List The Various Components of the Enterprise Structure in Systems, Applications,

And Products (SAP) In Human Capital Management (HCM)?

The components of the enterprise structure in SAP HCM are given as follows:
 Client
 Company code
 Personnel area
 Personnel subarea

What Is Client in The SAP System?

In the SAP R/3 (R stands for Real-time) system, a client is an organization and a legal entity.
A client is positioned at the highest level among all the organizational units. It contains the
master data of various business processes, such as customers, products, and vendors. A three-
digit number is used to represent clients in the SAP R/3 system.
What Is Company Code?
A company code is a unique four-character alphanumeric code that represents a legally
independent enterprise.
What Is Personnel Area?
A personnel area is a subunit of company code. It is identified as an organizational unit
representing an area in an enterprise, which is organized according to personnel
administration, time management, and payroll accounting criteria. It is represented as a four-
character alphanumeric code. For example, the personnel area code for a corporation is
CORP.
What Are Personnel Subareas?
A personnel subarea is a part of personnel area, which can be subdivided according to the
geographical location or the strategic line of business. It is represented as a four-character
alphanumeric code. For example, if the branches or locations of an organization are defined
as personnel area, then its departments, such as HR and ADMIN, are the personnel subareas
of the organization.
What Is SAP HCM Workflow?
The SAP HCM Workflow automates business processes and assigns tasks to appropriate
person at the right time.
What Do You Mean by Info Types in SAP HCM?
Info types are referred to as system-controlled characteristics of employees. Information
related to employee is stored in the form of Info types,
which are represented by a four-digit numeric code given as follows:
 0000 for actions
 0001 for organizational assignment
 0002 for personal data
 0003 for payroll status

What Are Features in SAP HCM?

Features are decision trees customized in the Implementation Guide (IMG) screen in SAP
HCM that are made up of technical fields whose values are defaulted in the easy access.
How Do You Hire a New Employee?
A new employee is hired with the PA40 transaction code. After that, all the Info types are
maintained for the employee by using the PA30 transaction code.
What are the three administrators?
The three administrators are:
 Personnel Administrator
 Payroll Administrator
 Time Administrator

How does any company use an organizational plan?

The company organization structure and reporting structure is represented through the
organization plan. The active plan version is the current plan version and the other plan
versions are considered as various planning Stages. Used for manpower planning. Normally
plan version”01″ is always made the active plan version.
What is an evaluation path?
An evaluation path describes a chain of relationships that exists between individual
organizational objects in the organizational plan.
You can maintain evaluation paths on img -> Personnel Management ->Organization
Management-> Basic Settings-> Maintain Evaluation Paths.
What is the difference between a job and a position?
Job is not concrete, it is generic. (Eg: Manager, Assistant Manager, Consultant). Positions are
related to persons. Position is concrete and specific which are occupied by Persons. (Eg:
Manager – Finance, Consultant – SAP HR).
What are Dynamic Actions? Give few examples?
Dynamic actions when triggered by the system. They are result of some personnel action. If
changes are made (personnel action) to the personnel data of an info type, then has an effect
on the data of a second info type, the system automatically displays the info type. One of the
main purposes of the dynamic action (of the system) is to have a consistent and coherent data.
These actions are started automatically by the system, unlike the Personnel actions which you
start by yourself. The best example is when an action is carried out like hiring; it needs to
populate a set of info types. In the initial entry of details in info type 0000 is personnel action.
Then the system automatically displays next info types- which are result of dynamic action.
What is the difference between Indian and US Payroll?
Does each of them have their own ITs and the taxation differs? Yes, since the Benefits which
are more important in US. In US unemployment tax will come. Garnishments will come,
Residence taxation, Work tax and others.

How can we evaluate wage types indirectly?

 You must define the characteristics of the wage-type to be evaluated indirectly. To do this, go
to the IMG under Payroll *: Reimbursements, Allowances and Perks ® Maintain Wage Type
Characteristics.
In this activity, if the wage type has to be Indirectly Evaluated, you must first assign INVAL
in the Indirect eval. module field.
Then, you must assign the Module variant (A, B, C, D) for the wage type. Now when you
populate the Basic Pay info type (0008), the configured wage types will get defaulted, and
those wage types configured for INVAL will also have their amounts defaulted.
What ways are there to perform pay scale reassignment?
You can reassign pay scale to any position through position maintenance(PO13). Go to
change planned compensation and reassign the pay scale to the desired position.
 Simple and extended pay increases
 Simple Standard Pay Increase
 Go to reporting. In the Program field enter report RPU51000.
 The selection screen for the report is displayed.

In the Pay Scale Group, Pay Scale Level and Wage Type fields, enter the employees who
should receive a standard pay increase. Enter the date from which the Customizing settings
should be changed. In the Increase and Rounding sections, enter the necessary data, for
example, an increasing amount or an increase percentage rate.
The amount of the indirectly valuated wage types is adjusted according to the data in the
Customizing settings. No new info type records have been created in the Basic Pay info type
(0008).
Extended Standard Pay Increase
In the Program field enter report RPITRF00.In the Selection section, enter the selection
criteria you want to use to effect an extended standard pay increase.
Choose Batch Input.
If you do not select Batch Input, the pay scale reclassification will only be simulated. A
results log is displayed, that you can evaluate as required. If necessary, enter the pay scale
structure for which you want to effect a standard pay increase.
Process the batch input session.
The payments for the selected employees have been adjusted in accordance with the data
specified in Customizing. New info type records have been created in the Basic Pay info type
(0008).
What is the employee subgroup grouping for primary wage types used for?
You can use these groupings to specify which wage types may be entered for which
employee subgroups.
Through which T-Code you are able to create a remuneration statement?
PC00_Mxx_CEDT (xx – denotes the molga for a country)
How can you define default wage types for the Basic Pay Info type?
The system can suggest a default wage type for basic pay (IT0008), to do this appropriate
wage type must be included in a wage type model. Here you define the default wage types
and the sequence how they should appear in the info type Basic Pay and whether you can
overwrite the defaulted wage type or not.

Personnel Management -> Personnel Administration -> Payroll data -> Basic Pay -> Wage
Type ->
Revise Default Wage Types

After setting wage type model, LGMST feature needs to be defined. Feature LGMST has two
return values: firstly, the maximum number of wage types that can be entered in the Basic
Pay info type (IT0008), and secondly, the wage type model the system is to use, which was
defined above.

To access feature LGMST use following SPRO path or transaction PE03.

SPRO: Personnel Management -> Personnel Administration -> Payroll data -> Basic
Pay -> Wage Type -> Enterprise Structure for Wage Type Model

In which feature, default wage type is defined for Basic Pay Info type?

LGMST
How does the system know when to trigger retroactive accounting for a particular
employee?
Retroactive accounting recognition consists of four steps:
 If you edit an info type that is relevant to retroactive accounting, the system enters the
start date of the changed info type record in the following fields of info type 0003
Payroll Status:
 Earliest MD change (earliest master data change since last payroll run)
 MD chng. bonus (earliest payroll-relevant master data change (bonus)). This field is
only displayed for specific country groupings; it is not displayed for all personnel
numbers.
 During the next regular payroll run or correction run (off-cycle payroll type B), the
system determines whether the date in the Earliest MD change and (if applicable) MD
chng. bonus fields come before the date in the Accounted to field.
 If this is the case, the system performs retroactive accounting. It starts with the payroll
period in which the date entered in the Earliest MD change and MD chng. bonus
fields occur. The system recalculates all payroll periods that lie between the date in
the Earliest MD change and MD chng. bonus fields and the date in the Accounted to
field.
 The system deletes the date in the Earliest MD change and MD chng. bonus fields
What activities are possible when the payroll control record is set to “Released for
Payroll”?
If you choose the function Release Payroll from the menu, you are prevented from changing
info type data records if such changes affect the past or present. This lock applies to the
personnel numbers included in the payroll area concerned. Changes that affect the future are
still permitted. You must execute this function in the menu before starting the payroll. If the
status of the payroll control record was previously Exit Payroll, the Release Payroll function
also has the effect of increasing the period in the payroll control record by 1.
Can a posting run be deleted?
Yes, it can be reversed before the Bank transfer. Once the transfer is done the payments need
to be adjusted in the next payments.
Difference between PCR and CAP?
Difference between PCR and CAP is mentioned below:
PCR – The Personnel Calculation rule allows how one wage type is to be processed in
different ways in payroll accounting.
CAP – CAP is Collective Agreement Provision based on which the different groups of
Employees are eligible for different kinds of pay scale structures and benefits and so on. CAP
is based on the following components:
 Pay scale type
 Pay scale area
 Employee subgroup grouping for CAP
 Pay Scale Group and Pay Scale Level

