SAP HR – TrainingDay 2 & 3

SAP HR – Training Day 2 & 3

25

– 27

July 2007

Agenda

 Day 1 – HR Training

 Objective of Organizational Management

 Overview of Organizational Management

 Organizational Management Business Process Procedure

 Objective of Employee Administration

 Overview of Employee Administration

 Employee Administration Business Process Procedure

Agenda

 Day 2 – HR Training

 Objective of Leave and Overtime Process

 Overview of Leave and Overtime Process

 Leave and Overtime Business Process Procedure

 Objective of Payroll Process

 Overview of Payroll Process

 Payroll Business Process Procedure

Agenda

 Day 3 – HR Training

 Objective of Payroll Subsequent Activities and other HR Reporting

 Overview of Payroll Subsequent Activities and other HR Reporting

 Payroll Subsequent Activities and other HR Reporting Business Process

Procedure

Objective of Leave and Overtime

The objective of Leave and Overtime Process is to provide participants with the skills and knowledge to:

 Create Holiday Calendar

 Generate Work Schedule

 Generate Absence Quota

 Maintain Absence Record

 Maintain Overtime Record

 Create Fast Entry

 Generate Absence Quota Information

Introduction of Leave and Overtime

Human Resource – Leave and

Overtime module is used to process

the employees leave and overtime

application.

Introduction of Leave and Overtime

 Public Holiday needs to be identified to generate the holiday calendar.

 Singapore public holiday (by MOM) will be used to generate calendar for SCA.

SAP AG 1999

Public Holiday Calendars

2000 2000

Pub. Holiday Calendar New Year's Day Epiphany Good Friday Easter Sunday Easter Monday Independence Day

Pub. Holiday Calendar AR Argentina AT Austria CA Canada DK Denmark

GE United Kingdom MX Mexico

Personnel Subarea Headquarters

MX Mexico

Maintain Public Holidays With fixed date

With fixed day of week from date Distance to Easter

is Easter Sunday is a movable holiday

Introduction of Leave and Overtime

The following work schedule will be created in the system Work Schedule Rule : NORM - Regular

Daily Work Schedule (Mon to Fri) : 08.30 – 17.30 Break Schedule : 12.00 – 13.00

Off-day : Saturday

Rest Day : Sunday and Public Holiday

Introduction of Leave and Overtime

Absence Types

 Leave is identified as absence record in SAP.

Each leave type will be

represented by a certain

absence type i.e. Annual

Leave, Sick Leave, etc.

Introduction of Leave and Overtime

Absence Quota

Introduction of Leave and Overtime

 Based on its entitlement, the absence quota will be deducted based on the “approved absence records.

 Subsequent impact to other module i.e. salary deduction in payroll for no pay leave, can

further be identified based on the absence characteristic.

Absence Quota Absence

Introduction of Leave and Overtime

 When time data is recorded, data records frequently overlap one another (collisions) and, the system checks if other records for this employee have been recorded for the same period.

Collision checks prevent data records that conflict other absence records o be approved/saved.

The system reacts by issuing an error message, a warning, or by delimiting the old record.

Introduction of Leave and Overtime

Overtime Formula:

-

Normal Working Days (Monday – Friday)

 Formula: 1.5 x number of hours x basic salary

-

Saturday (Off) Day

 Formula: 1.5 x number of hours x basic salary

-

Sunday (Rest) Day and Public Holiday

 Formula: 2 x number of hours x basic salary

 Minimum hour is 4 hours. If employee has taken less than 4 hour, 4 hour

will calculate as number of hours, otherwise original hours as number of

hours

Leave and Overtime Business Process Procedure

Please kindly refer to the Business

Process Procedure Manual . . .

Objective of Payroll

The objective of Payroll is to provide participants with the skills and

knowledge to:

 Process Payroll (Simulation/Live)

 Check Payroll Result

 Process CPF

 Process Pay slip

 Process Bank Transfer

 Process Forms and other Reports

Introduction of Payroll

Human Resource – Payroll module is used to process the calculation and payment of employee remuneration including subsequent activities i.e.

CPF, Pay slip, Bank Transfer, etc.

Introduction of Payroll

 In broad term, payroll is used to calculate remuneration for work performed by individual employees.

 More specifically, payroll is an umbrella term for a variety of work processes, such as the creation of payroll results and remuneration statements, bank transfers, and subsequent reporting.

 Payroll also covers a number of

subsequent activities such as the

posting of results to Accounting and

other evaluations, for example, for

Introduction of Payroll

 The SAP HR System uses payroll areas to group together employees for whom payroll is run (or not to run) at the same time, and also to set the dates for the payroll period.

Employees from different employee subgroups can belong to the same payroll area. The following are 2 payroll areas used for SCA:

- Z1 = Monthly Payroll - 99 = No Payroll

Payroll Area

Introduction of Payroll

 Pay scale structure defines the classification of the salary payment based on specific considerations i.e. Region, Industry-specific, financial, as well as type of responsibility (functional).

