hcm overview
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8/14/2019 HCM Overview
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SAP Best Practices for Human Capital
Management
SAP Best Practices
8/14/2019 HCM Overview
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© 2011 SAP AG. All rights reserved. 2
General Information
SAP Best Practices for Human Capital Management (HCM) was developed for small and midsize
companies to implement a solution quickly and easily.
With a focus on the primary workforce management business processes this package gives youbuilt-in support for the best business practices across all industries
Functionalities
The SAP Best Practices for HCM V1.605 package supports your business in the following areas :
Organizational Management
Personnel Administration
Benefits Administration
Time Management
Payroll Administration
HCM Reporting
Employee Self Services
Manager Self services
Performance / Talent Management
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Workforce ManagementBaseline Workforce TimeManagement
Workforce Reporting
External Financial Accounting
Enterprise Structure
Basic Overhead Cost Controlling
Time Entry
Time Administration
Time Processing - CATS
Time Evaluation ProcessingLeave of Absence Processing
Employee Transfer Administration
Maintain Company Organizational Structure
Personnel Administration for Limited HCM
New Hire/Rehire Administration
Employee Terminations
Maintain Employee Information
Workforce BenefitsAdministration
Benefits Administration
Period End Closing for HCM
SAP ERP Reporting for HCM
Workforce Payroll
Administration
FMLA Processing
Payroll and Post Payroll Processing
Retroactive Payroll Processing
Offcycle Payroll Processing
Workforce Employee Self
Service
Personnel Information
Payments
Working Time
Workforce Manager Self
Service
Approve employee time & leave requests
New Scenario/Functionality
Existing Scenario
Legend:
Performance/Talent
Management
Pre-defined Performance Process
SAP Best Practices for HCM V1.605 (US) Solution Scope
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© 2011 SAP AG. All rights reserved. 4
Industry-Specific Scenarios (1 of 2)
SAP BP for HCM V1.605 (US) provides the following cross -industry-
specific scenarios:
560: Maintain Company Organizational Structure
562: Personnel Management for Limited HCM
563: New Hire/Rehire Administration
567: Employee Transfer Administration
568: Leave of Absence (LOA) Processing
569: Employee Terminations
570: Maintain Employee Information
564: Time Entry
571: Time Administration
572: Time Entry – Cross Application Timesheet (CATS)
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© 2011 SAP AG. All rights reserved. 5
Industry-Specific Scenarios (2 of 2)
SAP BP for HCM V1.605 (US) provides the following cross-industry-
specific scenarios:
573: Time Evaluation Processing
575: Benefits Administration
566: Payroll and Post Payroll Processing
576: Retroactive Payroll Processing
577: Offcycle Payroll Processing
578: FMLA Processing
559: SAP ERP Reporting for HCM
580: Period End Closing for HCM
582: Employee Self Services
583: Manager Self Services
584 Employee Performance Management
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Maintain Company Organizational Structure (560)
Purpose
To complete processing of Organizational Changes as required by the Enterprise.
enefits
Organizational structures in the system are kept in alignment with the actual enterprise
Employee records are kept in real time alignment with organizational structures so reports and financial
reporting remain timely and accurate
Key process flows covered
Maintain organizational structure
Purpose and Benefits:
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Personnel Management for Limited HCM (562)
Purpose
Ability to create an employee mini master record for time recording and travel management purposes
enefits
Leverage basic HCM to support other SAP functions
Enables time recording using the cross application timesheet (CATS)
Key process flows covered
Create employee mini master record
Time Recording using Cross Application Time Sheet (CATS)
Approval of Working times
Time Sheet: Transfer to Target Components
Purpose and Benefits:
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New Hire/Rehire Administration (563)
Purpose
This scenario describes the typical processes used to Hire candidates and Rehire employees using Hire
Personnel Actions.
enefits
The employee master record is created / updated
Employee records are kept in real time alignment with organizational changes so time management, payroll,
and other functions perform as needed
Key process flows covered
New Hire / Rehire Administration
Purpose and Benefits:
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Employee Transfer Administration (567)
Purpose
Maintain organizational and employee master records as the dynamic Enterprise evolves.
enefits
Employee master data records remain current
Employee records are kept in real time alignment with organizational changes so payroll is timely and
accurate
Reports and postings to financials remain accurate
Key process flows covered
Organizational Change Administration
Purpose and Benefits:
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Leave Of Absence Processing (568)
Purpose
This scenario describes the typical process used when employees take leaves of
absence (LOA).
enefits
Employee records are kept in real time alignment, so payroll is timely and accurate.
Automated, efficient processing with complete history of employee’s transactions.
