. This is the first step for entering personnel data. The organizational assignment
of an employee is carried out in infotype organizational assignment (0001). The employee is
uniquely assigned into the enterprise structure, personnel structure, and organizational
structure. The information of the organizational assignment of an employee is important
regarding
- authorization checks,
- entry of additional data,
- time management accounting, and
- payroll accounting
When entering employee data, the employee is assigned to a company code, a personnel
area, and a payroll area in infotype organizational assignment (0001). Thus, the employee is
assigned to an organizational unit, a job, and a cost center.
In the following figure, you can see the infotype organizational assignment (0001). An
infotype is comparable to a tab and contains the master data of an employee in the SAP ERP
system.
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Figure 2-1: Enterprise, personnel, and organizational structures
2.1.1 Enterprise structure in SAP human capital management

The enterprise structure for processes of human capital management contains the following
organizational elements:
- client: All organizational elements for personnel administration are grouped within a
client.
- company code: A company code is an independent accounting unit. On company
code level, balance sheet and profit and loss statement are created as required by law.
- personnel area: The personnel area is exclusively used in personnel administration
and is unique within a client. Each personnel area must be assigned to a company
code.
- personnel subarea: A personnel subarea is exclusively used in personnel
administration as well. For personnel subareas, groups are defined determining which
entries from a following setting can be used for employees assigned to a particular
company code or personnel area. Groups affect time management and payroll
accounting directly or indirectly.
The enterprise structure is created in customizing.
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Figure 2-2: Enterprise structure in SAP human capital management
2.1.1.1 Personnel areas

In human capital management, the enterprise structure below company code level is organized
using personnel areas. A personnel area is a unit of personnel administration and represents a
subunit of a company code. The individual personnel areas of a company code are identified
using a four-digit alphanumeric key. Personnel areas within a client must be clear.
The personnel area has the following functions:
- generated default values for data entry, e.g., for payroll accounting
- is a selection criterion for reporting
- represents a unit for authorization checks
Figure 2-3: Personnel areas
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2.1.1.2 Personnel subareas
Personnel areas can be further divided into personnel subareas. On personnel subarea level,
the organizational administration of principal aspects of human resources is carried out, i.e.,
pay scale and age type structures and work schedules. A personnel subarea is identified by a
four-digit alphanumeric key as well. Thereby, control features are stored according to the
country.
The most important organizational functions of personnel subareas are:
- Specify country groupings. The master data entry as well as setting up and processing
of wage types and pay scale groups depend on country groupings. The grouping must
be unique for each company code.
- Assignment of a legal person to differentiate between companies legally.
- Determination of groupings for time management to, for example, set up work
schedules and substitution, absence and leaving types.
- Generation of default values regarding pay scale type and area for an employees basic
pay.
- Definition of a public holiday calendar.
- Definition specific wage types for each personnel subarea.
Figure 2-4: Personnel subareas
2.1.2 Personnel structure

The administrative personnel structure in human resources refers predominantly to work
hours and compensation. The personnel structure consists of the elements employee groups,
employee subgroups, and payroll areas.
Employee groups represent different types of employees, e.g., active employees, retirees, and
contractors.
Employee subgroups are the second level and is used to define different payroll procedures,
e.g., hourly and salaried.
The payroll area is used to give default values for payroll that can be used as selection criteria
for reporting as well as for authorization checks. Using the payroll area, you can determine
the period of time between settlements for employees of a subgroup.
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Figure 2-5: Personnel structure
2.1.2.1 Employee groups

Employees groups roughly divide employees. An employee group defines the position of an
employee in a company. Thereby, the employee makes a certain contribution in terms of
work. Primarily, active employees, pensioners, and early retirees are the important groups in
personnel administration.
The main organizational functions of an employee group are:
- To generate default values for data entry, for example, for payroll area and basic pay
of an employee.
- It is a selection criterion for reporting.
- It is a unit of authorization checks.
- You can use a standard catalog for setting up employee groups that can be extended
according to individual customer requirements if needed.
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Figure 2-6: Employee groups
2.1.2.2 Employee subgroups

According to the position of an employee, the employee subgroup is a fine division of
employee groups. Within the employee group of active employees, for example, employee
subareas differentiate between wage earners, salaried employees, and non pay-scale
employees.
On employee subgroup level, all administration features of the personnel structure are
defined. The most important characteristics are:
- Using the grouping of employee subgroups for the personnel calculation rule, you can
determine different payroll procedures for different employee subgroups. Thus, you
can for example control whether an employee is paid hourly or monthly.
- The grouping of primary wage types controls the validity of wage types for employee
subgroups, while the grouping for the collective agreement provisions restricts the
validity of pay scale groups to particular employee groups.
- You can define default values for data entry using employee subgroups, e.g., for the
payroll area.
Figure 2-7: Employee subgroups
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2.1.2.3 Payroll areas
A payroll area is an organizational unit for running payroll. All employees who have payroll
run for them at the same time and for the same period are assigned to the same payroll area.
Usually, payroll is carried out for each payroll area. The payroll area provides the payroll
driver with the number of employees for whom payroll is to be run and with data of the
payroll period. The system determines the number of employees for whom payroll is to be run
using the infotype organizational assignment (0001). Among other things, this infotype
contains the respective payroll area in the personnel master record.
Note: A payroll area for an employee can only be changed at the end of a period. When an
employee changes status from wage earner to salaried employee in the middle of a month,
and both are located in different payroll areas, you must not enter the new payroll area until
the start of the next month.
Figure 2-8: Payroll areas
2.1.3 Organizational structure

The organizational plan of a company in the SAP ERP system is created using
organizational units and positions. The organizational plan features an all-encompassing and
dynamic model (i.e., the model can be adjusted continuously, without referring to
customizing) of the structural and personnel environment of a company that can be evaluated
at any time. I contrast to the enterprise structure the organizational structure is created in the
SAP Easy Access menu.
Note: The enterprise structure consists, as you already know, of company codes, personnel
groups, personnel subgroups, etc. These units (we referred to them as organizational levels in
earlier units of this course) should not be confused with the organizational structure in human
capital management (HCM). The organizational structure contains organizational units,
positions, etc., which are located below or within the enterprise structure. The enterprise
structure represents the legal and financial aspects of a company, e.g., company codes, while
the organizational structure in HCM represents the organizational plan of enterprise parts,
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departments, etc. (e.g., employee X is assigned to position Y, position Y is part of
organizational unit Z, organizational unit Z is assigned to company code and accounting area
1000 of IDES, i.e., accounting for organizational unit Z is carried out in the enterprise
structure of the IDES 1000).
The organizational plan represents hierarchies of a company:
- The organizational structure of your enterprise: The organizational structure
represents the hierarchy between the different organizational units of a company. The
organizational structure is created by creating and maintaining organizational units
and linking them to each other.
- The individual positions and the reporting structure (chain of command): A
reporting structure represents a given line structure of an enterprise. The reporting
structure is created by creating and maintaining positions and linking them to each
other.
Figure 2-9: Organizational plan
2.1.3.1 Jobs
Jobs represent a unique classification of responsibilities in a company. When creating jobs,
you should pay attention to which specific tasks and requirements are associated with an
individual job. Jobs are used in the following application components:
- shift planning
- personnel cost planning
- personnel development
Note: You should keep your job descriptions as general as possible and as specific as
necessary.
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Figure 2-10: Jobs
2.1.3.2 Positions
When you created a job in the SAP ERP system, you need to define a number of positions that
correspond to this job that are required in the company. The tasks defined on the jobs are
inherited by a position. A position can be extended by defining additional tasks that only have
to be carried out by this individual position. Positions can be 100% filled, partially filled, or
vacant.
Example: Not jobs but positions are filled with employees. A position can also be shared by a
number of employees hat work less than full time. For example, two employees can share a
position (60% and 40%).
Note: A job is used as a template from which positions inherit particular characteristics such
as tasks. When you create for example the job secretariat, different organizational units that
feature a position secretary can inherit the tasks correspondence, appointment management,
etc. Thus, you do not need to create those tasks for each position. Additionally, positions can
feature individual tasks, e.g. audit or make coffee.
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Figure 2-11: Positions
2.1.3.3 Persons
Employees of a company are represents by persons in the SAP ERP system. Persons hold
positions in the organizational structure determined by organizational management.
In personnel administration, infotypes for persons are maintained. In the infotype
organizational assignment, in the organizational structure section the position held by a person
is entered. Using position assignment, persons are linked with the organizational plan.
Additional default values in personnel administration such as infotype of the employee group
and employee subgroup (1013) can be derived from data of the organizational management.
Figure 2-12: Persons
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2.1.3.4 Personal administration and planning
In case personnel administration and personnel planning are integrated, you can enter
positions in the actions infotype (0000). This infotype needs to be maintained firstly. The
fields job, organizational unit, or cost center cannot be overwritten. They determine the
relation to the position.
The default values for the fields personnel area, personnel subarea, employee group, and
employee subgroup can be supplied using the organizational unit or the position.
Figure 2-13: Personal administration and planning
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2.2 Practical application Organizational structures in human

capital management
In the following short excursus, you will get to know the enterprise and personnel structures
of the IDES group in the SAP ERP system. After that, you will maintain an own
organizational structure for you bicycle department.
2.2.1 Excursus Enterprise and personnel structures

