Personnel Cost Planning

Overview
• Personnel Cost Planning has changed dramatically from
earlier releases
• Explore these changes and create a cost planning
simulation
• Discuss integration points and posting
Objectives
After completing this unit, you’ll be able to:
• Generate planned costs for employees and positions
• Create cost plans for a part of or for the entire enterprise
• Have line managers execute detailed planning
• Release cost plans for stored processes
• Transfer plan data to Controlling
• Generate budgets for Training and Event Management or
Compensation Management
Contents
• Personnel Cost Planning
Lesson Overview
• Introduce the new Personnel Cost Planning component
Lesson Objectives
After completing this lesson, you will be able to:
• Generate planned costs for employees and positions
• Create cost plans for a part of or for the entire enterprise
• Have line managers execute detailed planning
• Release cost plans for stored processes
• Transfer plan data to Controlling
• Generate budgets for Training and Event Management or
Compensation Management
Basics
• Main Emphases of New Personnel Cost Planning and Simulation:
• Improve data basis for planning
• Payment information for employee
• Payment information for position
• Tools to generate and derive payment information
• Increase functionality of cost items
• Derive additional cost items
• Plan amounts
• Limits
• Decentralized planning
• Simple planning interfaces for line managers
• Open system
• Interfaces for customers (various BAdIs)
• Integration with Controlling, Compensation Management, Training, and
Event Management
Basics
• The extensive database available with the new Personnel Cost
Planning component provides user with greater planning
security
• The data supports Personnel Management and strategies that
affect the entire enterprise
• Planned versus actual comparisons allow user to monitor
planning continuously and to detect deviations, thereby
allowing user to implement countermeasures at the right time
• Web interfaces that are easy to use increase acceptance and
allow organizations to decentralize parts of the planning
process
• This reduces the workload placed on the Personnel department,
while also increasing cost awareness in other areas
Basics
• Integration with Controlling, Compensation Management, and
Training and Event Management supports business processes
across departmental borders
• This increases the effectiveness of processes within the enterprise
• User can find the new personnel cost plan in the SAP Reference
IMG under: Personnel Management → Personnel Cost Planning
and Simulation
• Using a control parameter in Customizing, user can specify
whether user wants to use the old Personnel Cost Planning
component or the new Personnel Cost Planning and Simulation
component
• In the standard SAP delivery, the value "1" is entered as default,
that is, the old Personnel Cost Planning component
Personnel Cost Planning and
Simulation
• Personnel Cost Planning and Simulation is based on a broad database and is
integrated with other applications
• This ensures that business processes are supported across departments
• User can obtain the payment information that user uses to create personnel cost
plans from different sources
• These sources include basic payments, payroll results, simulated reclassifications,
recurring payments and deductions, and one-time payments
• User can also use the planned remuneration data for positions/jobs for planning
• User can also use average calculations
• Managers have the option to make additional adjustments to the plan
• A Web-based frontend is available for this
• Created cost plans can be extracted for analyses in the SAP Business Information
Warehouse (BI)
• After user releases a plan, the data can be used in mySAP ERP HCM:
• To create salary budgets for Compensation Management
• To create training budgets for Training and Event Management
• User can also transfer the data to Accounting
Personnel Cost Planning and
Simulation
The Planning Process and The
Roles Involved
• Embedded in a strategic personnel management concept, user
can implement the new component to adapt Personnel Cost
Planning to the strategic aims of company
• This means user can use suitable actions to react to changes in the
company strategy at any time and, for example, adapt the planning
of new compensation models to company or market requirements
• Essentially, Personnel Cost Planners and managers are
involved in the personnel cost planning process
• Personnel Cost Planners plan, execute, and monitor Personnel
Cost Planning
• Managers can execute decentralized detail planning and, in this
way, adjust the planning to meet the department's requirements
The Planning Process and The
Roles Involved
Planning Preparation Step
• In Personnel Cost Planning the database for planning is
greatly improved and includes the following:
• Payment information for employee
• Payment information for position
• Tools to generate and derive payment information
Planning Basis
Planning Preparation – Scenarios
• User defines the planning context to describe the business
