Qatar HCM Localization

SAP Standard Development

State of Qatar
HCM Private Sector Solution
Configuration Guide

Version
1.0

Version: 1.0
Date: Sep. 11st. 2012

Status
Complete

Date
11 . Sep. 2012
th

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Contents
1.

Organization .................................................................................................................................... 4
1.1

2.

Document Administration ........................................................................................................ 4

1.1.1

Authors ............................................................................................................................ 4

1.1.2

History.............................................................................................................................. 4

1.2

Intended Group of Readers ...................................................................................................... 4

1.3

Glossary ................................................................................................................................... 4

Getting Started ................................................................................................................................ 5

2.1 Related Information....................................................................................................................... 5
2.2 Important Notes ............................................................................................................................ 5

3.

Solution Overview ........................................................................................................................... 6

3.1 System Landscape .......................................................................................................................... 6
3.4 EHP6 Customer .............................................................................................................................. 6

4.

Business Scenarios ........................................................................................................................... 8

4.1

Basic Setting............................................................................................................................. 8

4.1.1

IMG .................................................................................................................................. 8

4.1.2

Public Calendar................................................................................................................. 8

4.2

Personnel Administration......................................................................................................... 9

4.2.1

Bank and Payment Method in Bank(IT0009) ..................................................................... 9

4.2.2

PA Name Format ............................................................................................................ 12

4.2.3

Other PA model setting .................................................................................................. 12

4.3

Payroll.................................................................................................................................... 12

4.3.1

Social Insurance.............................................................................................................. 12

4.3.2

Common Eligibility.......................................................................................................... 12

4.3.3

Eligibility Configuration................................................................................................... 12

4.3.4

Occupational Hazard ...................................................................................................... 12

4.3.5

Health Insurance ............................................................................................................ 13

4.3.6

Leave Advance Payment ................................................................................................. 13

4.3.7

Absence Leave................................................................................................................ 14

4.3.8

Leave Passage ................................................................................................................ 15

4.3.9

Over Time Configuration ................................................................................................ 15

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4.3.10

Gratuity .......................................................................................................................... 15

4.3.11

Provision ........................................................................................................................ 16

4.3.12

Petty Cash ...................................................................................................................... 16

4.3.13

Sanction ......................................................................................................................... 17

4.3.14

Furniture Return ............................................................................................................. 17

4.4

ESS ......................................................................................................................................... 17

4.4.1

ESS for Qatar Localization Solution ................................................................................. 17

4.4.2

ESS standard solution ..................................................................................................... 17

4.4.3

UI ................................................................................................................................... 19

4.5

Process and Flow.................................................................................................................... 19

4.5.1
4.6

5.

Car Loan Request Process ............................................................................................... 19

Reporting ............................................................................................................................... 21

4.6.1

Name Format ................................................................................................................. 21

4.6.2

DME ............................................................................................................................... 21

Appendix ....................................................................................................................................... 21

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1. Organization
1.1

Document Administration

1.1.1

Authors

1.1.2
Date

History

1.2

Version

Chapter

Name

Intended Group of Readers

Consultants

1.3

Glossary

Term

Definition

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Date: Sep. 11st. 2012

Change/Enhancement

Agree with

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2. Getting Started
This section contains information about the scope of this document and about each section in the
document.
The content of the document is subjected to be changed depends on needs.
This SAP Standard Solution Configuration Documentation provides a central starting point for the
technical implementation and configuration of the SAP Standard Solution.
It contains all activities for configuration of the SAP Standard Solution.
The SAP Standard Solution consists of the following business scenarios:
Legal requirements and common business practices
Legal HR reporting as required by law
To facilitate the implementation process, all information within this document is ordered by scenario.
You can choose from several generic business scenarios and find all information that is relevant for the
technical implementation and configuration of a specific business scenario.
This Configuration Documentation provides information about the components and guides that are
required during the implementation process.

