5 Human Capital Management

5. A Overview
Implementation of Human Capital Management will enable QRST to efficiently manage various
processes and information relevant to its workforce. HCM supports all phases of the employee
life cycle, providing solutions that are integrated into planning and results. The outcome is
improved data collection, knowledge transformation and information delivery. It helps attract,
develop, retain and reward the right people who will drive bottom-line results.
5. A.1 Purpose of the document

The purpose of this document is to provide clear understanding of the Business Processes of
Human Capital Management that are in practice at QRST. As we have ensured to adopt the end-
to-end process mapping approach, this document not only covers the current business processes
but also lays tremendous emphasis on integration aspects by addressing and attending to cross-
modular flow of data and information.

This document will serve as the basis on which the major configuration related activities will be
undertaken during realization phase of the SAP Implementation project at QRST.

Finally, this document is intended as an invaluable reference to several of the value-additions that
QRST will immediately begin to realize and take advantage of, after the implementation of SAP.
This includes, but is not limited to, excess of standard SAP reports available in each module for
analysis and decision-making purposes.

5. A.2 Scope of implementation

Scope of implementation of Human Capital Management Module at QRST comprises of the

following sub-modules/ functionalities:

 Organizational Management
 Personnel Administration
 Personnel Time Management
 Payroll
5. B Organizational Units
The two main components of organizational structure which will be created at QRST in HCM
Module are Enterprise Structure and Personnel Structure. Both structures are described below:

5. B.1 Enterprise Structure

Initial settings at QRST which will enable the usage of HCM Module will start with the definition
of the Enterprise Structure. The Enterprise Structure consists of the following:

5.B.1.1 Personnel Area

Personnel Area is an organizational unit. According to a personnel administration, time

management and payroll point of view, 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 on
how to assign it are stored on a Personnel Area and Personnel Subarea level. The rules and
guidelines for its implementation will be determined by the legal, pay scale, collective agreement
and internal nature of QRST’s business setup. 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.

(Client)
Company Code

Personnel Area
PM (1000)

PD
Construction
PD GSC

Pers. Subarea
Proposed personnel area of QRST:

Personnel Area Description

1000 CEO
1100 Secretarial Services
1200 Internal Audit
1300 Administration & HR
1400 Finance
1500 Commercial
1600 Operations
1700 Projects

5.B.1.2 Personnel Subarea

A Personnel Subarea represents a subunit of the Personnel Area. The Personnel Subareas contain
the business characteristics. A Personnel Subarea is an organizational unit of Personnel
Administration that will represent a specific area of personnel area, organized according to certain
aspects of Personnel Administration, Time Management and Payroll. It is at this level that the
organizational control of Pay Scale Structures, Wage Type Structures and Work Schedules will
occur.

Proposed Personnel Subareas of QRST:

Personnel Personnel
Description Description
Area Subarea
Corporate Office
Zonal Office
ORC 1
CEO ORC 2
SPM
Terminal
Depot
Corporate Office
Zonal Office
ORC 1
Secretarial Services
ORC 2
SPM
Terminal
Depot
Personnel Personnel
Description Description
Area Subarea
Corporate Office
Zonal Office
ORC 1
Internal Audit ORC 2
SPM
Terminal
Depot
Corporate Office
Zonal Office
ORC 1
Administration & HR ORC 2
SPM
Terminal
Depot
Corporate Office
Zonal Office
ORC 1
Finance ORC 2
SPM
Terminal
Depot
Corporate Office
Zonal Office
ORC 1
Commercial ORC 2
SPM
Terminal
Depot
Corporate Office
Zonal Office
ORC 1
Operations ORC 2
SPM
Terminal
Depot
Corporate Office
Zonal Office
ORC 1
Projects ORC 2
SPM
Terminal
Depot
5.B.2 Personnel Structure

The personnel structure will represent each individual employee position at QRST. It contains
employee group and subgroup.

5.B.2.1 Employee Group

The Employee Group is the primary subdivision of personnel area and allows groupings that are
required for payroll and Time Processing. The employee group for which an employee is assigned
to is generally based on the nature of their employment.

The employee group has the following organizational functions:

 It allows generation of data entry default values, for example, for the payroll accounting
area or an employee’s basic pay.
 It serves as selection criterion for reporting.
 It constitutes an authorization check unit.

Employee
Group
Employee
Subgroup
Expatriat
Management e

Contract Trainee
Permanent

At QRST the following Employee Group will be used:

Sr.# Employee Group Description

1 1 Active

In Customizing, each employee group will be defined with one-character identification.

5.B.2.2 Employee Subgroup

Employee subgroups subdivide employee groups. Within the employee group for QRST’s
Management employees, for example, a distinction will be made between the following employee
subgroups:
In customizing, the employee subgroup will be defined by a two-digit, numeric code.

Employee Group Description Employee Sub Group Description

AM & Above

SO & Below

1 Active Contracts
Non-
Management
Trainees

All of the control features for the personnel structure will be defined at the Employee Subgroup
level. The most important control features are as follows:

 Grouping of Employee Subgroups will enable standardization or differentiation of how an

employee is dealt with for a personnel calculation rule. For example, this grouping will
allow control of whether QRST employee’s remuneration is calculated on a monthly or
hourly basis.

 Employee Subgroup grouping for primary wage types will allow setting up permissibility
of different wage types for specific employee subgroups at QRST.

 Employee Subgroup grouping for collective agreement provision will enable restricting
eligibility of pay scale groups. This will mean that only certain pay scale groups will be valid
for specific employee subgroups.

 Employee Subgroup grouping for work schedules will make it possible for certain work
schedules to be only permissible for specific Employee Subgroups.

 Employee Subgroup will enable definition of data entry values such as QRST’s payroll
area or employee’s basic pay.
 Employee Subgroup will be an authorization check unit.
5. C Master Data/Configuration Objects
Master data by definition is data that remains unchanged over an extended period of time. Master
data contains information that is always used in the same way. The most important objective of
Master Data Administration in Human Capital Management is to enter employee related data for
administrative, time recording and payroll purposes.

5.C.1 Organizational Management Master Data

The Organizational Management component will be used to plan and map any kind of
organizational structuring or organization of QRST. All data will be created with a start and end
date. This will allow record keeping of all historical data and scheduling of any changes in future.

The hierarchical interrelationships that will exist between the organizational units will represent
the organizational structure of QRST. An organizational structure will be created when
organizational units are added and a relationship is created between those organizational units. In
addition to organizational units, individual positions will also be created. The positions in an
organizational structure and their relationship will form QRST’s reporting structure (chain of
command).

One of the plan versions will represent the current organizational plan that can be integrated with
data from Personnel Administration. This plan version will be indicated as QRST’s active plan
version.

An organizational plan is a complete model of the structural and personnel environment of an

enterprise. Hierarchies and report structures are clearly laid out. The organizational plan is the
foundation of Organizational Management. The organizational plan uses elements, called objects.
The most important objects are organizational units, jobs, and positions.

5.C.1.1 Organizational Unit:

This object will represent a department of QRST. According to how tasks are divided up within
QRST, each department will be an organizational unit, for example Finance Department.
Organizational Units differ from other units in an enterprise such as Personnel Areas, Company
Codes, and Business Areas etc. These will be used to depict structures (administration or
accounting, for example) in the corresponding components. To define characteristics of an
Organizational Unit, time-specific data will be stored for the following areas in the Organization
and Staffing view:
 Basic Data
 Account Assignment
 Cost Distribution
 Address
 Work Schedule
For QRST Organization structure, see annexure 5.5
5.C.1.2 Position:

This object will represent an organizational element within the organizational plan of QRST.
Position summarizes the tasks, competencies, and responsibilities that can be expected from one
or more suitable employees. The personnel capacity (headcount) of an organizational unit will be
determined by positions. By representing the current status of an organizational unit and
foreseeable requirements, the basis of the Staff Assignments will be created. Once a position is
created, Persons or Users will be assigned and in so doing, the staff assignments will be completed.
Positions can have the following statuses:

Staffing Status
Vacancy Open
Vacancy Occupied or put on hold
Obsolete

A position will be flagged as Chief position if held by a Department Head.

To define characteristics of a position, time-specific data will be stored by HR users in the
following areas in the Organization and Staffing view:
 Basic Data
 Account assignments
 Address
 Cost distribution
 Work schedule
5.C.1.3 Cost Center:

Cost centers will be used for allocation of QRST Payroll costs among different departments or
any other Organizational unit level. Cost centers will be created in SAP Controlling module and
will set the integration between HCM and Accounting modules.
5.C.1.4 Job:

The job is just like responsibility given to employee. A Job is not concrete but rather the basis for
the creation of various positions with similar tasks and characteristics. Positions are concrete and
are held by persons at QRST (Finance Manager, for example). Jobs, in contrast, are classifications
of functions (Manager, for example), which are defined by the assignment of characteristics. Jobs
serve as job descriptions that apply to several Positions with similar Tasks or characteristics. When
a new position is created (Finance Manager, for example), it will be related to a job that already
exists (Manager, for example). The Position will then automatically inherit the tasks and
characteristics of the job.
If there is no corresponding Job, it will be created and tasks and characteristics will be assigned to
it. This will then be available when new Positions are added.
Jobs are created in order to simplify the procedure of creating Positions. The following job related
functions will be performed by QRST’s HR users:
 Create jobs
 Display jobs
 Assign jobs
 Assign characteristics to jobs
5.C.1.5 Person:

Person is an individual, who will be listed as QRST Employee in Personnel Administration.

Assigning a person (employee) to a Position, it will be determined where a Person (employee) is
functionally assigned in QRST and which tasks a Person (employee) will perform. Persons
(employees) can have Tasks assigned to them.
5.C.1.6 Task:

Task is an activity, which is performed within an Organizational Unit. Using Tasks, the Task profile
of Organizational Units can be described by ASL’s HR users in the Organization and Staffing
view. Tasks can be assigned to:
 An organizational unit, if it is to apply to all subordinate positions
 A job if it is to apply to all positions described by the job
 A position, if it is to apply to those persons(employees) or users who hold the position
 A person (employee), if it is to apply to this person
Tasks can be combined to form a Task Group.
5.C.1.7 Number Ranges Organization Management:

QRST will use SAP generated following Internal Number ranges in organizational management.

Category Personnel Number Range

Organizational Unit 50000000-99999999
Position 50000000-99999999
Job 50000000-99999999
Task 50000000-99999999

Note: The Organization Structure (Department, Position, Jobs, and Tasks) and their relationship
will be maintained by the user. Also, the positions will be mapped by the user.
5.C.2 Personnel Administration Master Data

Personnel Administration application component of SAP HCM is a highly effective tool to manage
all modern Personnel Administration tasks. It is an efficient and transparent administration system
for personnel data. The employee master data for QRST will be created and maintained in the
Personnel Administration module. Personnel Administration will be integrated to other SAP HCM
modules like Time Management, Payroll and Organizational Management etc. Integration will
allow Employee Master Data maintained in Personnel Administration module to be utilized in all
HCM Modules.
The Following HR Master Data for employees will be maintained in the system.
5.C.2.1 Personnel Number Ranges:

QRST will use SAP generated Personnel numbers when an employee is hired in the system. QRST
specific employee codes will be maintained automatically by the System. The Personnel Numbers
that QRST has previously used for its existing employees will also be uploaded in to SAP for cross
referencing under the category “Previous Personnel Number”.
QRST will use the following Personnel Number ranges:

Category Personnel Number Range

All categories 00000001-99999999

5.C.2.2 Information Types (Info types)

QRST can store all types of information about an employee in Human Resources Infotypes. These
Infotypes provide information with a structure, facilitate data entry, and enable storage of data for
specific periods. An Infotype has four digit codes i.e. 0000 to 9999. Some of the infotypes that will
be maintained for QRST’s personnel administration are given hereunder:

Infotype Number Infotype Text Nature of Information

0000 Actions Personnel Actions Records
Position, Department, Org Key
Org Key
0001 Administration,
0001 Organizational Assignment
0002 Manufacturing
0003 Selling
0004 Projects
0002 Personal Data Name, D.O.B, Gender etc.
0003 Payroll Status Payroll status Information
0006 Address Permanent/Temporary Address
 Infotype Number Infotype Text Nature of Information
0007 Planned Working Time Working days and timings
0008 Basic Pay All recurring Payments
Bank Key, Acc No., Payment
0009 Bank Details
Method
0014 Recurring Deductions All recurring deductions
Non recurring Payments &
0015 Additional Payments
Deductions
0019 Monitoring of Task Monitoring expiry of probation etc.
Family
0021 Spouse, Children
Member/Dependents
0022 Education Education
0032 Internal Data Previous Personnel No.
0041 Date Specifications D.O.J, D.O Confirmation etc.
0045 Loans Loans details
0105 Communication Email, cell, fax etc.
0185 Personal ID Personal ID
2001 Absences Leaves
2006 Absence Quotas Leave Entitlements
2002 Attendance Types Official Visit

In addition to above, a few customized Infotypes are developed at QRST to record master
data.

Infotype Number Infotype Text

9002 Organizational Hierarchy
9003 Other References
9004 OPD
9005 Club Subscription
9006 OPD Details
9007 Disciplinary Actions
9019 Final Settlement
9020 PF Permanent Withdrawal
9021 PF Monthwise Details
9022 PF Yearly Status
 Infotype Number Infotype Text
Insurance Premium from
9023
PF
9051 Quota deduction
9101 Insurance Data
9315 Income Tax Adjustments
9316 Income Tax Details
9325 Income Tax Output
9326 Income Tax Output 2
9400 Vehicle Allotments
Compensation
9500
Management
9505 Attended Training Data
9506 Training Need Analysis
9507 Leave Fair Assistance

5.C.2.3 Information Sub Types

Some Infotypes are divided into different categories called the Information subtypes. Some of
the subtypes that are used at QRST are as follows:

Info-type Information Sub Types

Address  Present Address
 Permanent Address
 Next of Kin
Family Member/  Z1 Spouse
Dependents
 Z2 Son
 Z3 Daughter
 Z4 Father
 Z5 Mother
Bank Details Main Bank
Education  Z0 Secondary School
 Z1 College
 Z2 University
Communication  0010 Email
 Info-type Information Sub Types
Date Specifications  Z1 Date of Joining.
 Z2 Date of Confirmation
 Z3 DOJ Contract
 Z4 Expiry of Probation
 Z5 Date of PF Membership
 Z6 Date of Resignation
 Z7 Previous DOJ
 Z8 Last Working Day
Z9 Date of Separation
Absence  Z001 Privilege Leave
 Z002 Sick Leave
 Z003 Maternity Leave
 Z101 LWOP
 Z201 Compensatory Leave
 Z202 Strike Leave
 Z203 No Transport Leave
 Z204 Official Visit
 Z501 Hajj Leave
 Z502 Special Leave
Absence Quota  Privilege Leave Quota
 Sick Leave Quota
Attendance Type  Y001 Official Visit
 Y002 Training
 Y003 Advance PL
 Y004 Advance SL
Loans  Z001 Advance against Salary
 Z002 Personal Loan
 Z003 Provident Fund Loan
 Z004 Personal Loan 2

Legacy data of QRST active employees will be uploaded into SAP before go live into the
production server. This will be a onetime exercise. After go live, whenever an employee is
hired, all relevant Master Data will be entered as part of HCM’s “Personnel Actions”
transaction.
5.C.3 Time Management Master Data

For Time Management the scope of implementation at QRST includes:

 Attendance/ Absences
 Leave quotas
 Integration to payroll accounting

As per management decision, positive time management will be applicable for all employees of
QRST.

