USER MANUAL - SAP HR

The first step in the HR is Hiring an Employee, secondly maintenance of the hired employee,
thirdly relieving action and lastly running the payroll.

1. Hiring of an Employee

Enter - TCODE (Transaction Code pa40)

Menu Path:
Human Resource → Personnel Management → Administration → HR Master Data →
Personnel Action:

Select Action Type – Hiring and then press F8 (Execute)

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• Mention the Start date (Date of Joining and To Date to be 31.12.1999)
• Organization Assignment

To Check whether the position already exists or a new one has to be created kindly follow the
below steps

Type Tcode: PPOM_OLD

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Right Click and Select the Organizational Unit as already created and enter

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Check by right clicking the particular unit and see whether there is a position with the same
name already available (for the new employee who is getting hired) if so Press F7 and Assign
the holder. Else, Select a Department & Press F8 to create a Position.

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Select Position

Mention the Position in Abbreviation and Full description and save the same a new position
will be created and seen in the Log Tree. Once the position is created you can assign the
holder in Action Info type 0000 or in the 0001 [org assignment].

o Personnel Area : 1BAN

o Employee Group: 1 (Active) or (9) External Employee. Or Any

o Employee Subgroup : Subgroup accordingly Eg: 01-Manager C

03 -Executive
10 -Traniee
13 -Manager D
18 - Workmen
Press Cltr+S (Record gets created)

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2. The next screen is Personal Data Information

All the boxes that have a tick mark are mandatory columns that needs to be filled and if any
other information is available could also be entered and then save the entry by pressing
Cltr+S.

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3. Create Organizational Assignment

Kindly check and enter the following boxes

Subarea : Eg: 1BAN,1GUR,1PUN etc., as it is already created
Pay.area : Eg: CS.CD,CW etc., and save the entry by pressing Cltr+S.

Next:
Click on: 1 Permanent Address and enter
The screen display as create Address

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4. Create Address

The Address should be entered and again ticked box is a mandatory column. Press Cltr+S to
save the entry.

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5. Create Planned Working Time

Kindly check
Work Schedule rule : GENSHIFT
Time Mgmt Status : 9 -Time Evaluation of planned times (Full time employee/Part time
Employee) and enter 3 times all the information will come
Employment Percent: 100
Daily Working hours : 8.5
Weekly working hours 42.50
Monthly working Hrs 184.17
Annual Working hours 2210
Weekly workdays 5 / for workmen 6 days a week

These information is already updated in the system but just have a check by seeing the start
date. And press enter you will get the details check the details and enter - Press Cltr+S to
save the entry

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6. Create Basic Pay

Please mention Group as EE (as per the position) and Level as per the grade and then press
enter you get the below screen wherein few wage types already prop and the information has
to be entered.

The Wage Types which are mandatory to be entered

• 1000 : BASIC SALARY
• 1040 : SPECIAL ALLOCANCE
• 1200 : MEDICAL ALLOWANCE
• 1020 : HOUSE RENT ALLOWANCE
• 1030 : CONVEYANCE ALLOWANCE

(Wage Types 1020,1030 will be asked for once the Income Tax Info types are entered e.g.
Info types 581 & 583 respectively) If these entries are made even though they are not
automatically displayed these particulars break up are taken twice (Doubly accounted for
salary).

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7. Create Bank Details

In Case the person has to be given cheque with the Bank Name and Account Number entries
for Bank Key and Bank Account has to be made and Payment method to be selected as P
(Bank Transfer) Else, leave the Bank Key and Bank Account blank and Method to be selected
( ) Cash Payment, Else, if the employee is getting through cheque payment select as C

Note: Bank Key has been created for few banks, if a new bank has be added → go to SM30
and enter ZBANK_DETAILS and press maintain and enter the Bank Name, Branch Name and
Bank MIRC Code.

After necessary information save the entry by pressing Cltr+S

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8. Create the Contract Element:

The default screen will appear and start date and end date and other personal details of
employee, in the contractual regulations you can choose either permanent, Trainee, Long
term temporary, or external contractors and in the periods as per your company rule if 6
months select 6 months or 3 months and press Ctrl…S and save the next screen displays
create monitoring of tasks – the task of expiry of probation, here you can mention the
reminder date before the expiry of the contract, Eg: one week before (25.08.2008) the below
screen will appear press Ctrl…S and save the screen

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9. Create Absence Quotas

This above screen can be ignored and exist the screen by Pressing F12

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These above steps completes the Hiring Action and the employee hired is assigned an
employee number.

After hiring an employee the next action is maintaining the Employee. To get into this
activity the Tcode to be mentioned is PA 30.

Give the Personnel Number of the employee hired

Now the Income Tax related Infotypes have to be entered and are mandatory (Kindly collect
the Income Tax Declaration Sheet from the Employees before and so that these entries can
be done before running the payroll). These infotypes have to entered under the head Direct
Selection * Infotype

Details of Infotype (580-588) Kindly enter the following infotypes and Press F5 to create
(These are all one time enteries)

• 580: Previous Employment Tax Details ( If a person has joined the organization in
between a Financial Year and has the Tax deducted details from his earlier employer and
wants the same to be considered in our company and merged for IT Calculation the same
has to be entered)

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• 581 – Housing (HRA/CLA/COA) and is applicable if a person has declared payment of
House Rent the amount has to be entered in the box Rent Amount

Enter some amount and press Ctrl S it will take you to the screen infotype 008 to enter the
HRA amt and save the IT 0008

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• IT 582 : Medical Allowance and Sty as MDA

Allowed Exemption Amount to be entered as 15000/- and save the entry

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• 583 : Car & Conveyance

Select Conveyance Type as No Vehicle and save the entry, if the employee is applicable.

