STRUCTURE of SAP - HR

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Contents
Organizational assignment


ffice:smarttags" />Enterprise structure

• Client
• Company Code
• Personal Area
• Personal Sub-area
• Organizational key

Personnel structure

• Employee group
• Employee subgroup
• Payroll area
• Organizational key

Pay scale structure

• Pay scale type
• Pay scale area
• Employee subgroup grouping for collective agreement provisions
• Pay scale group
• Pay scale level

Wage types

• Primary Wage Types
• Secondary Wage Types

Note;
The organizational key can consist of elements from the enterprise structure and personnel structure.




Organizational assignment

• A Human Resource Management system must be able to depict the organizational hierarchies and relationships between employees.
• Flexible planning and the setting up of human resources sub areas at the different organizational levels are also necessary. These sub areas include:
  • Enterprise structure
  • Personnel structure
  • Pay scale structure
  • Wage types
  • User authorizations

You can differentiate between enterprise and personnel structures by allocating different groupings or combine them by allocating the same groupings. You define the time, pay scale, and wage type structures within these groupings. This ensures that the conditions stored in the time, pay scale, and wage type structures apply to all of the employees assigned to the same enterprise and personnel structure.
Enterprise Structure
Definition
Structure of company according to personnel administrative, time management and payroll perspectives from the point of view of your own company
Structure


The enterprise structure in Personnel Administration consists of the following:

• Client

The client is, in accordance with commercial law, an organizational and data technical isolated unit within the R/3 System, with separate master records and its own separate record of tables.

• Company code

The company code is the smallest organizational unit of external accounting in which a complete and isolated financial accounting can be created.

• Personnel area

The personnel area is an organizational unit; the personnel area is only used in Personnel Administration and is unique within a client.


Personnel areas are sub-divided into personnel sub areas. A pay scale area, a pay scale type and a public holiday calendar are precisely defined for a personnel sub area.

• Personnel subarea

The personnel sub area is only used in Personnel Administration.


Groupings are used for validation of master and time data. Groupings are also used to check the plausibility of data that you enter.

• Organizational key

The organizational key enables you to define the organizational assignment more exactly. The organizational key can consist of elements from the enterprise structure and personnel structure.

Personnel Structure
Definition
Describes an employee’s position in a company from the individual employee’s view
Structure


The personnel structure can be considered from two perspectives:

• administrative perspective
• organizational perspective

The administrative personnel structure consists of the following elements:

• Employee group
• Employee subgroup
• Payroll area
• Organizational key

Employee group
Each employee group is defined with one-digit identification.


The employee group has the following organizational functions:

• Employee groups allow you to generate data entry default values, for example, for the payroll accounting area or an employee’s basic pay.
• Employee groups serve as selection criteria for reporting.
• Employee groups constitute an authorization check unit.

Employee subgroup
Personnel calculation rule(control whether an employee’s remuneration is calculated on a monthly or hourly basis)

Wage types (determine which wage types are permissible for which employee subgroups using the employee subgroup grouping for the primary wage types)

Collective agreement provision(you restrict the eligibility of pay scale groups, so that only certain pay scale groups are valid for specific employee subgroups)

Work schedules(determine which work schedules are permissible for which employee subgroups using the employee subgroup grouping for the work schedule.
Determine which work schedules are permissible for which employee subgroups using the employee subgroup grouping for the work schedule)

Appraisal criteria (set up appraisal criteria dependent on employee subgroup using the employee subgroup grouping)
The employee subgroup enables you to define data entry default values, for example, for the payroll area or an employee’s basic pay.
The employee subgroup is a selection criterion for evaluations.
Employee subgroups are an authorization check unit.
Payroll area
The payroll area is an organizational unit in the Human Resources department which can be defined for a unified payroll area. Based on organizational assignment criteria, all of the employees who are accounted simultaneously in the payroll are assigned to the same payroll area. In Personnel Administration Customizing, the payroll area is defined by a two-character, alpha-numeric code.


As a rule, the payroll is run for payroll areas. The following information is provided for payroll via the payroll area:

• the number of employees for whom a payroll run is to be run
• the specific payroll dates

The number of employees is determined by the info type Organizational Assignment (0001), which is where the employee’s payroll area is stored.


The specific dates for which the payroll runs are determined as follows:

• The general payroll period is stored as a period modifier for each payroll area. For example, payroll can be performed on a monthly, semi-monthly, bi-weekly, or weekly basis.
• The exact dates are stored for each valid accounting period.
• The exact dates of the current payroll period are determined by using the payroll control record, which contains the period for which the last payroll was run, and the next period for which the payroll will run.

A payroll area can only be changed at the end of a period. For example, if an employee’s status changes from an industrial worker to a salaried employee in the middle of a month, and if these statuses are in different payroll areas, and if the payroll is run for calendar months, then the new payroll area cannot be entered until the beginning of the next month.
Organizational key
The organizational key consists of a part of both the enterprise structure and the personnel structure. The elements employee group and employee subgroup could also be relevant in forming the organizational key.


