CASE STUDY

Payroll (HCM II) Case Study

This case study explains a payroll process to show the connection
between hiring an employee and create a payroll.

Product MOTIVATION PREREQUISITES

S/4HANA 1809 This case study represents an Before you use this case study, you
Global Bike introduction to human resource should be familiar with navigation in
related organizational the SAP system.
Fiori 2.0 management and personnel
administration in a human resource In order to successfully work through
Level management system on the basis this case study, there are no special
of the HCM (Human Capital requirements. However, it is
Beginner
Management) module of an SAP recommended to have completed the
S/4HANA system. HCM case study and the related
Focus exercises.
HCM Payroll In the HCM curriculum processes
for recruitment and further NOTES
Authors education of employees were
This case study uses the Global Bike
Tim Böttcher explained in detail. Furthermore
(GBI) data set, which has been
Chris Bernhardt important InfoTypes for hiring an
created exclusively for SAP UA
employee are shown.
global curricula
Version In this case study you will learn
3.3 about new InfoTypes in order to
create a payroll.
Last Update
May 2019

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Process Overview

Learning Objective Understand and perform a Human Resource process. Time 45 min
Scenario In order to create a payroll for an employee, you will perform the
role of the recruiting manager and the payroll officer. You will work in the
areas Human Capital Management (HCM) and Financials (FI).
Employees involved Marco Romero (Recruiting Officer)
August Faust (Payroll Officer)

Before starting the payroll process, a new position of Marketing Manager has to be created. After
this, a new employee will be hired to fill the position. The following InfoTypes will be created for
payroll::
 Working Hours
 Base Salary
 Bank Details
 Capital Formation
 Taxes and Social Insurance
 Workers Compensation Association
The following chart presents the complete process (4Tasks).

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Table of Contents
Process Overview ....................................................................................................................... 2
Step 1: Create Position ............................................................................................................... 4
Step 2: Create Bank .................................................................................................................... 6
Step 3: Hiring Employee............................................................................................................ 8
Step 4: Simulation Payroll ....................................................................................................... 19

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Step 1: Create Position

Task Create a new position within the organizational structure. Time 10 min
Short Description Use the SAP Fiori Launchpad to create a position for the
marketing department.
Name (Position) Marco Romero (Recruiting Officer)

Positions
Positions are occupied by employees. If a position is not occupied, it is
vacant. Positions are assigned to organizational units.

To create a position, use the Fiori App Create Positions. Fiori App

Change the previewed periods to be able to create positions which are valid
1st current month
for the past. Therefore, please click and enter 1st of the current month One year
as start date. Also enter one year in the future as Preview period. Click on

The positions should be created in the department ### Marketing, ### being
replaced by your group/computer number. Therefore, please go to the
window Find by on the left side of the screen. There, click on
Organizational unit  Search Term, enter the search term ### Marketing ### Marketing

in the name entry field and press . The search result should be
displayed in the Hit list window on the left side of the screen.

Please choose your organizational unit via double-clicking so that it appears

on the right side of the screen. Highlight your organizational unit and click

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on in the context menu. In the upcoming screen Choose Relationship,

please choose Incorporates

A new position was created underneath your ### Marketing department. On

the bottom of the screen, the details for the new position are displayed.
There, please enter the abbreviation ### MM for the position and ### ### MM
### Marketing Manager
Marketing Manager as the name. Please activate the check box Head of Head of unit
own organizational unit.

Enter 1st of the current month as Valid from. If this field should be grayed 1st of current month

out, please click on Display periods. The functionality should be

available then.

Press Enter to update the entered information (Note: Maybe you have to
refresh the page). The organizational structure should now look as follows.

Please save your data with .

Click on the home icon to return to the Fiori Launchpad overview.

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Step 2: Create Bank

Task Create a new bank. Time 5 min

Short Description Use the SAP Fiori Launchpad to create a bank, which is
used as house bank for the new employee later.
Name (Position) August Faust (Payment Officer)

To create a bank, use the Fiori app Manage Banks. Fiori App

DE
In the screen Manage Banks click on . 12030###

Choose DE for Germany as Bank Country. As Bank Key enter 12030###

(Replace ### by your group/computer number). This Key represents the
Bank identifier code of the new bank. Confirm your entries by pressing
Enter.

You can now enter detailed Data for the new bank by filling all needed
fields.

Hint: The Bank identifier Code for this case study is based on the code for
the “Deutsche Kreditbank AG“. If you want to choose realistic values, you
can enter the following data:
Deutsche Kreditbank AG
The Bank name is Deutsche Kreditbank AG. As Region enter 11 and 11
Taubenstraße 7-9
Taubenstraße 7-9 in Berlin as address. As SWIFT/BIC enter Berlin
BYLADEM1001 and as Bank number reenter the Bank Key. BYLADEM1001

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Please save your data with .

Click on the home icon to return to the Fiori Launchpad overview.

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Step 3: Hiring Employee

Task Hire a new employee. Time 20 min

Short Description Use the SAP Fiori Launchpad to hire a new employee as
the ### Marketing Manager.
Name (Position) Marco Romero (Recruiting Officer)

Hint: The process for hiring an employee is shortened in this case study
because of the focus being on the InfoTypes used for the payroll process. If
you are not familiar with the hiring process, it is recommended that you take
a look on the Human Capital Management I case study.

To hire an employee, use the Fiori app Hire Employee. Fiori App

Choose the Personnel Action Hiring and click on (F8). Hiring

The action shall start at the 1st of the current month. In the section 1st current month
Organizational assignment use the F4-help to find for the position your ###
Marketing Manager. ### Marketing Manager

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As Personnel area enter HH00 (Hamburg) and the Employee group is 1 HH00
1
(active). Because the new employee is head of his department he will join the DS
Employee subgroup DS (executive employee).
A personnel Number is automatically assigned by the system.

