SAP HCM - Enterprise Structues Configuration

7/23/2019 SAP HCM - Enterprise Structues Configuration

1/20

1


2/20

2

Enterprise Structure

It contains the following objects.

Company

Company code

Personnel area

Personnel sub area

Employee group

Employee sub group

Enterprise structure: Structure of company according to personnel

administrative, time management and payroll perspectives from the point of view

of your own company. The company structure describes elements of the company

and there dependencies

NOTE:Company and company code are defined by the Fi/co consultants in real

time scenario, but here for our practice purpose we i.e. hr consultants have tocreate these two elements.


3/20

3

Company Code: Smallest organizational unit of external accounting for which a

complete, self-contained set of accounts can be created. This includes the entry of

all transactions that must be posted and the creation of all items for legal individualfinancialstatements,suchasthebalancesheetandtheprofitandlossstatement.

Thedefinitionofthe companycodeorganizationalunitis obligatory.

Use:ThecompanycodeisthecentralorganizationalunitofexternalaccountingwithintheSAPSystem.Youmustdefineatleastonecompanycodebeforeimplementingthe FinancialAccountingcomponent.Thebusinesstransactionsrelevantfor FinancialAccountingareentered,saved,andevaluatedatcompanycodelevel.

You usually create a legally independent company in the SAP System with one

company code. However, you can also define a company code according to other

criteria. A company code could also be a separate, but not independent,

commercial place of work. This is necessary for example, if the place of work is

actually situated in a different country and evaluations therefore have to be carried

out in the appropriate national currency and in accordance with other tax and legalspecifications.


4/20

#

If you want to manage the accounting for several independent companies

simultaneously, you can set up several company codes in one client. You must

set up at least one company code in each client.

Within a client, the company code represents the highest level of the enterprise

structure. In Customizing, the company code is defined by a four-character,alpha-numeric code.

In Personnel Administration, the company code has the following control

functions:

The company code is used to generate default values for data entry, for

example, an employees payroll area.

The company code is a selection criterion for reporting.

The company code constitutes an authorization check unit.

At the company code level, the following control features are assigned which

are relevant for Personnel Administration:

the default country key for the employees personal data, address data, and

bank data.

a default value for the currency key for employees basic pay.

a language code for text output, for example, employee remuneration

information.

A company code should be depicted from a tax law, commercial or other

financial accounting standpoint. It usually corresponds to a legally independent

company.

A company code can also depict legally independent business premises located

abroad if there are specific reporting requirements for these premises, like for

example reports using the appropriate domestic currency.

A company code possesses specific information that is important for accountingpurposes. For example, each CC is assigned to exactly one country; this

determines the country-specific tax regulations used. For example, each CC is

assigned to exactly one country; this determines the country-specific tax

regulations used.

For each company code, you define exactly one operative chart of accounts,

which can be used for accounting within that company code. In addition, you

can define a country-specific chart of accounts, which is structured in

accordance with the legal requirements of the country in question. You can also

use a group chart of accounts for consolidation purposes.

Each company code has exactly one domestic currency, in which you create


5/20

#

the balance sheet. You can define up to two additional currency roles, for

example global company currency. This means that you can disclose

transaction figures for the company code not only in the transaction currency or

in the domestic currency for that company code, but also in up to two additional

currencies.

It is a legal entity. It is a legal independent firm with independent accounting.

Fi/co consultants will define chart of accounts in which they create G/L

accounts. These G/ L accounts should be assigned with Symbolic accounts.


6/20

4


7/20

5


8/20

6

Personnel Area: It is a geographical location where the company operates its

business. Personnel Area is defined with any four digit character.

The personnel area is an organizational unit; according to a personnel

administrative, time management and payroll organizational point of view, a

personnel area represents a delimited enterprise area. The personnel area is only

used in Personnel Administration and is unique within a client. Personnel areas

are sub-divided into personnel sub areas. Organizational data and guidelines as

how to assign it are stored on a personnel area and personnel sub area level. Therules and guidelines could be of a legal, pay scale and collective agreement, or

internal nature. A personnel area is assigned to a company code which has the

financial accounting values that are relevant for the personnel area. A pay scale

area, a pay scale type and a public holiday calendar are precisely defined for a

personnel sub area. The personnel area in a software company can be subdivided

into development, training and administration personnel sub areas.

Personnel areas divide a company code into sub-units. The individual personnel

areas in a company code are defined in Customizing and have a four-digit alpha-numeric identifier.