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• 584 : Income from Other Sources
Sty (sub type to be selected)
0001 : House Property (If a person has declared Housing Loan details)
0002 : Other Sources (In case of any other income)

Interest Limit for Housing Loan is standard Rs.1500000/- whereas the Housing Loan
Repayment should be entered under deduction details for the amount given by the employee.

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• 585 : Deductions under section 80

If the employee contribution is their mention amount for the respective field and Save the
infotype.

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• 586 : Investments under section 80C to be entered and saved

Enter the amount which were it pertains to the employee respectively and save the
screen.

• 587 : PF Contribution

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For Bangalore employee PF Trust id is VDO1, and for Gurgaon is VDO 2 and enter the
pension number tick the pension contribution box and save the screen

• 588 : Other Statutory Deductions

Select Sty: 0003 (Professional Tax) – Tick the Eligible for P Tax
0002 (Labour Welfare Fund Only once in a year in the month of Dec)
0001 (ESI (Employees' State Insurance)

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If eligible for professional tax maintain other wise not to be maintained.

Press Ctrl…. S and save the screen

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Contribution applies to the employee tick the contribution to LWF.

Press Ctrl…. S and save the screen

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Enter the ESI no……… Press Ctrl…. S and save the screen

Note: that entry of Infotype 0021(Family Member/Dependents) is entered so that the a person
availing the Children Education exemption is correctly taken for IT exemptions

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Sty to be selected is 2 (Child)

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Enter the mandatory columns like Start Date (That should be the Start of Financial Year date
01.04.2008), Child No., First Name, Last Name, and Date of Birth and on completion save the
entries.

This completes the pa30 action.

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Relieving an Employee

Go to main Screen and enter the (Tcode pa40) mention the Personnel No. of the person
to be relieved and the Action Type to be selected is Leaving

Press F8 (Execute)

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Next Screen is Copy Action

Mention the date of Relief (i.e. Date of Leaving) in the Start Date and save the entry.

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The next step is to run the payroll and check for correctness of the salaries of each
employee the procedure for the same is as follows :

Go to Tcode : pa03

Enter the payroll area of the unit for which the pay is to be run and press F6 and then you see
a screen

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The steps to go about is

1. Release for Payroll

2. Release for Correction
3. Check Payroll Results
4. Exit Payroll

Point 1. As mentioned above is when the salary has to be run for a particular unit and checked

Point 2. Any corrections to be made in the data entered for an employee.

Point 3. Payroll results can be checked

Point 4. Exit Payroll is the last step wherein after the final live run of payroll is done the data
of salary for the particular and previous months cannot be altered. So we need to be careful
by exiting a payroll.

However, coordinators will be only doing the test run.

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Finally, once the Release for payroll is selected save and go back to the main screen and
mention the Tcode as PC00_M40_CALC

In the Payroll Driver screen the entries to be made are Payroll area
Current Period (In the beginning of the Financial Year i.e., for the month of April 2008)
The count of months in SAP is taken from 1-12 (April – March) so after the 1 st month we need
to select other period and mention 2, 3 etc., followed by the year. (For e.g., 03 2008) for the
month of June 2008)

Payroll Area under the head Selection to be mentioned.

Under General Program Control

Schema to be mentioned as ZN00
Test Run should be ticked while checking the Unit Wise payroll of any particular month.
Remuneration Statement parameters:
Leave it as default – No remun. statement
Then Execute (Press F8)

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You get the above screen wherein a selected unit’s payroll log is displayed.
After checking all the output, and run the live payroll run.

With the above step the payrun is complete.

Use T Code: ZPAYSLIP to take the salary slip for all the employees.

After the successful run of the payroll the next step is posting payroll process

Use the T code PC00_M99_CIPE.

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First run in the simulation run and check the document error free message.
Click on document overview and note the document no. and back to the screen and remove
the s and enter P for live posting

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 1st Step

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 2nd Step

1st step Flag the Live Posting 2nd Step Post Document
run and Post it

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General
Icons and their description

Icons Description

Continue Enter
Save
Back
Exit
Cancel
Date and preview period
Goto
Create
Copy
Change
Display
Delimit info type
Schedule
Delete
Maintain overview
In descending order
In ascending order
One level up
Expand node
Collapse node
Display evaluation path
Column configuration

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 Icons Description
Display periods
Display <-> Change
Refresh
Unrelated objects
Icon list/Legend
Insert line
Delete line
Replace
Move…
Change sequence

Transaction Codes List for taking Reports:

1. PC00_M40_PFY → Provident Fund

2. PC00_M40_F16 → FORM 16 Income tax
3. PC00_M40_F24 → Form 21
4. PC00_M40_F217 → Form 217
5. PC00_M40_GRY → Gratuity
6. PC00_M40_PTX → Professional Tax
7. PC00_M40_ESIF → Employee State Insurance
8. PC00_M40_LWF → Labour Welfare Fund
9. PC00_M99_CWTR → Wage type report
10. PC00_M99_CLSTR → Pay result.(RT table)

Development Reports:

1. ZPAYSLIP → Pay slip

2. ZHR_CASH → Cash Report
3. ZHR_CASH_CHEQUE → Cash Report
4. ZHR_CHEQUE → Cheque Payment Report
5. ZHR_DELETING_PERSONNEL → Recording For Deleting Personnel Number
6. ZHR_ECS → HR_PY: ZHR_ECS ( Bank Transfer)
7. ZHR_SAL_REG → Salary Register
8. ZTAX → Income Tax Report.

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