To get to the next InfoType save your entries by clicking on .

You can freely choose the First name, gender and the accurate Title of your Title
new employee. To successfully finish this case study, it is necessary to Last name with „M“
choose a Last name starting with “M”. As Birthdate enter 03/26/1983 and 03/26/1983
German
choose the Nationality German.

To get to the next InfoType save your entries by clicking on .

In the InfoType Create Organizational Assignment choose the Subarea Sales

SD00
(SD00) with the F4-help, if it isn´t already entered. As Contract choose Worker, other
Worker, Others.

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To get to the next InfoType save your entries by clicking on .Accept

Yes
the Message Delimit Vacancy with yes.

The new employee lives in 24103 Kiel. You can freely choose the Street and 24103
Kiel
House number.

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To get to the next InfoType save your entries by clicking on .

In the following InfoType the working time can be determined. The

employee has a full-time job, so nothing needs to be changed here.

To get to the next InfoType save your entries by clicking on .

In the following InfoType the Basic pay for our employee is set. In the
90
section Pay scale, choose 90 Festgehälter (fixed salary) as Type, 07 07
(Hamburg) as Area and the Group 001 with Level 01. After accepting your 001
01
entries with Enter you can see an amount for the payment of 3,500 Euro.

The pay scale type is a country-specific term. Commonly the translations

aren´t useful and as the recruiting officer you have to know the terms. Marc
Meyer (the employee you are editing) belongs to the German company code
therefore the term is ‘Festgehalt’ (German for fixed salary).

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To get to the next InfoType save your entries by clicking on .

In the following InfoType the bank account for payment is created. Choose 12030###
Eight-digit number
as Bank Key 12030### and enter an eight digit number as Bank Account.
Choose Salary as purpose. Salary

To get to the next InfoType save your entries by clicking on .

In addition to the normal salary, it is also possible to pay an employee

benefits for capital accumulation. This is based on the amount that is paid by
the employee and the amount paid by the employer.

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Enter 26 EUR as Amount. With the F4-help choose Building Soc. Saving as 26 EUR
Building Soc. Saving
Investment Type.

Confirm your entries with Enter.

Choose with the F4-help the Badenia Bausparkasse GmbH as Payee. Badenia
Confirm with Enter to fill in the other entries automatically. As you can see
has the purpose been created out of your personnel number and the Last
name of the employee.

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To get to the next InfoType save your entries by clicking on .

In the following InfoType the relevant fiscal data is maintained. Enter 12345678995
01002000
12345678995 as Ident. No. As Municipal. enter 01002000 and for Tax 2119
Office 2119. The Tax class of your employee is 1 and he doesn’t have to pay 1
00
Church Tax (00). In the section Further Data choose Schleswig Holstein as
Church Tax Area. Schleswig-Holstein

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To get to the next InfoType save your entries by clicking on .

The Health Ins. Fund of your Employee is Barmer Ersatzkasse. There is Barmer
No requirement to submit the SI Statement. The Pens.Ins.Number depends
on whether your employee is female or male.
If your Employee is a woman enter 26260383M506 otherwise enter 26260383M506
or
26260383M005. 26260383M005

Hint: The Pension Insurance Number has the following format:

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26 260383 M 50/00 6/5

Area Number Date of Birth First letter of Serial number Check digit
(here german the last name
00-49 male
format)
50-99 female

To get to the next InfoType save your entries by clicking on .

In the InfoType Create DEUEV choose with the F4-help the Current Position 92194/005
Führungskräfte – Werbung & Marketing / Marketingleiter/in 4
(92194/005). Your new employee finished school with a 4 Abitur. As
3
Vocational Train choose 3 Master Craftsman/Technician. As ContractForm
enter 1 Full-Time – Permanent. 1

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To get to the next InfoType save your entries by clicking on .

In the following InfoType can stay unchanged. Proceed to the next InfoType
by clicking on

The InfoType Create Monitoring of Tasks can also stay unchanged. The
Expiry of probation time is already filled. Proceed by clicking on .

The InfoType Create Absence Quotas can also stay unchanged. Proceed by
clicking on .

Choose as Workers Compensation Association the 31 for MIS 31

01
administration. Enter as Hazard Pay Area (HP) 01 for Office personnel.

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Click on to finish the personnel action.

Click on the home icon to return to the Fiori Launchpad overview.

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Step 4: Simulation Payroll

Task Simulate a payroll. Time 10 min

Short Description Use the SAP Fiori Launchpad to simulate a payroll for your
recently hired Marketing Manager.
Name (Position) August Faust (Payment Officer)

In this case study, you only simulate a payroll to ensure the consistency of the
system state. You will see the complete remuneration statement for your
employee.

To simulate the payroll, use the app Simulation Payroll. Fiori App

In the section Payroll period, choose with the F4-help menu the Payroll area D2. D2
Other period
Change the current choice to Other period and choose the following month as Following month
period for the payroll.

In the section Selection enter the Personnel Number of your Marketing Personnel number
D2
Manager and choose D2 as Payroll area again.

Hint: If you have forgotten the personnel number of your employee, you can
find it via the F4-help. Search for Last and First name and choose the result with
a double-click.

As Layout for Remun.Statement choose via the F4-help SAP & CALC. SAP & CALC

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Start the Simulation with a click on or press F8.

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Hint: As you can see, the Total Gross Amount the same amount as your salary
plus the payment for capital formation. Furthermore, you see a list of the usual
deductions according to German law for calculating the Statutory Net Pay.
These are deductions like income taxes as well as payments for social insurance.

Click on the home icon to return to the Fiori Launchpad overview.

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