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Introduction to SAP HCM

What is SAP HR? Introduction to SAP HCM

In organizations that are using SAP ERPs, SAP Human Capital Management (SAP HCM) is the important module. This is also called SAP Human Resource Management or SAP Human Resource (SAP HR)

As the name indicates, this SAP HR will allow automating the record-keeping process and also works as an ideal framework for the HR department for the easy access of administration and payroll documents.

In today’s tutorial, we are going to discuss the following things! Continue reading to get good knowledge on SAP HR Modules!

What is SAP HR?

As we discussed above, SAP HR is the SAP Human Resource Module that helps to automate the process of payroll and administration. This SAP HR consists of:

– Organizational Management

– Personnel Administration

– Time Management

– Payroll Accounting

– Travel Management

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Organizational Management:

This is the vital sub-module in SAP HR. This helps the organization to represent the organizational plan and current analysis of the plan. This also allows creating additional plans which help to create better workflow management. This module plays some of the main functions which are listed as follows:-

Key Functions

– Create graphical reports of organization and company structure

– Manages information on Departments/ Org Units

– Helps to track positions in various departments

– Maintaining & keeping track of job vacancies

Personnel Administration:

Next to the organizational module, this is the important SAP system. This helps to record the employee’s information. Also, this helps to perform administrative tasks such as hiring employees, updating employee personal information, maintaining travel expenses and payroll accounting, etc. By managing all these tasks, Personnel Administration is considered to be the vital in SAP System.

Key Functions

– Maintaining individual infotype

– Contract elements

– Monitoring of dates family and the related person

– Updating education information

– Previous entity history

– Cost distribution

– Internal medical policy

Time Management (TM):

This is the next sub-module of HR which helps to record employee data. This is mostly related to maintaining attendance, time evaluation, shift basis, etc.

Key Functions

– Maintaining holiday calendar

– Tracking personal work schedule

– Maintaining monthly work schedule

– Preparing sheets on attendance and absence quotes

– Attendance lookup & check

– Reporting leave & attendance

– Activity allocation for individuals


This payroll module helps to process the payment for the employees for the work they did. This will make a count on wages, medical benefits, taxes, deductions, and so on.  This SAP module is integrated with other modules like personal administration, time management, financial accounting, and so on.

Key Functions

– Automatic wage calculation with gross payroll accounting

– Special payments computation

– Calculation of growth and net retroactive accounting

– Exchange of data with social insurance agencies and banks

Travel Management

This SAP Module is particularly designed to manage official trips, and expenses spent for travel etc.

Key Functions

– Allows entry of trip data

– Calculation of meal allowance and ticket expenses

– Maintain receipt claims

– Track on provided advance payment

– Represents internal company policies

– Assigning trip specific account

– Production of statement

Points to Remember:-

– SAP Human Resource or SAP Human Capital Management is the vital module in SAP

– SAP HR Consists of different modules including- Organizational Management, Personnel Administration, Time Management, Travel Management, and Payroll Management.

– Organizational management is used to organize the plan and analysis of the current plan

– Personnel Administration helps to maintain a record of essential employee information.

– Time management helps to record employee data attendance, time evaluation, shifts, etc.

– Payroll module helps you to process the payment for the work done

– Travel Module helps in managing the data related to official trips, cost management for travel, travel expenses, etc.

For more queries and doubts regarding SAP HCM Modules, get help from our experienced SAP training tutors from Training Expand in Hyderabad! We provide the best SAP Training Courses online which helps to learn SAP courses online within the comfort of your home! Book your seats now!

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