To display the enterprise and personnel structures of IDES AG, you need to proceed to the
customizing settings. Therefore, choose:
Tools Customizing IMG Execute Project (SPRO)
Choose
to display the implementation guide. You can find the settings
for the enterprise and personnel structures in human capital management under
Enterprise Structure Definition Human Resource Management
The assignment of personnel areas to company codes and employee subgroups to employee
groups is available under
Enterprise Structure Assignment Human Resource Management
2.2.1.1 Personnel area
Firstly, choose
Enterprise Structure Definition Human Resource Management Personnel Areas
( Copy, Delete, Check Personnel Areas)
Choose the
of the IDES group.
button and then
to display a list of all personnel areas
For example, the IDES group contains the personnel areas 1000, 1100, 1200 etc. The
identification of the personnel area is deliberately chosen in alignment with the company code
name to which the personnel area is assigned. Personnel area 1000 is in charge of personnel
administration regarding company code 1000, for example. You can display the assignment to
a company code by double-clicking the respective personnel area. In addition, you can all up
Enterprise Structure Assignment Human Resources Assignment of Personnel
Area to Company Code
to display the respective assignments.
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Figure 2-14: Enterprise structure Personnel areas: SAP-System-Screenshot
2.2.1.2 Personnel subareas

Choose
Enterprise Structure Definition Human Resource Management Personnel
Subareas ( Create Personnel Subareas)
A dialog is displayed for which personnel area the subareas are valid. Enter personnel area
1000. You can see that there are no personnel subareas for personnel area 1000 existent. Due
to missing rights, you cannot create it on your own.
Personnel subareas are not necessarily required for the structure of personnel administration,
since they merely structure a personnel area
2.2.1.3 Employee groups
Choose
Enterprise Structure Definition Human Resource Management Employee Groups
In this table, you can see all data objects representing employee groups. Thus, the employee
groups active, pensioner and early retiree, etc. exist within the IDES group.
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Figure 2-15: Personnel structure employee groups: SAP system screenshot
Technically speaking, employee groups are atomic data structures, i.e., they do not contain
further data but consist only of a description. In detailed customizing (master data, process
customizing), these data structures are used to state which actions or processes can be run for
an employee group. For example, you can set that in SAP ERP, only those persons receive
salary whose status is one (active).
2.2.1.4 Employee subgroups
You can display the employee subgroups of IDES group under
Enterprise Structure Definition Human Resource Management Employee
Subgroups ( Define Employee Subgroups)
Employee subgroups are atomic structures as well. In combination with employee groups,
they offer options for detailed personnel administration.
Leave the SAP implementation guide and take a closer look at the organizational structure.
2.2.2 Organizational structure

Despite the good order situation, management of the IDES group decided to increase
marketing measures for the Speedstar and the Speedstarlett. Therefore, a new department is
supposed to be set up that focuses on marketing and distribution activities regarding the two
products. For this reason, the respective organizational structure needs to be entered into the
SAP ERP system and the personnel for vacant jobs needs to be hired.
Firstly, get an overview of the navigation and the basic structures and terms in HCM. Based
to that, you all get to know the important concepts of SAP ERP human resources management
in an integrative case study
You first task is to enter the organizational structure of the new department into the SAP
system and to assign it to existing organizational structures. Again, replace xyy with your user
ID when processing the case study.
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To create the new department, you need a cost center to which you can assign the new
department. You will initially maintain an own profit center which will be assigned to
hierarchy node H1300 (marketing and sales and distribution) in the standard hierarchy of the
IDES group.
2.2.3 Standard hierarchy

Standard hierarchies serve the unique assignment and hierarchical relations of CO objects,
e.g.,
- cost centers
- processes
- profit centers
Figure 2-16: Process overview: Organizational structures in Controlling
Display the profit center standard hierarchy of the IDES group. Therefore, call up the
following transaction:
Accounting Controlling Profit Center Accounting Master Data Standard
Hierarchy Display (KCH6N)
1. In case you are prompted to enter a controlling area, enter controlling area 1000.
2. Expand the organizational structure tree in the right window so that you can see the
node H1100 External Services. Your new profit center is supposed to be assigned to
this profit center area. Next, create a profit center with reference to this hierarchical
level.
Note:
In case you do not see the desired hierarchical nodes when calling up the transaction KCH6N
or later, the transaction OKENN (OKEON) (depending on the settings of your user), you can
search for the root organizational unit H1 using the search assistant for the profit center
group (for OKENN, cost center group). From this root node, you can expand and navigate to
the respective node.
Figure 2-17: Search profit center: SAP system screenshot
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Figure 2-18: Search profit center: SAP system screenshot
2.2.3.1 Create profit center

A profit center is an organizational unit of accounting, which structures the company in a
management-oriented manner, i.e., for internal controlling purposes. You can analyze profits
and losses for a profit center that are calculated using either period accounting or the cost-ofsales approach. You can analyze your companys fixed assets by profit center and thus use
them as investment centers.
Create profit center
Create a profit center. Therefore, call up the following transaction
Accounting Controlling Profit Center Accounting Master Data Profit Center
Individual Processing Create (KE51)
1. Name the profit center PROFITxyy. Use the profit center 1015 as template in
accounting area 1000.
2. The profit center is valid from January 1st of this year unit 31.12.9999.
3. The name is bicycle-xyy and you can enter a short text and a person in charge at your
choice.
4. Hierarchical area is H1100 External Service.
Save your entries. A message is displayed stating that the profit canter is inactive. Activate
your profit center with the
button.
Check the standard hierarchy of the profit center again. A new entry with your profit center
should be listed.
Figure 2-19: Profit center standard hierarchy: SAP system screenshot
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Now that you created the profit center, you can maintain the respective cost center.
2.2.3.2 Create cost center
Firstly, display the standard hierarchy of cost centers of the IDES group. Therefore, call up
the following transaction:
Accounting Controlling Cost Center Accounting Master Data Standard
Hierarchy Change (OKEON)
Note:
Only one user can change the standard hierarchy at a time (pay attention to possible error
messages and repeat the step later), but all users can display the standard hierarchy.
1. Expand the node H1300 (marketing, sales and distribution).
2. Create a new node Hxyy with the description Marketing and SD bicycle-xyy
directly below H1300 by clicking the node H1300 with the right mouse button and
then select the option create group (subordinate).
Figure 2-20: Create cost center group: SAP system screenshot
3. Save your entries. Your new hierarchy node should be displayed below node
H1300.
Figure 2-21: Standard hierarchy IDES group: SAP system screenshot
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The new department is supposed to contain tree organizational units to each of which one cost
center is assigned. In organizational management, three organizational units will be entered,
one for marketing, one for SD, and one root organization.
Correspondingly, start with creating three new cost centers. The cost centers will be assigned
to profit center PROFITxyy. To create cost centers, choose:
Accounting Controlling Cost Enter Accounting Master Data Cost Center
Individual Processing Create (KS01)
1. Enter CC-MSD-xyy in the cost center field and enter validity period from 01.01. of
the current year until 31.12.9999. Confirm with Enter.
2. Enter the following data:
Name:
Mark-SD-xyy
Description:
Marketing and SD root xyy
Responsible person:
your name
Cost center category:
management (5)
Hierarchy area:
Hxyy (SD and marketing bicycle xyy)
Company code:
1000
Business area:
vehicles (3000)
Profit center:
PROFITxyy
Save your entries and independently create the other two cost centers.
3. Cost center marketing
Cost Center:
Validity:
Name:
Description:
Responsible person:
Hierarchy area:
Company code:
Business area:
Profit center:
CC-MA-xyy
01.01. of the current year 31.12.9999
Marketing-xyy
Marketing department xyy
your name
8
1000
vehicles (3000)
PROFITxyy
4. Cost center SD
Cost Center:
Validity:
Name:
Description:
Responsible person:
Hierarchy area:
Company code:
Business area:
Profit center:
CC-SD-xyy
01.01. of the current year 31.12.9999
SD-xyy
SD department xyy
your name
8
1000
vehicles (3000)
PROFITxyy
When displaying the standard hierarchy of cost centers once again (OKENN), your new cost
centers should be assigned to the respective hierarchical areas.
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Figure 2-22: Hierarchical assignment cost centers: SAP system screenshot
Now that you created the cost centers and the profit center, you have the required structures to
carry out organizational management from a HR department point of view.
2.2.4 Create an organizational structure

Your new department is referred to as Dep-bike-xyy and represents the root organizational
unit. The department consists of two areas: Marketing-xyy and SD-xyy. The cost center KSMA-xyy is assigned to the marketing department, and the cost center KS-VE-xyy is assigned
to the SD department, both originating from company code 1000.
Figure 2-23: Process overview: Organizational structures in human capital management
Despite the fact that it is somewhat unrealistic that a differentiated scope of duties is only
carried out by few employees, we assign only two employees to each area due to
simplification reasons. Both the marketing and the SD area will feature a position for the
department chief and a secretary position.
The following figure is supposed to clarify the organization of your new department:
Figure 2-24: Organization department marketing and SD
page 28
As you can see from the figure above, you need to create the following organizational
structures in the next step:
Three organizational units:
1. Root organization: Dep-bike-xyy
2. SD area:
SD-xyy
3. Marketing area:
Mark-xyy
Two jobs:
1. Job for the department chief:
2. Job for the secretary:
Manage-xyy
Secretary-xyy
Note:
As explained earlier jobs are generic object types that facilitate the creation of positions.
Thereby, the position inherits all characteristics of the assigned job.
Four positions:
1. Position for the department chief SD:
2. Position for the department chief Marketing:
3. Position for the secretary SD:
4. Position for the secretary Marketing:
SD-DC-xyy
MA-DC-xyy
SD-SE-xyy
MA-SE-xyy
Different tasks must be assigned to the respective positions. As you might guess, identical
tasks for positions can be assigned directly from the corresponding job.
You can assign the tasks correspondence and organization to job Secretary-xyy and the tasks
management functions to job Manage-xyy. The tasks client acquisition and advertising
efforts are not generic and need thus to be assigned directly to positions.
In the next step, you will transfer this organizational structure for your new department to the
SAP system.
2.2.4.1 Create organizational units
Therefore, call up the following transaction:
Human Resources Organizational Management Organizational Plan Organization
and Staffing Create (PPOCE)
1. Enter the validity from 01.01. of the current year until 31.12.9999.
2. Activate the query time for organizational changes using the settings function from
the menu.
3. In the upper left window, you can see an icon with the name new organizational unit.
This will be your organizational root. Click the icon and enter the following
information on the lower part of the screen:
a. Basic data tab:
Name:
additional description:
Dep-bike-xyy
Department bike-xyy your name
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b. Account assignment tab:
Cost center:
Company code:
Personnel area:
CC-MSD-xyy
1000
1000
Confirm with Enter.

