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SAP HR Material
SAP HR Material
SAP is the leading Enterprise Information and Management Package worldwide. Use of this
package makes it possible to track and manage, in real-time, sales, production, finance
accounting and human resources in an enterprise.
SAP is the third-largest software company in the world. Founded in 1972, The Company now
employs more than 22,000 people in more than 50 countries. SAP global headquarters are
located in Walldorf, Germany, and the company is listed on several stock exchanges, including
the Frankfurt DAX and the New York Stock Exchange, under the symbol "SAP."
SAP America is a subsidiary of SAP AG, the recognized leader in providing collaborative, inter-
enterprise software and e-business solutions. A truly global software provider, SAP AG has more
than 1000 partners, 22 industry solutions and 10 million users at 30,000 installations around the
world. SAP America has contributed significantly to this leadership position and it is the foremost
provider of e-business and enterprise software in the United States.
SAP software was developed to be modular, scaleable, open and flexible, allowing companies to
tailor it specifically to their needs. SAP calls this approach to implementing software "configure to
order" because each implementation will be different according to each customer's needs.
But SAP solutions don't stop there. Information integration is a major tenet of the SAP philosophy,
and SAP places great emphasis on the creation of tools that facilitate it. SAP provides integration
tools and methods for linking legacy and distributed systems as well as a host of third party
software solutions, to get your information into the right hands, internally and externally.
Traditional Information technology systems used by many business today have been developed
to accomplish some specific task and provide reports and analysis of events that have already
taken place. Examples are accounting general ledger systems. Occasionally, some systems
operate in a "real-time" mode that is, have up to date information in them and can be used to
actually control events. A typical company has many separate systems to manage different
processes like production, sales and accounting. Each of these systems has its own databases
and seldom passes information to other systems in a timely manner.
SAP takes a different approach. There is only one information system in an enterprise, SAP. All
applications access common data. Real events in the business initiate transactions. Accounting is
done automatically by events in sales and production. Sales can see when products can be
delivered. Production schedules are driven by sales. The whole system is designed to be real-
time and not historical.
SAP structure embodies what are considered the "best business practices". A company
implementing SAP adapts it operations to it to achieve its efficiencies and power.
The process of adapting procedures to the SAP model involves "Business Process Re-
engineering" which is a logical analysis of the events and relationships that exist in an
enterprise's operations.
Flexibility
Enterprise-Wide Integration
Enterprise-wide integration is the main functionality of SAP R/3 System. No other application
software offers the breadth of open systems, client/server functionality, functional links between
processes that multiply the power of each person's work. The R/3 System's components are fully
integrated. Once you enter data, it resides in the central database shared by all R/3 components.
Transaction-related process chains trigger the next activity as needed from engineering to
production planning to sales and distribution. The R/3 System's full integration pulls your
enterprise together, promoting data access, flexibility, and productivity.
Real-Time Information
SAP provides up-to-the-minute, real-time information.
Architecture
SAP R/3 system is based on Client/Server architecture that is comprised of three tiers:
Application server: The application server is used to run the business application programs in
the R/3 client/server concept. The application modules are loaded from the data base server to
the application server as required. Thus the application server requires only storage capacity to
accommodate UNIX, Swapping and the SAP runtime environment.
Database server: The data base server stores the SAP application programs and data in the R/3
client/server concept. It also handles the SAP update program and batch jobs.
SAP Glossary
Instance
It means application server and each one has its own set of work processes.
SysID
A set of three letters or number that identify a system. Some sets are not allowed because they
are used by SAP. They are informed when the system is installed.
Archiving – SAP’s terminology for the functionality that purges transactions and master data
from the SAP database. The SAP literature states that archived data can be restored to the
production system. For practical purposes however, this is not recommended.
DART – An acronym for Data Archiving and Retention Tool. This is SAP functionality which
allows you to periodically extract and retain data from your R/3 system. The data is extracted into
a sequential file. DART provides tools for viewing the retained data in different ways.
Legal Data – As used in this document, this refers to the requirements imposed by the IRS, State tax
authorities and other tax authorities for the long-term retention of business data to support taxes paid and
other legal requirements.
Operational Data – As used in this document, this refers to the requests from customers, vendors or
employees for business data.
