HCM Global Enterprise Structure

1      Purpose

This configuration guide provides the information you need to set up the configuration of this building block manually.

2      Preparation

Before you start installing this building block, you must install prerequisite building blocks. For more information, see the Building Block Prerequisite Matrix for HCM. The matrix (an Excel file) is linked on the solution's DVD/website in one of the following two locations:

·          Content Library

·          Site Map

3      Personnel Administration

This SAP Best Practices package delivers a standard configuration for Personnel Management based on the most commonly used settings for businesses operating in the U.S. This provides a realistic business model to enable customers to begin extending the Customizing to meet their specific needs.

4      Enterprise Structure

The enterprise structure describes the way in which an enterprise is organized. It consists of the company code, personnel area, and personnel subarea. Company codes are created in FI and represent the enterprise structure from a financial accounting perspective. The company code assigned in the enterprise structure for this SAP Best Practices package for the U.S. is 1000, SAP Best Practices for Baseline USA.

The personnel area is an organizational unit, which is subdivided into personnel subareas. Organizational data and guidelines for assignment are stored in the personnel area and personnel subarea levels. The rules and guidelines may be of a legal, pay scale and collective agreement, or internal nature.

The personnel area is assigned to a company code. Multiple personnel areas can be assigned to a company code but only one company code is assigned to a personnel area. Each personnel area and personnel subarea combination that is delivered with this SAP Best Practices package for the U.S. is assigned to 1000, SAP Best Practices for Baseline USA.

4.1   Enterprise Structure

The Enterprise Structure is designed to support two types of company structures: Functional based and Region/Location based.

In the first structure (1200-1400 series) the company consists of a main Headquarters group, two product lines. This structure is primarily for those companies who wish to group employees for reporting purposes based on function within the company.

The second structure (1000, 1100, and 1500-1700 series) is for those companies who wish to group employees based on location. The example below represents the Personnel Area as a Region and the Personnel Subarea as the site’s location.

Personnel Area		Personnel Subarea
1200	Headquarters	1210	Human Resources
		1220	Finance
		1230	Sales/Marketing
		1240	Manufacturing
		1250	Operations
		1260	Research & Dev.
		1270	Field Support
		1280	Inform Tech
1300	Product ‘A’	1230	Sales/Marketing
		1240	Manufacturing
		1250	Operations
		1260	Research & Dev.
1400	Product ‘B’	1410	Plant ‘A’
		1420	Plant ‘B’
1000	Region – North	1010	City 1
		1020	City 2
		1530	Union A
1100	Region - South	1110	City 3
		1120	City 4
		1530	Union A
1500	Region - East	1510	New York
		1520	Washington D.C.
		1530	Union A
1600	Region - Central	1610	Chicago
		1620	New Orleans
		1530	Union A
1700	Region - West	1710	San Francisco
		1720	Denver Site
		1530	Union A

4.1.1  Personnel Areas

Use

The personnel area is an organizational unit that represents a specific area of the enterprise and is organized according to aspects of personnel, time management, and payroll. A personnel area is divided into several personnel subareas. Note that the personnel subareas contain the business characteristics. To assign the business characteristics, you must have set up at least one personnel subarea for each of your personnel areas even if you do not use personnel subareas in your enterprise structure.

Procedure

1.     Access the activity using one of the following navigation options:

IMG Path	SAP Customizing Implementation Guide ® Enterprise Structure ® Definition ® Human Resources Management ® Personnel Areas ® Personnel Areas
Transaction Code	SPRO

2.     On the Choose Activity screen, double-click Personnel Areas.

3.     On the Change View „Personnel Areas“: Overview screen, make the following entries:

Personnel Area	Personnel Area Description	Country
1000	Region – North	US
1100	Region – South	US
1200	Headquarters	US
1300	Product ‘A’	US
1400	Product ‘B’	US
1500	Region - East	US
1600	Region - Central	US
1700	Region - West	US

4.     Save your entries.

These basic structures are designed to demonstrate the flexibility of the HR personnel structure. Preliminary scope exercises during the initial phase of the implementation assists the customer in finding the most appropriate company structures.

The SAP standard EEO-1 and Vets-100 reports for the U.S. uses the addresses maintained on the personnel area and personnel subarea to identify Reporting Units. If you are using the ECC system to generate either of these reports, this should be taken into consideration when developing the Enterprise Structure.