4. Create the two other organizational units below the created organizational unit by
clicking the organizational root with the right mouse button and selecting create.
Choose line manager of organizational unit from the pop-up window. Enter the
following information for the SD department (skip the following pop-up with Enter):
a. Basic data tab:
Organizational unit:
Cost center:
company code:
personnel area:
SD-xyy
SD-xyy your name
CC-SD-xyy (to change the cost center in account

assignment, click replace cost center
)
1000
1000
5. Repeat this step for the marketing department. This should be located below the
organizational root as well.
a. Basic data tab:
Name:
Mark-xyy
Marketing-xyy your name

cost center:
company code:
personnel area:
CC-MA-xyy
1000
1000
Save your organizational structure.

Note:
When leaving transaction PPOCE, you can display your hitherto created objects using
transaction PPOME and the search function upper left side of the screen. The search function
can be used to search for all object types. When selecting organizational unit and entering
dep-bike-xyy, the search result is displayed in the left window.
Your hitherto created organizational structure should look like this:
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Figure 2-25: Organizational structure: SAP system screenshot
Note:
Another useful function is the column configuration. With this, you can display additional
data regarding your organizational units. In the following figure, you can see the additional
selection of the object ID. This is helpful since it is unique in the SAP system and
correspondingly, easier to find from other program modules.
Figure 2-26: Example column configuration: SAP system screenshot
page 31

Now that the organizational units are created, your next task is to create jobs. At this point,
you could start directly with creating positions, however, our positions are supposed to inherit
tasks from generic jobs. Thus, this step is required.
In case you left the transaction already, all up transaction PPOME and display the
organizational structure.
2.2.4.2 Create jobs and assign tasks
1. Jobs are created choosing Edit Create Jobs from the menu bar. In the following
selection window, enter the subsequent data:
Valid from: 01.01of the current year
Object abbreviation: Manage-xyy
Description: Management bike xyy
until
and
and
31.12.9999
Secret-xyy
Secretary bike xyy
2. Display the job Manage-xyy using the search function (job).
Figure 2-27: Search jobs: SAP system screenshot
The search results are displayed in a hit list on the bottom left side of the screen.
Select your job Manage-xyy with a double-click.
3. Select your job in the right window and select the create (
) button to define new
tasks. Enter the following data on the bottom part of the screen:
until
31.12.9999
Object abbt.: Mgmt-xyy
Name: Management Tasks xyy
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Figure 2-28: Create tasks: SAP system screenshot
4. Independently create the two tasks for the job secretary.

Short text:
Corresp-xyy
Description: Correspondence bike xyy
until
and
and
31.12.9999
orga-xyy
Organization bike xyy
Save your entries.

2.2.4.3 Create positions
Now you can create positions. The positions are assigned to the organizational units SD-xyy
and Marketing-xyy, respectively.
Display your organizational root Dep-bike-xyy again (using the search function). You already
learned how to create a new object from an organizational unit.
Figure 2-29: Create position: SAP system screenshot
page 33

1. Select the sales and distribution organizational unit (SD-xyy) and create two new
positions below with the following specifications:
Position:
SD-DC-xyy
Description: Department chief SD xyy
until
and
and
31.12.9999
SD-SE-xyy
Secretary SD xyy
2. Select the newly created position SD-DC-xyy in the basic data view. Enter your newly
created job Manage-xyy in the Job field. Confirm with Enter. You can see that in the
tasks slide, for this position, the task of the job was inherited.
3. Click your position SD-DC-xyy with the right mouse button and select Goto/task
assignment.
Figure 2-30: Job assignment: SAP system screenshot
Select your position once again and create a new task by clicking the create button
(described by task):
Short text:
acquise-xyy
Description: customer acquisition xyy
until
31.12.9999
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Figure 2-31: Job assignment: SAP system screenshot
4. Optional (if not enabled): Select your task management task (expand the job
management bike xyy below your position) and push the right mouse button and select
change percentage. Set the percentage of the task to 50 %. Repeat this step for the
second task (acquisition). Thus, you can ensure that a position takes only the
maximum 100 % of work time.
Repeat steps 1-4 for the other positions to complete the organizational structure of the initial
overview. Finally, your organizational unit should be similar to the following figure. Do not
forget to save.
Figure 2-32: Organizational structure SD and marketing: SAP system screenshot
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To complete, list the object IDs of your four positions on your data sheet.
PositionID SD-DC-xyy: _________________________________________________
PositionID SD-SE-xyy: _________________________________________________
PositionID MA-DC-xyy: _________________________________________________
PositionID MA-SE-xyy:_________________________________________________
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2.3 Theory Infotypes

Last name, first name, or date of birth represent individual information and this information is
defined in data fields in SAP ERP. Data fields are combined according to content-related
information to data groups or information units. In human resources, we refer to these
information units as information types or short, infotypes.
Data in human capital management are recorded in logically related groups according to their
content. For example, place of residence, street, and house number of an employee represent
his or her address and are thus stored in the address infotype (along with other information).
Infotypes feature a name and a four-digit numeric key. For example, the address infotype has
the key 0006.
Figure 2-33: Infotypes
2.3.1 Infotype maintenance

ERP software must maintain the up-to-dateness of employee data. When maintaining
infotypes, you can display, correct, and supplement employee data. Human capital
management stored employee data in infotype records and provides each infotype with certain
validity. Usually, that is a validity interval or a key date.
There are three options to maintain infotypes:
- single screen maintenance,
- personnel actions, or
- fast entry
Single screen maintenance (individual infotype maintenance):
For single screen maintenance, one single infotype is called up to maintain data for a certain
situation or subject. In single screen maintenance, an infotype is maintained for one personnel
number.
Personnel actions:
Personnel actions are used when a subject or situation is rather complex and when more than
one infotype is to be maintained. When carrying out a personnel action, the system displays
all respective infotypes to be maintained, one after another.
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Fast entry:
Using fast entry, you can maintain an infotype for more than one personnel number at the
same time.
Figure 2-34: Infotype maintenance
2.3.2 Initial entry screen for maintaining infotypes

The infotypes most frequently used in HR are grouped according to their content and assigned
to static menus. An infotype can be included in more than one menu. Rarely used infotypes
might not be included in any menu at all. Menus are called up by selecting the respective tab
page. The green ticks next to infotypes in the menu list indicate that there are already records
present for this personnel number.
Figure 2-35: Initial entry screen for maintaining infotypes
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2.3.3 Personnel file

His or her personnel number uniquely identifies an employee in the SAP ERP system. A
personnel file exists for each personnel number that contains all infotypes for which records
are stored. Infotypes are displayed in ascending numerical order.
In case several records exist for one infotype, they are displayed one after another. Then, the
system proceeds to the next infotype. At the end, the system returns to the initial screen. In the
personnel file, you can scroll forwards and backwards.
Figure 2-36: Personnel file
2.3.4 Organizational Assignment

When maintaining and saving the infotype personnel data (0002), the system automatically
displays the infotype organizational assignment (0001).
The following fields are already filled in by the organizational assignment:
- company code
- personnel area
- personnel subarea
- business area
- employee group and
- employee subgroup
Additional missing data can be entered manually.
In case the position was not recorded in the actions infotype (0000), this can be done here in
infotype organizational assignment (0001). The position is entered in infotype organizational
assignment in the organizational structure section. The entered position and its present
relations to a job, an organizational unit, and cost center, these fields are imported
automatically. The fields job, organizational unit, and cost center can therefore not be
overwritten manually.
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Figure 2-37: Infotype organizational Assignment
page 40
2.4 Practical application Infotypes
Figure 2-38: Process overview: Infotypes
An infotype is the compilation of data related by its content, e.g., address, bank account,
supplemental payment. From a user point of view it is a mask for data entry. An infotype
can carry out plausibility checks, it can contain required fields, it can be structured in
subtypes, and it always has a validity period. Maintaining personnel data is carried out almost
entirely using infotypes. Infotypes feature a four-digit key along with their names.
- 0000-0999: personnel administration
- 1000-1999: personnel planning and development
- 2000-2999: Time management
- 3000-3999: logistics integration
- 4000-4999: Recruitment
- 9000-9999: customer-individual infotypes
To display the infotypes of an employee of IDES AG, choose
Human Resources Personnel Management Administration HR Master Data
Maintain (PA30)
1. Enter personnel number 1001 and confirm with Enter.
2. The following figure shows the personnel master data of employee Michaela Maier.
The personnel number is 1001. In the person basic data tab you can see that
infotypes actions, organizational assignment, personnel data, addresses, and bank
account were maintained. They are marked with green ticks. By selecting an infotype
and clicking one of the symbols on the upper left hand side of the screen, infotypes
can be created
, changed
, displayed
, copied
, delimited
, or deleted
.
page 41
Figure 2-39: Personnel master data: SAP system screenshot
3. The individual infotypes are grouped by particular criteria (tabs).

4. Select the infotype organizational assignment and choose display
.
5. You can see that Ms Maier is assigned to the following organizational units
Enterprise structure:
a. Company code
1000
b. Personnel area
1300
c. Cost center
2100
d. Business area 9900
Organizational structure:
e. position
50000076
f. job
50011880
g. organizational unit 50000073
Personnel structure:
h. active employee (employee group)
i. part of employee subgroup DU (employee)
j. part of accounting area D2
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Figure 2-40: Maintaining personnel master data: SAP system screenshot
6. Return to the previous step and look for the infotype basic pay. What is the standard
pay of Ms Maier? List the amount on your data sheet.
Basic pay Ms Maier: ____________________________________
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2.5 Theory Processes in human capital management

Processes in human capital management include:
- recruiting
- hiring
- training and personnel development
- managing work time
- compensation and benefits
- payroll administration
- travel planning
- personnel cost planning and reporting
- employee self-services
Figure 2-41: Processes in human capital management
2.5.1 From vacancy to hiring an applicant

The recruitment component organizes the entire recruiting process in SAP, from the initial
data entry until filling vacant positions. Thereby, the SAP system features
- identification of personnel requirements,
- creating job advertisements,
- short-listing applicants, and
- managing applicant correspondence
When an applicant is hired, the data entered in recruiting can be transferred to personnel
administration as employee data. Line managers can use the managers desktop to record
decisions about applicants and to trigger further administration in the HR department
efficiently. External applicants can use the web application employment opportunities and
employees can use the employee self-service component job advertisements to electronically
attach application documents to online applications.
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Figure 2-42: From vacancy to hiring an applicant
2.5.1.1 Hiring an applicant

When hiring an applicant, data entered in the application process can be transferred from
applicant master data to personnel administration. Data are transferred directly from the
applicant database to the employee database and are available in the new personnel master
record or the newly hired employee. After data transfer, the system copies all data that were
recorded as default values in the recruiting infotype in personnel administration. Thus, all
data can still be used and even changed after hiring an applicant. This results in considerably
decreasing administration efforts.
In integrated systems, data are transferred either directly to recruiting or directly to personnel
administration. Additional data such as information regarding work hours and salary can be
added later in personnel administration.
Note: You have the option to automatically generate contracts for applicants that you want to
hire in SAP EPR.
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Figure 2-43: hiring an applicant
2.5.1.2 Application via Internet

Using the internet application employment opportunities, companies have the following
possibilities in the recruitment process:
- present vacancies and
- direct applications for positions
Moreover, applicants can display only vacancies for a certain region or all vacancies. Each
advertisement contains a short description of the position and its requirements. Information
regarding the position is copied by the system from the advertisements stored under
recruiting.
Applicants can either apply directly in response to an advertisement or submit an unsolicited
application. For applications via internet, the applicant enters data concerning person,
experience, qualifications, education, and training. The system automatically transfers these
data to the SAP ERP system.
Note: Since SAP R/3 Enterprise, an applicant can add or change any entered data. The
applicant can attach application documents electronically with this internet function.
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Figure 2-44: Application via Internet
2.5.2 Personnel development and qualifying actions

The personnel development function in SAP human capital management increases the
employees value for a company by planning and implementing development and training
measures for employees. This increases motivation and satisfaction of employees by taking
into account individual preferences and suitability for jobs. The personnel development
component ensures that a company has all required qualifications and capabilities. This is
achieved by setting up qualification potentials.
A company can determine the development requirements by comparing future work
requirements with current qualifications and development preferences of employees. The
management can aim at particular results with these development activities. For example,
using career and succession planning you can determine whether an employee should be
transferred to a certain post. General measures can include the extension of existing
capabilities and knowledge of employees or ensuring that employees keep pace with
technological changes.
Qualifying measures (training courses, job rotation, etc.) can be grouped to development plans
(e.g., trainee program for sales employees). These qualifying actions are referred to as general
development plan, since it affects all employees of a company. When general development
plans are available in the SAP system, you can adjust them to the individual requirements of
employees.
In addition, you can praise employee performance and conduct with personnel development
and perform individual targets for employees. Due to appraisal results, the further career
development of employees can be planned.
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Figure 2-45: Personnel development and qualifying actions
2.5.2.1 Qualifications and requirements

You can assign qualifications to both employees and position. For employees, you refer to
them as qualifications; for positions, you refer to them as requirements.
All qualifications (and requirements) are stored centrally in a catalog. It is always referred to
the same object, but from a different point of view. Thus, you can compare qualifications of a
person with requirements defined for a position.
Note: Editing the qualification catalog is carried out in customizing for personnel
development. You can still enter modifications after the system has already gone live by
choosing current settings from the menu.
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Figure 2-46: Qualifications and requirements
2.5.2.2 Training proposals for qualification deficits

In case personnel development is linked to training and event management, you can use the
generate training proposals functions from the personnel development component. The
system proposes possible training courses (business events) to gain missing qualifications.
You can book employees for courses directly or pre-book employees for business event types.
The system can also propose and assign development plans that impart required
qualifications. Consequently, particular actions from this general development plan can be
copied to an individual development plan of an employee.
The system only proposes events and development plans that aim at least at the same or at a
higher degree of expertise and qualification (in comparison to the current ones of the
respective employee).
Example: A mechanical engineer is supposed to work in Japan for a longer period of time.
When comparing her profile with the requirements of the tasks in Japan, it becomes apparent
that she does not have the required language skills. Since personnel development is linked to
training and event management, the system proposes a Japanese class that will provide the
engineer with the skills she will need for her new tasks. The administrator directly books her
for one of these classes.
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Figure 2-47: Training proposals for qualification deficits
2.5.2.3 Processes in training and event management

Training and event management contains four major processes:
- In business event preparation, all master data required for creating the business
event catalog are recorded and maintained. This includes time schedules, event
locations, resources, etc. Additionally, business event groups and types can be created
that constitute the foundation of the event catalog.
- The second major process is the creation of the business event catalog. Individual
event dates can be created with or without resources and in a single process, multiple
event dates can be planned according to existing demand.
- After that, day-to-day activities are carried out. In this process, you can
- book internal and external participants,
- pre-book participation,
- replace bookings, and
- cancel attendance
The correspondence function contains a suitable notification for that can be outputted
for these activities.
- Recurring activities include the periodical execution of associated activities.
Thereby, events can be fixed, locked, and unlocked. This major process involves also
the follow-up of events.
This process is reflected in reporting.
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Figure 2-48: Processes in training and event management
2.5.2.4 Career and succession planning

Career and succession planning aims at two things:
- encouraging the professional development of employees
- ensuring of a sufficient number of employees
Career planning includes the determination of possible career objectives for employees as
well as planning their professional development. In succession planning, suitable candidates
to fill vacant positions are determined.
Figure 2-49: Career and succession planning
2.5.2.5 The continuous performance feedback process

The continuous performance feedback process aims at:
- align the workforce with the companys strategy
- communicate the companys strategy
- create flexible and future-oriented performance planning
- review performance and determine superior and minor performances
- accomplish transparency and flexibility regarding rapidly changing requirements
- establish a basis for performance-oriented pay and succession management
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Figure 2-50: The continuous performance feedback process
2.5.3 Time management

In a human capital management system, options to evaluate work carried out by employees
and to determine employee availability are essential. This information is also essential for
other areas in a company, such as controlling or logistics, and impact enterprise-wide
decision-making.
Time management in SAP ERP allows for the evaluation of working times. Information
regarding working times is for example used to determine gross wages in payroll.
The SAP ERP system features the following options to record working times. This includes
- time managers workplace,
- a central time sheet,
- online menus,
- time recording systems, and
- employee self-service applications
Moreover, SAP offers the possibility to manually or automatically coordinate time accounts
(e.g., working times, flextime, flexible working times, and finishing times).
Working times can be used to allocate activities in controlling. Costs caused by working times
can be assigned to their source in controlling.
Information from time management can be used to determine the availability of employees in
logistics and based on that, to carry out capacity planning. Contrastingly, you can use capacity
requirements to plan working hours and employee shifts.
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Figure 2-51: Time management
2.5.3.1 Types of time data

To evaluate and to remunerate the working time of an employee, the recording of working
times is essential.
Variances or exceptions for the work schedule of an employee are recorded in the respective
time managers workplace. This information is then stored in the appropriate infotypes.
Employee time data include amongst others
- hours worked,
- holidays,
- illness,
- overtime,
- substitutions, and
- business trips
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Figure 2-52: Types of time data
2.5.3.2 What is CATS?

CATS (cross-application time sheet) is another form of employee self-service. CATS is an
application that allows for a consistent and cross-component working time record. Thus,
CATS is available for different components and modules in SAP so that you can record actual
working times of individual employees.
The time sheet has the following advantages:
- cross-application standard screens for entering working times
- simple use for all users
- default values and data entry templates
- integrated approval procedures
- correction options
- SAP extensions for increased flexibility regarding the definition of authorization
checks, plausibility checks, and default values
Note: Using the time sheet (SAP CATS), information can be made available regarding
performed working hours for the following components:
- attendance and absence in HR (human resources)
- internal accounting and statistical key figures of CO (controlling)
- confirmations of PM/CS (maintenance/customer service)
- confirmations of PS (project system)
- activity input of MM-SRV (service)
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Figure 2-53: Time sheet CATS
2.5.3.3 The CATS process

The time sheet process consists of the following steps:
- entry of time data into the time sheet
- release of time data
- approval of time data (also via workflow)
- transfer of time data to target application
Note: the steps release time data and approve time data are optional.
Figure 2-54: The CATS process
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2.5.4 Areas of compensation management

The compensation management component controls and manages the remuneration policy of
a company. It provides a central overview of the remuneration policy as well as a control
mechanism for its implementation. Additionally, it facilitates compensation planning and
budgeting, as well as decentralized compensation management.
Compensation management contains four areas:
- You can carry out job pricing in compensation management. Results can be stored in
external job pricing systems and in salary surveys. Using these results, pay grade
structures can be generated to which you can assign jobs and positions within a
company. Thus, it is possible to determine the internal value of jobs and positions
within a company and to ensure therefore competitiveness of the company.
- Budgeting enables the planning and monitoring of costs for compensation
adjustments. Budgets are assigned to organizational units. Additionally, budgets can
be created centrally or locally. Budgets can also be rolled up using organizational
units.
- Compensation administration is used for the distribution of salary increases, shares,
etc. to individual employees according the remuneration policy of a company.
- Long-term incentives regarding participations can be managed (stock option plans).
Figure 2-55: Areas of compensation management
2.5.4.1 Long-term incentives

