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

Integrated business processes with SAP ERP

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 page 2 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 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 Manager’s desktop ............................................................................................. 88 3 Completion ....................................................................................................................... 90 4 Reflections ........................................................................................................................ 91 4.1 Questions ................................................................................................................... 91 4.2 Standard solution ....................................................................................................... 92

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Integrated business processes with SAP ERP

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 page 4 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 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: Manager’s Desktop.............................................................................................. 89

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Integrated business processes with SAP ERP

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.

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Integrated business processes with SAP ERP

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 library’s 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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Integrated business processes with SAP ERP

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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Integrated business processes with SAP ERP

Figure 1-1: Process overview: Human capital management

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Integrated business processes with SAP ERP

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 enterprise’s 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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Integrated business processes with SAP ERP

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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Integrated business processes with SAP ERP

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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Integrated business processes with SAP ERP 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 employee’s 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. page 13 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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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Integrated business processes with SAP ERP

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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Integrated business processes with SAP ERP 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, page 16 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 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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Integrated business processes with SAP ERP

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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Integrated business processes with SAP ERP

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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Integrated business processes with SAP ERP 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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Integrated business processes with SAP ERP

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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Integrated business processes with SAP ERP

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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Integrated business processes with SAP ERP

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. page 23 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 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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Integrated business processes with SAP ERP

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 company’s 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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Integrated business processes with SAP ERP

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

page 26 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 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: Cost center category: 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 Hxyy (SD and marketing bicycle xyy) 1000 vehicles (3000) PROFITxyy

4. Cost center SD Cost Center: Validity: Name: Description: Responsible person: Cost center category: 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 Hxyy (SD and marketing bicycle xyy) 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.

page 27 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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

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Integrated business processes with SAP ERP

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

page 29 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 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: additional description: b. Account assignment tab: 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: additional description:

Mark-xyy Marketing-xyy your name

b. Account assignment tab: 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:

page 30 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 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: Valid from: 01.01of the current year until 31.12.9999 Object abbt.: Mgmt-xyy Name: Management Tasks xyy

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Integrated business processes with SAP ERP

Figure 2-28: Create tasks: SAP system screenshot

4. Independently create the two tasks for the job secretary. Valid from: 01.01of the current year 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 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 1. Select the sales and distribution organizational unit (SD-xyy) and create two new positions below with the following specifications: Valid from: 01.01of the current year 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): Valid from: 01.01of the current year Short text: acquise-xyy Description: customer acquisition xyy

until

31.12.9999

page 34 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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

page 35 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 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:_________________________________________________

page 36 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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. page 37 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 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

page 38 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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.

page 39 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

Figure 2-37: Infotype organizational Assignment

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Integrated business processes with SAP ERP

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 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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

page 42 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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: ____________________________________

page 43 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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 manager’s 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. page 44 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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.

page 45 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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.

page 46 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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.

page 47 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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.

page 48 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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.

page 49 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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.

page 50 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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 company’s strategy - communicate the company’s 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 page 51 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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 manager’s 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.

page 52 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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 manager’s 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

page 53 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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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Integrated business processes with SAP ERP

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 page 57 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 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

page 58 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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. page 59 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP An employee’s 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

page 60 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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 page 63 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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 page 64 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

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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 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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.

page 66 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 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.

page 67 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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.

page 68 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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 [email protected] 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:______________________________________________

page 69 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 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

page 70 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 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 applicant’s 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). page 71 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 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.

page 72 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 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 following transaction: 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.

page 73 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 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 ( ). page 74 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP

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 (München) 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. page 75 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 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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Integrated business processes with SAP ERP 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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Integrated business processes with SAP ERP

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 applicant’s 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. page 78 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 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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Integrated business processes with SAP ERP

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 Mueller’s 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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Integrated business processes with SAP ERP

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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Integrated business processes with SAP ERP 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 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 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 following transaction: 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 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 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.

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Integrated business processes with SAP ERP

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 Copyright Prof. Dr. Heimo H. Adelsberger/Dipl.-Wirt.-Inf. Pouyan Khatami/ Dipl.-Wirt.-Inf. Taymaz Khatami

Integrated business processes with SAP ERP 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:_______________________________________

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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 manager’s 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.

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Integrated business processes with SAP ERP

Figure 2-83: Information system reports: SAP system screenshot

2.7.2 Manager’s desktop The initial screen of the manager’s desktop represents an overview of the default main scenario in the manager’s 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.

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Integrated business processes with SAP ERP

Figure 2-84: Manager’s Desktop

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Integrated business processes with SAP ERP

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 course’s 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

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Integrated business processes with SAP ERP

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.

Determine whether this statement is true or false.

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.

Determine whether this statement is true or false.

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.

Fill in the blanks to complete the sentence.

The pages of a personnel file that make up an employee’s master data record and that are created via a personnel action are called ____________.

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Integrated business processes with SAP ERP

4.2 Standard solution 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. True – a job represents a unique classification of responsibilities in your organization and is used in defining positions. 2.

Determine whether this statement is true or false.

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.

Determine whether this statement is true or false.

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.

Fill in the blanks to complete the sentence.

The steps in Cross-Application Time Sheet process are: Time data entry, release, approval, and transfer. 6.

Fill in the blanks to complete the sentence.

The pages of a personnel file that make up an employee’s 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.

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