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Page 1: Hcm v1605 Overview en Cn

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SAP Best Practices for Human Capital

Management V1.605 (China)

SAP Best Practices

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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

Time Management

Payroll Administration

HCM Reporting

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© 2011 SAP AG. All rights reserved. 3

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

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

SAP Best Practices for HCM V1.605 (China) 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 (China) provides the following cross -industry-

specific scenarios:

560: Maintain Organizational Structure

562: Personnel Management 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 Processing – 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 (China) provides the following cross-industry-

specific scenarios:

573: Time Evaluation Processing

566: Payroll and Post Payroll Processing

576: Retroactive Payroll Processing

577: Off-Cycle Processing

559: SAP ERP Reporting for HCM

580: Period End Closing for HCM

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© 2011 SAP AG. All rights reserved. 6

New Scenario  – 559 SAP ERP Reporting for HCM

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 Steps

Workforce HCM Reporting

 Audit Reporting in HCM

Flexible HCM Ad-hoc queries

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New Scenario  – 560 Maintain Organizational Structure

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 Steps

Maintain organizational structure

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New Scenario  – 562 Personnel Management for Limited HCM

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 Steps

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 Scenario  – 563 New Hire/Rehire Administration

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 Steps

New Hire / Rehire Administration

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New Scenario  – 564 Time Entry

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 notin use, or for entering an absence that spans multiple days. It is important to understand that any entriesmade here will not be reflected in CATS.

 – Cross-Application Time Sheet (CATS) – CATS is one of the tools used for recording time worked by anemployee. This scenario describes the entry of time to various absence and attendance types for transfer tothe Human Capital Management (HCM) module. The checks configured in the HCM module, such as quotaentitlements, will be performed at time of entry using CATS. CATS can also be used to record time to projectsand other cost objects for transfer to other SAP modules such as Controlling, Project Systems, and PlantMaintenance.

 – 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 timeevaluation messages. This interface was specifically designed to meet the needs of time administrators in adecentralized enterprise.

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 Steps Workforce Time Entry

Time Management

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New Scenario  – 566 Payroll and Post Payroll Processing

Purpose To calculate the gross and net pay, Execute and manage payroll processing which encompasses (starting payroll, payroll

corrections)

Full integration and payroll posting to SAP FI/CO

Benefits

 Automated, efficient processing of employees’ payroll  Integration with SAP Financials

Sample payroll forms

Key Process Steps Maintain Master Data and Time Data

Run China Payroll Pre-DME

Payroll related reporting

Posting to FI/CO activities

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New Scenario  – 567 Organizational Change Administration

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 Steps

Organizational Change Administration

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New Scenario  – 568 Leave of Absence (LOA) Administration

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 Steps

LOA Administration

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New Scenario  – 569 Employee Separation Administration

Purpose

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

the company or has been terminated.

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 Steps

Employee Separation Administration Processing

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New Scenario  – 570 Maintain Employee Information

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 Steps

Maintain Employee Administration Processing

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New Scenario  – 571 Time Administration

Purpose This scenario describes the typical processes used in HCM Time Management to review and

process quota balances.

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

entitlements for annual leave, sick leave and time in lieu 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 Steps Workforce Time Administration

Time Management

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New Scenario  – 572 Time Processing - Cross Application Timesheet

(CATS)

Purpose

This scenario describes additional processing steps necessary for time recorded using theCross 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 maynot be necessary depending upon the settings configured in the CATS data entry profile that was usedto 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 Steps

Workforce Time Processing - CATS

Time Management

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© 2011 SAP AG. All rights reserved. 18

New Scenario  – 573 Time Evaluation Processing

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 andforms wage types, updates time quotas, and is used to check working time specifications.

Key Process Steps

Workforce Time Evaluation Processing

Time Management

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© 2011 SAP AG. All rights reserved. 19

New Scenario  – 576 Retroactive Payroll Processing

Purpose

To calculate the when there is a change of earnings for the past, payroll results need to berecalculated to correct tax and earnings amounts

The system performs a retro-calculation of payroll results when you make a retroactivemaster 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 whichthe payroll has already run, the existing payroll results must be rechecked during the nextregular payroll run and then included in the payroll again. The system automaticallyperforms retroactive accounting for the payroll past.

Benefits  Automated calculation of retroactive changes

Key Process Steps

Checking Retroactive Status Indicator  Checking Employee Retroactive Accounting Limit

Changing the Retroactive Accounting Limit for a Payroll Area

Executing FI Posting Run

Processing FI Posting Run

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© 2011 SAP AG. All rights reserved. 20

New Scenario  – 577 Off-Cycle Processing

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

Benefits  Ability to reissue, void, or create payments in a single workbench

 Automated, efficient processing with complete history of employee’s payroll 

Execute subsequent payroll processing using the delivered OC process models

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© 2011 SAP AG. All rights reserved. 21

New Scenario  – 580 Period End Closing for HCM

Purpose

The closing operations component helps you prepare and carry out the activities requiredfor daily/month-end and year-end closing in payroll.

For this purpose, the system provides a series of standard reports that can be used togenerate evaluations and analyses of payroll.

For 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

 – Tax info type summary report

 – Execute year end activities

Key Process Steps day-end closing, month-end closing

year-end closing.

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© 2011 SAP AG All i ht d 22

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