Long-term incentive plans determine the number of shares for a particular plan. For example,
you can determine using a long-term incentive plan, how many shares are available for
employees. The compensation management component supports five different types of longterm incentives:
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-
incentive stock options

non-qualified stock options
performance shares
performance units
restricted stock
A company uses vesting rules and work schedules to determine when an employee gains the
right for receiving company shares and the amount of this award (example: all options are
vested after three years).
Change events are reasons for changing subscribed options (example: a stock split agreed
upon by the executive board).
Life events are triggered by individual employees or companies themselves (examples of live
events include: mergers, marriage, death, or retirement. Life event usually change the vesting
schedule).
Figure 2-56: Long-term incentives
2.5.4.2 Benefits
In many countries (especially North America), it is common that employees participate in
benefit plans offered by a company as part of their compensation package. The advantage of
benefits for employees is that offered packages are available at a reduced rate. An employee
pays less for company-based plans in comparison to a private package.
Employees enroll for a particular benefit plan and receive different benefits, depending on the
chosen plan. Contributions are paid either by the employer, the employee, or both, depending
on the plan.
In the SAP ERP system, you have the possibility to generate plans for different employees
with reference to multiple factors. Restrictions and eligibilities for benefit plans are stored in
the IMG. Thus, the processing of benefits is facilitated and made user-friendly.
In SAP, there are six plan categories available:
- health
- insurance
- savings
- stock purchase
- credit and miscellaneous
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The plan category miscellaneous can record benefit plans that cannot be assigned to one of
the other categories, such as fitness programs or company cars.
Figure 2-57: Benefits
2.5.5 Personnel cost planning and simulation

Personnel cost planning and simulation is based on a wide data basis. It is lined to other
applications in the SAP ERP system. Thus, this application can support cross-department
business processes.
Payment information required to create personnel cost plans can be derived from different
sources. Related basis payments, payroll results, simulated reclassifications, recurring
payments, and on-time payments are included.
Planned compensation data can also be used for positions and jobs in planning processes.
Additionally, you can determine average values.
Moreover, managers can perform adjustments. Therefore, the system supports a web-based
frontend. Generated cost plans can be transferred to SAP Business Intelligence for evaluation
purposes. After plan release, SAP HCM users can use the data for the following:
- create a salary budget for compensation management
- create a training budget for training and event management
- transfer data to accounting
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Figure 2-58: Personnel cost planning and simulation
2.5.5.1 Payroll accounting

Payroll accounting calculates the payment for work performed by each employee.
Specifically, this includes numerous work processes, such as creation of payroll results and
remuneration statements, bank transfers, and check payments.
Payroll accounting includes further subsequent activities, for example:
- transfer of results to accounting
- different evaluations, e.g., evaluation of payroll account
- transfer of payments to third-parties, e.g., taxes
Figure 2-59: Payroll accounting
2.5.5.2 Combination of remuneration elements

Remuneration elements of an employee are derived from individual wage and salary types
that are used during the payroll period. The remuneration calculation includes payments such
as basic pay, different bonuses, and gratuities. Deductions are possible for a company-owned
flat, day care, or similar benefits. Whether these factors increase or decrease the taxable
income depends on the law of a country or, in some countries, on company regulations.
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An employees remuneration consists of all wage and pay types determine individually during
a payroll period.
Figure 2-60: Combination of remuneration elements
2.5.5.3 Payroll: overview

During a payroll run, changes to master and time data affecting payroll past and present are
not allowed. The payroll program reads the infotypes master data and time data, i.e., changes
made during the payroll process can affect the correctness of the payroll results. This also
means that during master data maintenance, no payroll run can be carried out. The payroll
control record controls this.
The following relationship exists between menu and payroll control record:
Menu function
Release payroll
Start payroll
Check result
Corrections
Exit payroll
Status of payroll control record

Release of payroll
The payroll program is started and the status of the payroll control
record remains released for payroll
Check payroll result
Release for corrections
Exit payroll
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Figure 2-61: Payroll
2.5.6 Travel management

The travel management component contains all functions required for processing business
trips, such as travel requests, approval, settlement, and if necessary, corrections, and
retroactive accounting.
HCM master data, control parameters and recorded travel facts are stored in views and are
used in travel planning and travel expenses. A reservation of travel services, booking, and
possible subsequent revisions can also be carried out using an external reservation system.
The settlement results can be transferred to financial accounting (FI), payroll, or to external
systems. Payment using data medium exchange is also possible.
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Figure 2-62: Travel management
Travel expenses
Using the travel expenses program, you can settle all trips with the status approved/to be
settled. For test purposes, you can also settle individual trips, if the end date of the trip is not
in a future payroll period.
For trips in particular payroll periods, the payroll program determines settlement results using
the entered travel dates and stores the results in the PCL1. To be settled, these trips must end
before the end date of the payroll period.
Figure 2-63: Travel expenses
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2.5.7 Cost planning run

The SAP ERP system allows for the execution and administration of cost planning runs.
Thereby, you can create personnel cost plans with appropriate characteristics that are used as
foundation of scenario-specific cost plan runs. Thus, you can test the effects of particular
planning variants on cost development. By comparing different scenarios, you can gain a
quick overview of possible cost developments for a company resulting from different
measures
To ensure that cost planning runs match the current company requirements, scenario-specific
settings can be applied under current settings.
Note: Planning runs in the new components personnel cost planning and simulation mostly
correspond to the scenario groups of the old personnel cost planning component in SAP R/3.
Figure 2-64: Cost planning run
2.5.8 Employee self service (EES)

SAP employee self service features many applications and allows for displaying, creating and
maintaining data over the internet.
SAP EES contains for example:
- office
- time management
- payment
- benefits
- personal information
- training and event management
- qualifications
- appraisals
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Accessing SAP ESS is only possible using the mySAP.com workplace. SAP ESS uses the
power of different SAP systems and functions, e.g., the integrated workflow, the application
logic, security, and audit procedures, and accesses the same database to avoid dual
maintenance and reconciliation and the ensure data integrity.
SAP ESS is multilingual and multi-currency compatible since it used the international
architecture of the SAP system. This service uses the global functionality of SAP ERP,
including country-specific versions.
SAP ESS is compatible with Netscape Navigator, MS Internet Explorer and can be
implemented on Windows, Macintosh and Unix operation systems, if the necessary internet
browser is used.
SAP ESS features an intuitive, user-friendly GUI so that no training is required. The user
receives simplified information when using SAP ESS.
It is possible to individually adjust and extend the SAP ESS main menu. Internet templates
can simply be adjusted to the look and feel of the company-specific intranet and to the
corporate identity.
You can get an overview of the highlights of SAP ESS, as advertised by SAP AG, from the
following figure.
Figure 2-65: SAP EES highlights
2.5.9 Integration with other SAP ERP components

SAP ERP training and event management is integrated with other SAP ERP application
components to ensure a direct and efficient data exchange. Files can be exclusively processed
further in training and event management.
- sales and distribution: Billing of attendance fees, use of attendee types customer and
contact person
- materials management: Use of materials from the material master as resources for
business events, generation of purchase requisitions, and material reservations
- personnel development: Check and transfer of qualifications, use of appraisal
systems from personnel development
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-
time management: Recording and checking participation (of internal event

participants and instructors)
organizational management: Use of organizational units to represent event
participants and instructors
personnel administration: Use of persons from the HR master as participants and
instructors
appointment calendar: automatic generation of entries in appointment calendar for
attendance bookings and instructor activities
SAP knowledge warehouse: displaying information material from the knowledge
warehouse, such as training materials, documentations, videos, etc. and the linked self
service applications
cost accounting: internal activity allocation of participation fees and instructor costs,
and transfer postings for business event costs
Figure 2-66: integration with other SAP ERP components
page 65
2.6 Practical application Processes in human capital
management
You already entered the new department from an organizational management point of view in
the system. Now, you will recruit employees for jobs. Your first task is initial master data
maintenance. You will firstly try to recruit new employees for the company. You will carry
out the entire process, from the job advertisement and applications to hiring an applicant.
Additionally, you will appraise your new employee, trigger a training action, and travel
expense accounting.
2.6.1 Create and perform job advertisements

Within master data maintenance, it is your job to create and perform the advertisement for one
of the new jobs.
Figure 2-67: Process overview: Recruitment
The corresponding transaction is:

Human Resources Personnel Management Recruitment Advertising
Advertisement Maintain (PBAW)
1. Create a new individual advertisement. Therefore, choose execute from the first
menu or press F8.
2. In the next dialog, choose create advertisement (new Advert button) or F7.
3. Let the system propose the next free advertisement number, by clicking the respective
button.
4. List the advertisement number on your data sheet.
Advertisement number:________________________________________________
5. Select instrument FAZ (00000001).
6. Choose last Saturday as publication date.
7. Publication end is next Saturday.
8. Publication costs amount to 15,000.00 EUR.
9. Enter job advertisement salesmanager-xyy as text name.
10. Maintain a text at your choice choosing maintain text. Save and go back to the
advertisement screen.
11. Add the position number (ID) of your sales manager in the vacancy field, by clicking
the add button and searching for the position ID of the sales manager in the subsequent
list. Confirm your entries and skip possible system messages with Enter.
12. Save your advertisement.
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Your boss requests a list of all advertisements. Export the list to a Word-(.rtf)document.
Figure 2-68: Export advertisement list: SAP system screenshot
Submit this document together with the data sheet to your tutor at the conclusion of this case
study.
Additionally, export the file to office/private folders, by clicking the export button again and
then, select office. Using the store button, store your document in your private folder.
Leave the transaction and return to the easy access menu. Click the SAP business workflow
button.
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Figure 2-69: SAP business workflow: SAP system screenshot
Excurse: Definition of the SAP business workflow

