Improve Your Cost Analysis Reports on Time Management Infotypes

  • by Raghavendran Parthasarathy, Principal Consultant, Hexaware Technologies
  • December 24, 2011
Learn how to enable cost assignment, activity allocation, and external services tools in time management infotypes. This allows you to address your organization’s needs for different types of cost allocation in time management infotypes and different types of payroll posting requirements.
Key Concept

An SAP ERP HCM system offers a wide range of time management integration options within its standard configuration purview. Understanding the different posting requirements of the payroll and project departments enables you to generate cost reports based on activity. This gives users the ability to control and optimize future project costs overall at the macro and the micro levels.

The SAP system’s time management component can meet your HR, payroll, and project management departments’ time allocation needs without custom work. I use three example scenarios to demonstrate its capabilities in these areas:

  • Making different cost assignments by cost center, activity, or work breakdown structure element
  • Activity allocations
  • External services (e.g., purchase order integration with actual hours posted for that activity)
  • Attendances, substitutions, and availability
  • Allocating specific costs to specific time elements

Here are the three scenarios that show different business requirements.

Requirement 1: Employee X is working for the payroll department for 20 days a month, and for one month he worked for the recruitment department for two days. You need to post employee X’s salary to different cost centers — for 20 days to the payroll department and for two days to the recruitment department. In this case, the posting is based on two different organizational units and there is no activity captured.

Requirement 2: Employee Y is working as a machine operator and works for the production unit. However, on one occasion he worked for 16 hours for the packing unit, so in this scenario you need to post these 16 hours separately into a different cost center based on employee Y’s activity. This example is slightly different from the one in requirement 1, because the employee’s hours are split between the employee’s home cost center and a different cost center and the posting is based on activity.

Requirement 3: Employee Z is an external employee not on the company payroll. He’s an outside contractor — a maintenance worker — who is contracted to work for the company and is paid using a work order with a set number of hours. In this case, when he logs his original time worked in the SAP time system, the system has to pass on his actual hours to the materials management module to compare, analyze, and process his actual working hours (as an external employee). This last scenario shows how time management infotypes and material management are integrated through the SAP system external services component.

Raghavendran Parthasarathy

Raghavendran Parthasarathy works for Hexaware Technologies as a Principal Consultant,where he manages SAP solution design for customers across the globe. He has worked in SAP ERP HCM for over 14 years in various capacities, including payroll projects in the Middle East, Europe, and Asia/Pacific. In addition to payroll, Raghavendran has experience in negative time management, personnel administration, and recruitment. He has also been a part of portal implementations. Currently, he is involved with cloud-based HCM applications such as SAP SuccessFactors and Workday.

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