Topic 7: Structures of Human Resources (SAP HR)

Structures in Human Resources (SAP HR):

1.Enterprise Structure

2. Personnel Structure

3. Organization Structure

Enterprise Structure

1. Company code

2. Personnel area and Personnel subarea

Personnel Structure

1. Employee group & Employee subgroup

2. payroll accounting area (Payroll Area)

Organization Structure

1. Organizational units

2. Jobs

3. Positions

Topic 8 : Company Code (And 6000 Real-time screen shots)

Company - A company is a legal entity or a organization which is to carry

out a business and under a company you have lot of sub companies.

For Example:

Tata is a company

TCS,Tata Power,Tata Steel, is a company code under a company TATA

Under Company code you have business area associated with it where the

business areas may be scattered in different parts of the world where you

can have reporting done for different business area or you can also call it

as Profit Centre.

Company Code - A company is the Group of company and company code

is the all the companies for which u want separate books of accounts.

Difference between Company and Company Code

Company is the smallest organizational unit for which individual financial

statement can be drawn according to the relevant commercial law.

Company code is the smallest organizational unit for which complete, self-

contained set of accounts can be drawn up for external reporting

purposes.

Along with that technical difference is.,

COMPANY consists of 6 digit alphanumeric key &

COMPANY CODE consists of 4 digit alphanumeric key.

For configuring SAP, generally 4 steps are required

1) Create company name and address

2) Creation of company code

3) Currency and country setting

4) Assign company code to company

This is the place where you type Transaction code (T-CODE)

T-Code is the code takes you into other screen.

Example if your want to updates any table (Data) so you need to enter

SM30, it will takes you to the SM30 screen where you need to enter

TABLE CODE (Each table have one unique code, you can update/delete

the data using the table code/name in SM30.

That SM30 you should enter this place.

SAP HR Consultants will do configuration in SPRO - Back-End configuration

setup T-code.

SPRO T-code will redirect you to Back-End Setup screen where you can

access to SAP Modules, like Payroll, Time Management, Personal

Administrations, PD, benefit....

Type: SPRO

After this new screen will display

This is the place where Configuration will takes place - Back end

operations...

his is the place where SAP HR Structures will configure.

1. Company Code

2. Personnel Area

3. Personnel Sub Area

4. Employee Group

5. Employee Subgroup

Definition: Create the structures

Assignment: After creating structures you need to integrate with which

other.

Ex. Groups to Sub-groups

Ex. Personal Areas to Company Code

Here in Definition we can config the following Modules structures.

Financial Accounting, Controlling, Human Resource....

Before we start configuring HR Structures will must need company code.

Creating Company code is FICO module responsibility.

Financial Accounting contains:

o Create, we need to click this ****on. This applies all the SAP.

Once you click you will redirect one TABLE where you will see existing

entries.

Ex. 1000 with Company Name

If you want to create any new entries: Press New Entries

Enter Company Name with Address.

Example:

S No Company Company Text

1 ZCRP CRESCENT PHARMA

You also enter

Language Key, where you enter language like EN for English.

Currency, like USD for USA $, IN for India Rupees.

Once you done with your entries, Press: SAVE Icon

Once you press SAVE icon system will ask a Transport Request (TR)

Transport Request will have all the data which ever you save.

This will use to TRANSFER from one server to another server.

Ex. If your saved one table entry like Company Code In Development

Server and after that you can move the TR to Quality server.

Transport Request (TR) contains the TABLE INFORMATION.

This is the existing Request number with Name of the

Transport Request Name.

Now we will see how to create New Transport Request.

Press: CREATE REQUEST

This is the Screen will display.

Fill the Transport Request Short description and SAVE.

SAVE AND SEE YOUR NEW REQUEST.

TABLE you updated is V_T800 and followed by your request number and

text. Just say Yes (in the GREEN icon)

As you seen Company Name creation, now will see the company code creation.

And the difference between the Company Name and Company Code

also we learned.

Company Name will need to assign to Company Code and in HR module we only use Company code.

And Company code is most important because it contains important

tables so always good if you copy from SAP country standard code.

SAP Country Standards: SAP giving standards based on country like for Company Code "0001" SAP A.G with currency.

Click : Edit, Copy, Delete, Check Company Code

To copy one company Code to other.