Management Data – As used in this document, this refers to data that is used by management for business
decisions.
ASAP Methodology
HR - Personnel Administration (PA)
Master Data contains all employee data used in HR processing. Master Data includes Personal
(Eg. address), Organizational (Position description), Benefits (Insurance, Pension), Time &
Payroll. More on Master Data...
Master Data is stored in Infotypes. Infotypes are tables (for user Data entry screen) that contain
logically related employee data. Data can be stored for specific periods, which includes current
and historical. More on Infotypes..
Components of PA:
• Recruitment
• Organizational Structure
• Compensation Management
• Personnel Development
Components of PA:
Definition
Use
Recording employee data for administrative, time recording, and payroll purposes is of primary
importance for master data administration in HR. In the SAP System, the information units used
to enter master data are called infotypes.
Infotypes are used to group related data fields together. They provide information with a structure,
facilitate data entry, and enable you to store data for specific periods.
Structure
• Infotype Structure
• Data Entry
• Time-Dependent Storage of Infotype Data
Time Constraints
Time constraints guarantee that exactly the data the system needs to be able to correctly process
the employee data, handle personnel administration processes and run payroll for an employee is
available in the system. Time constraints keep you from storing mutually incompatible data and
prevent gaps from occurring in the data history.
Use
You use time constraints to define the following:
Whether an infotype record must exist for an employee in the system
Whether further records of the same infotypes may exist
Whether these records can overlap in the validity period.
For certain infotypes, you can also assign different time constraints in relation to the infotype’s
subtype.
When you enter infotypes, the system automatically checks if your input satisfies the time
constraints’ conditions, and reacts by automatically delimiting data records or issuing error
messages.
Structure
Time Constraint 1
For the entire time that the employee works at the enterprise, exactly one valid infotype
record must exist. The validity periods of the individual records must not overlap. When you
create a new record, the system automatically uses the start date of the new record as the
delimitation date of the old record. Gaps are only allowed between the employee’s entry
date and the start date of the first record.
Time constraint 1 must be used for all of the infotypes containing information that must be
available at all times. This is particularly true of personal and organizational assignment
data.
An Organizational Assignment infotype record (0001) must exist for all active or
inactive employees in the SAP System. The system needs the data stored in this
infotype for all business processes.
In addition, this data must be unique, in other words, the system must know
precisely to which organizational units the employee belongs. That’s why only one
record may exist at the same time.
Time Constraint 2
No more than one valid record can exist at any one time. Records with constraint 2 must
not overlap. Their existence is not obligatory. When you create a new record, the system
delimits the previous record, if one exists. If the system delimits a record because of time
constraint 2, it issues an appropriate message.
Time Constraint 3
Any number of valid records can exist at any one time. The individual records do not
conflict with each other.
In the Powers of Attorney infotype (0030), you can store different powers of
attorney. That’s why any number of records for this infotype can exist at the same
time. Since not every employee in your company has powers of attorney, a record
for this infotype does not have to exist in the system.
Time Constraint A
Infotypes with time constraint A must have no more than one record. The system
automatically assigns the record a validity period from January 01, 1800 through
December 31, 9999. This validity period cannot be subdivided.
Infotype records with time constraint A cannot be deleted.
Time Constraint B
Infotypes with time constraint B must have no more than one record. The system
automatically assigns the record a validity period from January 01, 1800 through
December 31, 9999. This validity period cannot be subdivided.
Infotype records with time constraint B can be deleted.
Time Constraint T
Infotype records with time constraint T depend on the subtype.
For the Addresses infotype (0030), you can assign a different time constraint for
each subtype. In this way, you can make sure that a main address always exists for
the employee and you can also enter temporary residences, if necessary.
Time Constraint Z
The infotypes you use for entering working and absence time have a special time
constraint behavior. For more information, see Time Constraints in Time Management.
Important Infotypes
Comonly used Personnel Administration Infotypes
In SAP, the client is often referred to in the enterprise structure as the top level in the
hierarchy. Actually, the client is not much to do with the enterprise structure.
The client is used to separate data within a SAP system; clients are always numbers.