QRST user will use info-types of Absence Entitlements/Title (Info-type 2006), Absence
deductions (Info-type 2001 Leaves), Attendance (Info-type 2002) and Time events (Info-type
2011) and Overtime Payment in Payroll for the relevant employees in the organization.

Through Personnel Time Management the HR user will:

 Manage Attendance
 Manage leave
 Manage Leave Quotas
 Overtime payments

An Info-type is a collection of logically related data fields for maintenance of employee data in
SAP HR Module. Info-types have four digits. QRST will use the following range of info-types for
Time Management:

5.C.3.1 Information Types (Info types)

Infotype Range Infotype Category

2000 To 2999 Time Management

The Info-types relevant to Time Management are as follows:

Infotype Number Infotype Text Nature of Information

0007 Planned Working Time Working Days and Timings
0050 Time Recording information Time recording information
2001 Leaves Leave
2002 Attendance Attendance
2006 Leave Title/Quota Leave entitlements
2010 Employee Remuneration Over time
2011 Time events Time events
5.C.3.2 Information Sub Types:

Some Infotypes can be divided into various categories using subtypes. The following subtypes are
used for absences at QRST:

Infotype SubTypes
Privilege Leave
Sick Leave
Maternity Leave
Leave without Pay
Absences Compensatory Leave
(2001) Strike Leave
No Transport Leave
Official Visit
Hajj Leave
Special Leave

Absence Quotas Privilege Leave Quota

(2006) Sick Leave
Official Visit
Training
Attendance Type Advance PL
(2001) Advance SL
Present

5.C.3.3 Holiday Calendar

The public holiday calendar will play a central role in the scheduling process. It will be used to
generate monthly work schedules of QRST employees. In QRST two public holiday calendars are
used to incorporate holidays for General and Shift employees. The two holiday calendars are as
follows:

Holiday Calendar Description

BP For Corporate and Zonal office employees.
For General Shift employees.
MK
(ORC1,ORC2,SPM,Terminal and Depots)

There are two categories of Holidays that will be defined, fixed holidays and movable holidays.
Fixed Holidays (National Holiday)

These holidays have fixed dates in the calendar. Examples of fixed holidays are:

Description Date
Kashmir Day 5th February
Pakistan Day 23rd March
Labor Day 1st May
Independence Day 14th August
Quaid-e-Azam’s Birthday 25th December

Movable Holidays for Muslims

These holidays are dependent on lunar cycle. These holidays will be defined in SAP but without
specific dates. The dates will be entered every year once they are confirmed. Examples of moveable
holidays are:

Description Date
Eid-ul-Fitr 1st Day Floating
Eid-ul-Fitr 2nd Day Floating
Eid-ul-Fitr 3rd Day Floating
Eid-ul-Azha 1st Day Floating
Eid-ul-Azha 2nd Day Floating
Eid-ul-Azha 3rd Day Floating
Eid Milad-un-Nabi Floating
9th Moharram Floating
10thMoharram (Ashura) Floating

Note: Unplanned holiday will be catered at the time of announcement.

5.C.3.4 Overtime

In QRST overtime is applicable to Non-Management permanent employees who work in excess

of their planned working time and overtime amount paid to employee’s on the basis of following
overtime calculation practice.

All the Overtime types for QRST employees through SAP HR Payroll will be maintained in IT0015
in wagetype (1503 & 1504) for general and shift employees.
Time evaluation executed to calculate Overtime hours and a customized program (ZTimetoPay)
is executed to calculate the overtime amount and it creates Overtime wage types (1503 & 1504) in
IT0015 automatically.

Formula:

Overtime rate = (Basic Pay x 2) x 12

-----------------------------------
Working hours per annum

5.C.4 Payroll

The Payroll component in HCM will be used to calculate the remuneration for work done for each
QRST employee. However, Payroll does not just involve the calculation of remuneration. It also
encompasses various other processes.

This component enables the running of the payroll for all employees in line with business
requirements. This module component integrates with other SAP HCM module such as Personnel
Administration and Personnel Time Management. It has interface to financial accounting and
controlling for posting the payroll results to respective GL accounts.

The SAP payroll calculates all payments and deduction for an employee. SAP payroll offer a
number of standard reports used in payroll, leave and advance payments.
SAP payroll supports retroactive accounting. This function automatically recalculates payroll in
the event of changes to master data and time data in periods for which payroll has already been
completed.

After implementation at QRST the payroll system will generate an exact, up to date payroll run.
This payroll run can be easily corrected if overtime payments or increases in wages/salaries are to
be taken into account.

The Following Payroll Master Data for employees will be maintained:

5.C.4.1 Payroll Area:

Payroll areas will be setup during customizing. This will allow grouping together of employees for
whom payroll is run at the same time. Payroll areas will also be used to set the dates for the payroll
period.

The following Payroll Areas have been suggested for QRST:

Payroll Payroll Area Text Description

Areas
Z1 AM & Above Maintained for employees AM & Above
Z2 SO & Below Maintained for employees SO & below
Z3 Trainees Maintained for management trainees.
 Z4 Contract Maintained for contract employees.
Lock Payroll Maintained for retired, separated and non-active
99
employees.

Based on organizational assignment criteria, all of the employees who are accounted
simultaneously in the payroll will be assigned to the same payroll area. Personnel numbers will be
assigned to payroll areas in the Organizational Assignment infotype (0001). QRST will follow
payroll cycle based on calendar months.

5.C.4.2 Pay Scale Structure:

The pay scale structure covers regional, industry specific, financial and time related aspects. It takes
into account the payroll differences between the various categories of employees. An employee
will get assigned to a pay scale structure when the basic pay infotype (0008) will be maintained.

The following four components of Pay Scale Structure will be configured in SAP for QRST.

 Pay Scale Type: This represents the pay scale regulations or collective agreement
according to which QRST employees will be paid. The following Pay Scale Type has been
suggested for QRST.

Pay Scale Type Pay Scale Type Text

01 QRST Petroleum Pakistan limited.

 Pay Scale Area: This component usually refers to the geographical location to which a
pay scale or collective agreement applies. Based on QRST’s requirements, the following
pay scale areas have been suggested:

Pay Scale Area Pay Scale Area Text

01 Management
02 Non-Management
03 Trainees
04 USD
05 Contracts

 Pay Scale Group & Level: Pay scale group and level is same for all QRST employees.
For pay scale area 05, pay scale group & level of pay scale area 01 and 02 will be used.

5.C.4.3 Payroll Period:

A Payroll Period will be the date interval for which the employee is compensated in a Payroll run.
The Payroll Period for QRST will be consisting of 28/29/30/31 days as Payroll will be run on
monthly basis. Monthly payroll cut-off date will be end of date of every month.
5.C.4.4 Posting Date:

The Accounting components determine the posting period that is posted to, from the posting
date. The Posting Date for QRST will be consisting of 28/29/30/31 days as Payroll month.

5.C.4.5 Info Types:

Info type is an integration data base between Personnel Administration, Payroll and Time
Management. Standardized data retention enable s the user master data and other payroll relevant
data from Personnel Administration.

Info Types Info Types Text Description

Facilitates to lock personnel
number from payroll, can set
0003 Payroll Status
retroactive accounting dates,
Earliest master data change
Pay scale type, Pay scale area, Pay
0008 Basic Pay scale group, Pay scale level, All
salary component as Wage types
Payment / Deduction which tends
Recurring Payment /
0014 to repeat for a period of time, Start
Deductions
date and end date.
0015 Additional Payments One time Payments

5.C.4.6 Wage Types:

Wage types are the key element in the Payroll System. Wage types will be used to assign payments
and deductions and to control the payroll program. Payments will include basic pay as well as
special payments like overtime, awards, or recurring payments. Deductions will include both
voluntary and involuntary elements such as Income Tax deductions and Loan repayments, etc.
Characteristics are used to distinguish the individual wage types.