It will show one window, which contains two more lines (Basically called 2

tables)

1. Copy, Delete, Check company code

2. Edit company code data

ompany Code can be create in 2 ways

1. Coping from one code to other (Copy, Delete, Check company code)

2. Creating new company code, using Ne entries (Edit company code

data)

Press first ****on.

It will take you to new screen, that press COPY icon

Once you done by pressing COPY icon, system will start copying all

tables...

Now System will ask from which Company code you use as base -

FROM COMPANY CODE

YOU CAN USE THE SAP STANDARD ONE (0001 SAP A.G) or if you

already created one Company code for the same client and now you

wanted to add one more, so use that company code as base to creating new company code.

NOW ENTER YOUR NEW COMPANY CODE IN "TO"

Example

S No Company Code Company Text

1 HACL Hyderabad Agrichemicals Ltd

And say OK/CONTINUE

Note: This mean we are creating new company code (ZCRP)

using SAP Standard (0001)

Now the System will copy all the existing entries of Company code

0001 to new company code ZCRP

Example

G/L Accounts

NOW YOU CAN SAVE IN THE SAME TRANSPORT REQUEST.

Or you can save in new request (Press: Create Request) but if you are doing full project from start to end so always use

one request.

And Here the Results

Now we will see the second method of creating Company code.

THIS IS NOTHING BUT DIRECT TABLE ENTRY USING NEW

ENTRIES ICON.

Press: New Entries to create Company Code

*** If your using first method, by copying the company code from other

code, here you need to edit and modify you test.

Enter and SAVE

In the previous steps we created Company Name & Company Code

Now we need to assign both Company Name to Company Code

Example

Company Name : TATA Company codes: 1001 (TCS), 1002 (VSNL), 1003 (TATA PROJECTS)

Assignment like.,

TATA - 1001 TATA - 1002

TATA - 1003

Company code comes under Financial Accounting

In that Assign Company Code to Company

Press the icon

Find out your company name using POSITION icon (Down side/ Shift+F7)

And find out your Company code suing F4 (Drop Down list)

And ENTER & SAVE

Thats it your Company Name, Company Code and Assignment.

Generally Company code and Company Name will config FICO consultants

(Finance)

But it is always good if you know and must need to create for practice

purpose.

Without company code it is not possible to move forward.

Hope you all able to understand today's class.

Here the IMP table to create Company code and Name.

Company Name: V_T880

Company Code: V_T001

Topic 9: Personnel Area & Personnel Sub Area

A personnel area is a Personnel Administration specific unit and is the subunit of the company code. The individual personnel areas in

a company code have four digit alphanumeric identifiers. The personnel areas within a client must be clear.

Example

The following Personal Area's are under one company (Company

Code)

S. No Personnel Area Code Personnel Area Text

1 CORP Corporate Office, Hyderabad

2 PLAT Plant

3 ZON1 Zone - Delhi

4 ZON2 Zone - Kolkata

5 ZON3 Zone - Mumbai

For Simple like Breaches: Pune, Hyderabad, Delhi, Chennai, Mumbai

....are Personnel Areas of one Company (Company Code)

The personnel area has the following functions:

The personnel area is used to generate default values for data entry, for

example, an employees payroll area. The personnel area is a selection criterion for reporting.

The personnel area constitutes an authorization check unit.

Here the Config takes place.

Human Resource Management: Contains 4 types

1. Personal Areas

2. Personal Sub-Area

3. Employee Groups

4. Employee Sub-Groups

SPRO -> Enterprise Structure -> Definition -> Human Resource

Management -> Personnel Areas

Table: T500P

Press on Personal Area: You will see two Steps

1. Copy, Delete, Check Personnel Area

2. Personnel Area

This is also same as Company Code creation, you can copy from standard one or you can copy from your existing Personnel area if

you created before.

Or you can create using New Entries Directly.

Here we are going with second type, which is suggested one.

Means we are going to create fresh and New Personnel Area

Press Choose to enter

Now you able to see the existing Personnel Areas in that table

Example

1000 : AFL Detroit

Go to New Entries, as we are going to create new Personnel Area.

Now we need to enter Personnel Area Code, Description and Address.

Here we enter 1001 as Personnel Area Code with Corporate Office

as Description and Address

One of the important in Personnel Area is Address where the same

Address will display in all the reports.

For example in India ESI monthly forms the address of the location

(Personnel Area) will display.

Press the ICON as show in the screen shot.

Here the Screen of address looks

Enter as per the Blue print (The address details provided b client)

Name, Address, Communications like Fax, Telephone number, Email..

And ENTER TO

SAVE.

YOU WILL COME BACK ONCE YOU SAVE AND FINALLY SAVE YOUR

PERSONNEL AREA TABLE.

Personnel sub areas are a subdivision of the personnel area.

Personnel Sub area is defined by a four-character, alphanumeric

code. The respective country-specific control features are stored here.

Example

If your Company Locations/Breaches are called Personnel Areas so

the Departments of each breach called Personnel Sub-areas.

Personnel Area: Pune Personnel Sub-Area: HR, IT, ADMN, SAP, Sales....

Personnel

Area Code

Personnel

Area Text

Personnel

Sub-Area

Code

Personnel Sub-

Area Text

CORP Corporate

Office

HR01 Human Resource

FN01 Finance

MK01 Marketing

PU01 Purchase

PLAT Plant

PD02 Production

MF02 Manufacturing

ST02 Stores

QA02 Q & A

MM02 Maintainace

ZON1 Zone 1

MK03 Marketing

FN03 Finance

ST03 Stores

ZON2 Zone 2

MK04 Marketing

FN04 Finance

ST04 Stores

ZON3 Zone 3

MK05 Marketing

FN05 Finance

ST05 Stores

The main organizational functions of the personnel subarea are as

follows:-

1. To specify the country grouping. Master data entry and the setting up

and processing of wage types and pay scale groups in payroll depend on

the country grouping. The grouping must be unique within a company

code.

2. To assign a legal person which differentiates between companies in

legal terms.

3. To set groupings for Time Management so that work schedules and

substitution, absence and leave types can be set up for individual

personnel subareas.

4. To generate a default pay scale type and area for an emplyee's basic

pay.

5. To define a public holiday calendar.

6. To define subarea-specific wage types for each personnel area.

ALL THESE WE WILL SEE IN THE NEXT TOPICS

PRESS on Personnel Area will get one screen contains two steps, same as

Personnel area.

You can copy or create new one.

Here we are going to create New one using second options.

Press CHOOSE

Now you will see one new step here

this is not like new empty screen and entering new entries.

Why like that think once again....

Here as per our example....

Personnel

Area Code

Personnel

Area Text

Personnel

Sub-Area

Code

Personnel Sub-

Area Text

CORP Corporate

Office

HR01 Human Resource

FN01 Finance

MK01 Marketing

PU01 Purchase

PLAT Plant

PD02 Production

MF02 Manufacturing

ST02 Stores

QA02 Q & A

MM02 Maintainace

Personnel sub-areas are coming under Personnel area's

Mean before entering Personnel sub-areas we have to choose under

which personnel Area we are going enter.

Right. HOPE YOU GOT IT.

SO ONCE YOU CHOOSE : CREATE PERSONNEL SUB-AREAS

IT WILL ASK UNDER WHICH PERSONNEL AREA YOU ARE ENTERING

SUB-AREAS

Here we are creating Personnel Sub-areas under Personnel

Area 1001

Enter Once you enter right Personnel Area

Here Personnel Area 1001 - Corporate Office

Go to New Entries to Create Sub-areas

Now enter Personnel Sub-areas under Personnel Area 1001

Personnel Sub-area Code (2 digit) with Text

And SAVE

Like same other Personnel Sub-areas under different

Personnel Area.

Personnel

Area Code

Personnel

Area Text

Personnel

Sub-Area

Code

Personnel Sub-

Area Text

CORP Corporate

Office

HR01 Human Resource

FN01 Finance

MK01 Marketing

PU01 Purchase

PLAT Plant

PD02 Production

MF02 Manufacturing

ST02 Stores

QA02 Q & A

MM02 Maintainace

ZON1 Zone 1

MK03 Marketing

FN03 Finance

ST03 Stores

ZON2 Zone 2

MK04 Marketing

FN04 Finance

ST04 Stores

ZON3 Zone 3

MK05 Marketing

FN05 Finance

ST05 Stores

Like

Now Assign your Locations to your Company

Example

Company TATA have locations in Pune, Hyderabad and Mumbai

As we created Locations (Personnel Areas) now assign to your Company

(Company Code)

Go to Human Resource Management

Go to Assignment of Personnel Area to Company Code

Now you will bale to see all the Personnel Area

FIND YOUR Personnel Area using POSITION ICON

Example 1001 is your Personnel Area and in the same line see Company code is black which mean you have to fill your company

code.

Select your company code using F4 (Drop down list) - one new window

will come with all existing company codes.

Select YOUR COMPANY CODE, Example ZCRP is your company code,

which your assigned to 1001 personnel area.

And same way assign Country grouping, like for India 40 using F4

ENTER & SAVE, same way all your personnel areas to respective company

code (if your have only one company code assign all your personnel areas

to same company code.

SAVE

Topic 10: Employee Groups & Sub-groups

An organizational unit for which personnel provisions can be specified. Example Employee groups:

Active employees

Employees who have left the company

Company pensioners

Employee subgroups within the "active employee" group:

Industrial workers

Commercial employees

Technical employees

More info:

Employee Group - The employee group subdivides employees into

various categories

Example

1. External

2. Active 3. Pensioner

Employee Subgroup - Employees are differentiated further

within the employee group. Active employees are differentiated according to their status - trainee, hourly wage or

salariedemployee etc.

The employee subgroup grouping for the Personnel Calculation Rule

allows you to define different payroll procedures for different employee subgroups, for e.g. you can specify whether

anemployee pay should be accounted on an hourly or monthly basis.

Navigation for config :

IMG -> Enterprise Structure -> Definition -> Human

Resources Management

-> Employee Groups -> Employee Subgroups

Example for Employee Group

S

No

Employee Group

Code

Employee Group Text

1 T Top Management

2 M Manager

3 E Executive

4 O Officer

5 S Staff

6 C Trainees

Example for Employee Sub-Group

EmployeeGroup

Code

EmployeeGroup

Code

EmployeeSub-

Group Code

Employee Sub-

Group Code

T Top Management T1 Managing Director

T2 General Manager

M Managers

M1 Manager Operation

M2 Manager Commercial

M3 Dy. Manager

M4 Asst.Manager -

Operations

M5 Asst. Manager -

Commercial

E Executive

E1 Sr.Excutives

E2 Executives General.

E3 Supervisor

E4 Operators

E5 Chemist

S Staff

S1 Fitters

S3 Cashier

S4 Clerk

F Trainees F1 Trainees

Assignment is must as you seen above example.

Navigation for config :

IMG -> Enterprise Structure -> Definition -> Human

Resources Management

-> Employee Groups -> Employee Subgroups

Press Execute

Now you able to see all existing entries, you can use the same and if you need more can add using New Entries.

Like A : Active Employees

Enter and SAVE

EEGrp Name

of employeegrp

1 Active employee

2 Retiree/pensioner

3 Early retiree

4 Interns

5 Terminated

6 Inactive employee

7 Temp/Seasonal

8 Ex-patriate

9 External employee

A Trainee

C Contractor

F Full-time

Permanent

I Intern Transferee

P Part-time

Permanent

T Temp

X Intern Assignee

Now we will create Employee Sub-groups

Press Execute on Employee Sub-groups

You will get one new screen with two options

Select on Second option to Create Employee Sub-group

Once you Press Choose, you will able to see all existing Employee Sub-groups.

Press New Entries to create New employee Groups

Here an example

Do the practice with provided examples.

Now we have to Assign Employee Group to Employee Sub-groups

Press Execute

Here the Employee groups and Employee Sub-groups

Go to NEW ENTRIES to assign your employees groups and employees sub-groups

Just enter, Like A & S1

Very important

A and S1 both may have other country also which you implementing.

So the Assignment is takes at ALLOWED

Just TICK which country these Employees comes under. Like USA

Same for A & S2

The same may also with other country like 04 Spain if that TICK mean

the same A and S2 belongs to both USA & SPAIN

Here the total assignment

Personnel Structure

The Personnel Structure represents an employees position in a company from the individual employees view and contains the employee group and employee subgroup. The employeegroup is the

primary subdivision of personnel and allows groupings that are required for Payroll, Benefits, and Time processing. The

employee group an employee is assigned to generally is based on the nature of their employment. The SAP Best Practices for

HCM USA employee structure has been designed to support internal, retired and external persons. Internal persons are defined

within the employee groups Employee and Other. The employee subgroups are a subdivision of the employee group and

are used to further define the employee.

The SAP Best Practices for HCM USA does not use all of the

standard Employee Groups delivered by SAP. The following delivered employee groups and subgroups are

assumed to be the most commonly used.

he client can add, copy or delete employee groups and subgroups to

meet their requirements.