hcm overview

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SAP Best Practices for Human Capital

Management

SAP Best Practices



© 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




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




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)




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




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)


Create employee mini master record

Time Recording using Cross Application Time Sheet (CATS)

Approval of Working times

Time Sheet: Transfer to Target Components



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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


New Hire / Rehire Administration




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


Organizational Change Administration




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.


LOA Administration




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


Employee Separation Administration Processing




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


Maintain Employee Administration Processing




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.




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


Workforce Time Entry

Time Management

Purpose and Benefits, cont’d:



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




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




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





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


Benefits Administration Processing

Benefits Enrollment and Termination Processing





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





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


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





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





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


FMLA Processing




© 2011 SAP AG. All rights reserved. 23© SAP 2008 /

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


Workforce HCM Reporting

Flexible HCM Ad-hoc queries

Audit Reporting in HCM





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.





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





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





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




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