SAP HR Defining Base Enterprise Structure

GENERAL INFORMATION

In the SAP System, the company’s structure is defined by the Enterprise Structure and the Personnel Structure. When used together, these structures defined the legal entities of the company, work locations for the company, and the Company’s various employee groups.

Because the enterprise and personnel structures help the company differentiates between the various type of employee and work locations, the structures values are used extensively in payroll, time and benefit processing rules.

The enterprise and personnel structures are also used extensively by the financial components of SAP. For instance, the structure values are used in rules to appropriately posts payroll expenses to the correct GL accounts. Additionally, the tracking of recurring base budgets by staff group relies heavily on Enterprise and Personnel structure values.

Enterprise and Personnel structures are stored on positions. When positions are created by the HR compensation Analyst, the appropriate structure values will be selected and stored for the position.

As employees are assigned to positions, the employee will inherit the structure values stored on the position. If the values are not appropriate for the assignment, the values may be changed on the employee assignment screen (Infotype 0001, Organizational Assignment). Especially with concurrent employment, the enterprise and personnel structure values will require carefull over sight.

OVERVIEW OF the ENTERPRISE STRUCTURE

The enterprise structure for Personnel Administration is made up of the following elements.

1. Client : an independent legal and organizational unit of the system
2. Company Code : An independent company with its own accounting unit;a company that draws its own balance sheet
3. Personnel Area : A specific entity for Personnel Administration; a sub division of the company code
4. Personnel SubArea : A sub division of the personnel Area

Following is a more detailed of each enterprise structure value.

Client

The SAP client is represented by a three character alphanumeric code. For Instance, client 100 my be the productive client while client 200 may be the testing client and Client 200 may be the training client.

Company Code

The company code is the highest level of the enterprise structure within the client. It represents an independent company. The company code is established in the Finance module of SAP.

The IMG Path:

IMG-> Enterprise Structure -> Definition -> Financial Accounting -> Define Company

IMG-> Enterprise Structure -> Definition -> Financial Accounting -> Edit, Copy, Delete and Check Company Code

And Related above definition altogether:

IMG-> Enterprise Structure -> Assignment -> Assign Company Code to Company

Note:

Country groupings are assigned to the company code. The country groupings control master data entry and the setting up and processing of wage types and pay scale groups in Payroll on a country-specific basis. The country grouping must be unique within a company code.

Pls refer to SAP PY-ID: Issue in defining Payroll Currency through the Enterprise Structure

Personnel Area

The personnel Area represent a subdivision of the company code.

The personnel Area can be used to perform system evaluations of data or to perform authorization checks. It is also can be used in report selection parameter in delimiting the report output.

The IMG Path:

IMG-> Enterprise Structure -> Human Resources -> Definition -> Pesonnel Areas

Then to link personnel Area to related Company Code

IMG-> Enterprise Structure -> Human Resources -> Assignment Personnel Area to Company Code

• By relate the personnel Area and Company Code, in case FI module has Go-Live, the the configuration will be directly linked to the Controlling Area that is used by Finance Side. Thus the payroll live posting into FI has been set
• In case, the FI module has not GO-Live yet, then this Company, Company Code also have to be set anyway..

Personnel SubAreas

The personnel subarea represents a subdivision of the personnel area. For instance, within

each personnel area, the company has a variety of employees. Some are eligible for pay while others are not. Some are eligible for benefits while others are not.

n The following are the most important personnel subarea organizational functions:

Ÿ It defines the legal person, which in turn differentiates between the individual companies according to legal aspects.

Ÿ It defines groupings for Time Management. These groupings can be used to create work schedules, substitution types, absence types and leave types for each subarea.

Ÿ It generates the default values for pay scale type and area for an employee’s basic pay.

Ÿ It defines the public holiday calendar.

Ÿ It defines personnel subarea specific definitions for each personnel area.

For Indonesian project design case, the definition may come from the legally entity perspective, such as Tax and Jamsostek Offices reporting addresses.

For Instance, company A has 2 separate location of plant. One is for their head office and the other is for manufacturing plant. But both of their financing transaction m would be reconciled into the same Accounting balance sheet, that is to company A. Each of plant will issue their Tax reporting to separate Tax office addresses.

From the above scenario, we can have, for instance:

a) Company Code

b) 1 Personnel Area

c) 2 Personnel Sub Area, which each will then report their own tax reporting separately

Note: this scenario is still not considering about employee group/sub grouping definition

Both of personnel area and sub areas combination will be used frequently in defining other payroll and time grouping

The IMG Path:

IMG-> Enterprise Structure -> Human Resources -> Definition -> Pesonnel Sub Areas

The ER Diagram for SAP Enterprise Structure

Next discussion topics are about defining the employee group in the SAP Enterprise Structure and related SAP HR configuration.

(To be continued …)

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