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: