Verity Solutions

SAP HCM Training overview material


SAP HCM Basic Training Material

Human Capital Management (HCM) Basic Concepts

What is the Goal of HCM?

– determining company staffing needs
– recruitment and training
– time management
– performance issues and performance monitoring
– compensation and benefits
– proper alignment of corporate and personnel goals


What are the Modules within SAP HCM
• Personnel Management
– HR Master Data, Personnel Administration, Info. Systems, Recruitment, Benefits & Salary Administration,
• Organizational Management
– Organizational Structure, Staffing Schedules, Job Descriptions, Planning Scenarios, Personnel Cost Planning
• Payroll Accounting
– Payroll Administration, Payroll Simulation
• Time Management
– Shift Planning, Work Schedules, Time Recording, Absence Determination
• Personnel Development
– Career/Succession Planning, Profile Match-ups, Training, TEMs


Integration of HCM with other SAP Modules
• HCM with Production
– Shift Planning (Capacity)
• HCM with FI/CO
– Payroll
– Personnel Cost Planning
• HCM with MM
– TEMs (Training and Event Management)
• HCM with SD
– Salespeople – Commissions


Organizational Data with in HCM

• A hierarchy in which the organizational units in an enterprise are arranged according to task and function are a static data and are rarely changed

• The definition of organization units is a fundamental step, it is a critical factor in how the company will be structured


Structures with in HCM
• Enterprise Structure
• Personnel Structure
• Organizational Structure

An organizational Structure provides you with a complete model of the structural and personnel environment of your enterprise. Hierarchies and report structures are clearly laid out. The organizational Structure is the foundation of Organizational Management. The organizational plan uses elements, called objects. The most important objects are organizational units, jobs, and positions. The enterprise and personnel structures subdivide organizations and employees
according to factors relevant to time management and payroll. These structures
are stored in Customizing.


Organizational Structure for HCM
• Enterprise Structure
– This structure makes up the legal identity of the company
– The Enterprise Structure is made up of the following elements:
• Client
• Company Code
• Personnel Area
• Personnel Subarea


Personnel Structure
• This structure describes an employee’s position within the company in regards to work hours and compensation
• The Personnel Structures is made up of the following elements
– Employee Group
– Employee Subgroup
– Payroll Area
• Employee Group
– represents a division of the companies employees and establishes a relationship between the company and the employee
– defines the extent which the employees capacity is available to for the company
• Active Employee, Pensioner, Interns, External Employee

Personnel Structure: Elements
• Employee Subgroup
– refines the relationship between company and employee
• Standard Salary, Executive Salary, Daily Wage, Hourly Wage, Etc.
– control features for the personnel structure are defined at this level.
• employee relationship with payroll
• eligible work schedules, wage types, attendance policy, restrictions for collective agreement provision


Personnel Structure: Elements
• Payroll Area
– groups employees together that are paid the same (time)
• Weekly, Bi-Weekly, Monthly
– the payroll area is determined from a combination of the Employee Group and Employee Subgroup
• number of employees in the payroll run
• specific dates of the payroll run


Organizational Structure
• This is an overview of your Company’s Organizational Plan (Org. Hierarchy)
– Depicts the reporting structure and task distribution
• The Organization Structure is made up of the following elements
– Organizational Unit
• represent functional units within an enterprise (ex. departments)
– Position
• spots that are occupied by individuals (Salesperson)
– Job
• classifications of functions within an enterprise
– ex. Job: Officer, which is used for Positions: CEO, CFO, COO
• job description for numerous positions
– Person
• the individual, he/she is assigned to a specific position

SAP HR Structure

SAP HR Structure


HCM: Master Data
• Master data is relatively fixed
– Record that contains all the necessary information to conduct business transactions
– Information within a master record can and will change, our hope is that it does not change frequently.
• Before making the master data configurations, you must have completely defined the organizational structures


Employee Data
• Information must be recorded and maintained effectively for every employee
– Infotypes (Information Types) are units of information that aid in the entry of master data and group like information together
• Status of the Employee will determine what information should be gathered
– Active vs. Intern
– Exempt vs. Non-exempt