4.1.2  Personnel Subareas

Use

The personnel subarea is an organizational unit that represents a specific area of the company organized according to certain aspects of personnel, time management, and payroll. The following business subtasks belong to the personnel subarea:

• Defining pay scale and wage type structure
• Defining planned working hours
• Defining appraisal criteria

Procedure

1.     Access the activity using one of the following navigation options:

IMG Path	SAP Customizing Implementation Guide ® Enterprise Structure ® Definition ® Human Resources Management ® Personnel Subareas ® Create Personnel Subareas
Transaction Code	SPRO

2.     On the Choose Activity screen, double-click Create Personnel Subareas.

3.     On the Change View „Personnel Area/Subarea“: Overview screen, make the following entries::

Personnel Area		Personnel Subarea
1000	Region – North	1010	City 1
		1020	City 2
		1530	Union A
1100	Region - South	1110	City 3
		1120	City 4
		1530	Union A
1200	Headquarters	1210	Human Resources
		1220	Finance
		1230	Sales/Marketing
		1240	Manufacturing
		1250	Operations
		1260	Research & Dev.
		1270	Field Support
		1280	Inform Tech
1300	Product ‘A’	1230	Sales/Marketing
		1240	Manufacturing
		1250	Operations
		1260	Research & Dev.
1400	Product ‘B’	1410	Plant ‘A’
		1420	Plant ‘B’
1500	Region - East	1510	New York
		1520	Washington D. C.
		1530	Union ‘A’
1600	Region - Central	1610	Chicago
		1620	New Orleans
		1530	Union ‘A’
1700	Region - West	1710	San Francisco
		1720	Denver
		1530	Union ‘A’

4.     Save your entries.

4.2   Personnel Structure

The Personnel Structure represents an employee’s position in a company from the individual employee’s view and contains the employee group and employee subgroup. The employee group is the primary subdivision of personnel and allows groupings that are required for Payroll, Benefits, and Time processing. In the employee group, where an employee is assigned to is based on the nature of their employment. The SAP Best Practices Package Global employee structure has been designed to support internal, retired, and external persons. Internal persons are defined within the employee groups Employee. The employee subgroups are a subdivision of the employee group and are used to further define the employee.

Employee Group	Name of Employee Group	Employee Subgroup	Name of EE Subgroup
1	Employee	Y0	Hourly Full Time
		Y4	Hourly Part Time
		Y1	Salaried FT-Exempt
		Y8	Salaried PT-Exempt
		Y9	Salaried FT-Non Ex
		Y3	Executive
2	Retiree/ Pensioner	Y3	Executive
		Y5	Survivor w/Ben
		Y6	Survivor w/o Ben
		Y7	Regular Retiree
3	Early Retiree	Y3	Executive
		Y5	Survivor w/Ben
		Y6	Survivor w/o Ben
		Y7	Regular Retiree
4	Interns	Y1	Salaried FT-Exempt
		Y8	Salaried PT-Exempt
		Y9	Salaried FT-Non Ex
7	Temp/Seasonal	Y0	Hourly Full Time
		Y4	Hourly Part Time
8	Expatriate	Y1	Salaried FT-Exempt
		Y3	Executive
		YA	Non-Payroll w/Ben
9	External	Y2	Contractor
U	Inpatriate	Y1	Salaried FT-Exempt
		Y3	Executive

4.2.1  Employee Groups

Use

The employee group allows you to divide your employees into groups and allows you to define their relationship to the enterprise. The following essential organizational functions can be carried out using the employee group:

• Generating default values when entering data; for example, for the payroll accounting area or for the basic pay of the employee
• Generating a selection criterion for evaluations
• Generating a unit for the authorization check

Procedure

1.     Access the activity using one of the following navigation options:

IMG Path	SAP Customizing Implementation Guide ® Enterprise Structure ® Definition ® Human Resources Management ® Employee Groups
Transaction Code	SPRO

2.     Make the following entries:

Employee Group	Employee Group Description
1	Employee
2	Retiree/ Pensioner
3	Early Retiree
4	Interns
7	Temp/Seasonal
8	Expatriate
9	External
U	Inpatriate

3.     Save your entries.

The SAP Best Practices for HCM package has changed the name of Employee Group 1 from Active to Employee.

