SAP Best Practices for Human Capital
Management v1.605 (United States)
SAP Best Practices
General Information
SAP Best Practices for Human Capital Management (HCM) was developed for small and midsize
companies to implement a solution quickly and easily.
With a focus on the primary workforce management business processes this package gives you
built-in support for the best business practices across all industries
Functionalities
The SAP Best Practices for HCM V1.605 package supports your business in the following areas :
Organizational
Management
Personnel Administration
Benefits Administration
Time
Management
Payroll Administration
HCM
Reporting
Employee
Manager
Self Services
Self services
Performance
/ Talent Management
© 2011 SAP AG. All rights reserved.
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SAP Best Practices for HCM V1.605 (US) Solution Scope
Baseline
Enterprise Structure
External Financial Accounting
Basic Overhead Cost Controlling
Workforce Management
Workforce Time
Management
Workforce Benefits
Administration
Time Entry
Benefits Administration
Maintain Company Organizational Structure
Personnel Administration for Limited HCM
New Hire/Rehire Administration
Employee Transfer Administration
Leave of Absence Processing
Time Administration
Time Processing - CATS
Time Evaluation Processing
Workforce Reporting
Employee Terminations
SAP ERP Reporting for HCM
Maintain Employee Information
Period End Closing for HCM
Workforce Payroll
Administration
Workforce Employee Self
Service
Performance/Talent
Management
Payroll and Post Payroll Processing
Personnel Information
Pre-defined Performance Process
Retroactive Payroll Processing
Payments
Offcycle Payroll Processing
Working Time
FMLA Processing
Workforce Manager Self
Service
Approve employee time & leave requests
Legend:
Existing Scenario
New Scenario/Functionality
© 2011 SAP AG. All rights reserved.
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Industry-Specific Scenarios (1 of 2)
SAP BP for HCM V1.605 (US) provides the following cross -industryspecific scenarios:
560:
Maintain Company Organizational Structure
562:
Personnel Management for Limited HCM
563:
New Hire/Rehire Administration
567:
Employee Transfer Administration
568:
Leave of Absence (LOA) Processing
569:
Employee Terminations
570:
Maintain Employee Information
564:
Time Entry
571:
Time Administration
572:
Time Entry – Cross Application Timesheet (CATS)
© 2011 SAP AG. All rights reserved.
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Industry-Specific Scenarios (2 of 2)
SAP BP for HCM V1.605 (US) provides the following cross-industryspecific scenarios:
573:
Time Evaluation Processing
575:
Benefits Administration
566:
Payroll and Post Payroll Processing
576:
Retroactive Payroll Processing
577:
Offcycle Payroll Processing
578:
FMLA Processing
559:
SAP ERP Reporting for HCM
580:
Period End Closing for HCM
582:
Employee Self Services
583:
Manager Self Services
584
Employee Performance Management
© 2011 SAP AG. All rights reserved.
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Maintain Company Organizational Structure (560)
Purpose and Benefits:
Purpose
To complete processing of Organizational Changes as required by the Enterprise.
Benefits
Organizational structures in the system are kept in alignment with the actual enterprise
Employee records are kept in real time alignment with organizational structures so reports and financial
reporting remain timely and accurate
Key process flows covered
Maintain organizational structure
© 2011 SAP AG. All rights reserved.
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Personnel Management for Limited HCM (562)
Purpose and Benefits:
Purpose
Ability to create an employee mini master record for time recording and travel management purposes
Benefits
Leverage basic HCM to support other SAP functions
Enables time recording using the cross application timesheet (CATS)
Key process flows covered
Create employee mini master record
Time Recording using Cross Application Time Sheet (CATS)
Approval of Working times
Time Sheet: Transfer to Target Components
© 2011 SAP AG. All rights reserved.
© SAP 2008 / Page 7
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New Hire/Rehire Administration (563)
Purpose and Benefits:
Purpose
This scenario describes the typical processes used to Hire candidates and Rehire employees using Hire
Personnel Actions.
Benefits
The employee master record is created / updated
Employee records are kept in real time alignment with organizational changes so time management, payroll,
and other functions perform as needed
Key process flows covered
New Hire / Rehire Administration
© 2011 SAP AG. All rights reserved.
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Employee Transfer Administration (567)
Purpose and Benefits:
Purpose
Maintain organizational and employee master records as the dynamic Enterprise evolves.
Benefits
Employee master data records remain current
Employee records are kept in real time alignment with organizational changes so payroll is timely and
accurate
Reports and postings to financials remain accurate
Key process flows covered
Organizational Change Administration
© 2011 SAP AG. All rights reserved.
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Leave Of Absence Processing (568)
Purpose and Benefits:
Purpose
This scenario describes the typical process used when employees take leaves of
absence (LOA).
Benefits
Employee records are kept in real time alignment, so payroll is timely and accurate.
Automated, efficient processing with complete history of employee’s transactions.
Key process flows covered
LOA Administration
© 2011 SAP AG. All rights reserved.
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Employee Terminations (569)
Purpose and Benefits:
Purpose
This scenario describes the typical process when an employee has decided to retire
from the company or has been separated.
Benefits
The organizational structures in the system are kept in alignment to the actual
enterprise
The employee master records are updated, so payroll and benefits administration
remain accurate
Key process flows covered
Employee Separation Administration Processing
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Maintain Employee Information (570)
Purpose and Benefits:
Purpose
This scenario describes the typical process used to create and maintain employee
master records which contains all personal data, time data, benefit data and
payroll data
Benefits
Employee master record is updated
Automated, efficient processing with complete history of employee’s transactions
Key process flows covered
Maintain Employee Administration Processing
© 2011 SAP AG. All rights reserved.
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Time Entry (564)
Purpose and Benefits:
Purpose
This scenario describes three methods of entering time data.
 Time Entry – Manual - This scenario describes typical processes to create and maintain
employee time information using the HR infotypes directly. This may be used by administrators
when CATS time entry is not in use, or for entering an absence that spans multiple days. It is
important to understand that any entries made here will not be reflected in CATS.
 Cross-Application Time Sheet (CATS) – CATS is one of the tools used for recording time
worked by an employee. This scenario describes the entry of time to various absence and
attendance types for transfer to the Human Capital Management (HCM) module. The checks
configured in the HCM module, such as quota entitlements, will be performed at time of entry
using CATS. CATS can also be used to record time to projects and other cost objects for transfer
to other SAP modules such as Controlling, Project Systems, and Plant Maintenance.
 Time Manager’s Workplace - The Time Manager’s Workplace is an optional user interface for
time entry. TMW features a user-friendly and task-oriented interface for maintaining time data and
processing time evaluation messages. This interface was specifically designed to meet the needs
of time administrators in a decentralized enterprise.
 The trigger for this activity is typically a manual time card submitted to the manager or time
administrator. The manual time card may be a paper time sheet, and email message, or other
electronic time sheet such as an Excel workbook.
© 2011 SAP AG. All rights reserved.
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Time Entry (564) continued
Purpose and Benefits, cont’d:
Benefits
Enables employees to record working times and tasks
Enables time administrators to record working times for employees
Enables managers to develop work schedules for employees
Enables companies to control time management processes flexibly and efficiently
Key process flows covered
Workforce Time Entry
Time Management
© 2011 SAP AG. All rights reserved.
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Time Administration (571)
Purpose and Benefits:
Purpose
This scenario describes the typical processes used in Time Management to review and process quota balances.
Benefits
Employees of an enterprise may be granted different attendance/absence time-limited entitlements for vacation leave, sick
leave and training day, and so on.
These time-limited entitlements can be maintained in HCM Time Management as - “Time Quotas”.
HCM Time Management - provides an enterprise the ability to -:

