Organizational, Enterprise, Personnel

Structure in SAP
• Why do we need structures?
• Structures are required to represent statutory, regional and
organizational conditions in an organization.
• Allocation of employees to the structures is the first step
for entering personal data.
• Allocation to structures also help to find out the following:
• o Where does the employee work?
• o Which position does the employee hold?
• o How many hours in a period does the employee work?
• o Which public holidays does an employee get?
• o How is the employee paid?
There are 3 types of structures in SAP
• Enterprise Structure
• Personnel Structure
• Organizational Structure
• There are 4 main components of the
enterprise structureClient
• Company Code
• Personnel Area
• Personnel Subarea

Lets look into them in detail

 Enterprise Structure
Below is a sample Enterprise Structure-
 CLIENT
• It is an Independent legal and organizational unit of the
system. A client generally is an entire corporate
group(example GE).
• It can be a identified by a 3 character alphanumeric code
(like 058,AZZ)
• No data exchange can take place between clients (only in
exceptional cases)
• An employee who changes from one client to another must
be assigned a new personnel number
• Client 000 is delivered by SAP and should not be changed.
• Your SAP system contains both client-independent (e.x.
programs , transactions , reports) and client-specific
elements.(hr master data , om master data)
 COMPANY CODE
• The company code is an independent
company with its own Accounting unit; a
company that draws up its own balance sheet
(e.x. GE Chemicals , GE electric).
• Identified by a 4 character alphanumeric code
(ex. 0001,AB01)
 PERSONNEL AREA
• It represents a subdivision of the company code
(Ex GE Chemicals Australia , GE Chemicals UK)
• Identified by a 4 character alphanumeric code
(ex. 0001,AB01)
• You have to assign unique personnel area to
company code
• Personnel Area is used as selection criteria for
evaluations and used in authorization checks
 PERSONNEL SUBAREA
• It represent a subdivision of the Personnel Area (Ex for GE Chemicals UK ,
valid personnel subareas could be GE Chemicals London , GE Chemicals
Brussels)
• Identified by a 4 character alphanumeric code (ex. 0002,ABCD)
• Some important indicators set by the PSA include groupings for the
following:
– Default values for Pay scale area and Pay scale type
– Public Holiday calendar
– Appraisals
– Assigning of legal persons
– Default values for Basic Pay
– Grouping for wage types
– Assignment for tax-related corporate features
• Company regulations (for HR) are defined at the Personnel subarea level.
These regulations maybe legal, contractual or company-specific.
 Personnel Structure
• Personnel structure displays position of
individual people in the enterprise as a
whole.It comprises of
– Employee Groups
– Employee Subgroups.
• Examples: Active, Retiree, External
 HCM Personnel Structure

Employee Group

Active External Retiree

Employee Internal Trainee Employee Subgroup

 EMPLOYEE GROUP
• Employee Group is used to classify employees in general
terms.
• It defines the position of the employee within the
company's workforce
• Identified by 1 character alphanumeric code (Ex 1 , A).
• Examples of different valid Employee Groups would be
Active, Pensioners, External
• Employee Group has the following important
organizational functions
– Can be used to generate default values for data entry, example
for Payroll accounting area or an employee's basic pay.
– Can be used as a selection criteria for reporting.
– Can be used as an entity for authorization checks.
 EMPLOYEE SUB-GROUP (ESG)
• EMPLOYEE SUB-GROUP (ESG)
• Employee Subgroups are subdivisions of Employee Groups.
• Each ESG is assigned a 2 character alphanumeric identifier ($$).
• Examples of valid ESGs for an Active employee would be Trainee, Hourly Wage
Earner, Salaried Employee, Non-pay scale employee
• Employee regulations (for HR) are defined at the Employee Subgroup level.
• Some important indicators set by the ESG include groupings for the following
– Work Schedules
– Appraisals
– Grouping for Wage types
– Grouping for Collective agreement provision
– Processing of employee's payroll
– Assigning employee characteristics like activity status, employment status and level of
training.
– Time quotas
– Payroll Area
 Organizational Structure
• It is based on Organizational plan.
• Organizational plan provides foundation of
Organizational Management.An organization uses
an organizational plan to represent relationships
between individual departments and workgroups
• The organizational plan uses elements called
objects like Persons (P), Jobs (C), Positions (S),
Organizational Units (O), Cost Center (K) etc.
• There are interfaces present that help one to
build Organizational Structures
 HCM Organizational Plan
 Organizational Plan
- Describes in which function an employee is acting
- Is object-oriented, i.e. each element is represented by an object
- Objects can be assigned to each other
- Organizational Unit
• Can be grouped according to functional and regional aspects.
- Position
• Are assigned to organizational units and filled by employees
• Example: Position accounting clerk in the Accounting Department
- Person
• Are employees and fill positions
- Cost Center
• originate from Controlling and can be linked with positions or organizational units
- Job
• General description of tasks which an employee should perform
• Are assigned to positions
• Example: Position Head of Department
 HCM Organizational Plan
Cost Center
Organizational Unit