Employee Data: Infotypes
• Numerous infotypes will be created for each employee
– Organizational Assignment must be the first infotype recorded
Employee Data: Infosubtypes
• Certain data that is entered in an infotype can trigger the need for a infosubtype
– ex. Family Member/Dependents
• If you enter that you are married or have children it will generate the need for a spouse/child infosubtype to capture the information about the spouse or child(ren)
• Subtypes also allow you to account for time constraints
– Different addresses may be current at the same time
• Permanent Residence
• Temporary Residence
• Home address

Employee Data: Personnel Actions
• Information maintained about an employee is stored in their Personnel File

HCM: Process/Functions

Recruitment – Selection – Hiring


HCM Process: Recruitment
• allows you to monitor and meet the personnel requirements within the company
• determines vacancies within the company
– maintained by Personnel or Line Managers
– the system will generate a list of all positions that are marked vacant
• once a vacancy has been identified advertising can be initiated


Recruitment: Advertising
• Vacancies are published in advertisements
– internal or external announcement of a position
• The advertisements are recorded in the system enabling you to gather information about that advertisement
– cost
– applications
– medium
– recruitment instrument
Recruitment: Applicant Administration
• allows a company to coordinate and monitor all the steps involved in the applicant process

• Applicant Administration is a combination of
– receiving applications
– profile match
– selection of applicants


Recruitment: Applicant Administration
• Maintaining applications
– Applicants are the central object of Recruitment
• it is a person who expresses interest (through job application) in employment or position change within the company
– All applicants must be maintained in the system
• maintenance responsibility must be delegated (one or more people)
• the status of the applicant will determine the information that is needed
• Profile Matching
– Compares skills of the applicant to the requirements of the position
• can the applicant offer what the company needs
– is there another vacant position that he/she would have a better match

Entry of applications in the system can be divided so that more than one person is responsible for it. EX. On receipt of the applications, one employee enters the mandatory data for all applicants. The applications are then distributed among the responsible administrators/personnel officers, who decide which applicants can be rejected immediately. They then enter additional data on applicants who are still of interest to the company.
Status determines what information is needed: If the applicant is an external applicant, all the required data must be entered manually. When dealing with internal applicants, however, you can import data such as name and address simply by specifying the candidate’s personnel number. You can overwrite this data, if necessary


Recruitment: Applicant Administration
• Selection
– Applicant Activities aid in Selection process
• used to enter, log, and plan all the tasks for an applicant during the selection process
– Activity Types: mail confirmation of receipt, mail invitation to interview, schedule appointment for interview, reject applicant, offer contract
» depending on the activity and the system output can be generated automatically
– Activity Status: planned, completed
– Performance Date: when it was carried out
– Person Responsible: person responsible for carrying it out
– Upon completion of qualification review and interviews the position must be filled

HCM Process: Hiring
• Master data (information) is obtained during the hiring process (employee data)
• Personal Data, Payroll Data, Time Data, Etc.
• Hiring can be integrated with Recruitment
• information obtained about an applicant can be copied into his/her personnel record
• Hiring can be done independently of Recruitment
• through the Hiring personnel action (infotypes)

Hiring with Recruitment – if you hire an applicant, you can transfer his or her data to the Personnel Administration component. The applicant’s data is transferred directly from the applicant database to the employee database. You have the ability to enter the additional data, such as working time and salary details, later in Personnel Administration.
Hiring independent of Recruitment – New employees can also be hired independently of the Recruitment component, by means of personnel action in Personnel Administration. In such cases, data relevant to the new employee is created.
* if you know the right people no need for recruitment and applications (they make a job for you)
* this is how we hired our employee
HCM Process: Personnel Development
• Personnel Development component is used to assess and create employee “value” that can be utilized by the company.
• Purpose is to manage the work efforts and develop the work skills of employees within the company
• A company’s Personnel Development needs are determined by comparing current or future work requirements with employees’ qualifications, preferences, and aspirations.
• Personnel Development comprises of the following components:
– Qualifications/Requirements
– Appraisal Systems
– Career and Succession Planning
– Development Plans


