hcm v1604 overview_en_us
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SAP Best Practices for Human Capital Management V1.604 (US)
SAP Best Practices
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 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 the following areas :
Organizational Management
Personnel Administration
Benefits Administration
Time Management
Payroll Administration
HCM Reporting
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 HCM Workforce Payroll Administration
FMLA Processing
Payroll and Post Payroll Processing
Retroactive Payroll Processing
Offcycle Payroll Processing
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)
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
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)
© SAP 2008 / Page 7
Purpose Ability to create an employee mini master record for time recording and travel
management 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)
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:
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:
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:
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:
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 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:
Time Entry (564)
Purpose This scenario describes three methods of entering time data.
Time Entry – Manual - This scenario describes typical processes to create and 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 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 time worked by an employee. This scenario describes the entry of time to various absence and attendance types for transfer to the Human Capital Management (HCM) module. The checks configured in the HCM module, such as quota entitlements, will be performed at time of entry using CATS. CATS can also be used to record time to projects and other 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 and task-oriented interface for maintaining time data and processing time evaluation messages. This interface was specifically designed to meet the needs of time administrators in a decentralized enterprise.
The trigger for this activity is typically a manual time card submitted to the manager or time administrator. The manual time card may be a paper time sheet, and email message, or other electronic time sheet such as an Excel workbook.
Purpose and Benefits:
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
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 days etc. 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 covered Workforce Time Administration Time Management
Purpose and Benefits:
Time Processing – Cross Application Timesheet (CATS) (572)
Purpose This 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 step may not be necessary depending upon the settings configured in the CATS data entry profile that was 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 covered Workforce Time Processing - CATS Time Management
Purpose and Benefits:
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:
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:
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:
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, remuneration
statements, 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:
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 the
payroll 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 performs retroactive 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:
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:
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:
© SAP 2008 / Page 24
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:
Period End Closing for HCM (580)
Purpose The 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
used to 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
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: