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Overview of SAP Hr

On this page we have provided a brief description of SAP HCM (Human Capital Management), which is a module of SAP that deals with automation of operations in human resources (HR) departments of enterprises. here are modules for Finance Accounting, Controlling, Production Planning, Materials Management, Business Intelligence, Sales and Distribution, etc. The main modules of SAP HR are the Payroll and Time Management modules which are concerned with generating and managing payrolls and managing time for time-sensitive jobs.

Establishing the Enterprise Structure

  • Define company
  • Define company code
  • Assign company code to company
  • Business Area
  • Assign Company code to Company
  • Document Number ranges
  • Document Types
  • Field Status Variant
  • Tolerance groups for employees

General Ledger Accounting

  • Chart of accounts
  • Account group
  • Retained Earnings Account
  • Assign company code to chart of account
  • G/L accounts Creation

Personnel Area Setting

  • Define personnel areas
  • Assign personnel area to company code
  • Define personnel subarea

Personnel Structure

  • Define employee groups
  • Define employee subgroup
  • Define payroll area
  • Assign employee subgroup to employee group

Organizational Management

  • Create organizational unit
  • Setup number assignment for plan versions
  • Maintain number ranges in organizational management
  • Activate inheritance of account assignment features

Organizational Management

  • Set up transport connection
  • Integration with cost distribution
  • Maintain object types


  • Info type menu configuration
  • Create info group
  • Maintain country info types
  • Maintain subtypes


  • Relationship maintenance
  • Setup integration with personnel administration

SAP HCM Personnel Administration (PA)

  • Maintain number ranges for personnel number ranges
  • Maintain user parameters
  • Define employee attributes
  • Setup personal action type
  • Maintain personnel actions

Recruitment and Personnel Development

  • The recruitment cycle
  • Training and Events
  • Personnel Development
  • Hands On : Matching Profiles

Media Structure

  • Create advertisements
  • Create personnel officers
  • Application structure


  • Create controlling area
  • Assign company code to controlling area
  • Maintain controlling area setting
  • Maintain number ranges for controlling documents

Maintain version

  • Define profit center standard hierarchy
  • Define profit center
  • Create cost center
  • Cost center actual/plan/version
  • Create primary cost element

Creation of Holiday Calendar

Personnel Subgroup Grouping

  • Group Personnel Subareas for the Work Schedule
  • Group Personnel Subareas for the Daily Work Schedule
  • Define Break Schedule
  • Define Rules for Variants

Work Schedule

  • Define Daily Work Schedule
  • Define Period Work Schedules

Employee Benefits and Cost Management

  • Benefits
  • Hands On: Processing an enrollment
  • Personnel Cost Planning
  • Compensation Management

Time Management, Payroll and Travel

  • Time Management
  • Payroll
  • Hands On: Running a payroll
  • Travel Management

Information Display and Reporting

  • Human Resources Reports
  • Queries
  • Hands On: Creating an ad hoc query

Configuring an Organizational Structure

  • Create Objects
  • Essential Relationships
  • Create Description
  • Create Department/Staff
  • Add Relationships
  • Maintain Plan Data
  • Add account assignment to the company organizational unit
  • Account assignment features
  • Structure Maintenance

Configuring Positions

  • Configure Positions
  • Configure Reporting Relationships
  • Produce an Organizational Structure Report

Executing a Personnel Action

  • Hire an Employee
  • Make changes to Employee Master Data
  • Produce an Employee List report for the new employee

Using Features

  • Display Features
  • Process Feature Decision Tree

Understanding Planned Working Time Connection to Basic Pay

  • Display the HR Master Data
  • Planned Working Time
  • Basic Pay
  • Work Schedules Overview
  • Primary Wage Type and Employee Groupings

Defining Pay scale Structures

  • Customizing Project Administration
  • Process Feature Tariff: Decision Tree
  • Choose Activity
  • Change Pay scale-period parameter assignment
  • Determine work area
  • Create Basic Pay

Defining Wage Types

  • Create Dialog Wage Type
  • Understand Controls used to determine wage type assignment
  • Define feature LGMST to default wage type assignment
  • Setup indirect valuation

Performing Pay scale reclassification and Pay increases

  • Understand how to perform pay scale reclassifications
  • Configure a pay scale reclassification to a new pay scale level after employees have been in a pay scale
  • level for one year
  • Understand how to perform standard pay increases

Confirming the new master data configuration

  • Modify an existing organizational structure to add a new organizational unit and new position
  • Process a hire personnel action and confirm the functionality of the newly configured personnel sub area,
  • employee subgroup, pay scales and wage types

Payment Method

  • House Bank Creation
  • Check Number ranges
  • Paying company code
  • Payment method in country
  • Payment method in company code
  • Bank Determination

Integration of HR to FI
Pay Slip Process
Display T-code in SAP

Display the Implementation Process



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