Serving professionals in the fields of

Human Resources, Payroll, Benefits, & IT

AUGUST  2002                                                                                                  VOLUME 1, ISSUE 2

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Observation Deck

Putting Out Fires

New Product Releases

SAP R/3 Enterprise

Compliance Due Diligence & Guidance Information

Human Resources

Electronic Technologies Requirements Expand for People with Disabilities

Benefits

Legal Experts Explain Impact of HRAs

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What’s Next for SAP HR?

SAP will dramatically change its new release strategy while adding new functionality when it releases SAP R/3 Enterprise in January 2003.  Enterprise consists of three basic components - R/3 Enterprise Core, R/3 Enterprise Extensions, and the Web Application Server.  Any of these components may be upgraded independently of each other.  This strategy should decrease the total cost of implementation for the user, and make it easier to stay up to date with the latest SAP solutions. 

The Enterprise Core consists of release 4.6C functionality along with legal changes, limited functional developments, and stabilization and performance improvements.  SAP envisions a five to seven-year life before an upgrade of Enterprise Core will become necessary.  Enterprise Extensions, however, can be applied as soon they become available without requiring an upgrade of the Enterprise Core.  Enterprise Extensions are currently provided for SCM, Financial, PLM, HR, and Travel.  The Web Application Server is a blend of ABAP and J2EE, enabling easy exchange of data with other applications such as PeopleSoft.   

Following are descriptions of the new functionality for HR in the Enterprise Core and HR Enterprise Extension 1.10.  

Employees who do not have access to a PC can use Wireless Application Protocol (WAP)-enabled cellular phones to record their working times, record absences, enter a leave request, and check their time accounts.  Mobile Time Management may be used as an alternative to or in combination with the Cross Application Timesheet (CATS). 

This new functionality reduces the administrative burden imposed by the federal Family and Medical Leave Act of 1993 (FMLA).  FMLA management determines whether an employee is eligible to take FMLA absences and automatically deducts them from the employee’s entitlement.  An FMLA workbench is available for managing FMLA requests and related absences.  From this workbench, users can go directly to the usual data entry transactions in CATS, Time Manager’s Workplace, and Maintain Time Data. 

Storage of personal data for domestic partners and domestic partners’ children is provided in the Family/Related Persons infotype.  Customizing enhancements allow taxability to be taken into account.  There is more flexibility in customizing dependent coverage options for health plans, eligibility for enrollment of dependents, and designation of beneficiaries.  

Administration of Long-Term Incentives

More options are provided for processing life events and exercising awards.  Integration with payroll enables correct taxation when awards are exercised and shares are sold.  Data can be transferred to accounting so that required accruals can be calculated.  When an employee retires, the system checks whether the employee has any grants and then performs the necessary steps.   

Archiving can be used to keep postings in the accounts of insured employees to a minimum.  Processing control sub-schedules can be defined and used for different pension funds.  A new Telephone Screen function enables entry of a caller’s personnel number and then displays data for that employee on the screen. 

Planning scenarios may be defined, planning-relevant data determined, and planning runs performed for the entire organization or for parts of an organizational structure to generate and evaluate cost items.  A user-friendly web interface enables decentralized planning by line managers.  Cost planning and simulation provides integration options with controlling, compensation management, and training and event management. 

Management of Global Employees supports the pre-assignment offer, relocation preparation checklists and storage of documents such as visa and work permit, transfer to the new personnel assignment, and repatriation at the end of the assignment.  Payroll for Global Employees enables several payrolls for the same employee in different countries for the same period, as well as exchange of information between these payrolls.   

Context-Sensitive Authorizations for HR Master Data

This new authorization concept enables multiple, structural-based profiles to be linked to a single profile defined using an HR master data authorization object.  For example, this allows a single User ID to maintain one set of infotypes for one organizational structure and a different set of infotypes for a different organizational structure.  

Objective Setting and Appraisals provides a comprehensive process, starting with a manager and employee agreeing on objectives, and finishing with a performance appraisal.  Strategic goals may be taken from the balanced scorecards in the Strategic Enterprise Management (SEM) module to be used as a starting point when specifying employee objectives.  Appraisal results may be transferred to compensation management in order to trigger performance-related compensation, and the results of objectives may be transferred to the employee’s qualifications profile. 

New annual, monthly, weekly and daily calendar views are provided for the Time Manager’s Workplace to allow for rapid recall of employees’ availability, specific time entries, and detailed information about a period. 

A new Person ID can be associated with multiple assignment IDs (Personnel Numbers) to support personnel administration, benefits, time management, and payroll for concurrently employed persons.  Posting to accounting, wage and salary payments, payroll forms, and year-end reporting take into account the special requirements for concurrent employment. 

This stand-alone web application enables all employees to contact experts directly from the application.  Employees locate experts by combining user-defined text searches with the search for unstructured data, such as job descriptions and qualifications.  Expert profile allows employees to record their own expert data with workflow scenarios for manager approval.