Case Study

Payroll (HCM II) Case Study

This case study explains a payroll process to show the connection
between hiring an employee and create a payroll.

Product MOTIVATION PREREQUISITES

SAP ERP This case study represents an Before you use this case study, you
G.B.I. introduction to human resource should be familiar with navigation in
Release 6.07 related organizational the SAP system
management and personnel
Level administration in a human resource In order to successfully work through
management system on the basis this case study, there are no special
Beginner
of the HCM (Human Capital requirements. However, it is
Management) module of an SAP recommended to have completed the
Focus ERP G.B.I. 6.0 system. HCM case study and the related
HCM Payroll exercises.
In the HCM curriculum processes
Authors for recruitment and further NOTES
Tim Böttcher education of employees were
This case study uses the Global Bike
Chris Bernhardt explained in detail. Furthermore
Inc. (G.B.I.) data set, which has been
important infotypes for hiring an
created exclusively for SAP UA
employee are shown.
Version global curricula
2.40 In this case study you will learn
about new infotypes in order to
Last Update create a payroll.
April 2015

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Process Overview

Learning Objective Understand and perform a Human Resource process. Time 45 Min.
Scenario In order to create a payroll for an employee, you will adept into the role of the
recruiting manager and the payment officer. You will be active in the field Human Capital
Management (HCM) and Financials (FI).
Employees involved Marco Romero (Recruiting Officer)
August Faust (Payment Officer)

Before starting the payroll process a new position (Marketing Manager) Process description
has to be created. After that a new employee can be hired, who will take
the position of the marketing manager. It is shown which infotypes have
influence in the following payroll.
This includes:
• infotypes for working hours
• create the base income
• create bank details
• infotypes for capital formation
• details for taxes and social insurance
• details for workers compensation association
The following chart presents the complete process (4Tasks).

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Step 1: Create Position

Task Create a new position within the organizational structure. Time 10 Min.
Short Description Use the SAP Easy Access Menu to create a position for the marketing
department.
Name (Position) Marco Romero (Recruiting Officer)

Positions
Positions are occupied by employees. If a position is not occupied, it is
vacant. Positions are assigned to organizational units. Example: position
administrator of accounts payable accounting.

To create a position, follow the menu path: Menu path

Human Resources ► Organizational Management ► Organizational

Plan ► Organization and Staffing ► Change

Change the previewed periods to be able to create positions which are valid
for the past. Therefore, please click and enter 1st of the current month 1st current month
One year
as start date. Also enter one year in the future as Preview period.

The positions should be created in the department ### Marketing, ###

### Marketing
being replaced by your group/computer number. Therefore, please go to
the window Find by on the left side of the screen. There, click on
Organizational unit and search term, enter the search term ###
Marketing in the name entry field and press . The search result
should be displayed in the Hit list window on the left side of the screen.

Please choose your organizational unit via double-clicking so that it

appears on the right side of the screen. Highlight your organizational unit
and click on in the context menu. In the upcoming screen Choose
Relationship, please choose Incorporates

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A new position was created underneath your ### Marketing department. ### MM
### Marketing Manager
On the bottom of the screen, the details for the new position are displayed. Head of unit
There, please enter the abbreviation ### MM for the position and ###
Marketing Manager as the name. Please activate the check box Head of
own organizational unit.

Enter 1st of the current month as Valid from. If this field should be 1st of current month

grayed out, please click on Display key date. The functionality should
be available then.

Press enter to update the entered information. The organizational structure

should now look as follows.

Please save your data with .

Click in order to return to the SAP Easy Access Menu.

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Step 2: Create Bank

Task Create a new bank. Zeit 5 Min.

Short Description Use the SAP Easy Access Menu to create a bank, which is used as house bank
for the new employee later.
Name (Position) August Faust (Payment Officer)

To create a bank, follow the menu path:: Menu path

Accounting ► Financial Accounting► Banks ► Master Data ► Bank

Master Record ► Create

Choose DE for Germany as Bank Country. As Bank Key enter 12030### DE

12030###
(Replace ### by your group/computer number). This Key represents the
Bank identifier code of the new bank. Confirm your entries by pressing
enter.

You can now enter detailed Data for the new bank by filling all needed
fields.

Hint: The Bank identifier Code for this case study is based on the code for
the „Deutsche Kreditbank AG“. If you want to choose realistic values you
can enter the following data:
Deutsche Kreditbank AG
The Bank name is Deutsche Kreditbank AG. As Region enter 11 and 11
Taubenstraße 7-9
Taubenstraße 7-9 in Berlin as address. As SWIFT/BIC enter Berlin
BYLADEM1001. BYLADEM1001

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Please save your data with .

Click in order to return to the SAP Easy Access Menu.

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Step 3: Hiring Employee

Task Hire a new employee. Zeit 20 Min.

Short Description Use the SAP Easy Access Menu to hire a new employee as the ### Markteing
Manager.
Name (Position) Marco Romero (Recruiting Officer)

Hint: The process for hiring an employee is shortened in this case study
because of the focus being on the used infotypes for the payroll process. If
you are not familiar with the hiring process it is recommended that you take a
look on the Human Capital Management I case study.

To hire an employee follow the menu path: Menu path

Human Resources ► Personnel Management ► Administration ► HR

Master Data ► Personnel Actions

Choose the Personnel Action Hiring and click on (F8).