 Primary Wage Types: Each wage type will be a four digit numeric key. The wage types
representing all of QRST’s Payroll Payments and Deductions will be called Primary Wage
Types. QRST will use the following ranges of Wage Types for different Payroll Payments
and Deductions.

Description All employees

Standard Payments (Infotype 0008) 0001-0999
Recurring Payments (Infotype 0014) 1500-1599
Recurring Deductions (Infotype 0014) 6000-6999
Additional Payment (Infotype 0015) 1500-1599
8000-8999
Additional Deductions (Infotype 0015) 6000-6999
9501-9599
  Secondary Wage Types: Some Wage Types will automatically be created by SAP during
the actual Payroll run for accumulation of several Primary wage types like employee Gross
Pay and Net Bank Transfer etc. These will be called the Secondary Wage Types
Some of the Examples of Secondary wage types are:

Wage Types Description

/550 Statutory net

/551 Retro calculation difference
/552 Difference prev. Period
/553 Recalc.diff.to last payroll.
/559 Payment
/560 Amount to be paid
/561 Claim
/562 Amount of balance paid
/563 Claim from prev. period
/565 Carry-over for next period.
/566 Carry-over from prev. period.

5.C.4.7 Salary Component Details:

The following wage types have been suggested for QRST based on existing payments and
deductions:

All the recurring monthly payments to QRST employees will be maintained in Basic Salary Info
type (0008)

Recurring Payment and Deduction:

Additional Payments and Deduction:

All the Additional Payments / Deduction for QRST employees through SAP HR Payroll will be
maintained in Additional Payments/Deductions Info type (0015).

Note: Same functionality of Infotype 0014 will be used for wage types (1500 – 1520).

5.C.4.8 Loans:
There are two kinds of loans at QRST.

5. D SAP-Enabled Business Process

5.1 Organizational Management
5.1 A SAP-Enabled Business Process

5.1.1 Creation/Maintenance of Organizational Units

The organizational structure will depict the hierarchy that exists between the various organizational
units at QRST. The organizational structure will be formed when organizational units are created
and related to one another. An organogram maps the line structure in the company. Any of the
following can be an organizational unit:

 Company
 Division
 Department
 Section
 Unit

5.1.1.1 To-Be Scenario Overview

SAP transaction code for this process: PPOCE/PPOME

To initially create QRST’s Organizational chart in SAP, QRST will have to provide an approved
organogram. Once the organogram becomes available, the process of creating the Organizational
chart will begin. The organizational chart will be created as part of SAP implementation, but with
the passage of time it may need to be periodically updated. There may be instances where new
departments may be added to the chart, or existing departments may become obsolete. The
transaction code PPOME will allow user access to the Organization and Staffing Interface to carry
out necessary maintenance.
5.1.1.2 To-Be Scenario Details

The following business process for creation of Organizational Units is suggested for QRST after
consultation with the core team members.

I. Addition of new Organizational Units to QRST’s Organization structure

II. HR users will execute the transaction code PPOCE/PPOME to gain access to the
Organization and Staffing interface.
III. The name of the New Organizational Unit will be entered.
IV. To enter Organizational Data, information will be entered into the following info types
(optional):

 Object: QRST specific names of Organizational objects will be maintained in this Info
type.
 Relationship: The interrelationships of Organizational Objects will be maintained e.g. the
reporting structure of various departments at QRST.
 Description: The Job Descriptions and Job Specifications will be maintained in this Info
type.
 Account Assignment: In this info type the organizational units are assigned to Personnel
Areas and Personnel Sub Areas.

5.1.1.3 Data Flow Diagram

 Human Resources Process: Creation of Organizational Unit

Start

HR Manager will review if

newaddition of new Division/Sub
Division

II

APPROVAL
AUTHORITY

III
HR User will Execute
Organization &
Staffing Interface

IV
NO
HR User will add the
Org unit to the Org
Chart

HR User will enter

Organizational data

Process Ends

5.1.1.4 To-Be Scenario Variants

 Organization unit can be maintained with short text and long text.
 Organization unit relationship can be maintained with object type’s position, job and cost
center.

5.1.2 Creation/Maintenance of Positions

Position represents a post i.e. designation, which can be occupied by a person (employee) in the
staff assignments of an organizational unit. Positions differ from jobs. Positions represent the
personnel capacity (headcount) of an organizational unit. Only when a position is created, can a
person be assigned and in so doing complete the staff assignments. Positions that are no longer in
use (not filled by a person) after a certain date would have to be delimited so that they would not
appear in the organizational chart.

5.1.2.1 To-Be Scenario Overview

SAP transaction code for this process: PPOME

During the implementation phase when QRST’s Organizational Chart is created, positions will be
added to the Organizational Units. The positions will be the ones present in QRST’s approved
organogram. After its initial setup, the organizational chart may need to be periodically updated.
There may be instances where new positions may be added, or existing positions may become
obsolete. The transaction code PPOME will allow the HR user access to the Organization and
Staffing Interface to carry out necessary maintenance.

5.1.2.2 To-Be Scenario Details

The following business process for creation of Positions is suggested for QRST after consultation
with the core team members.

I. Approve addition of new Positions to QRST’s Organization structure

II. HR users will execute the transaction code PPOCE/PPOME to gain access to the
Organization and Staffing interface.
III. The name of the New Position will be entered.
IV. To enter Organizational Data for this Position, information will be entered into the
following info types (optional):

 Object: QRST specific names of Organizational objects will be maintained in this

Info type.
 Relationship: The interrelationships of Organizational Objects will be maintained
e.g. the reporting structure of various departments at QRST.
 Description: The Job Descriptions and Job Specifications will be maintained in
this Info type.
 Department/Staff: The staff assignments within the reporting structure of QRST
will be maintained.
 Vacancy: To identify if any of the positions is vacant or occupied by employee.
 AccountAssignment: In this info type the organizational units will be assigned to
Personnel Areas and Personnel Sub Areas.

5.1.2.3 Data Flow Diagram

 Human Resources Process: Creation of Position

Start

Hr Manager will review if

addition of new Position

II
APPROVAL
AUTHORITY will give
the approval

YES

III
HR User will
Execute
Organization &
Staffing Interface

NO
IV
HR User will add
the Position to the
Org Chart

V
HR User will enter
Organizational
data

Process Ends

5.1.2.4 To-Be Scenario Variants

 Positions can be maintained with short and long text.

 Position relationship can be created with object type’s organization unit, cost centers and
job.

5.1.3 Creation of Jobs

Jobs are a classification of functions in an enterprise, for example, secretary, defined by the tasks
and characteristics assigned to them. Job descriptions apply to different positions with similar tasks
and characteristics. For example the requirement profiles maintained at Job level can be transferred
automatically to the Positions created using this job.

5.1.3.1 To-Be Scenario Overview

SAP transaction code for this process: PPOME

During the implementation phase when QRST’s Organizational Chart is created, jobs will be
created and assigned to positions. The jobs will be defined by QRST. After its initial setup, the
organizational chart may need to be periodically updated. There may be instances where new jobs
may be added. The transaction code PPOME will allow the HR user access to the Organization
and Staffing Interface to carry out necessary maintenance.

5.1.3.2 To-Be Scenario Details

I. The following business process for creation of Jobs is suggested for QRST after
consultation with the core team members.

