HCM 101 – Enterprise Structure
Structure of company according to personnel administrative, time management and payroll perspectives from the point of view of your own company, The company structure describes elements of the company and there dependencies.
The enterprise structure in Personnel Administration consists of the following:
The client is, in accordance with commercial law, an organizational and data technical isolated unit within the R/3 System, with separate master records and its own separate record of tables. A client’s area of jurisdiction can correspond to a unit as small as a company, or as large as an entire enterprise.
- Company code
The company code is the smallest organizational unit of external accounting in which a complete and isolated financial accounting can be created. All events that affect the company code and the creation of all statements for a legal financial statement, for example balances, profit and loss calculation are contained within the company code organizational units.
- Personnel area
The personnel area is an organizational unit; according to a personnel administrative, time management and payroll organizational point of view, a personnel area represents a delimited enterprise area. The personnel area is only used in Personnel Administration and is unique within a client.
Personnel areas are sub-divided into personnel subareas. Organizational data and guidelines as how to assign it, are stored on a personnel area and personnel subarea level. The rules and guidelines could be of a legal, pay scale and collective agreement, or internal nature. A personnel area is assigned to a company code which has the financial accounting values that are relevant for the personnel area. A pay scale area, a pay scale type and a public holiday calendar are precisely defined for a personnel subarea.
- Personnel subarea
The personnel subarea is only used in Personnel Administration. The groupings linked to the personnel subarea determine which entries from the subsequent screen are allowed for an employee of a particular company code/personnel area.Groupings are used for validation of master and time data. Groupings are also used to check the plausibility of data that you enter.
In IMG you can create personnel area and subarea as follows:
- IMG – Enterprise Structure – Definition – Human Resources Management – Personnel Areas
- IMG – Enterprise Structure – Definition – Human Resources Management – Personnel Subareas
- IMG – Enterprise Structure – Assignment – Human Resources Management – Assignment of Personnel Area to Company Code
- Employee groups
Employee groups represent a primary subdivision of personnel. An employee group defines the extent to which its employees place themselves at the disposal of the enterprise. The Personnel Administration component makes a significant differentiation between active, pensioner and early retiree employee groups for example. In Customizing, each employee group is defined with one-digit identification.
The employee group has the following organizational functions:
- Employee groups allow you to generate data entry default values, for example, for the Payroll/FI accounting area or an employee’s basic pay.
- Employee groups serve as selection criteria for reporting and constitute an authorization check unit.
- Employee Subgroups
Employee subgroups subdivide employee groups. Within the employee group for active employees, for example, a distinction is made between the following employee subgroups:
The employee subgroup is defined by a two-character, alpha-numeric code.
All of the control features for the personnel structure are defined at the employee subgroup level. The most important control features are as follows:
Standardize or differentiate how an employee is dealt with personnel calculation rule using the grouping of employee subgroups. For example, whether an employee’s remuneration is calculated on a monthly or hourly basis using this grouping.
- To determine which wage types are permissible for which employee subgroups using the employee subgroup grouping for the primary wage types.
- With the employee subgroup grouping for collective agreement provisions will help in restricting the eligibility of pay scale groups, so that only certain pay scale groups are valid for specific employee subgroups.
- Will help in determining which work schedules are permissible for which employee subgroups using the employee subgroup grouping for the work schedule.
- Will help in setting up appraisal criteria dependent on employee subgroup using the employee subgroup grouping.
- The employee subgroup enables to define data entry default values, for example, for the Payroll/FI area or an employee’s basic pay.
- The employee subgroup is a selection criterion for evaluations.
- Employee subgroups are an authorization check unit.
In IMG you can create employee groups and subgroups as follows:
- IMG – Enterprise Structure – Definition – Human Resources Management – Employee Groups
- IMG – Enterprise Structure – Definition – Human Resources Management – Employee Subgroups
- IMG – Enterprise Structure – Assignment – Human Resources Management – Assign employee subgroup to employee group
Hope that helps.
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