Key process flows covered
LOA Administration
Purpose and Benefits:
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Employee Terminations (569)
Purpose
This scenario describes the typical process when an employee has decided to retire
from the company or has been separated.
enefits
The organizational structures in the system are kept in alignment to the actual
enterprise
The employee master records are updated, so payroll and benefits administration
remain accurate
Key process flows covered
Employee Separation Administration Processing
Purpose and Benefits:
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Maintain Employee Information (570)
Purpose
This scenario describes the typical process used to create and maintain employee
master records which contains all personal data, time data, benefit data andpayroll data
enefits
Employee master record is updated
Automated, efficient processing with complete history of employee’s transactions
Key process flows covered
Maintain Employee Administration Processing
Purpose and Benefits:
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Time Entry (564)
Purpose
This scenario describes three methods of entering time data.
Time Entry – Manual - This scenario describes typical processes to create and maintainemployee time information using the HR infotypes directly. This may be used by administratorswhen CATS time entry is not in use, or for entering an absence that spans multiple days. It isimportant to understand that any entries made here will not be reflected in CATS.
Cross-Application Time Sheet (CATS) – CATS is one of the tools used for recording timeworked by an employee. This scenario describes the entry of time to various absence andattendance types for transfer to the Human Capital Management (HCM) module. The checksconfigured in the HCM module, such as quota entitlements, will be performed at time of entryusing CATS. CATS can also be used to record time to projects and other cost objects for transferto other SAP modules such as Controlling, Project Systems, and Plant Maintenance.
Time Manager s Workplace - The Time Manager ’s Workplace is an optional user interface fortime entry. TMW features a user-friendly and task-oriented interface for maintaining time data andprocessing time evaluation messages. This interface was specifically designed to meet the needsof time administrators in a decentralized enterprise.
The trigger for this activity is typically a manual time card submitted to the manager or timeadministrator. The manual time card may be a paper time sheet, and email message, or otherelectronic time sheet such as an Excel workbook.
Purpose and Benefits:
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Time Entry (564) continued
Benefits
Enables employees to record working times and tasks
Enables time administrators to record working times for employees
Enables managers to develop work schedules for employees
Enables companies to control time management processes flexibly and efficiently
Key process flows covered
Workforce Time Entry
Time Management
Purpose and Benefits, cont’d:
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Time Administration (571)
Purpose
This scenario describes the typical processes used in Time Management to review and process quota balances.
Benefits
Employees of an enterprise may be granted different attendance/absence time-limited entitlements for vacation leave, sick
leave and training day, and so on.
These time-limited entitlements can be maintained in HCM Time Management as - “Time Quotas”.
HCM Time Management - provides an enterprise the ability to -:
Get a clear overview of an employee's current attendance/absence quota entitlements.
See detailed information on quota entitlements that have been generated automatically.
Have the option of correcting quota entitlements manually.
Get a simulated projection of future quota entitlements.
Have the ability to print an overview of the projected quota entitlements.
Key process flows coveredWorkforce Time Administration
Time Management
Purpose and Benefits:
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Time Processing – Cross Application
Timesheet (CATS) (572)
PurposeThis scenario describes additional processing steps necessary for time recorded using the Cross Application
Time Sheet (CATS). It includes the following steps:
Allow the supervisor or time administrator to review and approve the employee’s time. This stepmay not be necessary depending upon the settings configured in the CATS data entry profile thatwas used to record the time.
Transfer the time to the various SAP modules depending on the data recorded.
Benefits
Enables employees to record working times and tasks
Enables managers to control all business process concerning an employee
Paying the employee
Monitoring the progress of a project
Creating an invoice
Key process flows coveredWorkforce Time Processing - CATS
Time Management
Purpose and Benefits:
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Time Evaluation Processing (573)
Purpose
This scenario will evaluate employee time including overtime, holiday time, shifts,
time off entitlements (quotas), etc. It is recommended that time evaluation
always be processed immediately prior to processing payroll to ensure
consistency in the results.
BenefitsEmployee’s working times are valuated
Time evaluation calculates planned times and overtime, administrates time accounts
and forms wage types, updates time quotas, and is used to check working time
specifications.
Key process flows coveredWorkforce Time Evaluation Processing
Time Management
Purpose and Benefits:
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Benefits Administration (575)
PurposeThis scenario describes the typical process performed by the Benefits Administrator to modify and update,
employee’s Benefit Plans information.
This scenario describes the typical process performed by the Human Resources department to enroll
employees to the available Benefit Plans and then to discontinue the plans upon departure of the
employee.