9/20

#

The personnel area has the following functions:

The personnel area is used to generate default values for data entry, for

example, an employees payroll area.

The personnel area is a selection criterion for reporting.

The personnel area constitutes an authorization check unit.


10/20

7


11/20

8

Personnel Sub Area :It is a further sub division of Personnel area; it can be sub

location / name of the department in the company. Before we create personnel

sub area we have to specify under what personnel are we have to create this unit.

The personnel subarea is only used in Personnel Administration. The groupings

linked to the personnel subarea determine which entries from the subsequent

screen are allowed for an employee of a particular company code/personnel area.

Groupings are used for validation of master and time data. Groupings are also

used to check the plausibility of data that you enter.

Personnel subareas are a subdivision of the personnel area. Organizational

control of the main HR subareas, namely the pay scale and wage type structures

and work schedule planning, takes place at the personnel subarea level. In

Customizing, the personnel subarea is defined by a four-character, alpha-numeric

code. The respective country-specific control features are stored here.

The personnel subarea has the following organizational functions:

Specifying the country grouping; this controls the dialog for entering country-


12/20

#

specific personnel data and the setting up and processing of wage types and

pay

scale groups in Payroll; within a company code, the country grouping must be

unambiguous

Assigning a legal entity to differentiate between the individual companies from a

legal point of view

It specifies groupings for Time Management. This enables you, for example, to

set up work schedules, substitution types, absence types, and leave types on

the basis of a specific personnel subarea.

The personnel subarea is a selection criterion for evaluations.

The personnel subarea is used to generate default values for pay scale area

and pay scale type for an employees basic pay.

It specifies the public holiday calendar.

Defining personnel subarea-specific wage types per personnel area

It assigns a legal person for payroll.


13/20

9

Employee group: It shows what relation is there between company and the

employee. It specifies what type of employees they are.

For example Active

Permanent

Temporary

Probationary / Trainee

Note: employee group is defined with single digit character.

Employee groups represent a primary subdivision of personnel. An employee

group defines the extent to which its employees place their labor at the disposal of

the enterprise. The Personnel Administration component makes a significant

differentiation between active, pensioner and early retiree employee groups. In

customizing each employee group is defined with a one-digit identification.


14/20

#

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 employees basic pay.

Employee groups serve as selection criteria for reporting.

Employee groups constitute an authorization check unit.

The standard system contains a few specimen employee groups. You can copy

the employee groups that are delivered or if necessary adjust them to your

company specific needs.


15/20

10

Employee sub group : It is a further sub division of employee group which can be

defined any two digit character.

For example Top management

Middle management

Lower management

Salaried

Hourly wage earners

Based on many aspects we can create employee sub group.

Employee subgroups subdivide employee groups. Within the employee group for

active employees, for example, a distinction is made between the following

employee subgroups:

Hourly wage earners


16/20

#

Monthly wage earners

Pay scale employees

Non-pay scale employees

In Customizing, the employee subgroup is defined by a two-character, alpha-

numeric code.

All of the control features for the personnel structure are defined at the

employee subgroup level. The most important control features are as follows:

The employee subgroup grouping for a personnel calculation rule enables you

to standardize or differentiate how an employee is dealt with in Payroll. For

example, this grouping enables you to control whether an employeesremuneration is calculated on a monthly or hourly basis.

The employee subgroup grouping for the primary wage types enables you to

determine which wage types are permissible for which employee subgroups.

The employee subgroup grouping for collective agreement provision enables

you to restrict the eligibility of pay scale groups to specific employee subgroups.

The employee subgroup grouping for the work schedule enables you to

determine which work schedules are permissible for which employee

subgroups.

The employee subgroup grouping for time quotas enables you to specify which

attendance and absence quote types are eligible for which employee

subgroups.

The employee subgroup grouping for appraisals enables you to set up appraisal

criteria dependent on the employee subgroup.

The employee subgroup enables you to define data entry default values, for

example, for the payroll accounting area or an employees basic pay.

The employee subgroup is a selection criterion for evaluations.

Employee subgroups are an authorization check unit.

You set up your company-specific personnel structure at the employee subgroup

level. The standard system contains a few templates for employee subgroups.

You can copy the employee subgroups that are delivered or if necessary adjust

them to your company specific needs.


17/20

11


18/20

12


19/20

13


20/20

Date post:	19-Feb-2018
Category:	Documents
Upload:	zahid-hussain
View:	260 times
Download:	13 times

SAP HCM - Enterprise Structues Configuration

Documents