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SAP S/4HANA HCM – Employee as Business Partner-Implementation steps & tips

SAP S/4HANA implementations are happening across globe. Employee master data is required in various SAP S/4HANA modules other than traditional on-premise HCM Solutions.The new data model in SAP S/4HANA is based on business partner (BP) Concept.Employee is treated as business partner as per the new data model.

SAP has released various KBA’s/How to guides on implementation of Employee as business partner.

The intent of writing this blog post is to provide a ‘ready reckoner’, few tips and tricks for implementing this solution.

Implementation steps & tips:

Know your customer system :

The  prima facie for implementation of Employee as Business partner is to know the current customer HR System. The implementation considerations vary based on the type of HR system/software.

      • KBA 2340095 will give more details on process to be followed for implementing employee business partner concept in SAP S/4HANA system with an integration to SAP Successfactors or SAP ERP
      • If the Customer is on non-SAP system for HR Processes then, there should be an integration established to fetch the employee mini master information/data into SAP S/4HANA system

Basic HCM configurations that needs to be in place for creating employee :

Below is minimum HCM Configuration that’s needed

  1. Enterprise Structure
  2. Personnel Structure
  3. Infotype Configuration (HCM Mini Master)
    • Infotype 0000 – Actions
    • Infotype 0001 – Organization assignment
    • Infotype 0002 – Personal data
    • Infotype 0006 – Address (for vendor role)
    • Infotype 0009 – Bank details (for vendor role

Activation of Integration switches specific to Employee as Business partner creation

Table T77S0 should be configured to activate the inter/intra modular integration in SAP

Here is the snap shot of switches need to be activated

Tip 1 : Activation of these switches will automatically create an employee as business partner (Employee would have been created using transaction PA40 in the same system). 

  • Report “/SHCM/RH_SYNC_BUPA_EMPL_SINGLE” should be executed in following scenarios
    • Employee data is integrated from Successfactors/different SAP HCM system/third party system then, this report should be executed after employee replication
    • If any BAdi is implemented to replace/default/edit data of employee BP then, this report should be executed to view/update the changes
    • The initial conversion of employee as business partner (as part of cut over activities)
    • Regular update of employee BP(background job to be scheduled)

Concepts explained above should suffice, to create Employee as business partner with BUP003 (Employee role) & 000000 (Business partner general role)

Extended requirements on employee business partner

A) Employee business partner to be extended to a vendor role :

Employee should be created as vendor in scenarios where employee’s expenses/salaries/loans are paid using employee vendor account.

The additional configuration that needs to be done to extend the employee BP role to Vendor role are :

  • Reconciliation accounts for employees in Role FI Supplier : Reconciliation account is mandatory to create the vendor account. Hence, we need to define company specific reconciliation accounts here

  • Default vendor data for employees in role FI Supplier : In SAP ERP,  we had an option to default the values from reference vendor while creating employee as vendor using PRAA transaction. However, that concept won’t hold good for SAP S/4HANA. Refer KBA 2397684 to get more information on business partner synchronization replaces PRAA transaction in SAP S/4HANA. SAP has provided a table in SAP S/4HANA to configure the reference vendor. This is company specific and client dependent table. Hence, a new transaction ‘BUPASYNC_LOCAL’ is provided. Refer KBA 2601253 on how to activate this transaction

Tip 2 : Configure this table if, the customer has the requirement to have reference vendor for every company code

  • Default house bank specific to the country/company code : employee BP creation program reads HR Feature TRVHB to default house bank in vendor account.  The feature needs to be configured based on the house banks provided by customer for every country and company code combination.

B) Employee BP number and Employee Vendor number should be same as employee number with a prefix of alphabet/alpha numeric value :

This is the common requirement in most of the implementations.

follow the steps mentioned here to achieve this requirement

  • Create employee number ranges using PA04 transaction. For example, number range :  00000000 to 99999999
  • Configure the employee business partner number range with prefix  for example, ‘9P’  in Customizing (SPRO) -> Cross application components -> SAP Business partner -> Basic settings
    • Create number range
    • Assign the number range to BP grouping

