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SAP
in their everyday activities.
Vijeth Karthik
RUN Simple. SAP-R/3
Contents
A) Introduction ............................................................................................................. 4
SAP Developments in Versions - ..........................................................................................4
SAP R/1 (1972)............................................................................................................5
SAP R/2 (1979)............................................................................................................5
SAP R/3 (1992)............................................................................................................6
SAPERP (2004) ..........................................................................................................7
SAP HANA (2015)........................................................................................................9
How does SAP helpful in business actions? ........................................................................10
B) Understanding Functional Modules in SAP ............................................................11
SAP-HR module ...................................................................................................................14
A. Foundation ............................................................................................................14
B. Organization Management ...................................................................................16
C. Personal Administration ........................................................................................17
D. Time Management ................................................................................................20
E. Payroll ....................................................................................................................20
F. Global Employment ...............................................................................................22
G. Performance Management System ......................................................................22
H. Enterprise Compensation Management ...............................................................23
I. Reporting in SAP ....................................................................................................23
J. Authorization .........................................................................................................24
C) SAP Consulting process .........................................................................................25
SAP Single-phase Implementation Cycle - ..........................................................................25
SAP Multiphase Implementation .....................................................................................26
D) Business Problem Statement ...................................................................................27
Statement to the problem ...............................................................................................27
E) Solution for the Business problem- ..........................................................................27
Step by step process of creating enterprise structure .....................................................28
Some of the screenshots .................................................................................................31
Bibliography ..................................................................................................................33
SAP a German based company with lengthen as Systems Applications and Products in
data processing; German elucidate as Systeme, Anwendungen, Produkte. On start by 5
IBM engineers called Hopp, Wellenreuther, Hector, Tschira and Platnner in 1970s ad
hoc cerebration the want for the common software which works as common solution for all
Industrial & Corporate database requirements. There pristine intention was to provide
customers with the dexterity to interact with a common corporate database for a wall-to-wall
range of applications.
Now, SAP is known worldwide for its unique innovations that help the customers run their
business with high efficiency. Some of its facts and figures stand as follows More than
263,000 customers in 188 countries. More than 68,800 employees in more than 130
countries. Annual revenue (IFRS) of 1682 billion. Listed under the symbol "SAP" on stock
exchanges, including the Frankfurt Exchange & NYSE.
R1 1972
R2 1979
R3 1992
ERP 2004
S/4
2015
HANA
SAP R/1 (1972) Here R refers to Real-Time Data Processing and 1 refers to 1 layer
Architecture in which 3 layers called Presentation, Application and Database which
were installed in one System/Server.
SAP R/1
(1972)
SAP R/2 (1979) Along with their Dialogue Based Business application, was and a
mainframe which included again 3 layers called Presentation, Application and
Database where it was installed in 2 different servers.
SAP R/2
1979
Dialogue
Presentation Application Database
Based Server
Figure 3 - SAP R/2
SAP R/3
1992
A new dimension products based on net over. The new R/3 provide the capability to manage
financial, asset, and cost accounting, production operations and materials, personnel,
plants, & archived documents. It runs on a number of platforms including Windows 2000 to
latest versions & uses the client/server model. SAP has recently recast its product offerings
under a comprehensive Web interface, called mySAP.com, and added new E-Business
applications, including Customer Relationship Management (CRM) & Supply Chain
Management (SCM).
Figure 5 - mySAP.com
SAP-ERP
2004
Business All in
BusinessOne ByDesigned Business Suite
One
Figure 7 - SAP-ERP
Rapid Implementation
Lower Costs
Increased Productivity and cost control
Sound business designs
Scalability
2. By Designed Hosted version of SAP for SME. The cloud designed for small
businesses and subsidiaries of large companies. Uses two-tier ERP deployment
model; On the Premise (HQ.) & Cloud (Subsidiaries).
SAP HANA (2015) Its a Hybrid in-memory database that combines row-based,
column based & object-based database technology. It is optimized to exploit the
parallel processing capabilities of new multi-core CPU architectures and technologies.