II. Approve addition of new Jobs to QRST’s Organization structure

III. HR users will execute the transaction code PPOME to gain access to the Organization and
Staffing interface.
IV. The name of the new Job will be entered.
V. The Job will be assigned to the relevant Position.

5.1.3.3 Data Flow Diagram

 Human Resources Process: Creation of Job

Start

HR Manager will review if

addition of new Job

YES
II

APPROVAL
AUTHORITY will
give the approval

III HR User will

Execute
Organization &
Staffing Interface
NO

IV
HR User will
create a new Job

V HR User will
assign Job to
relevant position

Process Ends

5.1.3.4 To-Be Scenario Variants

  Job description that applies to several positions with similar task can be maintained.
 Job is assigned to positions.

5.1.4 Creation of Tasks

Tasks are activities performed within an organizational unit. Tasks can be assigned to
organizational units, jobs, positions and persons to describe their functions within the
organization.
5.1.4.1 To-Be Scenario Overview

SAP transaction code for this process: PPOME

During the implementation phase when QRST’s Organizational Chart is created, Tasks will be
created and assigned to jobs/positions. The Tasks will be defined by QRST. After its initial setup,
the organizational chart may need to be periodically updated. There may be instances where new
Tasks may be added. The transaction code PPOME will allow the HR user access to the
Organization and Staffing Interface to carry out necessary maintenance.
5.1.4.2 To-Be Scenario Details

The following business process for creation of Tasks is suggested for QRST after consultation
with the core team members.
I. Addition of new Task to QRST’s Organizational structure will be reviewed & approved
by the HR Manager.
II. APPROVAL AUTHORITY will give the approval if required.
III. On receiving instructions from HR Manager, HR users will execute the transaction code
PPOME to gain access to the Organization and Staffing interface.
IV. The new Task will be added by the HR end user.
V. HR end user will assign the task to the relevant Job/Position.

5.1.4.3 Data Flow Diagram

 Human Resources Process: Creation of Task

Start

I
HR Manager will review &
approves addition of new
Task

YES
II
If APPROVAL
AUTHORITY s
approval is
required

III
HR User will
Execute
Organization &
Staffing Interface

NO

IV

HR User will add

the Task

V
HR User will
assign Task to
new position/job

Process Ends

5.1.4.4 To-Be Scenario Variants

 Individual duties and responsibilities can be maintained by task.

 Task describe and can be assigned to job and positions.

5.1.B Integration
Personnel Administration

An employee will automatically be assigned to the Organization chart on execution of hiring action
in the Personnel Administration module.

Payroll

Cost Centre will be used for allocation of QRST’s Payroll costs among different departments or
any other Organizational unit level. Cost Centers will be created in SAP controlling module and
will set the integration between HR and Accounting modules.

5.1.C Value Additions

 Implementation of Organizational Management will enable depiction of QRST’s

Organizational and Reporting Structure in SAP.
 It will enable creation of additional organizational plans as planning scenarios in order
to simulate new structures in the context of business process re-engineering.
 It will enable creation of effective workflow management through access to the
reporting structure.
 Organizational Management will offer numerous reports with which all relevant data
will be accessed in order to efficiently manage QRST’s Organizational Plan.
5.1.D Scripts & Forms

Sr. # Scripts and Forms Availability

1 Organizational Hierarchy ZHR30

5.1.E Reports

Sr. # Report Name Availability

1 Existing Organizational Units S_AHR_61016491
2 Organizational Structure S_AHR_61016493
3 Organizational Structure with Positions S_AHR_61016494
4 Organizational Structure with Persons S_AHR_61016495
5 Existing Positions S_AHR_61016502
6 Staff Assignments S_AHR_61016503
7 Position Description S_AHR_61016504
8 Vacant Positions S_AHR_61016509
9 Job Index S_AHR_61016498
10 Job Description S_AHR_61016499
11 Report Structure Without Persons S_AHR_61016512
 Sr. # Report Name Availability
12 Report Structure with Persons S_AHR_61016513

5.2 Personnel Administration

QRST users will utilize SAP-HCM for Personnel Administration. Following are the requirements:

 Effective maintenance of Employee Master Data in SAP and Integration with Organizational
Management and Recruitment.
 Hiring of various categories of employees.
 Hiring of Contractual Employees and Renewal of Contract when previous contract ends.
 Promotions/Up gradations of QRST’s employees based on recommendation of concerned
department head with HR department.
 Change in pay of employees.
 Resignation Process of Employees
 Termination of Employees
 Relevant reports availability in order to get up to date and comprehensive information relevant
to Employee Master Data

5.2.A SAP-enabled Business Process

5.2.1 Personnel Actions

In the standard system, different types of employee data are stored in individual info-type. Rather
than accessing each info-type individually and entering data into them, the system can group
together the most important info-types into personnel actions and lead you through processing
the employee data.

Personnel procedures, such as hiring an employee, organizational reassignment, or an employee

leaving the enterprise are represented by individual personnel actions in Personnel Administration.
Each personnel action contains the info-types that you must maintain to record the personnel
action at hand. The info-types are retrieved in succession so that you can maintain them.

The QRST user will use the following personnel procedures are represented as personnel actions
in the HR master data system:
 PERSONNEL ACTION CODE PERSONNEL ACTION TEXT
01 Hiring
Z1 Provident Fund Membership
02 Transfer
10 Leaving

Note: The two actions cannot be performed on same date as per SAP standard.

If you run two actions which change the employment status then the last record will be overwritten
by the new one.

5.2.2 Hiring

5.2.2.1 To-Be Scenario Overview

Hiring can be performed in response to a new position getting created, restructuring or expansion.
An employee may also be hired as a replacement for another employee. When a new employee is
hired, data for the new employee has to be entered into SAP in various Info-types. Hiring in SAP
is performed using a transaction called Personnel Action. When Personnel Action is performed,
all relevant Info-types that need to be maintained are displayed sequentially.

5.2.2.2 To-Be Scenario Details

SAP transaction code for this process: PA40 (Personnel Actions)

The following business process for Hiring is suggested for QRST after consultation with the core
team members.

I. After an applicant completes the recruitment process and accepts a position at QRST,
employee fills the hiring form.
II. By executing the transaction code PA40, the user in Human Resources will initiate the
Hiring Action.
III. Data will be maintained in the following Info-types:

Info-type
Info-type Text Subtype Subtype Text
Number
0000 Actions
0002 Personal Data
Organizational
0001
Assignment
0006 Address Permanent Address
01
0007 Planned Working Time
0008 Basic Pay
0009 Bank Details 0 Main Bank
0032 Internal Data
 0016 Contract Elements
Z0 Secondary school
0022 Education Z1 College
Z2 University
0041 Date Specifications Z1 Date of Joining
9002 Organizational
Hierarchy
9003 Other References
0023 Other/Previous
Employers
0050 Time Recording Info
0028 Internal Medical
Service
0014 Recurring
Payments/Deductions

These Info types will be displayed by the sequence presented and user can cancel entering any of
these Info types based on the availability of data to be entered.

Sr. No Reason for Action

1 Existing Position
2 Expansion

5.2.2.3 Data Flow Diagram

5.2.2.4 To-Be Scenario Variants

 Organization assignment related to applicant hiring can be maintained.

 Reason for hiring can be maintained.
 Employee personal data and salary data can be maintained in a sequence.

5.2.3 Provident Fund Membership (End of Probation)

5.2.3.1 To-Be Scenario Overview

An employer does not immediately grant its employee a permanent status on hiring. Based on
employer’s policy, certain time period has to pass. This gives the employer an opportunity to
evaluate performance. If satisfactory, the employee is given a permanent status, otherwise
employment is terminated or extended probation period.

5.2.3.2 To-Be Scenario Details

SAP transaction code for this process: PA40

The following business process for Confirmation of employees is suggested for QRST after
consultation with the core team members.

