AN INSIGHT INTO..

HR Module

THE SCOPE

ORGANIZATIONAL MANAGEMENT PERSONAL ADMINISTRATION PERSONAL TIME MANGEMENT PAYROLL PROCESSING

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ORGANIZATIONAL MANAGEMENT

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ORGANIZATIONAL MANAGEMENT

Organizational Management enables you to map your companys organizational structure exactly and puts the facts at your fingertips when you need them allows you to simulate and experiment with future organizational changes in any number of plan scenarios on a decentralized basis.

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Structures in HR

Organizational Structure Organizational units, jobs, positions. Enterprise Structure Company code, personnel area and personnel sub area. Personnel Structure Employee group ,employee subgroup and payroll area.
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Organizational Structure

Organizational Unit. Organizational Unit is defined as an organizational grouping of employees ,such as a department. They differ from other units in an enterprise such as Personnel Area, Company Code, Business Area. We can depict location / functional unit of an Organization using Organizational unit.

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Organizational Units

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Organizational Assignment

Components of Organizational Unit

Job Job is defined by the standard description of the function to be performed and the task to be dealt by an individual person. Position Position is defined as an organizational grouping of work that can be performed by one person. It can comprise one or more jobs. Person The Personal information of the Employee who is holding that Position
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Jobs

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Positions

Manager (JOB)

Sales Manager

Production Manager

Purchase Manager

3 Different Positions for the JOB Manager

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Objects & Relationships

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Enterprise Structure
Elements of Enterprise Structure

Company code The company code is an independent company with its own Accounting unit- a company which draws out its own balance sheet. Personnel Area Representation of large divisions or separate Geographical Areas of a companies structure. It is a subunit of a company code. Personnel Sub-Area It represents a further sub-division of Personnel Area. It specifies the public holiday calendar , assigns a legal person for Payroll and Income Tax grouping.

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Enterprise Structure

Whats the Rationale (for deciding on Enterprise Structure)

Reporting Requirements Groupings for Time management Groupings for Payroll

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Personnel Structure

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Personnel Structure-Employee Subgroup

Enterprise Structure

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Personnel Structure

Payroll Area The Payroll area , is a grouping of employees on the basis of the frequency & time of payment .

It Groups Employees for Payroll Processing

Same Day Same Period Same Pay Date

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Personnel Structure

Whats the Rationale (for deciding on Personnel Structure)

Reporting Requirements Pay Component Definition Groupings for Time management

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Functions of Organizational Management

A. Efficiently Creates and Maintains Your Organizational Plan.

B. Graphically edits entire organizational plan or selected sections of it using structural graphics. Structural graphics also allows you to select individual objects in the plan for editing. Eg: If the company is going for an expansion or any take over it becomes easy to modify your existing structure.

C. Can append an additional planning feature in Organizational Management,

status indicators, to the objects in structure. You can optimize planning with the planning statuses planned, submitted, approved, rejected, and active.

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Functions of Organizational Management

D. Organisational structure provides the information regarding Reporting

structure and Staff Assignment.

E. Enterprise Structure provides the information pertaining to particular location

F. Personnel Structure provides the information regarding divisions of employees.

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PERSONNEL ADMINISTRATION

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PERSONAL ADMINISTRATION

A highly efficient component integrated within the R/3 Human Resource Management System. It can be used to manage all aspects of modern personnel administration. Free yourself from routine, time-consuming, and cost-intensive administrative tasks and devote more time to more critical activities. R/3 Personnel Administration allows you to create and process employee data more precisely and efficiently. Its simple, process-oriented entry procedures and user-friendly online dialog ease your workload considerably. It automatically checks data plausibility for exact dates upon entry into the system and logs all employee information. This allows you to track the chronology of data at all times and forms the basis for sound HR decisions at all levels.

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PERSONAL ADMINISTRATION

Take advantage of R/3 Personnel Administration as the core of your HR processes and create a state-of-the-art, flexible, and efficient HR department with, Customized Master Data Administration Unrestricted Data History Open to Customer Solutions and Third-Party Applications. Reassignments and status changes.
Performing Transfers Performing Organization Reassignments Data entry for relieving employees. Guarantees Transparent and consistent data.

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INFOTYPES Enterprise Central Components in Personnel Administration offers a range of menus in which Infotype are grouped together by content.

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REPORTING

Extensive Reporting plays a central role in Personnel Management. Enterprise Central Components-Personnel Administration provides with numerous tools and utilities to efficiently and flexibly evaluate HR data. The standard system contains numerous reports that support different types of evaluations. Depending on the available HR data, you can perform the following evaluations : Lists (for example, employee directory, family members, anniversary of years of service ) bank details,

Statistics (for example, staffing levels, nationality, age, wage, and seniority) SAP Business Graphics enables you to display and edit your evaluation results in a graphic. Some report results can then be processed in other PC programs, such as Microsoft Word and Microsoft Excel.