HCM Process: Training & Development
• Qualifications/Requirements
– this component is used to define, structure, and manage your qualifications catalog
• the catalog enables you to place requirements on positions and qualifications on employees (or applicants) within the company
– perform profile match-ups (people and positions)
– run reports to recognize qualification deficits and enact training measures
• You use the Qualifications and Requirements component to define, structure, and manage your qualifications catalog. On the basis of this qualifications catalog, the organizational structure (and, if required, other information) you can create profiles. You can then use these profiles to manage, evaluate and compare object characteristics. The profiles can be used to show both the requirements of a position and the qualifications and career goals (preferences) of a person. You can also run profile match-ups to find out how suitable certain persons are for a certain position in your organization, for example. If any qualification deficits arise, you can plan further training measures

• Appraisal Systems
– used in
• Personnel Administration
– as an instrument to evaluate members of your organization in a planned, formalized and standardized manner
• TEMs
– training appraisals
– attendance appraisals
• Compensation Management
– appraisal results can be used to influence remuneration

• Career and Succession Planning
– Career Planning
• planning functionality that allows you to analyze an employees skills, preferences, dislikes, qualifications, potential and determine positions they should hold during their tenure at the company
– Succession Planning
• planning functionality that allows you plan for positions in the company that will need to be filled because of turnover (or new position)
• enables a company to analyze employees and determine and prepare potential replacements

• Succession Planning – determining qualified successors for specific posts within the company
• ensuring our success (having internal replacements) and minimizing cost associated with finding retrain employees
• Development Plans
– a series of development measures and information on the sequence in which they should be passed through and time requirements to provide an individual with a specific qualification
• Generic Plans
• training program (all prospective sales reps must complete a course on Fundamental Selling Techniques)
• Individual Plans
• comprises of all the items that a person has completed, is currently involved in, or will be involved in the future
• proposes needed course work (integration with TEMs)

• Training
– enable new hires and current employees access to the necessary resources to build job skills needed for both current and future task assignments
• this is figured through Qualifications/Requirements reports, development plans, career planning, etc
– Encourage continually learning and professional development
• SAP offers a powerful resource to assist in scheduling training – TEMs

• Training and Event Management (TEMs)

– Component that enables a company to manage, track, and plan various different business events
– Helps determine demand for courses and schedule dates, manage the resources, attendees, and costs associates with the event
• TEMS Catalog Structure
– Business Event Groups
• Used to classify business event types
– Business Event Types
• Time independent description of a business event
– Business Events
• Actual time based event that is to take place

– Integration Points


HCM Process: Time Management
• supports planning, recording, and evaluation of internal employee time data
• time data that would be gathered and evaluated
– hours worked
– leave
– illness
– overtime
– substitutions
– business trips
• conference, training
• The Personnel Time Management component offers you support in performing all human resources processes involving the planning, recording, and valuation of internal and external employees’ work performed and absence times. It provides other SAP applications with planning data and delivers information to business processes such as:
• Determining personnel costs
• Creating invoices
• Confirmations
• Service entry of external employees


There are multiple methods for data collection

You are not limited to one method of time recording when entering time and labor data. There are different methods of time recording depending on the technical prerequisites, the demands on the data being recorded, and the employee’s tasks:
• Your employees post their working times at external time recording terminal (swipe, punch, piecework).
• Your employees use the Cross-Application Time Sheet (CATS) to record information on their working times. You can use the recorded data for further business processes in Human Resources, Logistics, and Controlling.
• Your employees use Web applications or mobile devices to record their working times and receive information about their planned and actual working times. These include applications for the Cross-Application Time Sheet, clock-in and clock-out postings, and for displaying time accounts and work schedules.
• Your time administrators, such as supervisors and secretaries, use the Time Manager’s Workplace to correct and complete decentrally the time data of the employees assigned to them.
• Your time administrators in the Human Resources department use the Maintain Time Data transaction to check and complete employees’ time data centrally.