SAP HANA is a data-source-agnostic and flexible application that enables customers
to analyze and process large volumes of data from SAP and non-SAP systems in real
time.
SAP HANA
2015
Inventory
Sales
Finance
CUSTOMERS
Centralized
System R/3
Production
Planning HR
Shop Floor
Vendors
Executive
Benefits of it
Eliminates the duplication, discontinuity & redundancy in data.
Provides information across departments in real time.
Provides control over various business process.
Increases productivity, better inventory management, promotes quality, reduced
material cost, effective human resource management, reduced overhead boosts
profits.
Better customer interaction, increased throughput. Improves customer services.
1. SAP FICO
2. SAP MM
3. SAP SD
4. SAP HR
5. SAP CRM
Organizational
Management
(OM)
Personnel
MSS Administration
(PA)
Time
ESS Management
(PT)
SAP
Compensation
Management
HCM Training &
Event
Management
(TM)
Workforce Recruitment
Planning (PB)
Personal
Development Payroll
Figure 12 - SAP-HCM
Organizational Management(OM)
Payroll
Recruitment (PB)
A. Foundation
In SAP as base we have two type of foundation as in the following figure below,
Administration
Foundation
Guides
SAP HCM
Implementation
Guides
Figure 14 - HR- Foundation
Administration Guides
They are intended for administrators who work with the product regularly. Some of its
transaction code are PA30 - Maintain HR Master Data, OOAC - HR: Authorization main
switch, OOSB -User (Structural Authorization), PRMS - Display HR Master Data, PBAW -
Maintain T750B, PBAE - Applicant pool. SAP implementation partners and SAP
consultants should also see the Implementation section below,
Implementation Guides
These are available for SAP implementation partners and SAP consultants.
Document Management
Implementing Business Rules in SuccessFactors
Instance Synchronization - Enabling and configuring instance synchronization
Metadata Framework (MDF)
Role-Based Permissions (RBP)
SAP HANA Cloud Platform, Extension Package for SuccessFactors
Scheduled Job Reporting Tool
Talent Search
B. Organization Management
Its a sub module of SAP which enables the organization to:
Depict the organization and reporting structure and current organizational plan
Analyze Current organizational plan
Create additional organizational plan
Create effective workflow management
An organizational plan can be made with many object types, although the five basic
Object types are the building blocks.
C. Personal Administration
It is a sub-module of SAP-HCM. It handles the task of administration of Employees related
data. It saves time and cost by easing regular administrative task on employee related data and
functions.
It stores the complete employee related data in a structured way and automatically
checks the integrity of data.
Using Personnel Administration, employee administration will be easy and effective.
It manages the functions like Employee Master Data maintenance, payroll calculations,
employee benefits, their personal data etc.
It also helps to track various details like cost and compensations spend for employees.
It helps he large organizations to deal the employees in a standardized way.
All the data about an employee will be stored in HR info-types.
Administrator can search, edit, and delete the records.
Design Enterprise Structure in Personal Administration
17
Structures in PA
Enterprise Structure
Personnel Structure
Organizational Structure
Enterprise structure It is bifurcation of the employees according to their work location and
Geographical region
E. Payroll
You can use this component to calculate remuneration for work done for each employee. The
system calculates the gross and net pay, which comprises the individual payments &
deductions that are calculated during a payroll period, and are received by an employee. The
payments and deductions are included in the calculation of the remuneration using different
wage types. After the remuneration payroll you can carry out various subsequent activities.
Those are like remuneration statement, Lists and evaluations.
Prerequisites of Payroll
Data Required for Customizing Payroll
Enterprise structure (Personnel area, Personnel sub area)
Organization Management
Personnel Administration (Payroll area, Control Record)
Time Management (Infotype 0007)
Payroll procedure in the Company
Taxes and Statutory compliances
Payroll is based on payroll driver; the country specific payroll drivers take the statutory and
administrative regulation of a country into account. Since the payroll driver has a module
structure, you can use the customizing functions to quickly modify the payroll procedure to
meet the requirements of your enterprise.