Position Job

Person
Assignmen
t ssignment
A
(optional)
 Integration of OM and PA
• Integration switch - PLOGI ORGA integrates PA
(Personnel Administration) and OM
(Organizational Management).
• If integration between PA and OM exists, then
on entering a position in Actions Infotype
(0000), system proposes values stored in OM
for EG, ESG and PA.
 GBI Enterprise Structure in SAP ERP
HCM (US)

90 91
Employee Group 9 Junior Consultant Senior Consultant
External

Employee Group 2 20 21
Pensioner Honorary
Retiree

Employee Group 1 10
Intern
11
Hourly Wage
12
Salary scale
13
Executive
Employee
Active Subgroup

Executives Personnel
EX00 Subarea
Personnel Area Dallas DL00 Miami MI00 SD00
Company Code US00
Client GBI
 GBI Enterprise Structure in SAP ERP
HCM (DE)

90 91
Employee Group 9 Junior Consultant Senior Consultant
External

20 21
Employee Group 2 Pensioner Honorary
Retiree

Employee Group 1 10 11 12 13
Intern Hourly Wage Salary scale Executive
Active
Employee
Subgroup

Executives
EX00
Personnel
Pers. Area Heidelberg HD00 Hamburg HH00 Subarea

Company Code DE00

Client GBI
Organizational Management (OM)
• Object Types Entities within OM are
maintained as object types (e.g. Org Units,
positions,jobs)
• Relationships Links objects together (e.g.
person to position, position to Org Unit)
• Validity Dates Validates life span of objects
• Infotypes Data input screens used to record
relevant information
 Object Types
• Each aspect of OM is recorded as an object
type, a way of grouping similar data together.
For example, organizational unit is an object
type, position is another object type.
 Relationships
• There are many objects within OM, and the
creation of relationships is the way that data is
linked together. When you build the
hierarchical organizational structure, you are
creating a relationship between organizational
unit objects. If you attach a position to an
organizational unit, you are creating a
relationship between the position object and
the organizational unit object.
 Validity Dates
• Whenever you create an object or a
relationship between objects, you must enter
start and end dates. These validity dates
ensure that data entries can only be made
within a specified lifespan.
Lets look into the different OBJECT TYPES in detail
OM is based upon the use of Object Types and
Relationships.
Object Types group similar data together.
Although an organizational plan can consist of many
object types, the five basic building block object
types and their 'codes' are as follows:
• The Organization Management (OM) module
looks at the organization's departmental
structure and holds the data in object types.
OM object types are a way of grouping similar
data. The system assigns a code for each
object type.
• These objects are created and maintained
separately and are then linked together using
relationships.
• Object type O is used for Organizational Unit.
• Organizational units are units of your company that perform a function.
• These units can be departments, groups or project teams, for example.
• You create the organizational structure of your company by relating
organizational units to one another.
• The organizational structure is the basis for the creation of an
organizational plan.
Object type S is used for Position.
Positions are used to distribute tasks to different positions and
to depict the reporting structure in your organizational plan.
Positions are concrete and are held by employees in a
company.
Positions are assigned to organizational units and can inherit
characteristics from a job.
Object type C (classification) is used for Job.
Positions are held by people in the company (e.g. secretary in the marketing
department,HR manager). Jobs, in contrast, are classifications of functions in
an enterprise (e.g. secretary, manager), 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. When you create jobs, they are listed in a job catalog.
When you create a new position (e.g. secretary in the marketing department),
you can relate it to a job that already exists in the job index (e.g. secretary).
The position then automatically inherits the tasks and characteristics of the job
Jobs are also important in the following components:
•Personnel Cost Planning
•Career and Succession Planning
•Compensation Management
When you create jobs, they are listed in a job catalog. A job
catalog is a list of jobs maintained for an enterprise.
 Cost Center

Object type K is used for Cost Center.