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REPORTING

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Integration Between Organizational Management and Personnel Administration

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TIME MANAGEMENT

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TIME MANAGEMENT

The Enterprise Central Components-Time Management component is an efficient and adaptable business application that you can use to complete routine personnel administrative tasks, such as: 1. Determining requirements and planning employee shifts 2. Recording Time data 3. Processing data from time recording systems or self-service applications. 4. Checking working time assignments against internal company policies, collective agreements and other legal regulations that apply to employee working time. 5. Evaluating the time data used for bonus and overtime wage types.

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TIME MANAGEMENT

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TIME MANAGEMENT

Enterprise Central Components system automatically Performs Checks During Time Recording: 1.Checks the employee working times entered against available time credits. 2.Monitors whether any of the attendances entered fall on any scheduled days off. 3.Prevents entry of data records that could collide in the system. 4. Enterprise Central Components evaluates employees time data and compares it against internal company policies, collective agreements and other regulations in place. This System approves overtime, accumulates time in lieu, and issues bonus wage types, By using the Time Management Pool, the personnel administrator can easily correct or change the time data recorded for the employees for whom system messages were issued. Overtime requests may also be approved using the Time Management Pool, and any missing time postings can be re-entered at any time using this flexible maintenance utility. At the end of a month or any applicable pay period, employees receive statements regarding their time accounts. Enterprise Central Components-Payroll Accounting accesses the time wage types created during time evaluation and uses them to determine gross pay for employees.
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Time Management - Advantages

Analyze the daily information of employee attendance & absence Ease of modification of existing absence and attendance rules. Time Management data is generated in pairs , therefore it is easy to detect and repair any discrepancy in the employee time data Retroactive accounting : if some information is backdated then the original data can be changed & the system automatically recalculates the time data in order to generate desired compensation. Each rule that you apply has validity period attached to it . If required the system is capable of generating a history of changes that have been made to set master data . If you wish to define how employees work on weekdays and holidays This holiday calendar help you assign different rates that are applicable to weekly off and public holidays. The evaluation data can be simulated and checked for error then finally corrections can be made . Also if there is some error in the time evaluation for some employee ids . Then the time data can be again corrected and the time evaluation is automatically run only for those employee id .

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Introduction to Payroll

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What is Payroll?

Payroll is used to calculate remuneration for work performed by individual employees.

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Payroll

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Payroll Process Over View

Gross Pay

Payment Deductions

Net Pay

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Payroll Process

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Calculation of Wage Elements

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Statutory & Voluntary Deductions

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Net Pay/Gross-to-Net Calculation

Amount paid to employee after withholding taxes, benefit contributions & other deductions

Earnings

Less Deductions

Net Pay

Savings Plans (401k) Garnishments Benefits Flexible Spending Accounts (FSA) Loans Taxes

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Payroll Prerequisites

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Payroll Cycle

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Payroll Integration

MASTER DATA PAYROLL

TIME MANAGEMENT

FI/CO

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Wage Types

Mona Roise

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Mona Roise

2048

Wage Types allow for the assignment of payments and deductions and the control of payroll programs.

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Valuation of Wage Types

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Some Payroll Infotypes

IT 0001 Organizational Assignment IT 0003 Payroll Status IT0007 Planned Working Time* IT 0008 Basic Pay IT 0009 Bank Details IT 0014 Recurring Payments/Deductions IT 0015 Additional Payments
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IT0008 - Basic Pay

INR

INR

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IT0014 - Recurring Payments/Deductions

INR

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IT0015 - Additional Payments

INR

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Payroll Areas

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Retroactive Accounting

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Payroll processing - Advantages

Ability to process payroll for employees using data from SAP Personnel Administration, and Time Management Payroll run (regular and off-cycle)

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Payroll corrections Payments Remuneration Statements Posting to Financial Accounting Offers a number of standard payroll reports Tax Reporter component allows you to generate all required standard forms form 3A , Form 6A, Form 16 ,Form 12A PF Form 5 PF Form 10 PF Labour Welfare funds Gratuity report Professional tax reports Pension Reports Form 24 Income Tax Form 217(2A)

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Payroll processing - Advantages

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Easy method of pay scale reclassification Automatic calculation of pay scale increase There can be separate cost assignment of each wage component Easy and efficient method for administering bonus Ease of calculating and administering arrears. Strongest Feature is Retro active accounting Quick and timely payroll processing Efficient tools for payroll correction Generating on demand checks Options to simulate and correct the payroll before actual processing Automatic transferring of payroll results to FI/CO.

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