Usually the only time you will refer to a client is when you first log into SAP. Here we
see the login screen which asks for the client number:
Configuration and data belong to the client. So if you log into client 200, you may see
different employees and customizing settings to those in say, client 300. Some projects
will use a different SAP system altogether for different data.
The client numbers will be decided on your project. For example, client 200 may be a
play client, 300 for configuration and testing and 400 for training.
Technically, you are actually logging into the same database. Behind the scenes SAP
will fetch the correct data and display it for you. The client is usually the primary key of
database tables in SAP.
Company Code
The Company code is an independent company with its own accounting unit, that is, a
company that draws up its own balance sheet.
Personnel Subarea
Employee Group
The employee is used to classify employees in general terms. It defines the position of a
person within the company's workforce.
Employee Subgroup
Employee groups are divided into employee subgroups. Employees in the active workforce are
distinguished according to their status - trainee, hourly-paid employee, salaried employee, etc.
01 Germany
02 Switzerland
03 Austria
04 Spain
05 Netherlands
06 France
07 Canada
08 Great Britain
09 Denmark
10 USA
24 Saudi Arabia
25 Singapore
40 India
The Personnel Structure is split by Company Code, Personnel Area and Personnel
Subareas. There are other structures including employee groups/subgroups and the
pay scale structure, but in this section it’s Pers Areas and subareas which are the topic
to be covered.
An implementation with one company, in one country, with various factories/sites may
look like this:
This is a typical example. The company code is easily defined, as it represents a legal
entity so you have to set them up exactly as they are. This is a function of the Finance
configuration and is not covered here.
A Personnel Area is attached to a company code, so you will always have at least one
area per company code. Generally, it represents a high level of the business. Quite
often it represents a country – as shown in the example above.
Some points to consider for Personnel Areas
Often a Personnel Subarea is used to show a geographic split of the Personnel Area.
For example, if a UK company had 3 manufacturing plants, it would probably have 3
personnel subareas representing them.
If you have just one site, the personnel subarea may be used to represent different splits
of employee, maybe factory vs staff; but generally it represents a physical location.
The public holiday calendar is attached to the personnel subarea, so if you have plants
with different holiday calendars, you must have different subareas for each.
Make sure your company code (4 Digits) doesn’t exist in the table already and click on
New Entries shown below.
Enter the company code details as shown in above, and also enter all the address details
of company code as shown below.
STEP2: SPRO>Enterprise Structure>Definition>Financial Accounting>Edit, Copy,
Delete, Check Company Code > Copy, Delete, Check Company Code
When we go to this screen we will get a blank screen, Click on the copy option “ ” as
shown below.
Here we are coping our company code from SAP standard company code for US the
standard company code is 3000
When we click above Ok, we will get the below information message click on Yes here
as highlighted.
If we say Yes for below message we will get standard G/L accounts copied to our new
company code from standard 3000
Once we say Yes for Second Information Message system prompts one more
confirmation, do u want to allocate different currency for a target company code, as we
are coping from standard company code i.e., 3000 which already contained USD as
currency we can say “No” here, which make ABCL company code to there USD.
Please click on the “ ” to move further.
Click again on the button to move further and keep on the clicking until you reach the
below message
Below are the Couple of FI/CO setting, these settings are not mandatory up to ECC 5.0
and these steps become mandatory in ECC 6.0, if we wont perform the FI/CO setting
implication are as below
If it is 5.0 –Error message on hiring an employee in Infotype 0001, but by pressing Enter
you can move further.
If it is 6.0 –Error message on hiring an employee in Infotype 0001, You can’t move
further until you complete the below configuration.
Chart of Account = Set of General Ledgers are nothing but chart of Accounts.
Fiscal Year Variant K4 represents four quarter for the financial year.
STEP4: In the step4 we have to perform 3 activities, Please go through the steps
carefully.
In the Basic Data Navigation area we have to define Controlling area, In a realtime
project these will be created by FI/CO Consultants.
Once you enter in to the table click on New entries button as shown below, when you
click on new entries the following screen will appear.
Click on Save button we will get the following information message, Please click on Yes
button.
By doing the above activity we created a Controlling area for our company code.
Then Click on new entries and your company code there as shown below.
Step 4.3: (Activate components/Control Indicators)
SPRO> Controlling> General Controlling> Organization> Maintain Controlling Area>
Maintain Controlling Area> Activate components/Control Indicators > New Entries >
With this we are done with the mandatory FI/CO Configuration for ECC 6.0 Version.
Step 5: DEFINE PERSONNEL AREA
SPRO> SAP Reference IMG (F5)> Enterprise Structure> Definition > Human Resource
Management> Personnel Areas > Personnel Areas > New Entries
Enter the Unique 4 digits Alpha Numeric Key and Click on Icon to save the
Personnel Area as shown below
Click on Create Request option and create your own transport, We just need to enter the
description the transport like what we are trying to perform, System will automatically
generate the Transport number.
SPRO> SAP Reference IMG (F5)> Enterprise Structure> Definition > Human Resource
Management> Personnel Sub areas > Create Personnel Subareas > New Entries
Click on New entries and Make enter 4 digits (maximum) Alphanumeric key for
Personnel Subareas as below
SPRO> SAP Reference IMG (F5)> Enterprise Structure> Definition > Human Resource
Management> Employee Groups > New Entries
SPRO> SAP Reference IMG (F5)> Enterprise Structure> Definition > Human Resource
Management> Employee Subgroups > Define Employee Subgroups> New Entries
By doing the above activities we are done with creation of Enterprise and Personnel
Structure, now we need to perform the assignment activity.
Step 9: Assigning Personnel Area to Company Code
SPRO> SAP Reference IMG (F5)> Enterprise Structure> Assignment > Human
Resource Management> Assign Personnel Area to Company Code
Select your Personnel Area, Assign your company code and Country Code for personnel
Area, This Country grouping Controls the Master data maintenance and Wagetypes,
Please refer the below screenshot for the same.
SPRO> SAP Reference IMG (F5)> Enterprise Structure> Assignment > Human
Resource Management> Assignment of Employee Subgroup to Employee Group
Once you execute this table, Click on New entries Option Select your employee Group
and Select your employee Subgroup and Assign relevant Country Grouping (MOLGA)
for the same, Please refer the below screenshot for the same.
Note: It is possible to assign more than one MOLGA for same Employee Group and
Employee Subgroup.
Click on , You will get message box as Parameters Created for USA. Click on
and Make Sure Parameters Created as below highlighted.
Step 12: Path to Setup Employee Number Ranges
You can configure the feature by using Create button and you can call the decision
operation based on the requirement, Finally you have to Assign a return value for the
decision operation (Ex: 06 in the Previous Screen) and Click on Activate Icon , All
the features need to be activate, Features doesn’t give any affect until activate them.
The above mentioned Configuration is mandatory to hire an employee for Our own
Company Code.
With the above configuration you can hire an employee and Test whether every
thing is working fine or not for given company code.
Step 14: Navigation Path to configure the Infotype Menus
Select the User group dependency on menus and Infogroups option as shown below
Step 2:
Now go back (F3) and Select the Infotype Menu option and Enter the Infotype Menu
which was create in the above step i.e., A1, A2 and A3, Select the Infotype A1 and enter
the Infotypes under that menu, repeat the same activity for all other Infotype menus.
Enter the required IT under the A1 menu. In the User Group column enter the user group
number as Reference user group, the both should be one and same. In the No Column
Enter the Serial no of Infotypes. If we leave as blank in the Screen Column system will
pick the Standard Screen. If there any custom screen number enter that number in the
column.
Step 3:
In this table we shouldn’t create any new entries, In Simple we have to change the
reference user group to our own user which was assigned in our user parameters for ‘01’
HR Master Data Menu.
In the given example we are following ‘78’ as reference user group, with this we changed
the reference group as ‘78’ for ‘01’ Menu as shown below.
Step 4:
In this Step we need to our Infotype Menus (A1, A2, A3) to ‘01’ HR Master Data
Catalog.
Note: Before making entries please make sure about the S.No. Just Check how many
S.No are used under the reference user group, If there are preexisting entries under that
User group, we have continue with a different S.No, else we will get a error message as
“An entry already existed with same Key”
Step 5:
Goto User Profile (SU3 is T-code) and change the UGR as ‘78’ instead of ‘10’ and
save, as shown below and click on
Goto PA30 and check the customer specific infotype menus got created or not.