• Time collection will be used for:
– payroll accounting
– personnel cost analysis
– internal cost allocations
– invoicing
– performance analysis
– capacity availability
– shift planning


Payroll Accounting – Remuneration, Incentive Wages
Personnel Cost Analysis
Internal Cost Allocation – assign labor costs to the correct cost objects
Invoicing – Billing for work performed (consulting)
Performance Analysis – absenteeism, tardiness, etc
Capacity Availability – work schedule, can he/she be assigned to a task or Work Center
Shift Planning – available hours, hours needed
HCM Process: Compensation & Benefits
• Compensation is not the cut-and-dry subject it once was
– Past – consisted of an employee’s base salary or, at most, a base salary and commission.
– Today – looked at as compensation packages; including:
• salaries, stock options
• employee stock ownership plans
• pay-for-performance plans
• bonuses, profit sharing
• commissions, non-cash rewards
• variable pay, and much more.

• The balancing of company interests to operate within the company’s fiscal budget and fairly paying employees
– key component of attracting, developing, retaining, and rewarding high quality staff through wages and salaries which are competitive in the labor markets
• Compensation Management is comprised of the following components:
– Job Pricing
– Budgeting
– Compensation Administration
– Long-term Incentives


Job Pricing
generates salary structures based on internal and external information and provides reporting capabilities
will perform the following functions
generate and maintain salary structures
define pay grades and levels
external job evaluations systems and salary surveys
evaluation and comparison of jobs and related jobs
used to allocated funds to organizational units within the organization
can create several budgets
roll-up feature
bottom up – submit the budget
top down – approve the budget


The Compensation Administration component provides you with the necessary tools for strategic remuneration planning that reflects both your corporate culture and your salary policies. User-defined calculation rules and eligibility criteria mean that you can create compensation adjustments that meet your individual requirements and comply with your compensation policy.

• benefits today are offered as a part of an employees overall compensation package
• this component allows a company great flexibility in creating and maintaining individual packages for your employees
– Six international Plan


• Allows for detailed company reporting
– Benefit Plan Participation
– Health Plan Costs
– Employee Demographics
– Benefits Election Analysis
• Country Specific Settings available
– FSA, COBRA (US examples)
• HIPPA Certificates
• US Specific:
• FSA – Flexible Spending Accounts – enable employees to set aside pre-tax income to cover anticipated medical or dependent care expenses
• COBRA – Consolidated Omnibus Budget Reconciliation Act of 1985 – requires the vast majority of employers to offer continuation of coverage to covered employees and their dependents who, due to certain qualifying events, lose group health plan under the same terms and conditions as effective immediately prior to the event.
• HIPPA – Health Insurance Portability and Accountability Act – The HIPAA Certificate Report enables you to generate the “Certificate of Creditable Coverage” for employees and their dependents who are entitled to this document under the Health Insurance Portability and Accountability Act of 1996
• SAP contains an international payroll driver that is modified for each country
• payroll is released for individual payroll areas
– the run is for a specific group of employees and a specific period of time
– upon release all affected personnel records are locked
• will generate an payroll results, and earning statement, bank transfers and check payments


HCM Process: Payroll Administration

• SAP contains an international payroll driver that is modified for each country
• payroll is released for individual payroll areas
– the run is for a specific group of employees and a specific period of time
– upon release all affected personnel records are locked
• will generate an payroll results, and earning statement, bank transfers and check payments


Many internal integration points
Often integrates with an outside or 3rd party system

• Payroll Process
– determine Gross Amount
• base pay and any other additional payment
– overtime, sick pay, Christmas bonuses, special pay
– determine Deductions (Net Amount)
• processes garnishments, deductions, taxes, and benefits for employees
– Federal/State Income Tax, Insurance (Health, Life), Loans
– Integration with Financial Accounting & Controlling
• G/L postings, payments processed, reports available

HOPE the +’s outweigh the –’s
Generation of W2 – W4


HCM Process: Cost Planning Reporting
• used to analyze, monitor, plan a company’s personnel costs, wages, salaries, and employer contributions
– cost plans are generated by developing and comparing multiple cost scenarios, these scenarios might be actual or projected


