Saturday, April 19, 2014

The enterprise structure describes the way in which an enterprise is organized. It consists of the company code, personnel area, and personnel subarea. Company codes are created in FI and represent the enterprise structure from a financial accounting perspective.

Overview of the Enterprise Structure 

The Enterprise Structure for Personnel Administration is made up of the following elements:
  1. Client.
  2. Company Code
  3. Personnel Area
  4. Personnel Subarea

Company Code

The company code is an organizational unit used in accounting. It is used to structure the business organization from a financial accounting perspective.

Creating Company Code in SAP HCM

  • IMG PathEnterprise Structure=>Definition=>Financial Accounting=>Edit, Copy, Delete, Check Company Code.
  • On the Choose Activity dialog box, choose Edit Company Code Data.
  • On the Change View ”Company Code”: Overview screen, choose New Entries to enter the following data.
  • Choose Save. 
  • Maintain the address data for your Company Code.
Company Code
Company Name
REL
Reliance IT Pte Ltd

Personnel Area

The personnel area is an organizational unit that represents a specific area of the enterprise and is organized according to aspects of personnel, time management and payroll. A personnel area is divided into several personnel subareas.

Personnel Area Functions

  • Can be used to generate defaults e.g. work schedules, data entry, including payroll accounting areas.
  • Can be used as selection criterion for reporting.
  • Can serve as a basis for authorization checks.

Creating Personnel Area in SAP HCM

  • IMG Path: Enterprise Structure => Definition => Human Resources Management => Personnel Areas
  • On the Choose Activity dialog box, choose Personnel areas.
  • On the Change View “Personnel Areas”: Overview screen, choose New Entries.
  • Enter Personnel Area details and Address details.


Personnel Area
Personnel Area Name
DREL
Reliance IT Pte Ltd, Delhi
HREL
Reliance IT Pte Ltd, Hyderabad
MREL
Reliance IT Pte Ltd, Mumbai

Assignment of Personnel Area to Company Code

  • IMG Path: Enterprise Structure => Assignment => Human Resources Management => Assignment of Personnel Area to Company Code
  • Search Personnel area created. Assign company code and Country Grouping to Personnel area.


Personnel Subarea

A personnel subarea is an organizational unit that represents a specific area of the company organized according to certain aspects of personnel, time management and payroll.

Personnel Subarea Functions

  • Specifying the groupings for SAP HR Time Management, which allows, for example, work schedules, substitution, absence, and leave types to be set up on a personnel subarea specific basis.
  • The personnel subarea can serve as a selection criterion for reporting.
  • With personnel subareas, you can generate default values for pay scale types and areas for an employee’s basic pay.
  • You can specify holiday calendars based on personnel subareas.
  • With personnel subareas, you can define specific wage types per personnel areas.
  • Personnel subareas can be represented as legal entity for accounting purposes.

Creation of Personnel Subarea in HCM

  • IMG Path: Enterprise Structure => Definition => Human Resources Management => Personnel Subareas.
  • On the Choose Activity dialog box, choose Create Personnel subareas. 
  • On the Determine Work Area: Entry dialog box, enter HREL, and choose Enter.
  • On the Change View “Personnel Area/Subarea”: Overview screen, choose New Entries.
  • Choose Save. 


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