 Pay scale structure is stored in Infotype 0008 – Basic Pay.

 Salary level/amount/range can be defaulted based on the respective pay scale structure.

 Pay scale structure consists of:

- Pay scale Type - Pay scale Area - Pay scale Group

Pay Scale

Introduction of Payroll

 The purpose of a payroll system is to pay an

employee the correct amount, at the correct time and with minimum manual intervention. To do this, a series of

activities must be

performed in each

payroll period.

Introduction of Payroll

Control Record:

- Defines the payroll past for retroactive accounting recognition

- Locks master data and time data so no changes can be made during the payroll process.

- The control record defines the earliest possible retroactive

accounting date for each

Introduction of Payroll

Payroll Process

Introduction of Payroll

Introduction of Payroll

Introduction of Payroll

Introduction of Payroll

Introduction of Payroll

Introduction of Payroll

 Remuneration is calculated in two main steps: 1) Calculation of wage elements 2) Statutory and voluntary deductions

 Wage elements, statutory deductions, and voluntary deductions i.e. CPF, CDAC,

MENDAKI, SINDA, etc are all based on the individual payments and

deductions that are calculated for an employee during a payroll period.

The payments and deductions are stored as wage types and then included in the payroll calculation.

Payroll Calculation

Introduction of Payroll

 The R/3 System assigns a start date and an end date to HR

master data. The payroll program requires these dates so that it can perform calculations for specific days, and retroactive accounting for previous periods.

 If you change HR master data in a period for which the payroll has already been run, the payroll must be run once again for this period, using the current values. This is

Retroactive Calculation

Introduction of Payroll

 Wage types are the key element in the wage type structure. Wage types are the most important concept in Human Resources.

 Wage types are used to assign payments and deductions and they control the payroll program.

 Characteristics are used to distinguish the individual wage types.

Wage type

Introduction of Payroll Wage type

 Before an employee's pay can be calculated, wage types must be created.

 We can define the

permissibility of wagetype

 We can define whether a wage type is a payment or a deduction.

 We can define the input combination controls i.e.

amount, or number, or unit

of time/measurement.

Introduction of Payroll

 The following are Singapore specific deduction whereby CPF Board is the collecting Agent:

 Central Provident Fund Contribution (CPF)

 Foreign Worker Levy (FWL)

 Skill Development Levy (SDL)

 Mosque Building and Mendaki Fund (MBMF)

 Singapore Indian Development Association (SINDA)

 Chinese Development Assistance Council (CDAC)

 Eurasion Community Fund (ECF)

Introduction of Payroll

CPF Formula:

 Wages are classified into Ordinary Wages and Additional Wages

 Ordinary Wages are earnings due to the employee on regular monthly basis i.e. basic salary

 Additional Wages are transaction that are cumulated or not paid on monthly basis i.e. bonus

 Contribution by employee and employer to be calculated

Introduction of Payroll

CPF Formula:

 OW is capped based on maximum gross salary S$4,500

 AW is capped based on S$76,500 – AOW subject to CPF (fr 01.01.06)

 SAP default for retro calculation of OW (i.e. backdated salary increase) will

be classified as AW in the current month.

Introduction of Payroll

CPF exception:

 PR Year 1 converted to PR Year 2 during the month

 New CPF rate for PR Year 2 will be applied in the following month

 Age group changes during the month

 New CPF rate will be applied in the following month

 PR converted to citizen during the month

 Split will be performed by the system where CPF will be pro-rated based on the

different in CPF rate under PR and citizen scheme for the month

Introduction of Payroll

Additional Fund:

 Option for additional fund is recorded in IT0181 Additional Fund Infotype

 Wage Dependent and Wage independent can be defined

Introduction of Payroll

Skill Development Fund:

 Employer pays levy for employee (local and foreign) whose monthly remuneration is S$2,000 or less (fr 01.09.2005)

 SDL is at the rate of 1% of the remuneration or S$2, whichever is greater

 Any cents calculated should be ignored for total SDL payable

 There is a need to classify wagetypes. Please refer to MS Excel

Spreadsheet

Introduction of Payroll

AWS and Bonus:

 AWS and Bonus for SCA is paid together with monthly payroll

 SAP Standard program can be used to calculate AWS (not performance bonus) whenever there is a common logic for generation i.e. one month for all employee and pro-rate for those joined within the year. The program will store the amount in IT 0015 – Additional Payments. However, there is no logic to cater for AWS pro-ration due to the No Pay Leave > 10 days

 HR can manually edit/create AWS and Bonus amount directly in IT 0015

using HR master data maintenance function. Additionally, SAP standard for

Fast Entry function can be used to mass create the data.

Introduction of Payroll

 Pay slip can be printed based on the payroll results.

 This means that you can print pay slip for payroll result/period that has been processed/run including past payroll periods.

 SCA pay slip can be sent to the corresponding employee

Pay Slip

Employee Administration Business Process Procedure

Please kindly refer to the Business

Process Procedure Manual . . .

Q & A