relevance of a personnel cost plan
• User can define one or more planning contexts
• User can include several planning scenarios in a planning
context, for example, a standard scenario and a worst-case
scenario
• User defines scenarios in Customizing to depict different
assumptions
• Scenarios can only depict monetary assumptions
• User depicts assumptions based on organizational changes using
the organizational structure
• User performs planning runs based on planning scenarios
Planning Preparation – Scenarios
Planning Preparation – An Example
• First, user must define organizational groupings for the cost items
• In the scenario, groupings are used to distinguish between different values
for different employee groups for a specific cost item
• The scenario differentiates between two types of value definition:
• Values for a cost item (percentages or absolute amounts)
• Limits for valuation (highest and lowest values)
• The limit values define the upper and lower limits for cost items
• This ensures that a cost item does not obtain values higher than the upper limit or
lower than the lower limit
• User subsequently uses the groupings in the features:
• HCP01(Organizational Grouping of Employees for Cost Items)
• HCP02(Organizational Grouping of Organizational Objects for Cost Items)
• Valuation (Personnel Cost Planning and Simulation)
• Assign amount to a cost item
• The SAP system always valuates cost items in the planning run
• In Customizing, user can specify whether the SAP system should valuate a cost
item as absolute or relative, thereby always assigning a cost item a fixed or
percentage value
Planning Preparation – An Example
Data Collection Step
• Data collection is the first step of the planning process
• User has to do this before the actual planning run
• Before user starts data collection, user has to determine the payment
data user wants to be considered for personnel cost planning
• User can perform data collection for employees, organizational units, jobs, and
positions
• For example, user can base his personnel cost plans on his employees'
basic pay, recurring payments and deductions, and additional payments
• User can also use real or simulated payroll results to calculate costs for his
employees
• Or user can use payment information on jobs and positions to calculate the
cost plan
• User can also use cost data for organizational units, for example, training costs
• Data collection provides the data needed for planning
• During data collection the system writes data to the Planning of Personnel
Costs infotypes
Data Collection Step
• The standard system provides different data collection methods
user can use as sources of information
• For greater flexibility, user can also create his own data
collection methods, which collects data from his (own) infotypes
• Data collection reports are available for data collection
• The reports allow user to collect data on employees and
organizational objects
• The SAP system saves the collected data in the Planning of
Personnel Costs infotypes (IT 0666 or IT 5010)
• This makes the collected data available for cost planning runs
• User can also maintain the Planning of Personnel Costs infotypes
(IT 0666 or IT 5010) manually
• The aim, however, is for the system to create infotype(s)
automatically
Data Collection
Data Collection for Employees
• User can enhance the standard data collection methods to
suit specific customer requirements using BAdIs
• Using the data collection report, user creates the Planning
of Personnel Costs infotype (IT 0666) for each employee
Data Collection for Employees
Data Collection for Employees – An
Example
• Planning runs are based on data collection
• User can perform data collection for each employee (IT
0666) or related to organizational objects (IT 5010)
• User can run a report to delete data collection
Data Collection for Employees – An
Example
Data Retrieval Organizational
Objects
• User can also perform data collection for organizational
objects
• User can use data collection reports in productive mode
or in test runs
• User can have the system write a log
Data Retrieval Organizational
Objects
Data Retrieval Organizational
Objects – An Example
• In the next slide example, the system uses to calculate
costs for a specific job (developer)
• The system calculates an average
• The system derives cost data from directly or indirectly
related objects
• User can apply weighting according to employment
percentage
Data Retrieval Organizational
Objects – An Example
Cost Planning Run Step
• Executing and administrating cost planning runs:
• Create personnel cost plans with appropriate properties
• Based on these plans, user can perform scenario-specific cost
planning runs
• This enables user to simulate the effect of certain planning
assumptions on his future cost situation
• Comparing the results from different scenarios enables user to obtain
a quick overview of possible future costs for the enterprise that may
arise as a result of realizing particular actions
• To ensure that cost planning runs continue to satisfy the current