  • Configure the number ranges for vendor and assign it to vendor account group in SPRO -> Financial accounting -> Accounts receivable and payable -> Vendor accounts
    • Create vendor number ranges
    • Assign the number range to account group
    • Assign account group to BP Grouping in SPRO -> Cross application components -> SAP Business partner -> Basic settings
    • Assign business partner subgroup in the table T77S0

Tip 3 :the code for employee number range, BP Grouping, vendor number range and vendor account group should be same. in our example it is ‘E3’

C) Extend Employee BP to Customer role  : 

This requirement might not be common in all implementations. If we have this requirement then, this can be fulfilled with the following configuration steps

  • Configure number ranges for customer and assign it to customer account group in SPRO -> Financial accounting -> Accounts receivable and payable -> Customer accounts -> Master data
    • Create vendor number ranges
    • Assign the number range to account group

Tip 4 :Customer role will not be created automatically when employee is created or when the BUPA sync program is executed. This role will get created automatically, if the reference vendor assigned  in transaction ‘BUPASYNC_LOCAL’ has customer role

Tip 5 :The code for customer number range and account group should be same as BP and vendor number range. in our example its is ‘E3’

D) Vendor should not be created for few company codes :

if vendor should not be created for few company codes/countries, then do not configure below

  • Company code to reconciliation account assignment
  • House bank configuration in HCM Feature for specific company/country
  • Assignment of reference vendor to company code

Tip 6 : Vendor role will get created with out ‘vendor’ number generation and assignment. Implement BAdi ‘BADI_FITV_VENDOR_SYNC’ to restrict vendor role creation

This blog post is based on my implementation experience in SAP S/4HANA projects. The steps mentioned in this blog post will help to configure employee BP and extend the employee to vendor and customer roles

39 Comments
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  • Dear Swathi,

    thank you for the post. Do you know how to create BP for employees hired via PA40 with future date?

    I can set up sync job program /SHCM/RH_SYNC_BUPA_EMPL_SINGLE, this program picks all new hires at current date. But if job is running daily it creates new BP record everyday.

    how to set up a job which would synchronized data only once?

    Regards

    Petra

     

  • Hi Naga Swathi ,

     

    Currently for BP creation  – Std grouping 0001 is determined by the system after running the programme. How can I make system to determine the particular BP grouping  (ZEMP in my case) so that desired BP & associated Vendor NR is picked up for creation.

     

    Currently BP is created with std SAP BP grouping ‘0001’

  • Hi Naga Swathi,

    Thanks for sharing your knowledge to us.

    I’m new in this kind of scenario, and your blog certainly helped me in begin to understand this topic.

    Please, I have one question regarding this scenario and would like your help.

    Rehire, Rehire With New Employments and Global Assignment are common Scenarios between all customers. I would like to know if there’s any difference on how this integration treats the IDs for these employees, or if the configuration you’ve presented here would be able to cover all of these scenarios.

    This doubt has came up because employees that are included on above mentioned scenarios might have been different IDs on Employee Central.

    The common existente IDs in EC are: person-id-external, username, user account, user id and payroll id.

    Thanks in advance!

    Best Regards.

    Thiago Eva

  • Hi Naga Swathi ,

    Our business partner is created by default as “Face”, is there a setting that allows you to configure the creation of a business partner as “Organization”?

  • Hello,

     

    Thanks for your article.

    I have a question about that.

    In my company we have decided to create PA30 for employee and external employee ( for a same company)

    The Bp creation doesn’t filter to create only vendor role BP for internal employee.(FLVN00)

    Have you got a solution please ?

     

    Thanks for your help

     

    Have a nice day

  • Dears,

     

    thank you for very nice overview of integration.

     

    when creating new HR no. in synchronization to new BP no. we are missing some values:

    • enter a value for field Authorization group
    • enter a value for field Data origin types
    • enter a value for field Business partner type

    Any hints what to do ?

    Regards,

    Tilen

  • Hi Naga Swathi ,

    Thanks for sharing your knowledge to us.

    I have a question about that.

    In my company we have business partner that doesn’t employee.
    Now, this business partner will are emplooyee and have employee rol (BUP003).

    ¿How assign the personal-id and username SAP to business partner existent without creating a new business partner?

    Thanks in advance!

    Anderson Rendón.

  • Dear Naga Swathi T J

    I don’t know what version you tested but in the 1809/02 I checked and the infotypes below can create a BP. But of course if we think in AP scenario doesn’t make sense create without 0009 bank details but the BP is created.

    • Infotype 0000 – Actions
    • Infotype 0001 – Organization assignment
    • Infotype 0002 – Personal data
    • Infotype 0006 – Address (for vendor role)

    I tested running synchro program.

    Regards.

    João Paulo Almeida

  • Hi

    may I know what is the inference of your message?
    my blog never says that BP can’t get created automatically

    the blog is on tips and tricks on various scenarios

    Be more specific about your communication

    swathi

  • Thank you Naga.  Very informative.  I have a follow up question for a specific application of BP.  In S4 for Supplier Maintenance (formerly SRM functionality) I am trying to setup an employee as BP but do not have HCM setup in the system I am working in (and no HCM resources to help…)

    when in the Fiori app Maintain BP I have created an employee BP.  It is now my understanding that I need to assign the SU01 user ID to the BP – I think to the role employee.  However I do not see the role employee in the drop down but I do see it in the BP IMG config.  Is this missing role due to the setting

    The HR integration switch in SAP S/4HANA is de-activated via the system table T77S0 with the configuration switches HRALX/HRAC and HRALX/PBPON?

     

    Fundamentally my real issue is when creating a purchasing category I get the error “Employee does not exist or is not authorized as purchaser responsible error in Fiori app”  My understanding of this error is that I need an employee BP with my user ID associated to it but I am having an issue associating the user to it.

     

    Thanks

    Dennis

     

    Since we do not have HCM the HRAC value is blank

  • Hi Naga Swathi,

    About your comment, I only want to say that you mentioned that the infotypes that it is necessary to create employees are below and the 0009 infotype isn’t necessary in the creation proccess. But it is necessary for FI payments.

    • Infotype 0000 – Actions
    • Infotype 0001 – Organization assignment
    • Infotype 0002 – Personal data
    • Infotype 0006 – Address (for vendor role)
    • Infotype 0009 – Bank details (for vendor role

     

    João Paulo Almeida

  • Hi Naga Swathi

     

    Thanks for the valuable information.

    I have other questions related to Employee as a Business Partner.

    Is there a specific type of authorization requirements for managing Employee business partners?

    e.g. BP employee data can always Create/change by HR directly in HCM and BP employee created in MDG automatically so, do they need to go to MDG system and do anything in the MDG side?

    If yes they need to update anything from MDG side then what kind of authorizations are required?

    Can you help me with this?

     

    Regards

    Viral

  • Hi Naga,

    Thanks for the valuable information.

    I would like to know the process for creation of employee as vendor in S4-HANA 1909 version.

    Step 1: I have hired the employee through PA 40.

    Step 2: Do I need to manually create the vendor through BP with similar number range ? If Yes, how these two will be linked ?

    Rite now, this report  /SHCM/RH_SYNC_BUPA_EMPL_SINGLE is giving error ie “R212 Grouping doesn’t exist” but i am not creating any record through transaction BP , i have understanding this report will automatically link the employee record with BP. Let me know in case, I am correct here.

    Please let me know the complete process, my dead line is approching and not able to set the employee as vendor in the system till now.

    Thanks and Regards.

    • Kindly check the switches in T77S0 table.

      do respective configurations for BP and vendor

      please read the article and you get the step by step approach

      • Do we need to create the BP through transaction code: BP or it will be autocreated through the report /SHCM/RH_SYNC_BUPA_EMPL_SINGLE ??

        I have the done the configuration as per the given article only but still facing the issue. Not able to execute the report /SHCM/RH_SYNC_BUPA_EMPL_SINGLE it is giving as “grouping doesnt exist.”

         

        Thanks and Regards

  • Hi! Swathi,

    Excellent post and very informative.

    When we execute this program we observe that it is updating demographics SU01 and is not allowing to edit any information except email address. Do you have any idea if it is a normal behavior? How can we update email address as well as part of the same execution?

    Also which information does it sync together from where to where?

    Regards,

    AQIB

  • Hello Naga,

    I have followed your document and must say you were a life saver, thank you!

     

    If you know, does the BP appear anywhere in the PA tables once generated?

    If not is there a table that stores the cross reference of PERNR and BP numbers?

     

    Thank you for your time. And again great job!

    Jessica