An employee subgroup grouping for collective agreement provisions combines subgroups

which are governed by the same valid collective agreement provisions. A provision is a
specific labour law regulation within the collective agreement.
Naming convention for wage types
The following naming conventions are used for wage types:
 /0** – valuation bases
 /1** – cumulation of gross amount
 /2** – averages
 /3** – country-specific, usually for social insurance
 /4** – country-specific, usually for tax
 /5** – legal net
 /7** – wage/salary plus ER shares
 /8** – factoring
 /84* – cost accounting
 /A** – outgoing wage types in retroactive accounting period
 /Z** – incoming wage types from the previous period

Do you know in OM -> copy plan version?

To copy plan version, use the TCode: RE_RHCOPL00.
This report is only for copying objects from one plan version to another plan version to keep
updated structures Always only one plan version would be active which is current. This
report does not help to copy any master data.
Can a posting run be deleted?
Yes, it can be reversed before the Bank transfer. Once the transfer is done the payments need
to be adjusted in the next payments.
What activities are possible when the payroll control record is set to “Released for
Payroll “?
When you set the status to Release for payroll you can’t make any change to master data. It’s
actually released for payroll.
Is it possible to branch directly from the payroll log to master data and time data
maintenance?
Yes, you can go in separate sessions.
Payroll Results
How do you post the payroll results to FICO? I created one symbolic account and
assigned the same to Salaries GL Account and then completed the other configuration
steps needed to complete the procedure.
However, when I tried to run the simulation for posting to FICO, I got the message
“Document is not generated”.
If you have selected “Output Log” at the beginning of your configuration procedure, it will
tell you at the bottom part what went wrong.
Deduction Wage Type
We have a deduction wage type displayed in the window of our pay slip that shows a
negative value. This causes problems and we have tried several measures to correct this
including conversion rule 16 for our wage type in the same window but so far, without
any success. How can we correct or delete the negative sign?
You can review OSS Note 406977.
This is a collective note of issues with RPCEDTx0 with examples of problems and solutions.

Payroll Simulation
How do I correct the payroll simulation entry and check the correctness of our master
data? What if one hundred employees get rejected due to error 167-process health
plans? What does the following error mean: “No entry for plan DENT/cost variant?
FMDN/key////x00000000000000”?
You should check for the cost element associated and the validity of cost rule for this plan.
To do this, check your configuration under Benefits>Plans>Health Plans>Define cost variant
and define cost rules.

Payroll Simulation
Why is the system not picking up the values changed this month by default during
payroll simulation? However, when I tried last month’s retro date, it picks up correctly.
How can this issue be corrected?
You can check the “Earliest MD (master data) change” date on info type 0003. If you have
done that already and payroll simulation still doesn’t function by default, then there is a
problem with your info type and/or wage type retro settings. Check table T582A.

Single Payroll
Is it possible to configure a single payroll to pay an individual in multiple currencies?
No. The system can be configured to pay in multiple currencies but not to pay an individual
in multiple currencies.
IT0015

I need to capture a reason in the “additional payment” IT0015. The reason code is
“save” in this info type. I tried to capture for reason an Example to ADDWT 9999 if
Reason ADDWT9998. How can I check the reason in IT0015 for accuracy?
You can try using this to start with: ‘TABLE P0015 > VARGB PREAS’
Then, use the variable key to define the different reasons.

Which characteristics does a day with day type 1 have?

Its OFF and Paid

How does the system know when to trigger retroactive accounting for a particular
employee?
You have to mention the retroactive accounting date in IT 0003 in the relevant field.
Otherwise it will take the earlier hiring date.

Is it possible to branch directly from the payroll log to maser data and time data
maintenance?
Yes, you can go in separate sessions.\
What Do You Understand by Personnel Structure?
Personnel structure is defined as the structure of employees in an organization. It comprises
employee groups and employee subgroups.
The employee group allows you to divide employees into groups and define their relationship
to the enterprise.
Following are some important organizational functions that can be performed using an
employee group:
Creating default values when data is input, such as creating default values for the payroll
accounting area or basic pay of the employee
Creating a criteria of selection to be used during evaluations
Creating a unit to be used for authorization check.

What Is Shift Planning?