2.1 Related Information

Path in R/3 library
Reference to SAP help portal
Links to SAP Service Marketplace

2.2 Important Notes

You must ensure that the required software is installed before you start the implementation. You can
find the information about installation in the SAP notes listed in the table below. The SAP notes contain
the most recent information about the installation and the corrections to the installation documentation.
You must therefore ensure that you have the up-to-date version of each SAP Note.
We recommend that you read the SAP Installation Notes before proceeding with installation and
implementation of the solution.
List of Related SAP Notes

SAP Note Number

1691232
1701634
1745842
1699757
1426524

Title
Installing SAP HR renewal 1.0 on ERP 6.0 EHP6
HR renewal 1.0: Release Information Note
Announcement: Localization of HCM for Qatar
Private
Qatar HCM Private Sector
Calendar entries

501670

Public Holiday Calendar Creation/Change

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Description

Only right after new

installation
implementation

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783499

Incorrect framework synchronization

3. Solution Overview
This solution provides HCM localization for the countries state of Qatar private sector.
This includes necessary master data, payroll configuration and reporting.

3.1 System Landscape

The initial shipment happens based on SAP enhancement package 7 for SAP ERP 6.0 and the following
HRSP levels:
SAP_HR 604
EA-HR 607

HRSP 54
HRSP 5

3.2 Software Component Matrix

Scenario / Business Processes
Personnel Administration
Payroll
Reporting
ESS
Process Flow

Software Component
SAP_HRCQA

Implementation and Configuration Process

EA_HRCQA

3.3 Implementation and Configuration Basic Setting

The Configuration Guide is a tool for configuring the SAP System to meet customer requirements.
The Implementation Guide (IMG) explains all steps in the implementation process, tells you the SAP
standard (factory) Customizing settings and describes the system configuration activities. The
hierarchical structure of the IMG is based on the application component hierarchy and lists all
documentation that is relevant to implementing the SAP System. The main section is IMG Customizing
activities, where the relevant system settings are made.
You can also document projects in the IMG such as:
The SAP Reference IMG
o Payroll -> Qatar

3.4 EHP6 Customer

EHP6 customer need to apply in-advance shipment EA-HR 607 via IAS(In-advance Shipment) to get Qatar
solution rather than upgrading to EHP7. This IAS support will be based on monthly SPs
Path of IAS:
https://websmp105.sap-ag.de/support
Software downloads
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A-Z Index -> installations and upgrades
Select H
Select HR Renewal
Select HR Renewal 1.0
The information pages show the needed information; especially the section about installations and
notes is relevant.

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4. Business Scenarios
4.1

Basic Setting

4.1.1 IMG
This is complete new country version solution. Therefore the whole IMG as listed need to be processed.

4.1.2 Public Calendar

There is no public holiday class definition in the payroll solution for Qatar. You need to manually import
the initial calendar entries in SAP note.1426524 and then make adjustments based on your actual needs.
Caution:
Please be aware that all your customized calendar entries will be overwritten by transporting the
calendar in SAP Note 1426524. Therefore, you should import the calendar right after the installation of
the solution.
You could refer SAP note. 501670 for the public holiday calendar creating or change
The place you define or adjust the QA holiday class:

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The standard solution you need to change to cater for the QA public holiday class:
View: V_001P_ALL

4.2

Personnel Administration

4.2.1

Bank and Payment Method in Bank(IT0009)

4.2.1.1
Payment Method
Standard solution doesn't provide payment method setting in IT0009 due to its based on individual
company needs.
If customer wants to append payment method, please use following ways to open the maintenance
view:
Transaction code SM34 to open VC_T042ZL
Transaction code SM30 to open V_T042ZL
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Maintenance view looks as follows:

4.2.1.2
Payment Method Default Setting
Please use following way to maintain payment method default setting:
Transaction code PE03 to open feature ZLSCH

4.2.1.3
Bank Definition
Please use following way to maintain bank detail information:
Transaction code FI01

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4.2.1.4
Bank Account Validation Rule
Please use following way to maintain the bank account validation rule:
Transaction code SM30 to open maintenance view V_005_B

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4.2.2 PA Name Format

Customer could refer file 07_Name_Format for detail information about infortype name format setting.

