Leveraging Standard Schema Rules to Build Complex Overtime Logic in SAP ERP HCM Time Management

  • by Imran Sajid, Senior Education Consultant, SAP
  • October 21, 2014
Learn how to use the standard logic delivered by SAP within Time Management to build complex overtime rules and generate overtime and double-time wage types. Minimize custom rules by using the standard logic delivered by SAP and copying them to your own rules to build automatically-generated overtime wage types based on your requirements.
Learning Objectives

By reading this article, you will learn how to:

  • Create your own Time Management schemas based on SAP-delivered schemas
  • Add additional SAP-delivered logic to your custom time schema
  • Create and use SAP time types to track balances
  • Build custom Time Management schema rules to fit company requirements
Key Concept

SAP Time Management schemas, personnel calculation rules (PCRs), time types, and cluster tables are standard SAP tools used to create and track balances within time evaluation so that complex overtime and double-time logic, and customer-specific rules can be built. For example, you can build custom logic for the Time Management system that automatically generates overtime pay after eight hours have been worked in a day, and double-time pay after 12 hours have been worked.

SAP Time Management is used to track employee clock-in and clock-out times, absences, attendances, and quotas. One of the biggest pieces of Time Management is time evaluation. Time evaluation is where the raw data for the employees is taken and evaluated in order to create wage types that can be sent to SAP payroll, or used to update employee quota data or other leave balances that should be tracked in Time Management.

Time evaluation is made up of a time schema that contains all the rules of your organization. For example, an employee works 50 hours in a week that contains a holiday and also has a day of vacation banked. Time Management takes all this data from the respective infotypes and pays the appropriate wage types per the configuration of the time schema (in this case, 24 hours regular pay, eight hours vacation pay, eight hours of holiday pay, and 10 hours of overtime). In addition, depending on your organizational requirements, employees can be paid a different rate of pay for working different shifts. For example, an employee could be paid double the hourly rate for any hours worked on Sunday, or paid a shift premium of an extra $1 per hour for overnight hours.

I demonstrate how to use the standard logic delivered by SAP in the ERP HCM system to create your own overtime rules. As my example, I am using a company that wants overtime to be paid at a rate of time and a half (1.5X) to employees who work over eight hours in a day, and employees to be paid at double the regular rate (2X) for any time worked over 12 hours.

Imran Sajid

Imran Sajid is a Senior Education Consultant at SAP based in the Atlanta, GA, area. At SAP, he focuses on teaching classes in the HCM area within both SAP and SuccessFactors. Previously, Imran was a consultant who implemented and provided post-go-live support for more than a dozen different client systems spanning many industries, including manufacturing, automotive, retail, information systems, the public sector, and energy. He is the author of the book entitled, The Payroll Control Center for SAP ERP HCM and SAP SuccessFactors, as well as a frequent contributor to SAP Experts, where he has published almost a dozen articles. Imran is also frequent blogger on SAP Community Network (SCN). He graduated from the Georgia State University Robinson College of Business with a degree in Computer Information Systems. Imran can be found on Twitter @ImranSajidSAP.

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