Analyzing HCM Structures

SAP Human Capital Management for SAP S/4HANA includes structures in which organizational hierarchies and employee relationships are set up and stored. Employee data is administered in these structures and you can evaluate and report on employee data for all enterprise-specific organizational aspects.

The structures are subdivided into organizational structures based on an organizational plan, and administrative structures that are based on the enterprise and personnel structures. Every employee is included in the structure of the enterprise. The structures are as follows:

Organizational plan

• The organizational plan is the foundation of organizational management.
• It provides a complete model of the structural and personnel environment of your company.
• Hierarchies and reporting structures are clearly laid out.
• The organizational plan uses elements called objects.

Administrative structures

• Administrative structures include the enterprise and personnel structures.
• The enterprise and personnel structures subdivide organizations and employees according to factors relevant for time management and payroll.

Information on the organizational assignment of employees is of great importance for authorization checks, the entry of additional data, and for time management and payroll accounting.

The allocation of employees to the structures in their enterprise is the first step in entering personal data.

Employees are assigned to the structures on the Organizational Assignment Infotype 0001, which includes them in the enterprise, personnel, and organizational structures.

The Organizational Assignment infotype includes assigning employees to the following elements in the Enterprise Structure:

• Company Code
• Personnel Area
• Personnel Subarea

The enterprise structure for personnel administration includes four levels, none of which can be skipped nor have additional levels.

The enterprise structure for personnel administration includes the following elements:

Client:

• A client can either be valid for a company code at the smallest level or for the entire corporate group.
• Data is stored within a client.
• There is usually no data exchange between clients.
• If an employee changes clients, you have to re-create the personnel number in the new client.

Company code:

• The company code is the highest level of the company structure.
• The company code is a self-contained unit in legal terms, for which you can draw up a complete set of accounts.
• Company codes are created in Financial Accounting.
• You can have one or more company codes within a client.
• Legally required financial statements such as balance sheets and profit and loss statements are created at the company code level.
• A company code is used within the enterprise structure.
• Currency is stored at the company code level and is relevant for Human Capital Management.

Personnel area:

• The personnel area is used exclusively in personnel administration and is unique within a client.
• Each personnel area must be assigned to a company code.
• Personnel areas are very important for selecting data.
• Personnel areas are important for authorizations.
• Personnel areas are used for creating defaults in infotypes.

Personnel subarea:

• The personnel subarea includes groupings which specify the entries from subsequent settings that can be used for employees assigned to a particular company code or personnel area. These groupings directly or indirectly affect time management and payroll.
• Personnel subareas are subdivisions of personnel areas.
• Personnel subareas are used for selecting data for reporting.
• Personnel subareas are used for creating defaults for infotypes.
• Keys stored in the personnel subarea control pay and working time (for example: bonus payments or work schedules - which may be valid in one personnel subarea but not in another).

The personnel structure includes all employees and various groupings of employees. To enable different working time and employee remuneration in payroll, a distinction must be made between employees.

Employees are divided into two levels, an employee group and an employee subgroup. Authorization checks are run on these groups to identify items such as remuneration levels or different work schedules.

The employee group is a general division of employees and defines the relationship between an employee and the company. Examples of employee groups include employees, pensioners, and early retirees.

The principal functions of the employee group are as follows:

• Default values can be generated for the payroll accounting area. For example, basic pay can be defaulted based on an employee group.
• The employee group is used a a selection criterion for reporting.
• The employee group is one unit of the authorization check.

A standard catalog of employee groups is delivered and you can extend the selections to meet your business requirements.

The employee subgroup further defines employee groups according to the position of employees. Wage earners, salaried employees, and non-payscale employees are all examples of subgroups within the employee group. The employee subgroup can be used to define default payroll accounting areas.

All control features of the personnel structure are defined at employee subgroup level.

Examples of control features of the personnel structure are as follows:

The personnel structure also includes the payroll area, which represents a unit used for running payroll. Employees who have payroll run for them at the same time, for the same period of time, are assigned to the same payroll area. Payroll accounting is generally performed for each payroll accounting area.

The payroll accounting area provides the payroll driver with the employees to be accounted and the dates of the payroll period.