SAP in HR

All of us at some point in our careers must have heard people advising us to learn SAP as it is one of the most in-demand skills across many if not all businesses. But more often than not people don’t have even a slightest of an inkling of what SAP actually is or why it is so popular among industries or even where it is used. In this blog, we will try to understand how SAP benefits industries of all sizes and why it is such a buzz word nowadays and why industries are constantly in need of capable SAP consultants.

What is ERP?

You need to think if you are running a manufacturing company then you need HR, Supply chain, services, Procurement, etc. All these processes integrate into a single system to become an ERP. 

Companies can use the latest technologies of ERP– such as SAP, Oracle, and Artificial Intelligence, etc– This implemented done with an aspect of their business requirement.

The benefits of ERP are Improve Agility, Good reporting, Higher Productivity & Better Insights. 

SAP ERP Software was founded in 1972 by ex-employees Wellenreuther, Hopp, Hector, Plattner, etc., SAP system consists of fully integrated modules, which cover business aspects for the clients.

 Link: – how-ERP-bridge-can-push-your-business-to-the-next-level-uu9q32tv

Human Resource Management, Material Management, Finance& Controlling, Sales & Distribution, etc. all modules which has been integrated among them is known as SAP.

The best module to learn in the SAP Industry is HR which will give you an opportunity to work in the IT industry for consulting services & you will become an SAP Consultant.

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ERP manages information and data flow between all business functions and also manages connections to outside stakeholders.  Some of the most employed ERP systems apart from SAP ERP are as follows.

• NetSuite ERP. 
• Scoro. 
• Business Cloud Essentials. 
• Sage Intact. 
• SYSPRO.

Companies are using software, Like Excel or tally, JDedwards, Oracle, etc.
By using any software we can do some activity a kind of transaction like Credit, debit and what is the balance amount. 

The same multinational organization needs software, An Organization having different department Sales, Purchase, Finance and HR Operations.

For running, Multinational Companies need software, which is called Enterprise resource planning? Based on software development which is developed in MNC is known as ERP. The ERP works differently according to department wise.

Example: Suppose if you running a Manufacturing Company in the market, you need material to make product you will find different vendors with different rates that should be recorded in Material Management ERP, then you will sale the product in market with different vendors and prices depend on the quantity, promote the product, that also need to be recorded in ERP system, in addition to this you will pay salary to the employee also need to be recorded in ERP system, later you need to calculate the Profit and Loss account of your company, that is also needed to be recorded in ERP. So we have introduced an ERP system that has been integrated with all modules called SAP.

SAP can is designed for Any Size Business 

Unlike some other ERP systems that are developed for use by companies of a specific size and industry (manufacturing, service, it, etc.), instead, SAP offers a diverse line of ERP platforms and solutions that are known for being incredibly consistent. They offer an all-in-one solution with a very smooth implementation process. Furthermore, transitions are easy as a company grows and expands.

1. SAP can is designed for Any Size Business 

Unlike some other ERP systems that are developed for use by companies of a specific size and industry (manufacturing, service, it, etc.), instead, SAP offers a diverse line of ERP platforms and solutions that are known for being incredibly consistent. They offer an all-in-one solution with a very smooth implementation process. Furthermore, transitions are easy as a company grows and expands. 

SAP also offers various cloud solutions and it integrates with complementary services, such as Google and PayPal. This is something very unique in the world of ERP systems. All these things along with the fact that SAP offers plenty of flexibility for growth, are things that businesses of smaller size can greatly benefit from. At the same time, SAP offers the functions and capabilities required by the world’s largest companies. 

2. It Does Not Offer Unnecessary Functionality

All ERP systems require training for your staff to learn how to navigate through it. The simpler the system is the shorter the learning process will be. Some ERP systems, such as Oracle, offer too many functions for most businesses. Many of them are not needed which makes training more difficult. While SAP offers all the functions a business requires, it keeps them streamlined to make it easier to comprehend and use for the end-users.

