The HR solutiondeals with complete employee life cycle, starting from Recruitment till Separation.Also, HR module is integrated with other logistics and a financial module of mySAP.HCM configuration involves Organization Management, Personnel
Administration, Personnel Time Management, Payroll and Benefits Management.


The SAP HCM – OMimplementation divided into two steps

  • Enterprisestructure.
  • Organizationalstructure.


The enterprise structure for Personnel Administration is made up of the following elements.

Client: an independent legal andorganizational unit of the system

Company Code: An independent company with its own accounting unit; thecompany code is established in the Finance module of SAP.

IMG-> EnterpriseStructure -> Definition -> Financial Accounting -> Define Company

IMG-> Enterprise Structure -> Definition -> Financial Accounting ->Edit, Copy, Delete and

Check Company Code and Related above definition altogether:

IMG-> Enterprise Structure -> Assignment -> Assign Company Code to Company

Personnel Area

The personnel Area represent a subdivision of the company code. The personnel Area can be used to perform system evaluations of data or to performauthorization checks

IMG-> Enterprise Structure -> Human Resources -> Definition ->Personnel Areas

Then to link personnel Area to related Company Code

IMG-> Enterprise Structure -> Human Resources -> Assignment Personnel Area to Company Code

By relate the personnel Area and Company Code, in case FI module has Go-Live,the configuration will be directly linked to the Controlling Area that is usedby Finance Side. Thus the payroll live posting into FI has been set.In case, the FI module has not GO-Live yet, then this Company, Company Code also have to be set anyway.

Personnel Subareas

The personnel subarea represents a subdivision of the personnel area.

IMG->Enterprise Structure -> Human Resources -> Definition -> Personnel SubAreas

 Overview OF ORGANIZATIONAL structure

 It contains organizational objects /elements.


Org. key

Organizational unit








Cost center




Task group


If we create any organizational object, System will assign aneight digit numeric number, which is called unique Number.

  1. Organizational Unit:  Represents a functional unit in yourenterprise. Organizational units differ from other units in an enterprise suchas personnel areas, company codes, business areas etc.
  2. Job is generalclassification of tasks that are performed together. Jobs are used as templates to create Positions that means to say without a job we can’t create a position.
  3. Positionis organization specific. A number of positions can be based on the same job.As a general rule, each position represents only one employee. Positions are created based on jobs;

4. Person: An individual,who is listed as an employee in Personnel Administration.   A position can be occupied partially, hundred percentage.

5.Task: It is a collection of duties and responsibilities. Tasks are assigned to jobs and positions.

                  Task group: It is a group of tasks which can be assigned either a job or a position.

Implementation steps

1.Organizational structure Creation:

Path->SAP easy accessàhuman resources->Organizational management->Expert mode ->Simple Maintenance

  1. CreateOrganizational Unit
  2. Creation Suborganization Unit

Preliminary Implementation:

1.1 Maintain Number Ranges

Configurationfor Number Ranges involves the following steps:

Set Up Number Assignment for All PlanVersions

IMGPath: Personnel Management->Organization Management -> Basic Settings->Maintain Number Ranges -> Set up Number Assignment for all planversions.

MaintainNumber Ranges

PersonnelManagement ->Organization Management -> Basic Settings ->

MaintainNumber Ranges -> Maintain Number Ranges

There are two broad categories of number range assignment.

1) Internal number assignment – If the SAP System want toassign the numbers, the

Number ranges are then indicated by the letters “IN”.

2) External number assignment – If the user wants to assignthe numbers, the number

Ranges are then indicated by the letters “EX”.

Example: Organization Units -Number range is 0000001 to 10000000

Jobs – Number rangeis 1000001 to 14999999

Positions – Number range is2000000 to 29999999

1.2. DataModel Enhancement

Maintain Object Types

Personnel Management -> Organization Management -> BasicSettings -> Data Model Enhancement ->Maintain Object Types

Info type Maintenance

Personnel Management -> Organization Management ->Basic Settings -> Data Model Enhancement -> Info type maintenance

Maintain Info types

 Personnel Management -> Organization Management ->Basic Settings -> Data Model Enhancement -> Info type maintenance –
> Maintain Info types

Maintain Sub types

Personnel Management -> Organization Management->Basic Settings ->Data Model Enhancement -> Info type maintenance
->Maintain Sub types

Example: Organization Unit to Organization Unit (A/B 002)

Organization Unit toPosition (A/B 003)

Position to Position (A/B 002)

Position to Cost Center (A 011)

Maintain User-Defined Settings for Info types

Personnel Management -> Organization Management->Basic Settings -> Data Model Enhancement ->Info type maintenance
-> Maintain User-Defined Settings for Info types

 1.3 Maintain Evaluation Paths

Personnel Management ->Organization Management ->Basic Settings -> Data Model Enhancement -> Maintain Evaluation paths

 1.4 PersonnelActions

Personnel Management -> Organization Management ->Basic Settings -> Maintain Personnel Actions

2. Create Staff Assignments/Jobs

Path SAP easy access->human resources->Organizational management->Expert mode ->Simple Maintenance

  • Create Staff Assignments
  • Create jobs for Staff Assignments
  • Create Position for assigned Objects
  • Create Chief Position

3. Create reporting Structure

4. Create task

5. Assign Task to a position

6. Assign a Cost center to a Position

Click here for step by step guidance for Organizational Management – Configuration