The organizational personnel structure consists of the following elements:

• Position
• Job
• Organizational unit

Do not confuse the organizational key with the organizational unit. They are not related in any way

Pay Scale Structure
Definition
Binds collective agreement elements with the primary aim ofdetermining each remuneration according to the collective agreement.
Structure


The pay scale structure is defined by the following elements:

• Pay scale type
• Pay scale area
• Employee subgroup grouping for collective agreement provisions
• Pay scale group
• Pay scale level

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Integration

You assign employees to the pay scale structure in the following info types when entering their master data:

• Basic Pay (0008)
• Recurring Payments and Deductions (0014)
• Additional Payments (0015)
• Wage Maintenance (0052)

Wage Types
Definition
Payroll and Personnel Administration objects used to differentiate between monetary amounts or time units thatare used in different ways to calculate the employee's remuneration. In the SAP System monetary amounts or time units that serve different business purposes, and that are processed in different ways during the payroll run, are delimited from one another using wage types.
The Standard Pay wage type has a different business background to the Union Dues wage type.
You enter the number of hours in the Overtime wage type. During the payroll run the Overtime wage type is processed in a different way to the Monthly Salary wage type.
The Overtime Hours wage type is included in a basis for calculating average values which is different to the Holiday Bonus wage type.
The standard SAP System contains a wage type catalog with a large number of different wage types for different business tasks.
Use

There are two categories of wage types:

• Primary Wage Types

Primary wage types include:

• • Dialog wage types that you enter when maintaining master data in the infotypes.

Dialog Wage Type: Primary wage type that you enter on-line
You enter a dialog wage type in the following infotypes in the SAP System:
· Basic Pay infotype (0008)
· Recurring Payments and Deductions Infotype (0014)
· Additional Payments infotype (0015)
· EE Remuneration Info infotype(2010)
· External Bank Transfers infotype (0011)

· Time Quota Compensation infotype (0416)

• • Time wage types that the system forms using time information or that you enter online.

Time wage types: Primary wage type that:
· The system makes available by means of time data information, if certain conditions that you defined previously have been filled
· You enter on-line
Time wage types are selected by the system using time wage type selection in Time Evaluation.
Time wage types are only written with a number (usually of hours) to the payroll program and, it is only at this point that they are evaluated.
Example
The standard system contains a model wage type Overtime Bonus 50%. You can use the customizing system to define conditions that must be met before the Overtime bonus 50% time wage type can be assigned to an employee.
Such conditions could be as follows:
· The employee must have worked at least 2 hours of overtime.
· The employee must have worked on a weekend.
· The employee must have worked on a public holiday.
Whenever the conditions you defined are met, the system automatically selects the time wage type Overtime bonus 50% for the employee in question.

• Secondary Wage Types

Secondary wage types are technical wage types generated by the system in Payroll during the payroll run.

These wage types have different purposes in the SAP system:

• A wage type is typically evaluated with a monetary amount that should be paid out to the employee or that they should withhold.
• It can also be used to cumulate several amounts for statistical evaluation.
• It can be used by the system in Payroll to temporarily store interim results, and to move from one step to the next.

The business task of a wage type determines whether it is entered online or is generated by the system, and how it is processed during the payroll run.
The Standard Pay wage type is used to assign the collectively agreed and fixed salary to an employee. It is therefore entered as a dialog wage type in the Basic Pay infotype (0008).
The Total Gross Amount wage type is used to cumulate all wage types that belong to an employee's total gross amount. It is therefore generated as a secondary wage type by the system during the payroll run.
The Standard Pay wage type is included in the Total Gross Amount wage type during the payroll run.
Structure
Fields

A wage type consists of the following fields:

• AMT (Amount)

In the case of a standard pay wage type, for example, it contains the amount that the employee should receive.

• RTE (Rate)

Contains the valuation basis therefore in the case of an hourly wage type the hourly rate, which should be multiplied by the number of hours performed by the employee, during the payroll run.

• NUM (Number)

In the case of a time wage type, for example, it contains a number of time units such as hours, which, during the payroll run, should be multiplied by the valuation basis that you specified for this time wage type in Customizing.
Depending on the wage type, one of the fields can be filled or entries can be available in two or all of the fields.
Wage Type Characteristics

A wage type is identified by the following characteristics:

• Characteristics that control the entry of the wage type on-line, for example.

• • Can data be entered on-line for an infotype, personnel area, or employee subgroup?
  • Is a wage type regarded as a payment or a deduction?
  • Direct or indirect valuation?
  • Can the amount be overwritten on-line when an indirect valuation is performed?
  • Rounding?

• Characteristics that determine how the wage type will be processed during the payroll run or the evaluation of the payroll results.

• • Processing Class
  • Evaluation Class
  • Cumulation wage type, in which the wage type should be included
  • Basis for calculating average value, in which the wage type should be included
  • Valuation basis, in which the wage type should be included

Wage Type Groups
Several similar wage types are grouped together in wage type groups