Benefits
Employee benefits plans are updated
Employee master record is updated with the qualified life adjustment reasons
Employee is enrolled into benefits and retirement savings plans
Employee master records are updated, and the payroll deductions are timely and accurate
Benefits vendor interfaces can be processed accurately and timely, thus minimizing confusion andemployee coverage updates
Key process flows covered
Benefits Administration Processing
Benefits Enrollment and Termination Processing
Purpose and Benefits:
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Payroll and Post Payroll Processing (566)
PurposeTo calculate the gross and net pay, which comprises the individual payments and deductions that are calculated during a payroll period, and are received
by an employee
Execute and manage payroll processing which encompasses (starting payroll, payroll corrections, remuneration statements, payroll journal, garnishmentreporting, wage type report)
Execute bank transfer activities (Data Medium Exchange (DME) Processing and Print Check functionality
Execute third party remittance for taxation, benefit vendors and garnishment processing
Support management of FMLA using the FMLA workbench
Full integration and payroll posting to SAP FI/CO
Benefits Automated, efficient processing of employees’ payroll
Automated processing of banking activities
Automated processing of third party remittance
Integration with SAP Financials
Sample payroll forms
Key process flows coveredMaintain Master Data and Time Data
Run US Payroll
Run Simulations and production runs for FI/CO Posting and 3rd Party Remittance
Pre-DME, DME Management and check processing
Third Party Remittance
Posting to FI/CO activities
Payroll journal reporting
Purpose and Benefits:
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Retroactive Payroll Processing (576)
PurposeTo calculate the when there is a change of earnings for the past, payroll results need to be recalculated to correct tax and
earnings amounts
The system performs a retrocalculation of payroll results when you make a retroactive master data change that affects anemployee's past earnings
If you change the master and time data of an HR master record for a pay period for which the payroll has already run, theexisting payroll results must be rechecked during the next regular payroll run and then included in the payroll again. The
system automatically performs retroactive
accounting for the payroll past.
Benefits Automated calculation of retroactive changes
Key process flows covered
Retroactive Employee Master Data ChangeRun US Payroll
Run Simulations and production runs for FI/CO Posting and 3rd Party Remittance
Pre-DME, DME Management and check processing
Third Party Remittance
Posting to FI/CO activities
Payroll journal reporting
Purpose and Benefits:
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Offcycle Payroll Processing (577)
PurposeTo complete processing of employee Off-cycle Payroll
Run payroll for payments including bonuses and other one-time payments, advance payments (multiple pay periods), andabsence payments (days within a payroll period)
Execute a correction payroll when changes have been made to an employee's master data
Process payroll data for a check that was manually created outside of the system
View an employee's payroll history
Replace payments
Reverse payments
Adjust W2 data of individual employee during the year end process
Benefits Ability to reissue, void, or create payments in a single workbench
Automated, efficient processing with complete history of employee’s payroll
Key process flows coveredReversal / Void
Check Replacement
Purpose and Benefits:
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FMLA Processing (578)
Purpose
To complete processing of employee FMLA events
Benefits
Compliance with FMLA requirements
Automated, efficient processing with complete history of employee’s transactions
Key process flows covered
FMLA Processing
Purpose and Benefits:
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© 2011 SAP AG. All rights reserved. 23© SAP 2008 / Page 23
SAP ERP Reporting for HCM (559)
Purpose
Ability to recognize the most common SAP standard HCM reports
Benefits
Allow organizations to perform on demand reporting using the HR ad-hoc query tool
Assists organizations with performing audits in HR
Key process flows covered
Workforce HCM Reporting
Flexible HCM Ad-hoc queries
Audit Reporting in HCM
Purpose and Benefits:
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Period End Closing for HCM (580)
PurposeThe closing operations component helps you prepare and carry out the activities
required for daily/month-end, quarterly -end and year-end closing in payroll.
For this purpose, the system provides a series of standard reports that can be usedto generate evaluations and analyses of payroll.
For quarterly and year end closing a number of payroll tax reports can be generated
using tax reporter functionality
BenefitsThe system helps you to carry out the following:
Review payroll results and wage type details
Reconcile payroll postings
Execute quarterly reports and year end W-2 activities
Key process flows coveredday-end closing, month-end closing
Quarterly closing and
year-end closing.
Purpose and Benefits:
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Employee Self Services (582)
Purpose
To allow employees to update and maintain their own information using employee self
services using the NWBC User Interface
Benefits
Employees get to access and change their own data. Using the NWBC client negates the need for a portal solution.
The user is allowed to see and update the necessary information. A new navigation pattern
has reduced the number of clicks and an intuitive in-place navigation from “Overview” to
the “Detail” screen.
Key Process Steps
Employee Self Services
Purpose and Benefits:
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Manager Self Services (583)
Purpose
To enable Managers the ability to manage their direct employees using self services
applications via the NWBC client user interface
Benefits
Managers get to access and approve or reject timesheets and leave requests.
Using the NWBC client negates the need for a portal solution.
The user is allowed to see and update the necessary information. A new navigation pattern
has reduced the number of clicks and an intuitive in-place navigation from “Overview” to
the “Detail” screen.
Key Process Steps
Manager Self Services
Purpose and Benefits:
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Employee Performance Management (584)
Purpose
To support employee performance reviews as required by the company.
Benefits
Use of a standardized performance management process
Pre-defined corporate goals and core values are automatically cascaded through all levels of the
enterprise
Utilization of workflows for notification of employees and managers
Portal access via Manager and Employee Self Service
Availability of pre-defined templates
Integration with other talent management modules of SAP e.g. Enterprise learning
Key Process Steps
Objectives setting and performance appraisal
Purpose and Benefits:
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