With the SAP business workflow component, you can coordinate business processes across
different applications. The basis of the workflows is a model of the different business
processes that you can independently define in customizing.
A workflow consists of individual steps that are carries out by one or more employees at one
or at a different time. Particular steps such as confirmation creation after price changes or
record changes caused by a customer contact can be performed independently by the SAP
system. The SAP business workflow provides technologies and tools for automatically
controlling and processing operations. Thus, you can adjust the waste disposal industry
component to the requirements of your waste disposal company. You can find further
information in the SAP library.
Within a business workflow, there is one work center for each employee working with the SAP
system. From there, they can carry out and monitor their daily tasks given that those are
integrated in the workflow process. As you can see from the private folder, the advertisement
list was stored here and can be processed further.
2.6.2 Recruitment
The application process is completed and many applicants allied for the sales manager job.
You already have a favorite candidate. Next, you have to deal with recruiting.
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Figure 2-70: Process overview: Recruiting
2.6.2.1 Initial entry of applicant master data (PB10)

After creating and performing the advertisement, you received applications for the vacant job.
Now, enter and maintain applicant master data.
Choose the following transaction to initially enter applicant master data:
Human Resources Personnel Management Recruitment Appl. Master Data
Initial Data Entry (PB10)
1. Firstly, maintain the master data of an applicant using your name. Please enter your
three-digit user number when prompted to do so.
2. On the basic data initial entry screen, enter the subsequent data:
Reason
Per. area
Ap. group
Appl range
Pers. off
Title
F.name
Last name
Birth dt.
Language
Nationality
Street
Zip code
Town
Telephone
Email
Country
Advertisement
New application (04)

Hamburg (1000)
Active (external) (1)
Managerial staff (3)
Helmut Dauber (DAU)
Ms/Mrs/Mr
Your first name
Your last name
Your date of birth
German
German
Universitaetsstrasse xyy
45141
Essen
+49201 333xyy
Firstname.lastname@uni-due.de
Germany
Your advertisement number
3. Next, select the save + extras button.

4. List the applicant number that the system displays. Leave the transaction.
Applicant number:______________________________________________
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2.6.2.2 Maintaining the qualifications of the applicant (PB30)
After you initially entered data for your applicant, you need to maintain further data.
Therefore, call up the following transaction:
Human Resources Personnel Management Recruitment Appl. Master Data
Maintain (PB30)
1. On the initial screen, enter your applicant number and choose Enter.
2. To maintain the qualifications of your applicant, select the qualifications infotype and
select the create ( ) button on the upper left hand side of the screen.
3. First, maintain the qualifications tab. Therefore, choose create from the lower menu
or alternatively F7.
4. The applicant has the following qualifications that you have to fund using the search
function:
Figure 2-71: Add qualifications: SAP system screenshot
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Maintain the following qualifications with the respective value (excellent, very
good)
a. Excellent management experience
b. Very high project management skills
c. Above-average communication skills
d. High experience level in Excel
5. Next, maintain the potentials tab. The applicant has the following qualification:
management skills
6. Next, maintain the preferences tab. The applicant has the following qualification:
knowledge regarding word processing in WinWord
7. Next, maintain the dislike tab. The applicant dislikes the following qualifications:
language skills in English and French
8. The applicant did not receive any appraisals yet.
Save the data and leave the transaction. Next, you can see that on the initial screen of the
maintain applicant master data screen, the qualifications for the applicant were maintained
(green tick).
2.6.2.3 Maintain applicant master data (PB30)
1. Call up the recently entered master data of the applicant again and check his dates.
There should be a green tick for the following applicant data:
applicant actions
application
organizational assignment
personnel data
Qualifications
addresses
2. Call up the short profile (
) and check regarding completeness.
Save the short profile of your applicant via System/List/Save/office folders to your private
folder.
2.6.2.4 Vacancy assignment
Now, the vacancy (SD-DC-xyy) you created in organizational management is supposed to be
filled with your applicant (PB30).
1. Complete your applicants data from the previous task and maintain the applicant
master data again.
2. Select the vacancy assignment infotype and choose
.
3. Choose the current date to 31.12.9999 as validity period.
4. Vacancy assignment receives priority 1; the vacancy to choose is the vacant position
of the sales manager that you created in organizational management. At this point, you
can enter the number of the position manually, if you know the number (cf. data
sheet). Alternatively, you can use the search function (F4).
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5. Set the vacancy status to "in process" (1).
6. Status reason is "new application" (04).
Save the infotype.
2.6.2.5 Applicant activities
You want to notify the applicant regarding application receipt. Therefore, you need to
maintain applicant activities within recruiting. Call up the following transaction:
Human Resources Personnel Management Recruiting Applicant Activity
Maintain (PB60)
1. On the maintain applicant activities: initial screen, enter your applicant number and
choose execute ( ).
2. Maintain (change) the activity receipt of application (select the line) and enter your
vacancy number in the vacancy field.
3. Create a Word document (letter) and save. Add the receipt of application letter to
your documentation.
Note: In case you do not have Microsoft Word on your computer, skip document creation
(step 3)
Figure 2-72: Applicant activities receipt of application: SAP system screenshot
4. Consequently, confirm the activity and mark the applicant activity as completed (
). Thus, the activity is labeled completed and transferred
from the lower window to the upper one.
Save the applicant activity.
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Next, you want to gain an overview of the applicants and check their suitability. However,
regarding the vacant position, you are only interested in applicants that have a certain profile.
Your next task is to create a list with all applicants to be considered. Therefore, call up the
Human Resources Personnel Management Recruiting Selection Procedure
Applicant Pool Via Qualifications External Applicants (PBAQ)
1. Display a list containing all possible applicants that possess at least very high project
management skills and at least above-average skills in Excel. Thereby, the first
requirement is mandatory.
Figure 2-73: Display applicant list: SAP system screenshot
2. Display a short profile for each applicant.

3. Export the list for further processing to MS Word and add them to your
documentation (pdf or Word document).
4. Store the short profiles in your personnel folder.
Make a decision in the selection process and invite an applicant for an interview.
Making a decision in the selection process (PB60):
Firstly, maintain another applicant activity. Create the next planned activity (subsequent
activity to receipt of application confirmation), i.e., the invitation for today via telephone;
Mike Anderson is in charge of this activity.
1. Select the activity that is already completed and choose
. Select tel.
invitation planned and confirm with Enter.
2. Delete the standard text if necessary and choose Mike Anderson as person in charge.
3. Please make sure that the vacancy is entered and confirm with Enter.
4. Save the activity.
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After a successful telephone interview, you are enthusiastic about the applicant and decide to
invite him for a personal interview.
Making a decision regarding a personal interview (PB60):
5. Create another applicant activity. The follow-up activity to telephone invitation is the
invitation to a personal interview; again, the person in charge of this activity is Mike
Anderson.
Please make sure that the vacancy is entered and confirm with Enter.
The applicant was strongly convincing and thus your next task is to prepare hiring. Before,
you need to mark all previous tasks as completed (PB60).
6. Mark the activities telephone invitation and invitation to personal interview as
completed.
2.6.3 Hiring
The applicant receives the contract offer. Within recruiting, you have to prepare to hire the
applicant.
Figure 2-74: Process overview: Hiring
2.6.3.1 Prepare transfer of applicant data (PB40)

To allow for the transfer of applicant master data to the personnel master record, you need to
maintain the applicant activity for hiring. Therefore, call up:
Human Resources Personnel Management Recruiting Applicant Master Data
Applicant Actions (PB40)
1. On the initial screen applicant activities, enter your applicant number.
2. Enter the current date. Since the contract is supposed to be open-ended, accept
31.12.9999 as end date (on the next screen).
3. Select applicant action type prepare to hire and execute (F8)
4. Save and skip the warning message with Enter.
2.6.3.2 Check applicant activities (PB60)
Check the applicant activities for your applicant. By running the activity prepare hiring, only
two new activities should be planned under planned activities. In case the activities transfer
data and hiring date occur more than one time each select and delete multiple entries (
).
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Figure 2-75: Planned activities: SAP system screenshot
2.6.3.3 Check and complete master data (PB30)

Prior to data transfer, check the applicant data regarding completeness and if necessary, add
required information.
1. Check infotype applicant actions within the applicant master data regarding
completeness.
2. Maintain the infotype bank details of the applicant. Using the search function, look for
Sparkasse Munich (Mnchen) to enter this data in the bank key field. The bank
account is 129xyy. Enter purpose salary payment.
3. Next, maintain all entries concerning the other/pervious employer where the
applicant was hired from 01.11.2000 until the end of the previous month.
Employer
City
Country Key
Industry
Job
Linde AG
Essen
Germany
High Tech.
Manager
4. Finally maintain education master data. Maintain the data at your discretion.
However, please note that education must end not later than 30.10.2000.
5. Check whether all master data were maintained (green ticks!).
2.6.3.4 Hiring an applicant
Now that all preparations are completed, the applicant can be added to the personnel master.
This is your next task.
Note:
Transferring applicant data to the active personnel master requires that you completed the
applicant activity at the beginning of the chapter hiring.
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Call up the following transaction:
Human Resources Personnel Management Recruiting Applicant Activity
Transfer Applicant Data Execute (PBA7)
1. Start direct data transfer. In the direct data transfer view, transfer the applicant
data to the personnel master directly, i.e., enter hiring (01) in the action for hiring
field; enter your applicant number. Execute the transaction.
Figure 2-76: Transferring applicant data: SAP system screenshot
2. On the next screen, check the personnel area. It should equal 1000. Finally, assign a
personnel number using the pattern: 62xyy. List the personnel number.
Personnel number: ___________________________________________
3. Leave the action reason and the reference pers no. fields blank.
4. Add the employee group active (1) and the employee subgroup managerial
employees (DS).
5. Save the entry.
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6. Add the missing data in the subsequent window as follows:
Title
Initials
Maiden name
Place of birth
Country
of
birth
Your
nationality
Marital status
Religion
Number
of
children
Leave blank
Your initials
Leave blank
Your place of birth
Your country of birth
Your nationality, if not German
single
your religion
Leave blank
Save the infotype.