I. HR user will check through standard report “Monitoring of Task”, to determine which of
the employees will be completing their probationary period. HR user will contact the
department head to verify if the employee has successfully completed the probationary
period.
II. HR user will receive feedback from the department head. Confirmation action will execute.
III. The following Info-types will be updated:

Info-type
Info-type Text Subtype Subtype Text
Number
0000 Actions
0041 Date Specifications
Recurring
0014
Payments/Deductions
9021 PF Monthwise Details

9022 PF Yearly Status

Sr. No Reason for Action

1 Probation Completion

5.2.3.3 Data Flow Diagram

5.2.3.4 To-Be Scenario Variants

 Reasons for confirmation action can be maintained.

 Various infotypes can be maintained in a sequence.

5.2.4 Transfer
5.2.4.1 To-Be Scenario Overview

Employees may get transferred to other positions for various reasons, such as:

 An employee leaves the company and a vacancy gets created. The vacant position maybe
offered to another employee within the company.
 An employee may have updated his skills or qualifications that are better suited to another
position than his current one.
 An employee may get assigned to another position as a temporary replacement for another
employee.

5.2.4.2 To-Be Scenario Details

SAP transaction code for this process: PA40

HR Department may receive a request from the concerned department regarding the transfer of
an employee from one position to another. The following business process for Organizational
Reassignment is suggested for QRST after consultation with the core team members.

I. HR will receive request for transfer.

II. On receiving a request for transfer, HR user will check to confirm that there is a vacant
position. If there is no vacancy, the process will end.
III. If there is a vacant position, HR user will initiate the Personnel Action for transfer.
IV. The following info-types will be updated:

Info-type
Info-type Text Subtype Subtype Text
Number
0000 Actions
Organizational
0001
Assignment
0007 Planned Working Time

0050 Time Recording Info

0008 Basic Pay

0009 Bank Details

Recurring payment and
0014
deduction
0015 Additional Payment

0045 Loans
Organizational
9002
Hierarchy
Sr. No Reason for Action
01 Change in Personnel Sub Area
02 Change of Department
03 Promotion
04 Change of Grade
05 Change in Company
06 Change of Location
07 Contract to Confirmed Employee
08 Confirmed to Contract Employee
09 Change in Personnel area
10 Temporary Transfer
5.2.4.3 Data Flow Diagram

5.2.4.4 To-Be Scenario Variants

 Reason for transfers can be maintained.

 Organization reassignment can be maintained.
5.2.5 Leaving

5.2.5.1 To-Be Scenario Overview

Employees leave a company for various reasons. The causes can be voluntary, such as, resignation,
or involuntary, such as Termination, Retirement, and expiration of contract or death.

5.2.5.2 To-Be Scenario Details

SAP transaction code for this process: PA40

The following business process for Leaving is suggested for QRST after consultation with the core
team members.

I. HR department receives Clearance/Exit Certificate.

II. By executing the transaction code PA40, the user in Human Resources will initiate the
Leaving Action. The applicable action type and the effective date will be entered in Actions
infotype 0000.
III. The following info-types will be updated:

Info-type Number Info-type Text Subtype Subtype Text

0000 Actions
0014 Recurring Payments/Deductions

0015 Additional Payments

0050 Time Recording Info

2006 Absence Quotas

Sr. No Reason for Action

01 Resignation
02 Terminated
03 Retirement
04 Death
05 Severance
06 Transfer
5.2.5.3 Data Flow Diagram

PROCESS: Leaving

Human Resources

Start

I
HR dept receives
clearance form from
employee

II
HR user will
update
Actions
Infotype

III
Various
infotypes
will be
updated

Process Ends

5.2.5.4 To-Be Scenario Variants

 Reasons for separations can be maintained.

 Master data can be delimited
5.2.B Integration

Organizational Structure

While running the hiring action in Personnel Administration, new employees will automatically get
incorporated into QRST’s Organizational Chart in SAP.

5.2.C Value Additions

 Personnel Administration will offer numerous reports with which all relevant data will be
accessed in order to efficiently manage QRST’s Employee Master Data. Examples of such
reports are Date Monitoring and data of employees joining and leaving.
 Personnel Administration will relieve QRST’s HR user from many of the daily routine
activities which are time consuming. Basic personnel procedures such as hiring,
organizational reassignments, and leaving of employees will be easily managed through
Personnel Actions. Personnel Actions will allow QRST’s HR users to maintain employee
data in various info-types which will be sequentially displayed during data entry.
 Whenever any employee data at QRST will be updated, the use of Info-types in personnel
administration will allow storage of both old and new data. The old data will be
automatically delimited. This way the historical data will not be lost and will always be
available for evaluation.

5.2.D Scripts & Forms

Sr. # Report Name Availability

1 Consolidated Employee Family Data Report ZCFD

5.2.E Reports

Sr. Report Name Availability

#
1 EEs Entered and Left Standard report(S_PH9_46000223)
2 Family Members Standard report(S_PH9_46000222)
3 Flexible Employee Data Standard report(S_AHR_61016362)
4 Employee List Standard report(S_AHR_61016369)
5 Date Monitoring Standard report(S_PH0_48000450)
6 Service Anniversaries Standard report(S_PH9_46000216)
7 Education and Training Standard report (S_PH9_46000224)
8 Birthday List Standard report(S_PH9_46000221)
9 Termination report Standard report(S_AHR_61016362)
10 Emp. Active insurance Standard report(S_AHR_61016362)
11 Emp. Active permanent Standard report(S_AHR_61016362)
5.3 Time Management
QRST users will utilize SAP-HCM for Time Management. Following are the requirements:

 Integration of Time Machines installed by a 3rd Party vendor with SAP.

 Work schedules to be generated in SAP.
 Leave title to be defined for employees in SAP according to QRST’s policies.
 Employee leave to be granted and adjusted against the allowed leave title.
 Scheduling to be managed for employees working in shifts.
 Forced time out entry will be made for the employees whom time out will be missing.
 Availability of various reports in order to get up to date and comprehensive
information relevant to Time Management.

5.3.A SAP-enabled Business Process

5.3.1 Leave Processing

5.3.1.1 To-Be Scenario Overview

QRST allows its employees to avail several categories of leaves. Each type of leave either has a
maximum accrual per year or fixed number of days. The number of days accrued is dependent on
the employee’s length of service and is prorated according to date of hire. In SAP, various types
of leaves for QRST will be configured and absence quotas will be generated based on predefined
policies.

Leave Quota:

There are two leave quotas which are eligible for QRST employees.
 Privilege Leave Quota
 Sick Leave

Absence Quota
Absence Quota Type Conditions
Type Description
01 Privilege Leave Quota Total 20 working days per annum.
More than 40 working days will
be laps. It is given to all employee
subgroup expect 05 Trainees.
For Rotational Shift employees,
total 14 working days per annum,
more than 28 working days will be
laps. It is given to all employee
subgroup expect 05 Trainees.
 Absence Quota
Absence Quota Type Conditions
Type Description
02 Sick Leave Quota Total 16 working days and lapse
on each year. It is given to all
employee subgroups.
For Rotational Shift employees,
total 11 working days per annum
and lapse on each year. It is given
to all employee subgroups.

5.3.1.2 To-Be Scenario Details

SAP transaction code for this process: PA30 - Maintain HR Master Data

After an employee’s request for leave is approved through manually leaves application, the
following business process is suggested for QRST in consultation with the core team members.

I. Employee’s Leave request is approved through manually leave application.

II. Employee’s leave record will get created in SAP. To check the leave record for an
employee, info-type 2001 (Absence) can be accessed using transaction code PA30.

