Introduction to SAP HR

Introduction to SAP HR



SAP Human Resources (HR) resource management system solution is one of the largest modules in the SAP R/3 system which enables the effective management of information about th people within an organization and integrates this information within external system and SAP’s modules. We define an organization as an individual enterprise that works with sub departments like HR, Marketing, Finance, R&D etc. For any organization employees or Human Resources are considered the most powerful resource. So to maintain the employee related data we require one system which ensures accuracy and consistent within the organization.

The basic task of Human Resource Management is to produce the organizational hierarchies, relationships between employees and to allow effective storage and administration of employee data. Now from the Organization Management perspective, companies can model a business hierarchy, the relationships of employees to various business units and the reporting structure among employees.

Some basic processes covered by any Human Resources department are:

  • Personnel Administration (PA): sub module helps employers to track employee master data, work schedules, salary and benefits information.
  • Personnel Development (PD): functionality provided by this sub module focuses on skills of each employee, qualifications and career plans.
  • Time Evaluation: process attendance and absences, gross salary and tax calculations,
  • Payroll: payments to employees and third party vendors.


More sub-modules provided by the (HR) module are:

  • Organizational Management
  • Personnel Administration
  • Recruitment Time Management
  • Payroll Benefits Compensation
  • Management Personnel Cost
  • Planning Budget
  • Management Personnel
  • Development Training & Event Management
  • Travel Management

Many of these sub modules are further sub divided into many components like Time Management which is further divided into Time Administration, Shift Planning, Incentive Wages and Time Sheet. Environment Health & Safety is further divided into Occupational Health & Industrial Hygiene & Safety and so on this is why is considered one of the biggest modules.

Consistent with the overall integration of SAP R/3, the HR module shares information with other modules, such as Financial Accounting (FI), Controlling (CO), Production Planning and Business Workflow. The Payroll processes use Accounts Payable functions to print checks, manage payment and bank information, and process payments to tax authorities and other third-party vendors. Payroll results are also posted to General Ledger accounts for use in periodic income and expense reporting. For management accounting, information regarding employment costs can be transferred to Cost Centers with in the CO module. Employees can be assigned to Work Centers, which are used in conjunction with modules like Production Planning (PP). Assigned positions and reporting relationships are used in Business Workflow to route purchase requisitions and other documents for approval. As mentioned before this same integration can be made with external systems offering additional flexibility within this module.


Leave your comments