SAP S/4 HANA IMPLEMENTATION PROJECT
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SAMANTAVIHAR O
DATE AUTHOR REVIEWER/APPROVER REMARKS
HCM 20.03.2024 Sandeep Mohapatra
Document validation/sign-off
NAME ROLE SIGNATURE DATE
hanty Delivery Head
Fico Consultant
ejaya Sahoo
HCM Lead Consultant
ndra Dwivedi
HCM
ep Mohapatra Consultant
Project
p Lenka
Manager
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Contents
1 Company Profile..........................................................................................................3
2 Company Code............................................................................................................4
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1 Company Profile
Odisha Agro Industries Corporation Limited is an unlisted public company incorporated on
20 December, 1961. It is classified as a State government company and is located in
Khordha, Orissa.
2 Company Code
A Company is an Organizational unit in accounting which represents a business Organization.
According to the requirements of commercial law in a particular country. Each company has its own
balance sheet and its own profit and loss statement. Following is the AGRO code is implemented in
SAP.
Compa Company Code Description
ny
Code
OAIC ODISHA AGRO INDUSTRY
CORPORATION
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Organization
Management
Personnel
ESS & MSS
Administration
Time
Payroll
Management
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Project: AGRO
Business Blueprint: Human Capital Management
1.ORGANISATION MANAGEMENT
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1.1 Executive Summary
At AGRO Organization structure consists of direct or indirect relationship with one department to another department which
are aligned with company codes.
The End-to-End process of Organisation Management for AGRO covers the following processes:
► Cost centre
► Designation
► Department
► Employee Relationship
1.2 Introduction
Organisational Management (OM) module is the central component for human resource planning. At AGRO, Organisation
Management structures are built by creating objects (Department, designation, and Persons) to link each other via
relationships.
1.2.1 Purpose
This Business Blueprint Document covers the end-to-end process of the Organisation Management for AGRO
. The following process will be mapped as part of Organisation Management component for AGRO:
► Process of creating, changing and delimiting elements like Departments and Designation of Organisation Structure.
► Define relationships between departments, to department for AGRO.
► Define reporting relationships between department, designations and relationships among positions to positions for
AGRO.
1.2.2 Business Benefits
Organization Structure Provides Integration between one department to another as follows:
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► This will help us to cost planning and cost distribution.
► A single integrated organizational structure for AGRO.
► Central reporting throughout the organizational structures.
► Management can view entire AGRO org structure in one click.
► Clear visibility on occupied and vacant position.
1.3 SAP S/4HANA Terminology
At AGRO the organization structure is the basis of Reporting relationship and workflow. The organizational model forms a
framework for a routing structure that workflow uses to direct tasks to the employee. Organizational Management forms part
of the Business Management Tools which comprises of:
► Organization and Planning: This provides flexible tools to construct a model of the company.
► Structural Graphics: This allows viewing, editing, and maintaining a graphic depiction of the organizational plans.
Objects can be moved around inside the structures.
► Plan Version: A plan version is a designated area where you deposit different sets of information. A single plan
version may contain information maintained in any or several of the Human Resources components.
► Organizational Management does not limit you to one plan – you may use a wide variety
► of plans to suit your human resources needs. Using these tools, you can create plans that
► enable you to access your current organizational situation, analyse your historical record, and plan future scenarios.
► You differentiate between plan versions by assigning each a unique code. Codes are user-defined and alphanumeric.
► As per SAP S/4HANA best practice Organizational structure consists of following object types:
► Organizational Unit (O)
► Position (S)
► Person (P)
► Cost centre (K)
► Job (C)
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1.Organization Unit
Organization Units are functional units in an enterprise. They are defined according to how the tasks are divided up within an
enterprise, such as departments, groups or project teams, etc. For Example, at CDA there are different Department such as
Finance department, Legal Department, Planning Department and Establishment Department.
2.Position
Organizational object (object key - S) used to distribute tasks to different positions and to depict the reporting structure in an
organizational plan. Positions are concrete and are held by employees or users in an enterprise.
Positions differ from jobs. A job is not concrete but rather the basis for the creation of various positions with similar tasks
and characteristics. A chief position within an organizational unit is defined to which all other positions in the
organizational unit report.
3.Person
Person in SAP will represent an employee in the company who holds a position. For Example, Mr. P.S. Sarthak holds a
position of Deputy General Manager.
4.Cost Centre
Cost centre in SAP is a location where the costs are occurred inside the organization. Cost centres are responsible to capture
actual costs of a department which will be captured as per department, product, area, etc.
5.Job
A Job describes a group of tasks, authorities, and responsibilities of the employees. For Example, at CDA there are different
jobs such as Area Sales Manager, Medical Officer, etc.
CDA BUSINESS PROCESS
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Organisation Unit
AS-IS
At present, there are departments in CDA. The following table consist the list of departments.
Sl.no Department
1 Administration Division
2 E&I Division
3 Finance Division
4 Technical Division
5 Agro input Division
6 Project & Feed Division
7 Audit Division
8 Secretarian Division
At CDA each department will be mapped to an organization unit in S4 HANA system to develop CDA organization structure.
The following list of departments and sub departments will be created for CDA.
Sl.no Organizational Unit Long Text
1
2
3
4
5
6
7
8
9
10
Note: Final organisational unit code will be configured during realisation phase.
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Info type text
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1000 Object
1001 Relationship
1002 Description
1007 Vacancy
The following table represents proposed Infotypes that will be considered for maintaining the Organizational Unit.
Job
AS-IS
At CDA, job is assigned to different Designations, for e.g., Area Sales Manager, Regional Sales Manager etc based on the
nature of work to be performed. Jobs are mapped with Position.
TO-BE
Organizational object (objects key C) used to create Job in an organizational plan.
Positions are concrete and can are held by persons in an enterprise (secretary in the marketing department, for example). Jobs,
in contrast, are classifications of functions in an enterprise (secretary, for example), which are defined by the assignment of
tasks and characteristics. Jobs serve as job descriptions that apply to several positions with similar tasks or characteristics.
You determine the characteristics of a job using the following Infotypes:
Info Types Info Type Description
1000 Object
1001 Relationship
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Jobs also provide a valuable point of reference for developing qualifications, if you plan to install the Personnel Development
component of HR.
Normally, it is advisable to consolidate all the different jobs within the organization and groups all the similar jobs based on
their functions and tasks.
Note: The job details will be updated based on job data that will be provided by business.
PERSON: A physical person to which all people relevant data will be attached.
The personal relevant data are managed in the SAP S4 HANA system in Infotype.
COST CENTRE: Cost centre is determined in SAP-CO application. A Cost CENTRE can be assigned to a Parent
Organization Unit and its entire child Organization Unit and Positions will inherit the Cost Centres. Hence, you only need
to assign the Cost Centre only once at the Parent or higher Organization Unit.
However, if there is any assignment in Cost Distribution Infotype (IT1008 & IT 0027), payroll will be picked up this cost
CENTRE for charging purpose.
Note: Cost centre will be created in Finance module and HCM system will take those cost centre and update in employee
master.
Organisational Data Number Range
AS-IS
As of now, there are no Organisational data Number range defined for job, designation and departments present at CDA.
TO-BE
As per the discussions, the following Number Ranges are recommended according to SAP S/4HANA best practice:
Organisational Data Number Ranges
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1 Organisation Unit Code/Department Code 10000000 19999999
2 Position Code /Designation Code 20000000 29999999
3 Job Code 30000000 39999999
SAP S/4HANA Infotype
1. Object Infotype (1000)
This Infotype determines the existence of an organizational object.
Use:
As soon as an object is created using this infotype, additional object characteristics and relationships to other objects can be
determined using other Infotypes.
To create new objects:
► A validity period for the object is defined.
► An abbreviation to represent the object is provided.
► A brief description of the object is provided.