3. SAP Offers very quick Financial Payback and Shorter Implementation Time

For businesses employing SAP, this leads to faster financial benefits. At the same time, SAP has established a much shorter implementation period than its competitors, which also results in quicker success.

4. SAP Usually Requires Less Customization compared to Other ERP Systems

When compared to its counterparts, SAP has a reputation for its impressive and unique functionality. This leads to a minimal need for customization, which can reduce the implementation period significantly. Also, it is worth noting that SAP does provide so many customizable solutions that will suit all types of business if needed.

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SAP HR module is considered to be one of the most important SAP modules because the Job of HR is just beyond recruiting. HR has to manage various functions like designation, payment, compensation, promotion, etc apart from recruiting.

HR consists of below features which we need to do implementation & give support to clients.

• Recruitment
• Personnel Administration
• Organization Management
• Time Management
• Payroll

Recruitment is part of the SAP HR process. In the Organization Plan the position which we use to create and maintain the vacancies. We can maintain applicant data for evaluation and transfer to the other module Personnel Administration in SAP HR. Recruitment process I to hire candidates and complete profiles in SAP HR. This is the whole complete cycle of recruitment in HR.

 Personnel administration To Manage Employee Personnel Data which is known as Personnel Administration. The information of employee-related to task and information types has been stored in Personnel Administration. This module includes Infotypes and info groups and all the processes like the hiring of an employee, probation, promotion, and etc. This is the part of sub-module in SAP HR.

Organization Management is the Organization plan which allows creating an organizational structure of your organization. The organization Structure has multiple objects for example position, organization unit, Work Center, task, etc which form a relationship and create a reporting hierarchy. This is the submodule of SAP HR.

Time Management plays very important role in SAP HR which records the working time of employees and to manages the work performed. Time Management helps an organization to understand and helps to track the time of employees according to across departments. The Key features of Time management are Positive time recording and negative time recording. It consists of Absences, Work Schedules, Attendance, and shifts. Time Management consists of all the time policies of employees in an organization. It is considered to be the most important module in SAP HR as time is one of the most important features of an organization.

Payroll is used to process the salary of employee which included wages and integrated the other sub-modules PA, Time Management, etc. The expenses and payable information posted directly in Financial and Controlling to assign a cost center.SAP Payroll calculates the gross salary with wages & gives the output. It consists of HR Master data with control records to execute the payroll run.

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SAP HR Master Data 

Eg: – Info-Information & Types Address, Personal Data, Bank Details, etc (INFOTYPES): This is called HR master Data in SAP HR

INFOTYPES AND T- CODES PLAY a VITAL ROLE IN SAP HR module. INFOTYPES are basically objects for storing the details of employees in the organization as given above the example. The collection of various INFOTYPES is called as INFOGROUPS. An INFOTYPE IS generally a four-digit code. Now, let’s discuss some of the commonly used INFOTYPES of SAP HR.

This INFOTYPE is used

1. 0000, for actions.
2. 0001, for organizational assessment.
3. 0002, for personal data.
4. 0003, for payroll status.
5. 0004, for the challenge.
6. 0006, for address.
7.  0007, for planned working time.
8. 0008 for basic pay as there many Infotypes etc.

Now, T-CODES (Transaction Codes) are basically shortcuts codes used in SAP for easily getting to see the outputs or final results. They are a very important part of SAP. Now, the commonly used T-CODES used in SAP are as follows:-

1. PA20 This T-CODE is used to display HR master data.
2. PA30 This T-CODE is used to maintain HR master data.
3. PA40 This T-CODE is used for personnel actions.
4. PA41 This T-CODE is used for change entry/leaving date.
5. PA42 This T-CODE is used for fast entry for actions.

As we have now come to the end of our discussion, what we have understood so far is when you are considering ERP software to integrate and streamline your business processes, SAP is an option that you will frequently if not always come across. For over a decade, SAP has been the preferred ERP system for all types of industries. This trend is expected to continue in the coming several years. But currently, SAP will have to work hard to stay ahead of the competition, or they could be surpassed in the future. 

Author:-

Lokesh Malviya | SevenMentor Pvt Ltd

 

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