Shift Planning is a component of Personnel Time Management. It is used to plan the shift
time and location of the employees according to their qualification and the number of job
requirements. The document used to record this information is called planned shift document,
which is also known as roster.
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Q1) How can you say that SAP HR is better than PeopleSoft HR
S.No SAP HR PeopleSoft HR
1 Various structures of data are allowed Limited structures of data are allowed
For restrictions, additional
Restrictions on the employees data
2 programming or modelling is to be
make it secure
done
3 It is dynamic in nature Only a few features are dynamic
Q2) What do you mean by Human resources?
These are basically the people that build up workforce for a business or for an organization
and are mainly responsible for the successful accomplishment of many important task.
Depending upon the size and type of business, there can be more or less human resources in
an arena. Human resources can also be referred as labour, manpower, skills or simply people
in an organization.

Q3) Which structure in the SAP HR provides information regarding the job functions
of employees?
Personnel Structure

Q4) What do you mean by the term Fringe benefits?

These are basically the benefits that are provided to the employees of an organization in
addition o their salary or compensation. It is not always necessary that they are provided
directly in the form of salary. Generally, they are non-wage compensation. The common
examples of fringe benefits include:

1. Providing accommodation to the employee

2. Providing health benefits such as insurance
3. Income protection
4. Vacation
5. Profit sharing
6. Loan contribution
7. Proving benefits to the family of employees such as education loans
Q5) What do you mean by the term rewards management?
It is basically a strategy with the help of which an organization make sure that workers who
performed well in their responsibilities and tasks are rewarded in affair manner and are
provided various benefits. The rewards can be in the form of a gift, salary hike, promotion
and so on. There are certain benefits can be assured by an organization with effective rewards
management approach. The biggest one is they can simply motivate other employees to
handle their jobs reliably and easily.

Q6) What are the various methods that can be considered when it comes to recording
time in the SAP HR machine?
This can be done with the help of any of the following methods:

1. By using cross application time sheet

2. By using time administrators online
3. By ESS application
Q7) Can you tell anyone component of the rewards management?
It can be remuneration. The same can be considered as the tips and advice that is offered to
the workforce by the employer. It is not necessary always that all the employees are provided
the same tips and advice. This is generally done in exchange of their services. There are a
number of future benefits that both an employee and an employer can have from
remuneration.

Q8) What is the significance of Organizational structure in the SAP HR application?

This is basically the structure that is considered as very essential. It simply makes sure of
healthy relation among the employees and their departments. There are some regular
guidelines on which it is based on and can vary depending on the nature and the type of a
business. SAP HR application enables users to make changes in the same structure and the
users are free to add a lot of information as per their needs.

Q9) How SAP HR can be trusted for the recruitment and training of the employees?
Both of these modules are very essential and simply enable and organization to get results
they also expect from their workforce. SAP HR tool is good enough to provide information
on what sort of training is to be provided to the employees and how they can benefit them.
The tool can be trusted for its suggested approach which is based on the employee’s
performance and the weak portion.

Q10) Can SAP HR be trusted for dealing with the discrimination?

Yes, it has several features for the same and there are many organizations who are already
utilizing it for the same task.

Q11) What do you know about the Matchcode W?

Sometime there is a need to access the personnel numbers in a payroll which are no longer
valid due to rejection by the payroll run. Matchcode W is used to make sure that the rejected
data is to run successfully again. This is done by making appropriate corrections in the same.
The overall time taken for the same depends largely on the type of errors and how they are
generally addressed.

Q12) In SAP HR, what is the purpose of module Organization Management SAP HR?
It is basically an approach that is very beneficial for a business. As the name itself indicates,
the organization management module in the SAP HR simply make sure of handling all the
complex tasks in a very reliable manner and the good thing is the users are free to derive
many additional benefits. Tasks such as managing the relations, collaborating, time
management, advising, reporting as well as dealing with others can simply be accomplished
with this module and the good thing is users need not to worry about the bulk investments for
the same.

Q13) How many records can exist for a given period in SAP HR?
Only record can be there for a specified period in SAP HR. Also, there is a condition which
the users have to make sure and i.e. the records should be free from any sort of gaps between
them. The new records when added, the SAP HR instructs the system to overlap record on the
key.

Q14) Name a few sub modules in SAP HR?

These are Training and event management, Personnel Administration, Payroll, Compensation
Management and MSS.

Q15) What are the different structures in the SAP HR with which you are familiar?
In most of the businesses, there is actually a need of different structures for the successful
representation of conditions related to the organizations, their policies, as well as their
implementation. The SAP HR simply provides following three important structures with the
help of which the users are free to keep up the pace simply.