Get a clear overview of an employee's current attendance/absence quota entitlements.

See detailed information on quota entitlements that have been generated automatically.

Have the option of correcting quota entitlements manually.

Get a simulated projection of future quota entitlements.

Have the ability to print an overview of the projected quota entitlements.
Key process flows covered
Workforce Time Administration
Time Management
© 2011 SAP AG. All rights reserved.
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Time Processing – Cross Application
Timesheet (CATS) (572)
Purpose and Benefits:
Purpose
This scenario describes additional processing steps necessary for time recorded using the Cross Application
Time Sheet (CATS). It includes the following steps:
 Allow the supervisor or time administrator to review and approve the employee’s time. This step
may not be necessary depending upon the settings configured in the CATS data entry profile that
was used to record the time.
 Transfer the time to the various SAP modules depending on the data recorded.
Benefits
Enables employees to record working times and tasks
Enables managers to control all business process concerning an employee
 Paying the employee
 Monitoring the progress of a project
 Creating an invoice
Key process flows covered
Workforce Time Processing - CATS
Time Management
© 2011 SAP AG. All rights reserved.
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Time Evaluation Processing (573)
Purpose and Benefits:
Purpose
This scenario will evaluate employee time including overtime, holiday time, shifts,
time off entitlements (quotas), etc. It is recommended that time evaluation
always be processed immediately prior to processing payroll to ensure
consistency in the results.
Benefits
Employee’s working times are valuated
Time evaluation calculates planned times and overtime, administrates time accounts
and forms wage types, updates time quotas, and is used to check working time
specifications.
Key process flows covered
Workforce Time Evaluation Processing
Time Management
© 2011 SAP AG. All rights reserved.
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Benefits Administration (575)
Purpose and Benefits:
Purpose
This scenario describes the typical process performed by the Benefits Administrator to modify and update,
employee’s Benefit Plans information.
This scenario describes the typical process performed by the Human Resources department to enroll
employees to the available Benefit Plans and then to discontinue the plans upon departure of the
employee.
Benefits
Employee benefits plans are updated
Employee master record is updated with the qualified life adjustment reasons
Employee is enrolled into benefits and retirement savings plans
Employee master records are updated, and the payroll deductions are timely and accurate
Benefits vendor interfaces can be processed accurately and timely, thus minimizing confusion and
employee coverage updates
Key process flows covered
Benefits Administration Processing
Benefits Enrollment and Termination Processing
© 2011 SAP AG. All rights reserved.
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Payroll and Post Payroll Processing (566)
Purpose and Benefits:
Purpose
To calculate the gross and net pay, which comprises the individual payments and deductions that are calculated during a payroll period, and are received
by an employee
Execute and manage payroll processing which encompasses (starting payroll, payroll corrections, remuneration statements, payroll journal, garnishment
reporting, wage type report)
Execute bank transfer activities (Data Medium Exchange (DME) Processing and Print Check functionality
Execute third party remittance for taxation, benefit vendors and garnishment processing
Support management of FMLA using the FMLA workbench
Full integration and payroll posting to SAP FI/CO
Benefits
Automated, efficient processing of employees’ payroll
Automated processing of banking activities
Automated processing of third party remittance
Integration with SAP Financials
Sample payroll forms
Key process flows covered
Maintain Master Data and Time Data
Run US Payroll
Run Simulations and production runs for FI/CO Posting and 3rd Party Remittance
Pre-DME, DME Management and check processing
Third Party Remittance
Posting to FI/CO activities
Payroll journal reporting
© 2011 SAP AG. All rights reserved.
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Retroactive Payroll Processing (576)
Purpose and Benefits:
Purpose
To calculate the when there is a change of earnings for the past, payroll results need to be recalculated to correct tax and
earnings amounts
The system performs a retrocalculation of payroll results when you make a retroactive master data change that affects an
employee's past earnings
If you change the master and time data of an HR master record for a pay period for which the payroll has already run, the
existing payroll results must be rechecked during the next regular payroll run and then included in the payroll again. The