Payroll driver - you can use run payroll. In SAP payroll system, you have country specific
payroll drivers with the technical names.
1. RPCALCX0 - It contains No data about TAX social insurance regards for NET
remuneration
2. HXXCALC0 - It contains data about Tax and social insurance regulations for net
remuneration.
Note - "X" is the country specific.
Ex - USA - RPCALCU0, India - HINCALC0
Long-Term Incentives
Administer LTI processes such as granting, vesting, life events, and taxation.
Budgeting
Create and maintain monetary and non-monetary budgets for the compensation
planning and LTI granting process.
Job Pricing
Export employee salary data for participation in salary surveys.
Import salary survey data and create market composite results.
Age and weight market data, compare internal and external pay and adjust company
pay structure if required.
I. Reporting in SAP
SAP Human Resources provides you with more than 200 standard reports. They enable you
to perform standard reporting simply, and without you having to spend time and money on
development. This section gives you an overview of the standard reports that are available in
the following areas of Human Resources Management:
Personnel Management
Time Management
Payroll
Training and Event Management
Organizational Management
The term report is used in the HR Reporting manual to mean executable programs that read
data from the database and then report on the data without changes being written to the
database. Reports in HR can be ABAP reports or queries.
Activities
A report is usually executed as follows:
1. You start the report from the SAP Easy Access menu, an info system, an application,
or the ABAP Editor, for example.
2. This takes you to the selection screen, in which you enter the required selection
parameters. By doing so, you determine the conditions that apply when the report is
executed. If you only want to report on a specific group of employees, for example,
you enter an organizational unit.
3. You start the report.
J. Authorization
In certain contexts, you may need several authorizations to perform an operation in the SAP
system. The resulting contexts can be very complex. The SAP authorization concept has been
realized on the basis of authorization objects to provide an understandable and easy-to-follow
procedure. Several system elements that are to be protected from an authorization object.
Authorization objects enable complex checks with multiple conditions for an authorization
that allows the user to perform an action. An authorization object groups up to ten
authorization fields that are checked in anANDrelationship. For an authorization check to be
successful, all field values of the authorization object must be maintained in the user master
data. Authorization objects are assigned to object classes for purposes of clarity. The
authorization objects for mySAP HR belong to the HR (Human Resources) object class.
You can display or edit the authorization objects and their fields using transaction SU21. You
can also use this transaction to create new object classes and authorization objects. The
authorization objects of the HR (Human Resources) object class have, as with all SAP
authorization objects, up to ten fields that are read by the system during an authorization check.
The P_ORGIN object (HR: Master Data) used in the standard SAP system consists of the
following fields:
Table 1 - Authorization
SUBTY Subtype
Project Preparation Since a SAP implementation intends to map the organization processes
to the ones defined by SAP, the implementation needs to have on-board people with complete
knowledge of the organization business processes. The project preparation phase, amongst
other things, aims to identify this team.
Business Blueprint A business blueprint includes what modules of a SAP product would
be used and the mapping of the existing business processes to the processes provided by SAP.
Testing The changes made in the realization phase need to be tested in isolation as well as
in a consolidated manner using real-time data. This is done in the testing phase.
Final Preparation The production system is prepared using the changes from the realization
and testing phases. Certain activities need to be done directly in the production system as well.
These activities take place during the final preparation phase.
Go-live In this stage, the final product is released to the end-users. The go-live may be done
in a Big Bang (all modules at one go) or in a phase-by-phase manner.
Sustain / Support The project now moves into the sustain and support phase where the
end-users issues would be resolved and ongoing maintenance of the system would be taken
care of.
Case Study
Organization B has offices in Delhi, Mumbai, Ahmedabad and Bangalore. All these offices
have employees in Sales and Corporate Communications department. Employees in Sales
office have public holidays as per the holidays followed by local market and employees in
Corporate communications department have public holidays as per holidays followed by the
respective state government. Holidays followed by local market and state governments are
different.