Navigation Path to configure the Personnel Actions
In Order to Define the Personnel Actions, First we have to identify what all the action
type the customer is performing on their employees. Once We Identify the action we
have to determine are there any action which falls under same Infogroup. By doing the
above exercise we can come out with a list of Infogroups required for the client.
Here we will configure Hiring action and configuration is steps are same for all the other
action types.
In the above mentioned table we have to create the relevant Infogroups for actions, we
may have 1:1 or 1:many combination for Infogroups vs Action. In the above example I
created different Infogroups for each action
In the same way we have to create the Infogroups for Change of Position or Separation.
For Change of Position we can call relevant Infotypes we can user Operation as “COP”
or “MOD”
In the T529A, SAP delivered some standard personnel action, We can select those
actions which are relevant for us as shown below.
Click on Copy Icon ( ) and Change Action Code and Description along with our own
Infogroups, as shown below and click on Icon
Configuration Work Area for Personnel Administration
Infotype 0001:
Below configuration is important for Infotype 0001, If we need any changes to the above
highlighted fields input in IT -0001 screen, the below is the work area in SPRO. The
highlighted box is important in all nodes.
Work area in SPRO: Personnel Management > Personnel Administration >
Organizational Data > Organizational Assignment.
This infotype will be created internally by SAP, we don’t require any configuration for
this infotype,
Infotype 0006: (Address)
Below configuration is important for Infotype 0006, If we need any changes to the above
highlighted fields input in IT -0006 screen, the below is the work area in SPRO. The
highlighted box is important in all nodes.
Work area in SPRO: Personnel Management > Personnel Administration >
Personal Data > Addresses.
Infotype 0009: (Bank Details)
Below configuration is important for Infotype 0009, If we need any changes to the above
highlighted fields input in IT -0009 screen, the below is the work area in SPRO. The
highlighted box is important in all nodes.
Work area in SPRO: Personnel Management > Personnel Administration >
Personal Data > Bank Details
Infotype 0021: (Family Details)
Below configuration is important for Infotype 0021, If we need any changes to the above
highlighted fields input in IT -0021 screen, the below is the work area in SPRO. The
highlighted box is important in all nodes.
Work area in SPRO: Personnel Management > Personnel Administration >
Personal Data > Family
Infotype 0185: (Personnel IDs)
Below configuration is important for Infotype 0185, If we need any changes to the above
highlighted fields input in IT -0185 screen, the below is the work area in SPRO. The
highlighted box is important in all nodes.
Work area in SPRO: Personnel Management > Personnel Administration >
Personal Data > Identification > Maintain types of Identification
Infotype 0016: (Contract Elements)
Below configuration is important for Infotype 0016, If we need any changes to the above
highlighted fields input in IT -0016 screen, the below is the work area in SPRO. The
highlighted box is important in all nodes.
Work area in SPRO: Personnel Management > Personnel Administration >
Contractual and Corporate Agreements > Contract Elements
Infotype 0040: (Objects on Loan)
Below configuration is important for Infotype 0040, If we need any changes to the above
highlighted fields input in IT -0040 screen, the below is the work area in SPRO. The
highlighted box is important in all nodes.
Work area in SPRO: Personnel Management > Personnel Administration >
Contractual and Corporate Agreements > Objects on Loan
Infotype 0019: (Monitoring of Tasks)
Below configuration is important for Infotype 0019, If we need any changes to the above
highlighted fields input in IT -0019 screen, the below is the work area in SPRO. The
highlighted box is important in all nodes.
Work area in SPRO: Personnel Management > Personnel Administration >
Evaluation Basis > Monitoring of Tasks
Note: This Important is very important; This Infotype can be used for calculation in the
Benefits, Compensation, ECM and Payroll Calculation also. In the below node we can
create new Date Types and we can modify DATAR feature.
Note: Though IT 0007, IT 0008, IT 0014, IT 0015 required configuration under PA,
we are going to talk about them under respective modules.
Organisation Management
Relationships
A position can be held by more than one person or user and a person can hold more than
one position. However, a one-to-one ratio is the ideal.