system automatically performs retroactive accounting for the payroll past.
Benefits
Automated calculation of retroactive changes
Key process flows covered
Retroactive Employee Master Data Change
Run US Payroll
Run Simulations and production runs for FI/CO Posting and 3rd Party Remittance
Pre-DME, DME Management and check processing
Third Party Remittance
Posting to FI/CO activities
Payroll journal reporting
© 2011 SAP AG. All rights reserved.
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Offcycle Payroll Processing (577)
Purpose and Benefits:
Purpose
To complete processing of employee Off-cycle Payroll
Run payroll for payments including bonuses and other one-time payments, advance payments (multiple pay periods), and
absence payments (days within a payroll period)
Execute a correction payroll when changes have been made to an employee's master data
Process payroll data for a check that was manually created outside of the system
View an employee's payroll history
Replace payments
Reverse payments
Adjust W2 data of individual employee during the year end process
Benefits
Ability to reissue, void, or create payments in a single workbench
Automated, efficient processing with complete history of employee’s payroll
Key process flows covered
Reversal / Void
Check Replacement
© 2011 SAP AG. All rights reserved.
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FMLA Processing (578)
Purpose and Benefits:
Purpose
To complete processing of employee FMLA events
Benefits
Compliance with FMLA requirements
Automated, efficient processing with complete history of employee’s transactions
Key process flows covered
FMLA Processing
© 2011 SAP AG. All rights reserved.
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SAP ERP Reporting for HCM (559)
Purpose and Benefits:
Purpose
Ability to recognize the most common SAP standard HCM reports
Benefits
Allow organizations to perform on demand reporting using the HR ad-hoc query tool
Assists organizations with performing audits in HR
Key process flows covered
Workforce HCM Reporting
Flexible HCM Ad-hoc queries
Audit Reporting in HCM
© 2011 SAP AG. All rights reserved.
© SAP 2008 / Page 23
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Period End Closing for HCM (580)
Purpose and Benefits:
Purpose
The closing operations component helps you prepare and carry out the activities
required for daily/month-end, quarterly -end and year-end closing in payroll.
For this purpose, the system provides a series of standard reports that can be used
to generate evaluations and analyses of payroll.
For quarterly and year end closing a number of payroll tax reports can be generated
using tax reporter functionality
Benefits
The system helps you to carry out the following:
 Review payroll results and wage type details
 Reconcile payroll postings
 Execute quarterly reports and year end W-2 activities
Key process flows covered
day-end closing, month-end closing
Quarterly closing and
year-end closing.
© 2011 SAP AG. All rights reserved.
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Employee Self Services (582)
Purpose and Benefits:
Purpose
 To allow employees to update and maintain their own information using employee self
services using the NWBC User Interface
Benefits
 Employees get to access and change their own data.
 Using the NWBC client negates the need for a portal solution.
 The user is allowed to see and update the necessary information. A new navigation pattern
has reduced the number of clicks and an intuitive in-place navigation from “Overview” to the
“Detail” screen.
Key Process Steps
 Employee Self Services
© 2011 SAP AG. All rights reserved.
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Manager Self Services (583)
Purpose and Benefits:
Purpose
 To enable Managers the ability to manage their direct employees using self services
applications via the NWBC client user interface
Benefits
 Managers get to access and approve or reject timesheets and leave requests.
 Using the NWBC client negates the need for a portal solution.
 The user is allowed to see and update the necessary information. A new navigation pattern
has reduced the number of clicks and an intuitive in-place navigation from “Overview” to the
“Detail” screen.
Key Process Steps
 Manager Self Services
© 2011 SAP AG. All rights reserved.
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Employee Performance Management (584)
Purpose and Benefits:
Purpose
 To support employee performance reviews as required by the company.
Benefits

Use of a standardized performance management process

Pre-defined corporate goals and core values are automatically cascaded through all levels of the
enterprise

Utilization of workflows for notification of employees and managers

Portal access via Manager and Employee Self Service

Availability of pre-defined templates

Integration with other talent management modules of SAP e.g. Enterprise learning
Key Process Steps

Objectives setting and performance appraisal
© 2011 SAP AG. All rights reserved.
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