The action shall start at the 1st of the current month. In the section 1st current month
Organizational assignment use the F4-help to find for the position your ###
Marketing Manager. ### Marketing Manager

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As Personnel area enter Hamburg (HH00) and the Employee group is active HH00
1
(1). Because the new employee is head of his department he will join the DS
Employee subgroup executive employee (DS).
A personnel Number is automatically assigned by the system.

To get to the next info type save your entries by clicking on .

You can freely choose the First name, gender and the accurate Title of your Title
new employee. To successfully finish this case study it is necessary to choose Last name with „M“
a Last name starting with “M”. As Birthdate enter 03/26/1983 and choose the 03/26/1983
German
Nationality German

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To get to the next info type save your entries by clicking on .

In the info type Create Organizational Assignment choose the Subarea Sales
SD00
(SD00) with the F4-help. As Contract choose Worker, others. Worker, other

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To get to the next info type save your entries by clicking on .Accept the
Message Delimit Vacancy with yes.

The new employee lives in 24103 Kiel. You can freely choose the Street and 24103
Kiel
House number.

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To get to the next info type save your entries by clicking on .

In the following info type the working time can be determined. The employee
has a full-time job so nothing needs to be changed here.

To get to the next info type save your entries by clicking on .

In the following info type the Basic pay for our employee is set. In se section
90
Pay scale, choose Festgehälter (90) (fixed salary) as Type, Hamburg (07) as 07
Area and the Group 001 with Level 01. After accepting your entries with enter 001 01
you can see a amount for the payment of 3,500 Euro.

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To get to the next info type save your entries by clicking on .

In the following info type the bank account for payment is created. Choose as 12030###
Eight digit number
Bank Key 12030### () and enter an eight digit number as Bank Account.
Choose Salary as purpose. Salary

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To get to the next info type save your entries by clicking on .

Besides the normal salary it is also possible to pay an employee benefits for
capital accumulation. It can be determined the amount which is paid by the
employee and the amount paid by the employer.

Enter 26 EUR as Amount. With the F4-help choose Building Soc. Saving as 26 EUR
Building Soc. Saving
Asset Type.

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Confirm your entries with enter.

Choose with the F4-help the Badenia Bausparkasse GmbH as Payee. Badenia
Confirm with enter to fill in the other entries automatically. As you can see
has the purpose been created out of your personnel number and the Last name
of the employee.

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To get to the next info type save your entries by clicking on .

In the following info type the relevant fiscal data is maintained. Enter 12345678995
01002000
12345678995 as Ident. No.. As Municipal- enter 01002000 and for Tax Office 2119
2119. The Tax class of your employee is 1 and he doesn’t have to pay Church 1
00
Tax (00). In the section Further Data choose Schleswig Holstein as Church
Tax Area. Schleswig-Holstein

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To get to the next info type save your entries by clicking on .

The Health Ins. Fund of your Employee ist he Barmer Ersatzkasse. There is Barmer
No requirement to submit the SI Statement. The Pens.Ins.Number depends
on whether your employee is female or male.
If your Employee is a woman enter 26260383M506 otherwise enter 26260383M506
or
26260383M006. 26260383M005

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Hint: The Pension Insurance Number has the following format:

26 260383 M 50/00 6/5

Area Number Date of Birth First letter of Serial number Check digit
(here german the last name
00-49 male
format)
50-99 female

To get to the next info type save your entries by clicking on .

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In the info type Create DEUEV choose with the F4-help the Current Position 92194/005
Führungskräfte – Werbung & Marketing / Marketing Leiter/in Abitur-/Fachabitur
(92194/005). Your new employee finished school with an Abitur (4). As
Master Craftsman
Vocational Train choose Master Craftsman/Technician (3). As Full-Time
ContractForm enter Full-Time – Permanent (1).

To get to the next info type save your entries by clicking on .

In the following info type can stay unchanged. Proceed to the next info type
by clicking on

The info type Create Monitoring of Tasks can also stay unchanged. The
Expiry of probation time is already filled. Proceed by clicking on .

The info type Create Absence Quotas can also stay unchanged. Proceed by
clicking on .

Choose as Workers Compensation Association the MIS administration (31) 31

01
via F4-help. Enter as Hazard Pay Area (HP) Office personnel (01).

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Click on to finish the personnel action.

Click in order to return to the SAP Easy Access Menu.

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Step 4: Simulation Payroll

Task Simulate a payroll.. Zeit 10 Min.

Short Description Use the SAP Easy Access Menu to simulate a payroll for your recently hired
Marketing Manager.
Name (Position) August Faust (Payment Officer)

In this case study, you only simulate a payroll to ensure the consistency of
the system state. You will get the complete remuneration statement for
your employee.

To simulate the payroll, follow the menu path: Menu path

Human Resources ► Payroll ► Europe ► Germany ► Payroll ►

Simulation

In the section Payroll period, choose with the F4-help menu the Payroll D2
Other period
area D2. Change the current choice to Other period and choose the Following month
following month as period for the payroll.

In the section Selection enter the Personnel Number of your Marketing Personnel number
D2
Manager and choose D2 as Payroll area again.

Hint: If you have forgotten the personnel number of your employee, you
can find it via the F4-help. Search for Last and First name and choose the
result with a double-click.

As Layout for Remun.Statement choose via the F4-help SAP & CALC. SAP & CALC

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Start the Simulation with a click on or press F8.

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Hint: As you can see is the Total Gross Amount the same amount as your
salary plus the payment for capital formation. Furthermore you see a list of
the usual deductions according to German law for calculating the Statutory
Net Pay. These are deductions like income taxes as well as payments for
social insurance.

Click in order to return to the SAP Easy Access Menu.

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