4.2.2  Employee Subgroups

Use

The employee subgroup represents a subdivision of the employee group. When you define employee subgroups, you set up your personnel structure. Features are allocated to this in later steps. These steps are dealt with at the spot where they are established in a business sense.

The following business subtasks are provided among other things:

• specification of processing in payroll accounting
• specification of validity of primary wage types
• specification of validity of work schedules
• specification of validity of pay scale groups
• specification of validity of time quota types

Procedure

1.     Access the activity using one of the following navigation options:

IMG Path	SAP Customizing Implementation Guide ® Enterprise Structure ® Definition ® Human Resources Management ® Employee Subgroups
Transaction Code	SPRO

2.     On the Choose Activity screen, double-click Define Employee Subgroup.

3.     On the Change View “Employee Subgroup“: Overview screen, make the following entries:

Employee Subgroup	Employee Subgroup Description
Y0	Hourly Full Time
Y4	Hourly Part Time
Y1	Salaried FT-Exempt
Y8	Salaried PT-Exempt
Y9	Salaried FT-Non Ex
Y3	Executive
Y5	Survivor w/Ben
Y6	Survivor w/o Ben
Y7	Regular Retiree
Y2	Contractor

4.     Save your entries.

The client can add, copy, or delete employee groups and subgroups to meet their requirements.

4.3   Assignment

4.3.1  Assignment of Personnel Area

Use

In this step, you allocate each of your personnel areas to one company code. When you create a personnel number, the corresponding company code is allocated to it in the infotype Organizational Assignment (0001), depending on the enterprise structure in which the employee is situated.

Procedure

1.     Access the activity using one of the following navigation options:

IMG Path	SAP Customizing Implementation Guide ® Enterprise Structure ® Assignment ® Human Resources Management ® Assignment of Personnel Area to Company Code
Transaction Code	SPRO

2.     On the Change View “Assignment of Personnel Area to Company Code”: Overview screen, make the following entries:

Personnel Area	Personnel Area Text	Company Code	Company Name	Country Group
1000	Region – North	1000	Company Code 1000	10
1100	Region - South	1000	Company Code 1000	10
1200	Headquarters	1000	Company Code 1000	10
1300	Product ‘A’	1000	Company Code 1000	10
1400	Product 'B'	1000	Company Code 1000	10
1500	Region - East	1000	Company Code 1000	10
1600	Region - Central	1000	Company Code 1000	10
1700	Region - West	1000	Company Code 1000	10

3.     Save your entries.

4.3.2  Assignment Employee Group to Employee Subgroup

Use

In this step, you assign your employee subgroups to their respective employee groups. In addition to this, you determine whether the employee group/employee subgroup combinations are allowed for the country groupings. Place a check-mark in the field next to each country where this Employee Group/Subgroup combination is valid.

Procedure

1.     Access the activity using one of the following navigation options:

IMG Path	SAP Customizing Implementation Guide ® Enterprise Structure ® Assignment ® Human Resources Management ® Assign Employee Subgroup to Employee Group
Transaction Code	SPRO

2.     On the Change View “Country Assignment for Employee Group/Subgroup”: Overview screen, make the following entries:

Employee Group	Name of Employee Group	Employee Subgroup	Name of EE Subgroup	Country Grp
1	Employee	Y0	Hourly Full Time	10
		Y4	Hourly Part Time	10
		Y1	Salaried FT-Exempt	10
		Y8	Salaried PT-Exempt	10
		Y9	Salaried FT-Non Ex	10
		Y3	Executive	10
2	Retiree/ Pensioner	Y3	Executive	10
		Y5	Survivor w/Ben	10
		Y6	Survivor w/o Ben	10
		Y7	Regular Retiree	10
3	Early Retiree	Y3	Executive	10
		Y5	Survivor w/Ben	10
		Y6	Survivor w/o Ben	10
		Y7	Regular Retiree	10
4	Interns	Y1	Salaried FT-Exempt	10
		Y8	Salaried PT-Exempt	10
		Y9	Salaried FT-Non Ex	10
7	Temp/Seasonal	Y0	Hourly Full Time	10
		Y4	Hourly Part Time	10
8	Expatriate	Y1	Salaried FT-Exempt	10
		Y3	Executive	10
		YA	Non-Payroll w/Ben	10
9	External	Y2	Contractor	10
U	Inpatriate	Y1	Salaried FT-Exempt	10
		Y3	Executive	10

3.     Save your entries.