Organization B is implementing PA, OM and Time Management
How will you design the Enterprise structure? What will be the PA, PSAs and explain with
reasons.
In the above case we have to create an enterprise structure naming SIMS Industry Ltd.
Which have office in Delhi, Mumbai, Ahmedabad and Bangalore all these have offices
employees in Sales and Corporate Communications department. Employees in Sales office
have public holidays as per the holidays followed by local market and employees in Corporate
communications department have public holidays as per holidays followed by the respective
state government. Holidays followed by local market and state governments are different.
Hence we cave to create an PA, PSAs which runs sales & Corporate Communication Dept.
assigning Personal administration (PA), Organizational management (OM), Time
management (TM) to each of the PSAs as they are following the work timing of respective
state gov. and local market. As the have to be assigning the position and set of Jobs pertaining
to respective work.
As shown in the above diagram SIMS Industry Ltd. is considered as Personal Area (PA) of an
organization level, Personal Sub-Area as Delhi, Mumbai, Ahmedabad and Bangalore with cost
center or Headquarters (HQ) as Bangalore. Where we need to manage an individual office
functions to each Personal Sub-Areas (PSAs). Implementing SAP functions with Personal
Administration, Organization Management & Time Management. For each PSAs whose area
function is to work on Sales office which have public holidays as per the holidays followed
by local market & Corporate Communication department Office follow public holidays as per
holidays followed by the respective state government. Hence the above s scenario represent
both Local as well as the respective state government.
Step 1 Create an Org. Unit company code 50006456 as SIMS Industry Ltd. Whose
cost center will be Bangalore.
Step 2 Create a PA
50012306 - SIMS Mumbai Industry Ltd.
50012307 - SIMS Bangalore Industry Ltd
50012308 - SIMS Delhi Industry Ltd
50012309 - SIMS Ahmedabad Industry Ltd
(Which helps to follow the work timing according to Location area wise)
Step 3 Create a PSAs
1. Sales
2. Corporate Communications department
Mumbai
Local market
Different areas of the city are closed on different days. For example, Shops in South Mumbai
are closed on Sundays, Bandra is closed on Thursdays, Dadar and Central Mumbai are
closed on Mondays.
State gov
Thu Jan05 350th birthday of Guru Gobind Singh Delhi. Govt. only
Sat Jan14 Pongal also known as Makar Sankranthi, Lohri, Bihu, Hadaga, Poki
Thu Jan26 Republic day commemorates the establishment of the constitution of India
Tue Aug15 Independence day
Thu Oct05 Mahatishi Valmiki birthday Delhi, Karnataka
Mon Oct02 Mahatma Gandhi birthday Gandhi Jayanthi
Mon Dec25 Christmas day observed in all states
Sat Jan14 Pongal also known as Makar Sankranthi, Lohri, Bihu, Hadaga, Poki
Thu Jan26 Republic day commemorates the establishment of the constitution of
India
Wed Mar29 Ugadi Kannada New Year Karnataka
Fri Apr14 Good Friday Friday before Easter Sunday
Separate
Thu sep21 Muharram observed mainly by the Shia Muslim
community
Note
Only the secular holiday of republic day, Independence Day and Mahatma Gandhis
birthday are observed nationally. Public holiday in India tend to be observed on a
strictly regional basis. The above dates are government of India holidays, when
government offices will be closed nationwide. In addition, there are numerous
festivals and fairs which are also observed in some states as holidays, the dates of
which change from year to year.
Muslim festivals are timed according to local sightings of various phases of the moon
and the dates given above are the latest known dates
Although not Government officials holiday, Christmas day and New Years Day are
observed nationally.
Above figure is showing the PA SIMS Industry Ltd. And PSAs SIMS Mumbai,
Bangalore, Delhi and for Ahmedabad.
Books
Mahn, K. (2 January 2007). SAP R/3 HR Human Resource Management. GRIN Verlag; 1
edition.
Websites -