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Page 1: Hcm v1604 Overview en Us

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SAP Best Practices for

Human Capital Management

V1.604 (US)

SAP Best Practices

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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 packagegives you built-in support for the best business practices across all industries

Functionalities

The SAP Best Practices for HCM V1.604 package supports your business in thefollowing areas :

Organizational Management

Personnel Administration

Benefits Administration

Time Management

Payroll Administration

HCM Reporting

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Workforce ManagementBaseline Workforce Time

Management

Workforce Reporting

Printing Forms

External Financial Accounting

Enterprise Structure

Basic Overhead Cost Controlling

Materials Management

Sales and Distribution

Time Entry

Time Administration

Time Processing - CATS

Time Evaluation Processing

SAP Best Practices for HCM V1.604 (US) Solution

Scope

Leave of Absence Administration

Organizational Change Administration

Maintain Organizational Structure

Personnel Administration for Limited HCM

New Hire/Rehire Administration

Employee Separation Administration

Maintain Employee Information

Workforce Benefits

Administration

Benefits Administration

Benefits Enrollment and Administration

Period End Closing for HCM

SAP ERP Reporting for HCMWorkforce Payroll

Administration

FMLA Processing

Payroll and Post Payroll Processing

Retroactive Payroll Processing

Offcycle Payroll Processing

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Industry-Specific Scenarios (1 of 2)

SAP BP for HCM V1.604 (US) provides the following cross -industry-specific scenarios:

560: Maintain Organizational Structure

562: Personnel Administration for Limited HCM

563: New Hire/Rehire Administration

567: Organizational Change Administration

568: Leave of Absence (LOA) Administration

569: Employee Separation Administration

570: Maintain Employee Information

564: Time Entry

571: Time Administration

572: Time Entry – Cross Application Timesheet (CATS)

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Industry-Specific Scenarios (2 of 2)

SAP BP for HCM V1.604 (US) provides the following cross-industry-specific scenarios:

573: Time Evaluation Processing

565: Benefits Enrollment and Termination

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

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Purpose 

To complete processing of Organizational Changes as required by the

Enterprise.

Benefits

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:

Maintain Organizational Structure (560)

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Purpose 

 Ability to create an employee mini master record for time recording and travelmanagement purposes 

Benefits

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:

Personnel Management for Limited HCM (562)

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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.

Benefits

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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Organizational Change Administration (567)

Purpose 

Maintain organizational and employee master records as the dynamic Enterprise

evolves.

Benefits

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 Administration (568)

Purpose 

This scenario describes the typical process used when employees take leaves of 

absence (LOA).

Benefits

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 Separation Administration (569)

Purpose 

This scenario describes the typical process when an employee has decided to

retire from the company or has been separated.

Benefits

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, benefitdata and payroll data 

Benefits

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 createand maintain employee time information using the HR infotypes directly.This may be used by administrators when CATS time entry is not in use, or for entering an absence that spans multiple days. It is important tounderstand that any entries made here will not be reflected in CATS.

Cross-Application Time Sheet (CATS)  – CATS is one of the tools usedfor recording time worked by an employee. This scenario describes theentry of time to various absence and attendance types for transfer to theHuman Capital Management (HCM) module. The checks configured in theHCM module, such as quota entitlements, will be performed at time of entry using CATS. CATS can also be used to record time to projects andother cost objects for transfer to 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 for time entry. TMW features a user-friendly andtask-oriented interface for maintaining time data and processing timeevaluation messages. This interface was specifically designed to meet theneeds of time administrators in a decentralized enterprise.

The trigger for this activity is typically a manual time card submitted to themanager or time administrator. The manual time card may be a paper timesheet, and email message, or other electronic time sheet such as an Excelworkbook. 

Purpose and Benefits:

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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: 

Time Entry (564) continued

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Time Administration (571)

Purpose 

This scenario describes the typical processes used in Time Management to review andprocess quota balances. 

Benefits

Employees of an enterprise may be granted different attendance/absence time-limited

entitlements for vacation leave, sick leave and training days etc.

These time-limited entitlements can be maintained in HCM Time Management as - “TimeQuotas”.

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 covered

Workforce Time Administration

Time Management

Purpose and Benefits:

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Time Processing – Cross Application

Timesheet (CATS) (572)

Purpose 

This scenario describes additional processing steps necessary for time recordedusing the Cross Application Time Sheet (CATS). It includes the following steps:

 Allow the supervisor or time administrator to review and approve theemployee’s time. This step may not be necessary depending upon thesettings configured in the CATS data entry profile that was used to recordthe time.

Transfer the time to the various SAP modules depending on the datarecorded.

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 covered

Workforce 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.

Benefits Employee’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 covered

Workforce Time Evaluation Processing Time Management

Purpose and Benefits:

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Benefits Enrollment and Termination (565)

Purpose 

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 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 and employee coverage updates

Key process flows covered

Benefits Enrollment and Termination Processing

Purpose and Benefits:

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Benefits Administration (575)

Purpose 

This scenario describes the typical process performed by the Benefits

 Administrator to modify and update, employee’s Benefit Plans information. 

Benefits

Employee benefits plans are updated

Employee master record is updated with the qualified life adjustment reasons

Key process flows covered

Benefits Administration Processing

Purpose and Benefits:

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Payroll and Post Payroll Processing (566)

Purpose  To 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, remunerationstatements, payroll journal, garnishment reporting, 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 covered Maintain 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)

Purpose  To 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 an employee's past earnings

If you change the master and time data of an HR master record for a pay period for which thepayroll has already run, the existing payroll results must be rechecked during the next regular payroll run and then included in the payroll again. The system automatically performsretroactive accounting for the payroll past.

Benefits  Automated calculation of retroactive changes

Key process flows covered Retroactive Employee Master Data Change

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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Offcycle Payroll Processing (577)

Purpose 

To complete processing of employee Off-cycle Payroll

Run payroll for payments including bonuses and other one-time payments, advance payments(multiple pay periods), and absence 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 covered Reversal / 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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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)

Purpose 

The closing operations component helps you prepare and carry out the activitiesrequired 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 beused to generate evaluations and analyses of payroll.

For quarterly and year end closing a number of payroll tax reports can begenerated using tax reporter functionality 

Benefits

The 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 covered

day-end closing, month-end closing

Quarterly closing and

year-end closing.

Purpose and Benefits: