What is SAP HR? Introduction to SAP HCM
Kaelyn Flynn
⚡ Smart Summary
SAP HR, also called SAP Human Capital Management or SAP HCM, is a core SAP module that automates employee record-keeping, organizational management, time tracking, payroll, and travel administration for the human resources department.
What is SAP HR?
SAP Human Capital Management (SAP HCM) is an important module in SAP. It is also known as SAP Human Resource Management System (SAP HRMS) or SAP Human Resource (HR).
SAP HR software allows you to automate record-keeping processes. It is an ideal framework for the HR department to take advantage of the administration and payroll documents.
SAP HR Modules
SAP HR is organized into tightly integrated sub-modules that share the same employee master data, so information entered once flows across the entire system. SAP HR consists of the following modules:
- Organizational Management
- Personnel Administration
- Time Management
- Payroll Accounting
- Travel Management
Organization Management
Organization Management is a very important sub-module of SAP HR. It enables the organization to represent the organizational plan and analysis of the current plan. It also allows you to create additional plans and create better workflow management. Check here our list of the Best Workflow Management Tools.
Functions of Organization Management:
- Creating graphical reports of organization structure
- Managing information on departments and org units
- Tracking of positions in various departments
- Maintaining jobs
- Reporting relationships
- Vacancy related reports
Personnel Administration
Personnel Administration is an important sub-module of SAP systems. It records essential employee information. It helps you to perform various administrative tasks like hiring the employees, personnel information, travel expenses, payroll accounting, and more.
Important functions of the Personnel Administration module are:
- Individual Infotype maintenance
- Contract elements
- Monitoring of dates for family and related persons
- Education
- Other and previous entity relationship
- Cost distribution
- Internal medical service
Time Management (TM)
Time Management is another important sub-module of HR and records employee data. It is mostly related to attendance, time evaluation, shifts, and similar data.
Here are some important functions of the Time Management module:
- Holiday calendar
- Personal work schedule
- Monthly work schedule
- Attendance and absence quotas
- Attendance check
- Graphical attendance and leave reporting
- Activity allocation
Payroll
The SAP payroll module helps you to process the payment for the work done by employees. It includes wages, medical benefits, taxes, deductions, and more. The SAP payroll module is also integrated with other modules like Personnel Administration, Time Management, Financial Accounting, and so on.
Here are some important functions of the Payroll system:
- Gross payroll accounting with automatic wage calculation
- Automatic special payments computation
- Full gross and net retroactive accounting
- Data exchange with social insurance agencies, banks, and so on
Training and Event Management: The Training and Event Management module deals with recognizing training needs, scheduling the training process, cost management, and similar activities.
Travel Management
This SAP module includes managing official trips, cost management for travel, travel expenses, and more.
Important functions of Travel Management:
- Entry of trip data
- Calculation of meal allowance
- Maintain receipts claim
- Advance payment
- Representation of internal company rules
- Trip-specific account assignment
- Simulation of statement