Cost centers are a Controlling/Finance item that represents the origin of
costs. Cost center are external from OM and will be created and
maintained in the Controlling module. Cost centers can have relationships
with either organizational units or positions.
Cost center assignments are inherited along the organizational structure.
 Person
• Object type P is used for Employee.
• A person is generally an employee in the
company who holds a position.
• Additional information for employees is
maintained in PA (e.g. address, basic pay,
etc.).IT0001 (Organizational Assignment)
contains the position assignment, defining
job,organizational unit, and cost center
assignment.
 TASKS
• Object Type T is used for tasks
• Tasks are individual duties and responsibilities
that must be undertaken by employees
• Tasks can be clubbed under two headings
• As part of workflow
• As part of personnel management to describe
jobs and positions
Common relationships
• Objects are linked though relationships.
• You create relationships between the individual elements in your
organizational plan. Several linked objects can represent a structure.
There are different types of relationships, as the type of connections
between elements varies
Personnel Administration (PA)
PA is an important sub-module of SAP HCM that
stores key employee data. PA also helps in HR
processes like hire, fire, change in designation,
travel etc. Infotype is the basic employee
information unit in SAP HR. Lets Study it in detail.
 HCM Master Data
• Personnel number
– Is used in SAP as a central identifier for an employee
– Can comprise by up to eight digits
– Can be assigned either by the system or manually
– All employee data available in the system are identified on the basis
of the personnel number.

Personnel no.
64751511

Expenses results Travel expenses

Expenses Expenses Travel expenses

May 2010 June 2010 April 2010
 HCM Master Data
• Reference Personnel Number
– Helps to map different contractual relationships
– Creates an existing employee newly in the system with a new personnel
number
– The old personnel number serves as a reference personnel number.
– Certain data can be copied and assigned to the new number.
– In the case of concurrent employment, the
employee is identified through a person ID.
Person ID
155486211

Reference Personnel number Personnel number

64751511 47116550

Employee in Project Manager in

personnel area personnel area
DL00 Dallas MI00 Miami
• Personnel Administration
– Infotype
– Personnel Action
 What is an Infotype?
• A SAP Infotype is an information unit used to
store employee relevant data required for
administration purposes.
• It has a 4 digit-code and a related name. It
stores similar data into one screen.
• For example, Personal Data (Infotype 0002)
stores the employee's personal data (i.e., first
name, last name, birth date, marital status).
Every SAP infotype has fields for which data
needs to be entered. There are two types of
fields:
• Mandatory fields, which have a tick in the
field.

• Optional fields, which are blank.

 Number ranges for infotypes have been pre-determined by SAP.
They are as followed:
• HR/Payroll Data = Infotype 0000 to 0999
• Organizational Data = Infotype 1000 to 1999
• Time Data = Infotype 2000 to 2999
Authorization to access SAP HR Master Data can be
defined at the infotype level. Therefore, SAP
users can be given access only to the employees'
information relevant for their position, allowing
appropriate level of security to be maintained for
confidential personnel information.
 Infotypes Sub-Types
• Some infotypes are divided in different groups linked to the
same theme.These groups are called subtypes. "Permanent
Residence" and "Emergency Address" are subtypes of the
Infotype 0006 (Addresses).
Organization and Staffing Transaction
• The Organization and Staffing transaction is the easiest way
to manage SAP HR - OM(Organization Management) for an
end-user who does not have an in-depth, technical
knowledge of SAP.
This is a user-friendly transaction accessible via Human
Resources>Organizational Management>Organizational
Plan> Organization and Staffing>Create, Change, Display.
SAP Transaction Codes
• Create -PPOCE
• Change- PPOME
• Display -PPOSE
• Each of the two main areas is subdivided into panes:
• Object Manager -Comprising a search area and a selection area. The
Object Manager is available in numerous HR user interfaces.
• Work Area - Comprising an overview area and a detail area.
• The four areas in the Organization and Staffing interface enable you to
navigate for informationand remain on the same screen. The following is a
graphic depiction of the screen:
• Search Area - Gives you a wide array of search options to locate your SAP OM
objects
• Selection Area - The results of your search appears in the Selection Area.
• Overview Area - The search result selected in the Selection Area appears in Over
view Area. The overview area gives you an icon based view of your OM
object's hierarchy.
• Detail Area- Attributes related to the selected OM object can be edited in the
detail area.