Types of structures in SAP HR

Types of structures in SAP HR
There are three types of Human Resource structure :
1. Enterprise Structure
2. Personnel Structure
3. Organizational Structure 
1. Enterprise Structure
Company Code 
Within a client, the company code represents the highest level of the enterprise structure. In Customizing, the company code is defined by a four-character, alpha-numeric code.
If the ControllingFinancial AccountingMaterials Management or Sales and Distribution application components are set up in addition to the Personnel Administration component, you must set up the company code so that it also meets their requirements. This is not tantamount to a restriction: You define all of the HR System’s most important control data at the level of the personnel subareas, and these levels belong to Personnel Administration.
In Personnel Administration, the company code has the following control functions:
  • The company code is used to generate default values for data entry, for example, an employee’s payroll area.
  • The company code is a selection criterion for reporting.
  • The company code constitutes an authorization check unit.
At the company code level, the following control features are assigned which are relevant for Personnel Administration:
  • the default country key for the employee’s personal data, address data, and bank data.
  • a default value for the currency key for employee’s basic pay.
  • a language code for text output, for example, employee remuneration information.



This language code is not the same as the logon language, which determines the language used in the on-line system.
Creation of Company Code- transaction OX02

Personnel Area
Personnel areas divide a company code into sub-units. The individual personnel areas in a company code are defined in Customizing and have a four-digit alpha-numeric identifier.
The personnel area has the following functions:
  • The personnel area is used to generate default values for data entry, for example, an employee’s payroll area.
  • The personnel area is a selection criterion for reporting.
  • The personnel area constitutes an authorization check unit.
Enter transaction SM30 and enter table T500p.
Personnel Subarea
Personnel subareas are a subdivision of the personnel area. Organizational control of the main HR subareas, namely the pay scale and wage type structures and work schedule planning, takes place at the personnel subarea level. In Customizing, the personnel subarea is defined by a four-character, alpha-numeric code. The respective country-specific control features are stored here.
The personnel subarea has the following organizational functions:
  • Specifying the country grouping; this controls the dialog for entering country-specific personnel data and the setting up and processing of wage types and pay scale groups in Payroll; within a company code, the country grouping must be unambiguous
  • Assigning a legal entity to differentiate between the individual companies from a legal point of view
  • It specifies groupings for Time Management. This enables you, for example, to set up work schedules, substitution types, absence types, and leave types on the basis of a specific personnel subarea.
  • The personnel subarea is a selection criterion for evaluations.
  • The personnel subarea is used to generate default values for pay scale area and pay scale type for an employee’s basic pay.
  • It specifies the public holiday calendar.
  • Defining personnel subarea-specific wage types per personnel area
  • It assigns a legal person for payroll.
2. Personnel Structure
Employee Group – The employee group subdivides employees into various categories: 


1. External
2. Active
3. Pensioner


Employee Subgroup – Employees are differentiated further within the employee group. Active employees are differentiated according to their status – trainee, hourly wage or salaried employee etc. 

The employee subgroup grouping for the Personnel Calculation Rule allows you to define different payroll procedures for different employee subgroups, for e.g. you can specify whether an employee pay should be accounted on an hourly or monthly basis. 

Payroll Area is used to group employees whose payroll is 
run with same frequency and same payment date.Employees from different employee subgroups can be  belong to the same payroll area. We can use feature ABKRS to set default payroll area value based on enterprise structure  and personnel structure.
3. Organizational Structure 
Organizational Structure:-Organizational object (object type key O), which is used to form the basis of an organizational model. Organizational units are functional units of a company. Depending on how task distribution is organized in a company, these can be, for example, departments, groups or project teams.
Organizational object (object key S) used to distribute tasks to different positions and to depict the reporting structure in your organizational plan. Positions are concrete and are held by employees or users in an enterprise, sales administrator, head of European sales or secretary in the marketing department, for example.
Positions differ from jobs. A job is not concrete but rather the basis for the creation of various positions with similar tasks and characteristics.
A position does not only inherit its tasks and characteristics from a job. It can also be assigned tasks and characteristics directly or inherit them from the organizational unit that it belongs to.

Organizational object (object key C) used to create positions in an organizational plan.
Positions are concrete and are held by persons in an enterprise (secretary in the marketing department, for example). Jobs, in contrast, are classifications of functions in an enterprise (secretary, for example), which are defined by the assignment of tasks and characteristics. Jobs serve as job descriptions, that apply to several positions with similar tasks or characteristics.
Check this post to view how to create a organizational structure. http://hrhcm.blogspot.ro/search?q=job

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