What is SAP HR? Introduction to SAP HCM (2024)

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 consist 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/ 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’s information. It helps you to perform various administrative tasks like hiring the employees, personnel information, travel expenses, payroll accounting, etc.

Important functions of Personnel Administration module are:

• Individual Infotype maintenance
• Contract Elements
• Monitoring of dates family/related person
• Education
• Other/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 is related to attendance, time evaluation, shifts, etc.

Here are some important functions of Time Management Module:

• Holiday calendar
• Personal work schedule
• Monthly work schedule
• Attendance and absence quotas
• Attendance check
• Graphical attendance/leave reporting
• Activity allocation

Payroll

SAP payroll module helps you to process the payment for the work done by employees. It includes wages, medical benefits, taxes, deductions, etc. SAP payroll module is also integrated with other modules like personal administration, time management, financial accounting, and so on.

Here are some important functions of Payroll system

• Gross payroll accounting with automatic wage calculation
• Automatic special payments computation
• Full gross/net retroactive accounting
• Data exchange with social insurance agencies, banks, etc.

Training and Event Management

Training and Event Management module deals with recognizing training needs, scheduling training process, cost management, etc.

Travel Management

This SAP module includes managing official trips, cost management for travel, travel expenses, etc.

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

Summary

• SAP Human Capital Management (SAP HCM) is an important module in SAP
• SAP HR consist of the following modules
• 1) Organizational Management 2) Personnel Administration 3) Time Management 4) Payroll Accounting, and 5) Travel Management
• Organizational management represent the organizational plan and analysis of the current plan
• Personnel Administration records essential employee’s information.
• Time management records employee data attendance, time evaluation, shifts, etc.
• SAP payroll module helps you to process the payment for the work done by employees
• This SAP module includes managing official trips, cost management for travel, travel expenses, etc.
• SAP SuccessFactors is a cloud-based HR solution for your business, and It helps companies manage HR functions in the cloud environment effectively.