requirements of the enterprise, user can change scenario-specific
settings at any time under Current Settings
• The planning runs in the new Personnel Cost Planning and
Simulation component largely correspond to the planning
groups of the old Personnel Cost Planning component
Cost Planning Run
Planning Methods
• The standard SAP system supports two planning methods:
planning with or without employee data
• If user plans with employee data, the system takes into account
holder data if the position is or can be occupied
• If the position is not occupied, the system performs the valuation
according to vacant positions
• If user plans without employee data, either the system takes
position data into account or an evaluation path facilitates an
alternative data search, for example, Planning Costs for Jobs (IT
5010)
Planning Methods
Managing Personnel Cost Plans
• Executing a planning run comprises two steps:
• Create a plan: General properties (for example, name of
plan), data source, define detailed planning period
• Execute a personnel cost planning run that creates the
planning data
Managing Personnel Cost Plans
Personnel Cost Planning Run – An
Example
• To perform a planning run, choose from the SAP Easy
Access Menu Human Resources → Personnel
Management → Personnel Cost Planning → Cost Plans →
Manage
Personnel Cost Planning Run – An
Example
Detail Planning Step
• After the system has executed the cost planning run, the line
manager responsible or specialists in the department can
perform detail planning
• Both roles can use a specific Web user interface to perform
detail planning
• They can access detail planning in the portal or in the SAPsystem
• In the Implementation Guide, user can use a control parameter
to store an evaluation path that the system uses to determine
the employees responsible for an organizational unit
Detailed Planning
Integration and Reporting Step
• User releases finalized personnel cost plans for further
processing
• User thereby provides data for other applications
• Overall budget in Controlling
• User can simulate the data transfer before the data is actually
posted to Controlling
• Check algorithms guarantee that the data is consistent and can be
transferred
• If, at a later point in time, user makes changes to the cost plan,
user can also transfer these changes to Controlling
• Additional applications:
• Budgets for Compensation Management
• Budgets for Training and Event Management
Integration and Reporting Step
Data Transfer to Controlling – An
Example
• Integration with Controlling is only possible if the CO
system is Release 4.6B or higher
• User has to release cost plans to enable data to be
transferred to Controlling
• When data is transferred, source documents are created
in HR and original documents in CO
• After data has been transferred, the results are displayed
in a planning report
Data Transfer to Controlling – An
Example
Budget Provision
• If user uses Compensation Management, user can transfer
planning data to these components to generate
compensation budgets
• Only absolute budget values are taken into account
• If user uses Training and Event Management, user can
transfer planning data to these components to generate
training budgets
• To provide a budget for Compensation Management and
Training and Event Management, user does not have to
release the cost planning run
Budget Provision
Reporting
• The main focus of reporting is the SAP Business Intelligence
• In the HCM system, user can only perform simple data analyses
• All reports are based on the technology of the SAP List Viewer
• Therefore, external tools support the filter, sort, subtotal, and
export functions, for example
• Reports under Personnel Cost Planning → Information System:
• Plan data: Reporting and Analyzing Cost Plans
• Numerous plan views are supported
• Planned Cost Comparison: Compares two personnel cost plans
• Original documents: List all plan data (in CO format) that user can
post, or that user has already posted to Accounting
Reporting
• Tools under Personnel Cost Planning → Tools:
• Display log: Displays saved error logs that were created during
processing
• The system usually stores logs for 30 days
• Delete data basis: Deletion of cost planning infotypes
• Manage data from Payroll: Display and delete payroll results
provided during payroll posting for personnel cost planning
• Display plan data: Technical analysis of cost plan data
• The main display is the database view
• Display original documents: Technical analysis of controlling-
relevant personnel cost plan data
• The main display is the database view
• Many of these reports are also available via the transaction
Managing Personnel Cost Plans
Reporting
Unit Summary
You should now be able to:
• Generate planned costs for employees and positions
• Create cost plans for a part of or for the entire enterprise
• Have line managers execute detailed planning
• Release cost plans for stored processes
• Transfer plan data to Controlling
• Generate budgets for Training and Event Management or
Compensation Management
Question & Answers