Monday, 29 May 2017


SAP Human Capital Management (SAP HCM) is one of the key modules in SAP and is additionally called SAP Human Resource (HR) or SAP Human Resource Management System (SAP HRMS).

SAP HCM (Human Capital Management) is one of the significant modules in SAP ERP. SAP HR (Human Resource Management) manages all functions from appointing an employee to its final termination in the organization. It consists multiple sub-components such as Personnel Management, Organizational Management (OM), Time Management and Payroll.
SAP HCM includes many sub-modules and all these modules are blended with each other.

The key modules are as follows:

Organizational Management: Organizational Management includes Personnel cost planning, Personnel development, and event management. 

Time Management: Time management involves time schedule, time recording, shift management, attendance, etc. 

Personnel Administration: Personnel Administration includes personal and organizational structure, Infotypes, integration with time and payroll, etc. 

Payroll: Payroll manages Payroll sorts, Payroll aggregate setup, primary and secondary wages, reward, gross pay, and so on.

Recruitment: Recruitment incorporates procuring a worker, keeping up HR master data, and so on.

Training and Event Management: Training and Event Management manages recognizing training needs, scheduling training, training cost management etc. 

Travel Management: Travel Management includes managing official trips, travel expenses, cost management for travel, etc.

Advantages of SAP HR/Payroll

Excellent automation, assuring greater efficiency and time savings.

SAP is developed to automatically apply policies and rules to employees’ data. In HRMS, this sort of information would be entered as required, keyed in by an employee. This will invariably result in a specific amount of inaccuracy, either through interpretation or simple error. Actually, as SAP HR/Payroll was made, different examples were found of workers in HRMS who were accepting advantages they were not permitted to, or who had been qualified for shift premiums, however, had not gotten them. Too, the reduced data entry will permit time for more esteem including exercises.

Improved reporting capability.

Reports are apparatuses administrators can use to break down their operations and discover opportunities for improvement. For instance, workload reports or attendance reports. HRMS provided a limited number of standard reports in a format which could not be manipulated for more precise analysis. Reports would be ordered, and would typically take two days to arrive. SAP provides users direct access to thousands of standard reports, plus the capability to quickly create custom reports. Reports can be exported into Excel for further manipulation or filtering and then uploaded back to SAP.

 Improved position control.

Information related to positions introduces cost center, “report to” and classification, for instance. SAP provides more position-related information than HRMS, and the information is presented in a much more user-friendly form you.

Automated compensation adjustment.

Before the introduction of SAP, compensation adjustments were computed physically outside HRMS and afterward entered in.

Improved employee history data.

This is fundamental planning information for various situations, for example, re-association, or progression planning. SAP demonstrates this data in an essentially more dealt with, easy to understand way.

 Better management of CUPE time data.

CUPE representatives' chance is followed for payroll purposes and is followed by work focuses. This has required entry of the same data into two distinct systems; however, with SAP it will be entered once and after that common by the HR module and the Plant Maintenance module. In addition to eliminating duplicate effort, this integration also allows exact planning in situations where we have had to estimate.

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