SAP HCM Overview

1. Personnel Management contains all our employee’s data such as employee names,
addresses, bank details and tax information.

Info type is a tool that helps us to maintains hundreds of other fields.

Under Personnel Management -

1) Recruitment -> hiring efforts (getting the right people in the right job roles by scaling up or
down)
2) Benefits Administration e.g., health insurance and paid family leave.
3) Compensation management e.g., budgeting
4) Personnel development and Talent Management eg. performance appraisal and career
planning.

Organisational Management-

Defining organisation hierarchy like building org charts.

Under Time Management –

Scheduling and time records and payrolls.

HCM enterprise Structure comprises of 3 crucial components – company code, personnel area,
personnel subarea. Company code is derived from financial accounting.

Under company code, it comprises of Independent legal entity, profits and loss statements, balance
sheet.

Under personnel area, it is set up to group employees by job function or by job location.

Personnel subarea are areas that have a more specific grouping, and it is important as this is the level
where HR regulations are defined eg. wage types, payroll and time management and set up holiday
calendars.
A company code (Financial accounting module) is broken down into two personal area – US01 and
US02. US01 represents US and US02 represents Singapore. I will break down the personal area into
personal subarea such as 001- Admininstration, 0002 - Human Resource, 0003 – Operations.

Configuration - HCM_Global_Personnel_Administration_Configuration_Guide.pdf

(eg. I help to set up the organisation assignment by defining the employee attributes, create a payroll
area and also help to create work schedule rule)

I define the employee attributes by going into transaction SPRO (IMG Path) -> Personnel
Management -> Personnel administration -> Define employee attributes.

On the change view employee subgrouping screen, the system will display all the attributes of the
employees.

Next, to create payroll area, I go to Transaction code SPRO (IMG Path) under personnel management
-> Create payroll area. On the change view payroll areas screen, I choose new entries and enter the
values inside and click save.

Lastly, to create work schedule rule, I go to Transaction code SPRO (IMG Path) under Time
management -> set work schedules rules and work schedules. On the change view work schedules
rule: Overview screen, I add in the additional work schedule and then I will click save to save the
entries.

There are 2 main concepts in organisation management - Objects and the relationships between this
objects.

HCM organisation Structure Object – (OPJP)

1) Organisation unit (Functional unit of a business e.g., departments, groups, or project team
e.g. NCS)
2) Position (these are the objects that are created to occupied by an employee eg. SAP HCM
Functional Consultant)
3) Job (Object type – IT administration)
4) Person ( actual person in the system; personnel number into the org chart)

HCM Organisation Structure (Relationship)

 1) Position to Position (IT analyst reporting to IT manager)
2) Person to Position (Map the person to the IT Analyst role)
3) Position to Cost Center (this position will flow to the reporting to help figure out the budget.)

Create an organisation unit in SAP

Phases to implement SAP (Accelerated SAP Methodology)

1. Project preparation
a. Initial Project planning
b. Project procedures
c. Project team members and their training
d. Project kick off.
e. Technical requirements

2. Business Blueprints (gather requirement)

a. AS-IS Methodology
b. GAP Analysis
c. Business processes
d. Process Steps (flowchart diagram)

3. Realisation
a. Baseline Configuration and confirmation
b. Final configuration and confirmation
c. Unit Testing and documentation
d. Final Integration test
e. End user training and documentation
f. Consistency and quality check
4. Final Preparation
a. Data Migration or Cutover strategies and plan
b. End user Training
c. Quality check
5. Go Live
a. Turn on the SAP system for the end user and to obtain feedback on the solution and
to monitor the solution.
b. All the configurations /customisation have already been transported.
c. Project Implementation end
d. Post-Go live support.
e. Improve System performance

Blueprints

PDD – Process Definition Document

FS – Functional specifications

TS - Technical specifications
COE – Configuration Object elements

CSD – Configuration Specification Documents

Exceptional – Blueprint documentation gap analysis

WRICEF –

W: Workflow

R: Reports

I: Interfaces - IDOCs

C: Conversion : LSMW

E: Enhancement: User Exits

F: Forms

Where does the configuration done?

It is done through the IMG: Implementation guide

Display IMG (SPRO) : Customisation

SPRO -> SAP Reference IMG -> Financial Accounting (new) -> Account Receivable and Account
Payable -> Customer Account -> Master Data