7. In the organizational assignment view, check the organizational assignment of your
employee to IDES AG (company code 1000).
8. Add the contract by entering comm. employee. List the following organizational data.
percentage:
_________________
position:
_________________
job:
_________________
organizational unit: _________________

OrgKey
_________________
9. Add the following employee within organizational assignment:

PersAdmin and Time recording: Susanne Limpert (001)
PayrAdmin: Karin de Vries (003)
Save the infotype and delimit the vacancy by selection yes from the pop-up menu
delimit vacancy.
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Figure 2-77: Organizational assignment: SAP system screenshot
10. In the creating addresses view, maintain the distance to the place of work that you
can enter at your own discretion. Save the infotype again.
11. In the next view, maintain the planned working time. Enter eight hours working
time per day, and five working days per week. Save the infotype again.
12. In the creating basic pay view, maintain the applicants salary. The hired applicant is
part of pay scale type 10, in pay scale area 01, pay scale group AT, and receives a
standard monthly salary of 10,800.00 EUR with wage type MA90. Save.
13. You already maintained the next view bank account. Consequently, you do not have
to change anything here, just save the view.
14. Skip the next steps until system confirms the direct transfer of applicant data.
These views concern
1. Capital formation (cancel or press next record),
2. Fiscal data(cancel or press next record),
3. Social insurance (cancel or press next record),
4. DEUEV (cancel or press next record),
5. Contract elements (press save),
6. Monitoring of dates (press save),
7. Absence quotas (press save),
8. Travel privileges (press save),
9. education (press save),
10. Previous employers (press save),
11. Communication (press save and skip message with enter).
You either already maintained these views or they are not relevant to this case study or would
require very differentiated entries, respectively.
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Save again after each view. With the last saving operation, your data should be accepted and
the status is O.K.
2.6.3.5 Display personnel master data (PA20)
Finally, check whether your applicant was entered correctly into the system and maintain
further infotypes, if required. Therefore, call up the following transaction and enter your new
personnel number:
Human Resources Personnel Management Personnel Administration Personnel
Master Display (PA20)
Note: In case data from the applicant master or from the information of section 2.6.3.4 (enter
applicant) 5-13 are missing (e.g., because the process of transferring applicant data was not
completed), maintain these data and use transaction
Human Resources Personnel Management Personnel Administration Personnel
Master Maintain (PA30)
At least, the following infotypes should be maintained:
Basic data person: Activities, organizational assignment, personnel data, address, bank
account
Basic data work relationship: Organizational assignment, personnel data, planned working
time, travel privileges
Payroll gross/net: basic pay
Payroll net: organizational assignment, payroll status
Payroll extras: organizational assignment, payroll status
Planning data: organizational assignment, education, qualifications
2.6.4 Personnel planning and development

Now that your new employee commenced work, it is time to tap his full potential.
Correspondingly, the next section deals with personnel development. Moreover, you search
an employee to manage the marketing department. This job is supposed to be filled with an
internal applicant. An employee from IDES group, Ms Anja Mueller, is interested in this job
and announces her interest.
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Figure 2-78: Process overview: Personal planning and development
You first task is to create a requirements profile for the vacant job, to state Ms Muellers
further career and development opportunities and to check her suitability for the job in
succession planning.
2.6.4.1 Change requirements profile for position
Definition: profile
Using a profile, specific characteristics and information regarding an object can be
maintained. Each profile consist of several sub-profiles (for persons, e.g., qualifications,
potentials, etc.) and several standard information regarding an object (for persons, e.g., name,
personnel number, etc.).
Usage
You can use profiles and sub-profiles to assign particular characteristics to objects. Thus, you
can, for example, assign qualifications and potentials to a person and requirements to a
position. Sub-profiles of objects can be compared and evaluated. Thus, you can determine
suitability or deficits of objects (e.g., of persons for positions). Each sub-profile and the
complete list of sub-profiles can be displayed graphically and printed.
To create the requirements profile for the SD position, call up the following transaction:
Human Resources Personnel Management Personnel Development Profile
Change (PPPM)
1. Under position, look for your position department chief marketing xyy (MA-DCxyy).
2. In the requirements tab, enter the following qualification requirements with
respective values
:
a. Ability to organize and act - average
b. Management Experience - adequate
c. Verbal, written communicative skills - adequate
d. MBA - yes
e. Company Finance knowledge - rudimentary
f. HR Management skills - very good
g. Customer Service Orientation high
h. Modification readiness - average
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Figure 2-79: Create position profile: SAP system screenshot
3. Save your entries.

2.6.4.2 Display career opportunities (PPCP)
Ms Anja Mueller is department manager in HR and is looking for career opportunities in
IDES AG, both on horizontal as well as on vertical level. You want to point out possible
career steps along the career model without paying attention to her suitability profile.
To carry out career planning for your employees, call up transaction
Human Resources Personnel Management Personnel Development Planning
Career (PPCP)
1. Career planning is carried out for an individual Person, which is Ms Anja Mueller
(1000). Select the include career option on the career planning screen. Execute
planning.
2. Gain all information required for the further career path of Anja by choosing
Goto/display profile. Check, which qualifications Ms Mueller has.
3. Go directly to the personnel master data of Ms Mueller. To what is Ms Mueller
assigned organizationally in IDES AG?
4. To which cost center is Ms Mueller assigned? List the number on your data sheet.
Cost center Ms Mueller: ____________________________________________
2.6.4.3 Perform succession planning for positions (PPSP)
After identifying career opportunities for Ms Mueller and gaining information regarding her
qualifications, you want to determine whether there is a more suitable candidate within IDES
AG using the recently created requirements profile for the vacant position. Look for a
potential employee whose qualifications best match the profile of the vacant position.
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To find a suitable employee for the position in marketing, call up the following transaction:
Human Resources Personnel Management Personnel Development Planning
Succession (PPSP)
1. Succession planning is carried out for the Position department chief marketing xyy
(MA-DC-xyy).
2. In the planning criteria, select business career as additional career. Execute
planning. An alphabetical list of all employees to be considered is displayed.
3. To display a ranking regarding suitability, carry out a ranking (GoTo/Ranking List).
Which person seems to be most suitable for the position?
4. Check her suitability in the from/% column. What is the percentage of the best
applicant?
5. List the name and suitability percentage of the most suitable employee besides Ms
Mueller on your data sheet.
Name and suitability percentage second best applicant: ________________________
2.6.4.4 Compare profiles
It seems like Ms Mueller is not the only candidate for the vacant position. Display firstly the
profile of the employee who is second best for the position. Call up the following transaction
Human Resources Personnel Management Personal Development Profile
Display (PPPD)
to display the profile of the employee that you are interested in.
1. Which qualification has Ms Schnuck? Display a list of qualifications and store it in
your personal folder.
2. Go directly to the personnel master data of Ms Schnuck. When was Ms Schnuck
born? List the date on your data sheet.
BDay Ms Schnuck:_________________________________________
To determine which employee you promote to the SD head of department job, display a
comparison of both employee profiles.
2.6.4.5 Profile evaluation
Perform a profile evaluation of Ms Anja Mueller and Ms Schnuck (PPSP):
1. Succession planning is again carried out for the position department chief
marketing xyy (MA-DC-xyy).
2. In the planning criteria, select business career as additional career. Execute
planning. An alphabetical list of all employees to be considered is displayed.
3. To display a ranking regarding suitability, carry out a ranking (GoTo/Ranking).
Which person seems to be most suitable for the position?
4. Carry out a profile evaluation for Ms Mueller and Ms Schnuck one after another by
firstly selecting Ms Mueller and then display a profile comparison by choosing
GoTo/Profile Matchup. Export the profile comparison to a RTF file to prepare an
evaluation in a Word document for the management. Please pay attention to the file
page 82

extension .rtf. Click the graphics button (F9) to graphically display the profile
comparison.
5. Repeat step four for Ms Schnuck.
6. Which employee would you pick? Substantiate your decision and list your answer in
one sentence on your data sheet.
Hiring decision: _____________________________________________________
2.6.5 Employee appraisal

Your new department chief SD was convincing until now. You need to create an appraisal of
his/her performance. Create a first appraisal for your new employee. Therefore, call up the
Human Resources Personnel Management Personal Development Appraisal
Create (APPCREATE)
1. It is a Managers Appraisal for Employees (Managers Appraisal Khatami).
2. The chief is Alexander Meier (search Meier); the Employee is your newly hired
employee for the SD-DC Position (not Ms Mueller or Ms Schnuck).
3. The period appraised starts with the day of hiring the new employee until today.
Incase this date is before the hiring date, choose a date that is after hiring.
4. Assign the following appraisals for his competencies:
Communication Skills:
Leadership:
Problem Solving:
Authority:
Department/Proj. Productivity:
Process Management:
Operational Improvement:
Willingness to learn:
rudimentary
average
excellent
very high
above average
excellent
high
adequate
5. For willingness to learn, enter the following note:

still open;
final appraisal after employee interview.
6. Execute the appraisal. Safe and leave the transaction.
After an individual task with the respective employee, you think about it and want to appraise
the willingness to learn:
Human Resources Personnel Management Personal Development Appraisal
Change (APPCHANGE)
1. Call up the newly created appraisal. It is the appraisal template Managers Appraisal
Khatami.
2. Appraiser is again person Alexander Meier, appraise is your employer and the status
of the appraisal is in process.
page 83