2. Reporting Relationships (Infotype 1001)
This Infotype defines the Relationships between different objects.
Use: An employee or user holding a position is defined by creating a relationship infotype record between the position and the
employee or user. Relationships between various organizational units forms the organizational structure in the enterprise.
3. Department/Staff (Infotype 1003)
Infotype with which a staff indicator to organizational units and positions can be assigned or organizational units can be
flagged as departments.
Use:
► It allows to apply a Staff flag to organizational units and positions
A staff flag indicates that an organizational unit or position is not only the part of the normal reporting structure at your
company, but rather reports directly to a high-level position or organizational unit.
► It allows to apply a department flag to organizational units.
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It is necessary to apply department flags only when integration is active between Personnel Planning and Personnel
Administration.
Vacancy infotype can be created only for positions. A vacancy record might be created for an occupied position if, for
example, an employee is serving notice period so after that period position will be vacant and will be ready to occupy.
4. Account Assignment Features (Infotype 1008)
Infotype with which account assignment features can be defined for organizational units and positions.
► It plays a role in assignment of cost centres to objects.
Cost centre assignments are needed if the Personnel Cost Planning component is planned to be used.
► It allows entering default settings, helpful for the Personnel Administration component.
This ensures more efficient integration between the Organizational Management and Personnel Administration components.
Use:
This infotype can be maintained using General Maintenance method by creating infotype records one object at a time or in
Simple Maintenance method where procedures are streamlined.
5. Cost Centre Assignments
Using this infotype, cost centre-related default settings can be assigned for organizational units and positions. These default
values ensure that the system suggests the correct cost
centre assignment for objects. It is advised to set default values to prevent incorrect data being entered on persons.
Relationship Type (SAP Standard)
Relationship Name (A) Relationship Name (B)
Reports to Is line supervisor of
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Manages Is Is Managed by
Cost Centre Assignment Cost Centre Assignment
Holder Holder
Organization Management relationships link Organization Management objects (Org.
+Unit, Position, Cost Centre, and Person) to each other and then build the organization.
Below is the table of relationships pre-defined by SAP and how they are used with objects:
Object 1 Relationship Key Relationship Name Object 2
Organizational Unit B002 Is Line Supervisor of Organizational Unit
Organizational Unit A002 Reports (line) to Organizational Unit
Organizational Unit B003 Incorporates Position
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Position A003 Belongs To Organizational Unit
Person B008 Holder Position
Position A008 Holder Person
Position A011 Cost Centre Assignment Cost Centre
Position B012 Manages Organizational Unit
5. Change in Existing Process
► Reporting relationship will be streamlined.
► Department and designation will be optimised.
► Grade and designation will be simplified.
Business Process Improvement
► The up-to-date organisational hierarchy will be available (as per role, designation, department, and cost centre) for top
management which will enable business decision making.
► Real time reporting with respect to designation and department will be available.
6. SAP S/4 HANA Best Practice
1. Create separate positions for each employee (one to one relationship between positions and persons)
2. Standardize positions and make them derived from jobs.
7. Description of Functional Deficit
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► Jobs and Positions need to be segregated.
► Grades and Positions need to be optimised as there are multiple positions for one grade.
8. Approach to cover Functional Deficit
► Reporting Structure will be created in SAP S/4HANA system which will have coherent reporting structure.
► Grades and designations will be sorted according to system requirement.
9. Recommendations
► Designation: As of now, there are multiple designations present in one grade. According to SAP S/4HANA best
practice, there should be one position one grade.
10. KPI and Controls
► In SAP, all employees within CDA will be assigned to positions and it will be regularly updated according to the status
change of the employees.
► Employees will always be assigned to the created positions in the system to ensure that the employee is attached to a
role, designation, department, and cost centre.
► The detail and up-to-date organisational hierarchy will be available (as per role, designation, department, and cost
centre) for top management to take important business decision.
► Visibility on availability of vacant positions at a given time to enable important Joining decisions.
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