4.2.3 Other PA model setting

Customer could refer file 02_Personnal_Administration for detail information if they want to copy SAP
stand setting to adapt for their own needs.

4.3

Payroll

4.3.1 Social Insurance

This function covers the social insurance configuration.
SAP has delivered standard setting for the SI setting. It's no need special setting from customer side.
Customer could check attached document 03_Social Insurance for reference.

4.3.2 Common Eligibility

This function is basis for the loan process and eligibility for allowance process.
Many common eligibility configuration is done within this topic like job grade, nationality, gender and so
on.
If customer want to make some changes to cater for own requirement, document
11_Common_Eligibility_Check_for_Benefits_and_Loans could be used as reference.

4.3.3 Eligibility Configuration

This function covers the management entitlement for employee allowance.
SAP has delivered model setting for the eligibility setting.
If customer want to make some changes to cater for own requirement, document 04_Eligibility
Entitlement Allowance could be used as reference.

4.3.4 Occupational Hazard

This function covers the Occupational Hazard information maintenance and compensation.
Following IMG nodes are provided for the OH related configuration. Customer could refer IMG
document to get detail information.
IMG(SPRO)
->Payroll ->Payroll Qatar (PY-QA)->Occupational Hazard

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4.3.5 Health Insurance

This function provides model configuration to cover health insurance and other insurance.
These insurances will be automatically roll into individual employee based on EE job grade , dependents
and other eligibility rule.
Document 09_Health Insurance could be used as reference.

4.3.6 Leave Advance Payment

This function covers how to give advancement payment when employee takes vacation leave in advance
rather than waiting till the regular period pay date.
The in advance payment remuneration could also include working days settlement.
Accordingly company could decide to take corresponding deduction such as Social Insurance, Loan
before giving remuneration to EE to protect company interest.
There is no special configuration need to be taken by customer.
Customer could refer IMG document to get detail information.
IMG(SPRO)
->Payroll ->Payroll Qatar (PY-QA)->Off-Cycle Activities -> Advance Leave Payment

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4.3.7 Absence Leave
This topic covers absence leave function.
Following absence types are standard delivered in Qatar solution:
Annual Leave
Sick Leave
Maternity Leave
Hajj Leave
Unpaid Leave
Work Injury Leave
Serious Incident Leave
Occupational Disease Leave
Above three absence leaving types (Work Injury, Serious Incident and Occupational Disease) are used for
Occupational Hazard function.
Sick Leave:
Following scenarios are supported with standard delivery setting:
If sick leave duration is less than 2 weeks, employee will receive 100% of his salary
If sick leave duration is greater than 2 weeks and less than 6 weeks, employee will receive 50%
of his salary
If sick leave duration is greater than 6 weeks, all those sick leaves will be unpaid until another
calculation cycle begin.
Model setting has already been delivered via following IMG node.
IMG(SPRO)
->Payroll ->Payroll Qatar (PY-QA)->Absences-> Valuation of Absences -> Refinement of Absences

You will find model setting in following IMG node:

IMG(SPRO)
->Payroll ->Payroll Qatar (PY-QA)->Absences-> Valuation of Absences -> Refinement of Absences
-> Define Absence Distribution

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4.3.8 Leave Passage

This topic covers the requirement of Leave Passage function which contains following requirements:
A benefit that entitles expatriate employees in Qatar and their dependents to a paid flight to
their home countries.
This benefit could be remuneration to employee through encashment compensation or fly
tickets
The calculation of this benefit should be distinguished employee from their dependents and
provisioning rate is different for those dependents based on their age: Adult, Child and Infant.
Native employee cannot apply this benefit for themselves or their any dependents regardless
their nationality.
SAP has delivered standard setting to cover above requirements.
Document 13_Leave Passage could be used as reference. Customer could change the configuration to
meet their own requirements.

4.3.9 Over Time Configuration

This sector gives customer some model setting for the overtime configuration cater for the work
schedule.
Document 10_Over Time Configuration could be used as reference.
Customer could change the configuration to meet their own requirements.