3. Double-click the present appraisal and change the currently only fair willingness to
learn to above average and add in your note: appraisal changed after employee
interview.
4. The appraisal elements authority and performance data are generic terms for
subordinate appraisal criteria. Their value is determined by an average value. Which
values show for the overall appraisal (performance_appraisal_Khatami)
List the numbers on your data sheet.
Value overall appraisal: _________________________________
5. Complete the appraisal.
2.6.6 Training and event management

You concluded that your employee has deficits regarding his communication skills. Thus, you
want to book him for a training course. Carry out training and event management in SAP
ERP.
Figure 2-80: Process overview: Training and event management
Therefore, call up
Human Resources Training and Event Management Attendance Attendance
menu (PSV1)
1. Select Management and Leadership Development Business Leadership
Communication.
2. Select one of the courses with the date in the future. Click on the right mouse button
and select book from the menu.
page 84
Figure 2-81: Booking a communication course: SAP system screenshot
3. In the person field, enter your personnel number 62xyy and choose book/payment
info.
4. Skip a possible message regarding a not attended class with Enter and choose the free
of charge option from the following dialog (fee and assignment). If prompted enter
cost center 1000 in the first line of cost distribution in the cost center column.
5. Save your entry.
6. Leave the window book attendance: data with cancel ( ).
Your employee attended the course. Thus, travel expenses occurred that you have to settle.
Therefore, choose
Human Resources Travel Management Travel Manager (TRIP)
page 85

1.
2.
3.
4.
5.
6.
Enter your personnel number 62xyy and confirm with Enter.

Choose create travel expense report. Confirm the next pop up.
Enter any dates as start date and end date as trip dates.
Enter any location as first destination.
Enter a reason for the trip at your discretion.
In the lower window expense receipts, subsequently enter the following data and
confirm with Enter:
a. expense receipt Flight,
amount 500
b. expense receipt Hotel,
amount 150, any description
c. expense receipt Entertainment,
amount 200, fill in all required fields
7. Save the expense report.
8. Return to the travel manager. You can now see the reimburse amount.
9. Finally, choose the option change travel expense report in the very right column. In
the title bar, you can see the number of your travel expense report. List the number on
your data sheet.
Travel expense report number:_______________________________________
page 86
2.7 Theory Reporting and analyses

Using an ad hoc query, you can create reports. Since version of the SAP R/3 system, the ad
hoc query is part of the SAP query. Although this application is referred to as info set query in
other SAP ERP components, in HR, the term remains ad hoc query.
Standard reports can be called op form the SAP easy access menu or using the general report
selection. The human resources information system (HIS) allows for calling up all HCM
reports from structural graphics. Moreover, the managers desktop is available in SAP. This is
a toll tailored to the special requirements of managers for analyses and changes of data.
Finally, the Business Information Warehouse (BW) is another option to carry out reports and
analyses. The Business Information Warehouse is a system that is independent of SAP ERP in
which analyses can be carried out. SAP provides business contents as Business Content. The
BW system is an additional product of SAP AG and serves as data warehouse for data
analyses. It can be integrated with SAP ERP.
Figure 2-82: Reporting and analyses
2.7.1 Information system reports

Besides tools for the creation of reports, SAP features numerous standard reports for all SAP
applications. These reports are called up from the main information system in the SAP easy
access menu or from an information system of a component or sub-component.
After calling up the information system for human resources, a standard report can be started.
It is also possible to independently create a report with a tool (ad hoc query, SAP query, HIS)
Reports created with ad hoc query or SAP query can be saved and integrated into the standard
report structure. Standard reports can be defined in customizing.
To access a particular report, different hierarchical levels must be present in components.
Usually, reports are located on the lowest level of an information system from which they can
be carried out.
page 87
Figure 2-83: Information system reports: SAP system screenshot
2.7.2 Managers desktop

The initial screen of the managers desktop represents an overview of the default main
scenario in the managers desktop that consist of the five theme categories displayed in the
figure below. In customizing, you can organize these categories with function code according
to customer-specific hierarchies. Categories can also be extended with customer-individual
functions. Moreover, a user can deactivate unnecessary functions and categories on the initial
screen as well as on the screens of the different application components. You can always
switch between individual and default settings. The initial screen can be adjusted to customer
requirements in customizing. It can for example be enhanced with a company logo and/or a
background image.
page 88
Figure 2-84: Managers Desktop
page 89
3 Completion
Congratulations! You completed the human capital management case study.
The subsequent case studies are based on the results of this case study. In case your data
differs from the description in the script, please contact your tutor prior to processing another
case study.
In the case study human capital management in SAP ERP, you learned about the functional
area human capital management.
Finally, please submit the carefully completed data sheet to your tutor (use support email
address) for the case study human capital management.
Please comply with the naming rules. Non-compliant data sheets will not be accepted; i.e. rename the document that you downloaded from this courses download area as follows:
07-HumanCapital-xyy-zzz-surname.doc
Thereby, you need to replace xyy with your user number without the WIP and without the
hyphen (WIPx-yy) and replace zzz with the number of the client you are working on.
Example:
Your name is Max Mustermann, you are working on client 901, and your user number is
WIP9-99. Then, name the document as follows:
07-HumanCapital-999-901-Mustermann.doc
page 90
4 Reflections
4.1 Questions
1.
Determine whether this statement is true or false.
A job represents a unique classification of responsibilities in your organization and is used in

defining positions.
___________________________________________________________________________
2.
The employee group is an organizational unit defined for the purposes of payroll accounting.
___________________________________________________________________________
3.
What are the three structures that you define in Human Capital Management?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
4.
When an infotype is updated, the old data is lost.

___________________________________________________________________________
5.
Fill in the blanks to complete the sentence.
The steps in Cross-Application Time Sheet (CATS) process are: ___________, __________,
__________, and _____________.
6.
The pages of a personnel file that make up an employees master data record and that are
created via a personnel action are called ____________.
page 91
4.2 Standard solution

1.
A job represents a unique classification of responsibilities in your organization and is used in

defining positions.
True a job represents a unique classification of responsibilities in your organization
and is used in defining positions.
2.
The employee group is an organizational unit defined for the purposes of payroll accounting.
False. The employee group is a general division of employees. The payroll accounting
area is used for the purpose of payroll accounting.
3.
What are the three structures that you define in Human Capital Management?
Enterprise, personnel, and organizational structures.

4.
When an infotype is updated, the old data is lost.

False. When an infotype is updated data is not lost. Instead, it remains in the system so
that you can perform historical evaluations. Each infotype is stored with a specific
validity period.
5.
The steps in Cross-Application Time Sheet process are: Time data entry, release, approval,
and transfer.
6.
The pages of a personnel file that make up an employees master data record and that are
created via a personnel action are called infotypes.
Human capital management has hundreds of standard infotypes. Custom user-defined
infotypes can be created. Infotypes can be created via personnel actions or maintained
individually.
page 92

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Integrated business processes with SAP ERP

Script 7: Human capital management in SAP ERP

Prof. Dr. Heimo H. Adelsberger

Integrated business processes with SAP ERP

Integrated business processes with SAP ERP

Integrated business processes with SAP ERP

Integrated business processes with SAP ERP

Integrated business processes with SAP ERP

Integrated business processes with SAP ERP

1. Introduction: Human capital management in SAP ERP

Integrated business processes with SAP ERP

Integrated business processes with SAP ERP

Figure 1-1: Process overview: Human capital management

Integrated business processes with SAP ERP

2 Human capital management with SAP ERP

Integrated business processes with SAP ERP

Figure 2-1: Enterprise, personnel, and organizational structures

2.1.1 Enterprise structure in SAP human capital management

Integrated business processes with SAP ERP

Figure 2-2: Enterprise structure in SAP human capital management

2.1.1.1 Personnel areas

Figure 2-3: Personnel areas

Integrated business processes with SAP ERP

Figure 2-4: Personnel subareas

2.1.2 Personnel structure

Integrated business processes with SAP ERP

Figure 2-5: Personnel structure

2.1.2.1 Employee groups

Integrated business processes with SAP ERP

Figure 2-6: Employee groups

2.1.2.2 Employee subgroups

Figure 2-7: Employee subgroups

Integrated business processes with SAP ERP

Figure 2-8: Payroll areas

2.1.3 Organizational structure

Integrated business processes with SAP ERP

Figure 2-9: Organizational plan

Integrated business processes with SAP ERP

Figure 2-10: Jobs

Integrated business processes with SAP ERP

Figure 2-11: Positions

Figure 2-12: Persons

Integrated business processes with SAP ERP

Figure 2-13: Personal administration and planning

Integrated business processes with SAP ERP

2.2 Practical application Organizational structures in human

2.2.1 Excursus Enterprise and personnel structures

button and then

to display a list of all personnel areas

Integrated business processes with SAP ERP

Figure 2-14: Enterprise structure Personnel areas: SAP-System-Screenshot

2.2.1.2 Personnel subareas

Integrated business processes with SAP ERP

Figure 2-15: Personnel structure employee groups: SAP system screenshot

2.2.2 Organizational structure

Integrated business processes with SAP ERP

2.2.3 Standard hierarchy

Figure 2-16: Process overview: Organizational structures in Controlling

Figure 2-17: Search profit center: SAP system screenshot

Integrated business processes with SAP ERP

Figure 2-18: Search profit center: SAP system screenshot

2.2.3.1 Create profit center

Figure 2-19: Profit center standard hierarchy: SAP system screenshot

Integrated business processes with SAP ERP