HCM Process: Employee Self-Service
• Employee Self-Service (ESS)
– empowers employees to create, display, and change their own personal information
• streamlines and simplifies the HR data entry process
– some of the capabilities include
• SAP Office – appointment calendar, employee directory
• Personal Information – address, bank information
• Time Management – record working time, request leave
• Business Trips – submit travel request, reserve flights, rooms, also expense reimbursement process
• Training – register for training, display your bookings
• Benefit Enrollment and Overview (Healthcare, Retirement, etc)
• Display Leave and Earnings Statements
• Qualification and Appraisal Review
• W-2 W-4 printout


source: &


Talk to Us






Course Curriculum

  • SAP ERP Introduction
  • SAP HCM Introduction
  • SAP SYSTEM Installation
  • Creation of System Access
  • HR structures
  • Creation of Enterprise structure 
  • Creation of Personal structure
  • Creation of Organization structure
  • Organization and Staffing Method
  • Simple Maintenance Method
  • Expert Mode, Matrix Structure
  • Objects, relationships
  • Reporting structure
  • Structure Reorganization
  • Account assignment
  • Concepts of Number range
  • Hr master data configuration
  • Overview of Infotype, subtypes
  • Configuration of Info group
  • Personnel Actions
  • Screen Modification
  • Overview of Infogroup modifier
  • Customizing the Features/ Decision Tree
  • Overview of Time management
  • Negative Time Recording.
  • Time evaluation
  • Time entitlement
  • Holiday Calendar
  • Work schedules concept
  • Absence and attendance quota’s Generation
  • Configuration of rules such as counting rule
  • Rounding and configuration of reduction rules.

• Deduction rules for quota generation

Tab Title
Lorem ipsum dolor sit amet, consectetur adipisicing elit. Optio, neque qui velit. Magni dolorum quidem ipsam eligendi, totam, facilis laudantium cum accusamus ullam voluptatibus commodi numquam, error, est. Ea, consequatur.
  • Pay scale structure
  • Generation of payroll periods and Paydays
  • Creation of Payscale Structures
  • Concepts of Wage Type Group
  • Creations of wage types
  • Copy and creation of wage type groups
  • Processing class
  • Evaluation class
  • Cummulation of wage types
  • Overview of PCR Creation (Personal Calculation Rule)
  • Overview of Schema Functions and Operations
  • Off cycle payroll

Free Career Counselling

    Training Review

    Add testimonial description here. Edit and place your own text.

    John Doe


    Training FAQ

    This course is specifically designed to help you clear the certification exam successfully. The comprehensive content of the course along with demonstration of practical scenarios & examples will make you understand each and every topic in great depth. Since the course structure has a special focus on certification, hence you will go through a lot of real-time case studies and study material during the training that will help you crack the certification exam.

    The full form of HCM is Human Capital Management. It is one of the most important departments of any organisation that perform many important functions which is required for the smooth running of any organisation like employee hiring, termination, performance evaluations, payroll, attendance, leave records, employees personal records etc.

    SAP HCM is a popular SAP module and is a very useful SAP ERP Application business suite that helps in the proper monitoring management and smooth functioning of HCM processes like Payroll, employees’ data, performance, attendance and employees personal data, recruitment etc.

    As HCM is one of the most important departments of any organisation that manages many important functions like attendance, leave, employee performance, task allocation, employee records, payroll etc. and also now-a-days to managing entire HCM processes most of the companies are using SAP HCM business site. Therefore if you belong to HCM profession then learning SAP HCM will enhance your market value and is helpful in getting much better job opportunities.
    SAP HCM training is very beneficial for the beginners who want to build their career in the field of HCM. By learning SAP HCM module they will be able to grab good opportunities and help them to survive in this competitive market.

    With Uplatz, SAP HCM online training module can be completed in 40 hours. The entire course module will be hands-on practical and project-based, and you will learn all topics starting from fundamentals of SAP HCM module to the most advanced features under the guidance of certified professional tutors.