4.3.10 Gratuity
This sector describes the solution of end of service calculation.
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Following requirements are covered:
The last basic wage shall be the base for the gratuity calculation.
Employee is entitled for three weeks salary for every service duration year.
EOS Constant setting:
You could access the EOS related constants via transaction code: SM30 to open V_T511K

EOS Wage Type PCL setting:

4.3.11 Provision
This sector describes the solution of provision.
Following provision types are supported in the standard solution:
Vacation Payment Provision (explain in more detail in follow up slide)
Renewal Government Documents Provision (explain in more detail in follow up slide)
Schooling Allowance Provision (explain in more detail in follow up slide)
Health Insurance Provision (explain in more detail in follow up slide)
EOS Provision
Leave Passage Provision
Provision Reporting
Document 08_Provision could be used as reference.

4.3.12 Petty Cash

This section contains information about petty cash.
Petty cash is a small amount of cash on hand that is used for paying small amounts owed, rather than
writing a check. The person responsible for the petty cash is known as the petty cash custodian.
This function is covered by petty cash infotype only without any configuration needed.

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4.3.13 Sanction
This section contains information about handling company sanctions against employee discipline
violation cases.
SAP has delivered standard setting for the Sanction topic.
Customer could refer attached document 06_Sanction to change the configuration to meet their own
requirements.

4.3.14 Furniture Return

This section contains following scenarios:
Company gives some amount to employee for furniture purchasing purpose.
However once the employee decide to leave company, he must return back some amount based on the
depreciation.
Example:
Employee X got QR 40,000 as an allowance / benefit for new furniture purchase every 4 years
However, the value depreciation will be as follows:
1st year = 40% * 40,000 = QR 16,000 and from 2nd up to 4th year = 20% * 40,000 = QR 8,000.
Leaving:
If he resigned at 2nd year then he has to pay back the value of 3rd and 4th years (2 * 8,000 = 16,000).
SAP has delivered standard setting for the Furniture Return topic.
Customer could refer attached document 14_Furniture Return to change the configuration for other
similar requirements.

4.4

ESS

4.4.1 ESS for Qatar Localization Solution

Following infotypes are standard delivered for Qatar Localization ESS requirements, no need special
configuration.
Personnel Data(IT0002)
Address(IT0006)
Bank(IT0009)
Family Member / Dependents(IT0021)
Personnel IDs(IT0185)

4.4.2 ESS standard solution

Following solutions are standard delivered no special enhancement for Qatar solution:
Payslip

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Leave Management

Business Trip and Expense reimbursement

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4.4.3 UI
Based on UI guideline, its impossible to adjust ESS layout to cater for following requirements:
Table Layout
Adjust column or fields length in the ESS form

4.5

Process and Flow

4.5.1 Car Loan Request Process

In this sector SAP has delivery one model workflow (Car loan request) from ESS to demonstrate how
employee request one car and after several manager process workflow, the loan is finally approved or
rejected.
This loan process is integrated with eligibility function which is described in other sector could be
decided by employee job grade, nationality and other factors.
SAP use process and flow technology to implement the function.
ESS portal:

Employee fill the request information:

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Manager approval or reject the request:

(Once the request is approved, the amount is automatically filled back to IT0045(Loan) infortype)

Customer could refer attached document 12_ESS_Car_Loan_Application to change the configuration to

meet their own requirements.

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4.6

Reporting

4.6.1 Name Format

In this sector customer will find detail information about name format which is widely used in statutory
reporting output and infotype.
Customer could refer attached document 07_Name_Format to change the configuration to meet their
own requirements.

4.6.2 DME
This section contains information about data medium exchange related configuration information for
Qatar solution. You could use this format to define the data medium exchange format with bank.
SAP has defined three model configurations for Qatar National Bank, Doha Bank and Ahli Bank of
Qatar.
Customer could refer attached document 15_Data Medium Exchange to change the configuration to
meet their own requirements.

5. Appendix
None.

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