 Enterprise Structure
 Organizational Structure
 Personnel Structure
Q16) What are the responsibilities of a human resource department of an organization?
All the tasks related to employee welfare and handling different aspect of employment are the
responsibilities of the HR department in an organization. The department head has to
compliance with the labour law and have to make sure that all the employment standards are
met in the organization. Assuring administration and providing employee all the benefits is
also the responsibility if the same department. In addition to this, they are responsible for
dismissal, as well as recruitment of employees in the organization.

Q17) What are the two options that the users can consider when it comes to maintaining
the information for a defined Prototype?
These are PA 30 and PA 40. Also, known as Personal Administration Maintenance and
Personal Actions.

Q18) Why it is important to determine the needs of the staff? How SAP HR application
is useful when it comes to same
Staff often needs to be motivated for the successful accomplishment of their tasks. For this,
the first condition is to make them feel that all their needs would be fulfilled. The fact is
employees often made demands and it is not always necessary that the management has to
invest money in fulfilling the same. Determining the staff need is important because it simply
enhances the productivity and enable employee to perform all their tasks with dedication.
Also, determining the needs of the staff can simply help in marinating a secure and healthy
work environment in the organization/

The SAP HR tool has been equipped with some useful features with the help of which a close
eye can be kept on the departments and the way they are a performing. It offers a lot of useful
information on the same such as reporting and documents which provide information on the
staffing. The same can be utilized for determining the needs of the staff. Also, it has a lot of
dedicated features for this task.

Q19) What do you know about the term Info type and how it is of significant
importance in the SAP HR?
SAP HR tool needs user’s data for accomplishing few of its task such as record keeping and
marinating personal profiles. All the information about the employees is generally grouped
into the small units and these units are recognized as Info units. In SAP HR, they can have 4
digit keys.

Q20) What is PCL 2 cluster in SAP HR and how as a user you can access the same?
It is basically a cluster in which the Payroll outcomes are stored. It can be accessed with the
help of transaction PC simply. It’s not necessary that all the employees are allowed to access
the same.

Q21) Can you name a few Time Related Info types in the SAP HR?
Attendances, Absences, Work Schedule and Time Quotas

Q22) How can you define a processing class?

It is basically a characteristic of wage type that is considered for the purpose of determining
the way processing is done in the payroll run. It is a trusted approach and is useful for
providing favourable results in the payroll.

Q23) Can you tell something about the Internal Payroll Process and how it is beneficial?
International Payroll process is used when then the employees are to be paid more than their
basic remuneration. This can be due to reasons such as paying them bonus, rewarding,
overtime salary or any other special payments.

Q24) Is there a need to restrict the data to be entered in the Payroll area?
There is not always a need for the same. Generally, the employees are defined based on other
ethics and policies.

Q25) In SAP HR tool, what do you mean by the term Authorizations?

These are the basic transactions which are given to the employees or the end users for a
defined time period. This is when the end users have to work on a special assignment and
have to access the concerned data. The authorization may or may not be provided depending
on the various factors. The SAP HR tool simply makes sure of reliability and addressability
of the various modules in a very easy manner.

Q26) What do you mean by the term TMSTA?

It is basically a link between the payroll and the Time Management. It stands for Time
Management Status.

Q27) What do you mean by the term Go Live?

It is basically an approach when the users have to transfer the data from one server to another.
Generally, this is done between the development and the production server. There is a need
for the same due to various reasons that may not always be enclosed by the organization.

Q28) In Payroll, how the employees can be grouped?

The common method is to group them based on the overall allowances which are to be paid
to them. This can vary depending on their pay structure and other benefits that are usually
given to them.

Q29) What is Dynamic Action Feature in the SAP HR?

It is basically an approach to automate some basic tasks and features. The users can consider
it for multitasking. They are free to save a lot of time. However, it is not necessary that all the
tasks can be accomplished through automation in the SAP HR. Presently, it has a limited
scope but SAP is working to enhance its visibility in the coming versions.

Q30) What do you mean by the term Concurrent employment?

Concurrent employment is the situation when an employee is given an additional charge. In
other words, it’s when an employee holds more than one charge in an organization.
Generally, it is not always permanent and is considered only when issues such as sudden
resignations, death of an employee, or transfer takes place. Also, there are conditions which
the employees have to meet for this.