Leave Leave Type

Conditions Allowance Deducted
Type Description
Z001 Privilege Leave It is been given to employees after N/A
completion of one year.
It is prorated till 30 June.
Z002 Sick Leave It is prorated till 30 June N/A

Z003 Maternity Leave 90 calendar days. N/A

Z101 LWOP After completion of leave quota. Basic pay deduct as per
calendar days.
Z201 Compensatory Leave It is been permissible to personnel N/A
subareas:-
 ORC1
 ORC2
 Terminal
 Depots
Z202 Strike Leave
Z203 No Transport Leave It is been permissible to personnel N/A
subareas:-
 ORC1
 ORC2
 CORP
Z204 Official Visit
Leave Leave Type
Conditions Allowance Deducted
Type Description
Z501 Hajj Leave Once in a service for permanent N/A
employees.

Z502 Special Leave Subject to approval N/A

5.3.1.3 Data Flow Diagram

PROCESS: Leave Processing

Human
Resources

Start

Leave Request is processed

manually

II

Employee’s leave
record is created in
SAP

Process Ends
 5.3.1.4 To-Be Scenario Variants

 Absence quota can generated with different quotas conditions for leave types.
 System generates warnings if leaves are applied on non-working days.
 System generates warnings if there is collision in the applied leaves.

5.3.2 Work Schedules

SAP transaction code for this process: PT01

Employee work schedules at QRST are based on the following shifts.

Personnel Work Weekly
Employee Working Weekly Off
Sub-Area Schedule Working Timing
Group Day Days
Days
Corporate
CORP
Office Mon to Fri 5 Sat & Sun 0900 – 1800

Zonal Office CORP

Mon to Fri 5 Sat & Sun 0900 – 1800

ORC 1
MKPG, 0800 – 1600
Mon to Fri 5 Sat & Sun
MKP2 0800 – 1700

Shift 0730 – 1930

N/A N/A N/A
A/B/C/D 1930 – 0730

MKRM, 0700 – 1500

All MKRE, N/A N/A N/A 1500 – 2300
MKRN 2300 – 0700

USHIFTA,
USHIFTB, 0800 – 2000
N/A N/A N/A
USHIFTC, 2000 – 0800
USHIFTD

ORC 2
Same as ORC1

SPM
Same as ORC1
Terminal
Depot
5.3.3 Attendance Recording

5.3.3.1 To-Be Scenario Overview

QRST’s employee attendance for all work schedules will be process. Employee will mark
attendance in the time machines and via integration time machine data will be direct transfer in
SAP.

5.3.3.2 To-Be Scenario Details

SAP transaction codes for this process:

 PA61-Maintain Time Data,

 PA71-Fast Entry of Time Data

The following business process for Attendance Recording is suggested for QRST after
consultation with the core team members.
I. The attendance data of the employees will be uploaded or direct transfer from time
machine to SAP Time Management System using time machine interface.
II. Data consistency will be checked by HR / Admin department using time reports.
III. In case of inconsistent time pairs, the HR department will manually maintain the
employee attendance data in the system by using transaction code PA 61.
5.3.3.3 Data Flow Diagram

5.3.3.4 To-Be Scenario Variants

There is no variant for this process.

5.3.B Integration

Payroll

Integration between Payroll and Time Management enables determination of gross wage. Leave
without Pay is also taken into account.

5.3.C Value Additions

 Time Management in HCM module will offer various reports with which all relevant
data will be accessed in order to efficiently manage QRST’s Time Management
process.
 Integration between QRST’s time machines and SAP will allow easy maintenance and
record keeping of employee attendance data.
 Title defined in SAP will prevent employees from taking unauthorized leaves.

5.3.D Scripts & Forms

Sr. # Scripts and Forms Availability

1 Monthly Consilated Time Sheet ZHR16

5.3.E Reports

Sr. # Scripts and Forms Availability

1. Display personal shift plan Standard(PP6A)
2. Display attendance list Standard(PP6B)
3. Display Work Schedule Standard(PT03)
4. Personal Work Schedule Standard(PT63)
5. Daily Work Schedule Standard(PT_DSH20)
6. Attendance Data Overview Standard(PT64)
7. Personnel _ Leave _ Balance Standard(PT_QTA10)
8. Generate quota leave Standard(PT_QTA00)
5.4 Payroll
QRST users will utilize SAP-HCM for Payroll Processing. Following are the requirements:

 Calculation of remuneration for each employee (as per employee categories

mentioned in SAP HCM Personnel Administration blue print document) on QRST’s
payroll.
 Separate payroll areas will be setup for QRST Offices.
 Configuration in SAP of all elements will be carried out that relate to Employee’s Pay
such as Basic Salary, House Rent Allowance, and Medical Allowance and other
allowances and deduction.
 Integration with FI/CO to allow posting of Payroll data to accounting for financial
reporting and cost accounting purposes.
 Relevant reports availability in order to get up to date and comprehensive information
relevant to Payroll.
5.4.A SAP-enabled Business Process

5.4.1 Payroll Processing

The Payroll program is run at a specific point in time, not only to calculate an employee’s basic
remuneration but also to process any special payments or bonuses.

5.4.1.1 To-Be Scenario Overview

Payroll for QRST will be run on monthly basis. The following business process for Payroll is
suggested for QRST after consultation with the core team members.
 5.4.1.2 To-Be Scenario Details

SAP transaction codes for this process:

PC00_M99_CALC_SIMU,
PC00_M99_PA03_RELEA,
PC00_M99_CALC,
PC00_M99_PA03_CHECK,
PC00_M99_PA03_CORR,
PC00_M99_PA03_END

Payroll for QRST will be run on monthly basis. The following business process for Payroll is
suggested for QRST after consultation with the core team members.

I. The first step in Payroll processing is simulation. The transaction code for this process is
PC00_M99_CALC_SIMU. Simulation will be run for each payroll area to confirm that no
errors will be encountered when the actual payroll is run.
II. If errors are found during payroll simulation, Master Data will be maintained to remove
the errors.

III. To run the actual Payroll process, transaction code, PC00_M99_PA03_RELEA, will
release the Payroll Area for processing. When releasing the Payroll Run, the relevant
Payroll Area will be selected. One or several Payroll Areas can be released simultaneously.
The system will increase the period number in the Payroll Control Record of the respective
Payroll Area by one. The master and time data for the personnel numbers belonging to
this Payroll Area cannot be changed for Payroll past or present. Changes affecting the
future will still be possible.
IV. Transaction code, PC00_M99_CALC (start payroll) will run payroll in live mode. The
system will determine the current Payroll Period from the Payroll Control Record and
perform Payroll using the values that were entered in the Payroll program.
V. PC00_M99_PA03_CHECK will be used to check payroll results. If errors are found
during payroll processing they will be displayed.
VI. Transaction code PC00_M99_PA03_CORR, will be used to make corrections to master
or time data for personnel numbers which contain errors, and which the Payroll program
could not process. During the Payroll run, the system will flag the Payroll Correction field
in the Payroll Status Info-type (0003) for all rejected personnel numbers. These personnel
numbers are grouped together in a list under Match code W (Payroll Correction Run). In
a Payroll correction run, that is a Payroll run with Matchcode W; Payroll will only run for
the corrected personnel numbers. After corrections, Payroll will be released again. Payroll
Period will not change this time.
VII. Payroll will be run again only for the personnel numbers that were previously rejected.
VIII. Transaction code PC00_M99_PA03_END will be used to exit Payroll when the Payroll
Process has run successfully for all personnel numbers in the selected Payroll Area.
5.4.1.3 Data Flow Diagram

Human Resources PROCESS: Payroll Processing

Payroll Department Finance

Start

I Payroll Posted to
Finance
Simulate Payroll
Run

II

Maintain End Process

Yes Errors
Master Data

No
III
Release
Payroll

IV
Start Payroll

Check Results

Data updated
without error Yes

No
VII VI
VIII
Maintain
Corrections
Master Data Exit Payroll

5.4.1.4 To-Be Scenario Variants

There is no variant for this process.

5.4.2 Loans

5.4.2.1 To-Be Scenario Overview

Various types of loans and advances are made available by the employer. Employees can avail
these loans if they meet certain requirements. Once the loan is granted, a process has to be
followed for the recovery of the loan. The process for granting and recovery of the loan is
discussed here.

5.4.2.2 To-Be Scenario Details

SAP transaction code for this process: PA30

After the employee’s loan request is reviewed and approved, the following business process is
suggested for QRST after consultation with the core team members:

I. HR User will initiate Transaction code PA30. After entering employee’s personnel
number, the user will access Infotype 45 (Loans).
II. A new record will be created in Infotype 45 and the approved amount and number of
instalments will be entered. This will trigger the process of recovery of loan from the
employee’s monthly pay check.
III. HR user will notify the finance department of the grant of loan to the employee.
IV. Finance Department will issue a cheque for the loan amount to the employee.
5.4.2.3 Data Flow Diagram

PROCESS: Loan Processing

Human Resources Finance

Start

HR user will initiate

infotype 45

HR user will enter

II the amount of the
loan and the
number of
installments for
Repayment

IV
III

Finance will issue a check to the

HR will notify Finance
employee

Process Ends

5.4.2.4 To-Be Scenario Variants

 Loan payments can be made via payroll or as external payment.

 Repayment installment and end date can be calculated automatically.
5.4.3 Posting to Accounting

5.4.3.1 To-Be Scenario Overview

Payroll results contain information that has relevance for financial accounting purposes. The
process to transfer this data from HCM to accounting after payroll run every month is discussed
here.

5.4.3.2 To-Be Scenario Details

SAP transaction code for this process: PC00_M99_CIPE

The function in SAP “Posting to accounting” is an interface between the Human Resources and
Accounting systems. After payroll is run every month, the cost has to be booked in the relevant
accounts in financial accounting. This process will create a posting document that will be
transferred to Financial Accounting (FI), and the information will get posted to a document in
the FI module. The following business process for posting is suggested for QRST after
consultation with the core team members.

I. Transaction code, PC00_M99_CIPE, will create a posting run. Initially the posting run
will be created in simulation mode to confirm that there are no errors. General Ledger
accounts will not get posted to, in simulation.
II. All errors displayed in the simulation document will to be rectified.
III. The posting document will be released.
IV. Transaction code, PC00_M99_CIPE, will be run again to create a live posting run. The
accompanying posting documents will have the "Posted" status. If unsuccessful: The
posting run will have the "Not posted" status.
V. The user will check the completeness of the Run. In case the Run is not complete, the
user will reverse the Run and repeat the whole process.
VI. The General Ledger accounts in Financial Accounting and Cost Centres in controlling
modules will be updated.
5.4.3.3 Data Flow Diagram

PROCESS: Posting to Accounting

Human
Resources

Start

I
Create posting
run with
simulation
documents

II
Check
Errors are
payroll user Yes
displayed
operation

No
III
Release
Posting
Document

IV

Perform
Posting Run

V
Reverse the
Errors are run and
Yes
displayed remove
errors

No

VI
GL Accounts
updated

5.4.3.4 To-Be Scenario Variants

There is no variant for this process.

5.4.B Integration

FI/CO

Integration between Payroll and FI/CO enables posting of Payroll results to Accounting, all
posting information from the payroll results is selected, summarized, formatted, and posted to the
Accounting components.

Time Management

Integration with Time Management will allow determination of unpaid leaves and its impact on
Gross Pay.

5.4.C Value Additions

 The Payroll module will offer numerous reports with which all relevant data will be
accessed in order to efficiently manage QRST’s Payroll process.

 Before execution of live payroll, there is possibility to run payroll on simulation.

 Before posting the payroll document, there is possibility to run payroll posting on
simulation.

 Income Tax determination will be customized according to Pakistan’s tax laws

5.4.D Scripts & Forms

Sr.
Scripts and Forms Availability
#
1 HR: PF Settlement Program Zhr4
2 Tax Filling Instruction Zhr32
3 Employee Consolidated Payroll Results Zhr_282
4 LFA Calculation Program Zlfa
5 Change View: Tax period to payroll periods Ztaxp
6 Employee Old Age Benefits Zhr31

5.4.E Reports

Sr. # Report Name Availability

1. Wage Type Reporter PC00_M99_CWTR
2. Bank Details S_AHR_61015609
3. Payroll Account S_AHR_61015607
Sr. # Report Name Availability
4. Payment /Deductions S_AHR_61015608
5. Payroll Journal S_AHR_61015610
6. Display Results PC_PAYRESULT
7. Wage Type Assignment - Display G/L Accounts PC00_M99_DKON
 5.6 Annexure

QRST Organization Structure

Company Division Department

QRST CEO CEO Office
Secretarial Services Secretarial Services
Internal Audit
Internal Financial Audit
Internal Audit
Internal Standard Audit
Admin & HR
AHR – Administration
Administration – SPM
Administration – Security
AHR – EHS
EHS - Health Services
EHS - Process Safety
EHS - Personal Safety
EHS - HO & Retail Outlets
EHS – SPM
AHR – Communication
Admin & HR
Communication - Media Management & Publications
Communication - Brand Management & Advertisement
Communication - Corporate Office Supervision
Administration - Industrial Relations
AHR - Human Resource
HR - HR Operations
HR - Learning & Employee Engagement
HR - Performance Management & Rewards
HR - Talent Acquisition
AHR - Management Applications & Systems
MAS – Systems

MAS - Applications & Reports

MAS - Office Automation

MAS - Document Control

Commercial Commercial
Petroleum Marketing Business
PMB - Consumer Sales
PMB - Retail Sales
PMB - International Sales
PMB - Retail Development & House Keeping
PMB – Lubricant
PMB - Business Process
PMB - Quality Control & Certifications
Commercial – Logistics
Logistics - Road Transportation
Logistics - Hospitality & Virtual Depots
Logistics - Pipeline Supplies & Stock Transfer
Logistics - Shipping Documentation
Logistics - Terminal Development
Logistics - Terminal Operations
Logistics - Terminal Maintenance
Logistics - Terminal ERT
Commercial - Contracts & Procurement
Commercial - Contracts
Commercial - Procurement
Commercial - Materials Management
Commercial - Refinery Sales
Commercial - Crude Procurement
Commercial - Legal Services
Commercial - Tax & Certification
Finance Finance
Finance - Financial Control
Finance - Budget Control
Finance - Treasury & Investment
Finance - Cash Management & Disbursement

Finance - Business Accounts

Finance - Freight Billing
Finance - Product Accounts
Operations Advisory
Advisory - Economics & Productions Programming
Advisory - Integrity
Advisory - Process Support
Advisory - Quality Assurance Laboratory
OM - Shipping & Receipts
OM - SPM Operations
OM - Tank Farm
Operations
Process
Process - ORC1
Process - CDU ORC2
Process - Isomerization ORC2
Process - NHT & Reformer ORC2
Reliability
Reliability - Civil ORC1
Reliability - Civil ORC2
Reliability - Electrical ORC1
Reliability - Electrical ORC2
Reliability - Instrumentation ORC1
Reliability - Instrumentation ORC2
Reliability - Mechanical ORC1
Reliability - Mechanical ORC2
Reliability - SPM
Services

Services - Boiler & Utilities ORC1

Services - Boiler & Utilities ORC2
Services - Power House ORC1
Services - Power House ORC2
Services - RO Plant ORC1
Services - RO Plant ORC2
Services - Emergency Response Team
Projects Projects

Projects - Process Design

Projects – Construction
Projects - Electrical & Instrumentation
Projects – Mechanical
Projects – Planning
Projects - QA/QC