Personnel Cost Planning

Personnel Cost Planning

Purpose

Personnel Cost Planning focuses on the costs associated with maintaining a staff, for example, wages, salaries, and employer contributions to pension plans. This component allows you to determine current personnel-related costs, as well as to experiment with and to project future costs. This component also allows you to work with costs that are not typically associated with maintaining a staff. For example, you can include employee training and education costs, as well as funds allocated for employee social activities, in the calculations.

Integration

To use Personnel Cost Planning, you must do the following:

Maintain an organizational structure in the Organizational Management component.

Integration with the Organizational Management component enables you to incorporate organizational changes, such as staffing reductions or increase, into your calculations. This is useful if your company is planning to expand, downsize, or reorganize.

Maintain an index of all positions that exist at your company.

Assign each position to an organizational unit within your organizational structure.

This means that there must be a Relationship infotype record between the positions and the organizational units (relationship A/B 003).

Maintain the Cost Planning (1015) infotype, and, optionally, the Work Schedule (1011) infotype if you want to incorporate position vacancies into your calculations. This is true whether you use Projected Pay, Basic Pay, or Payroll Results.

Install the Controlling (CO) component if you want to incorporate the calculation results, produced by the Personnel Cost Planning component, in the overall budget planning.

Install the Personnel Administration and the Payroll Accounting components if you want to use basic pay or payroll results as the basis for your cost calculations.

You must assign a holder (an employee) to each position you maintain. This means that there must be a Relationship infotype record between the positions and the employees (relationship A/B 008).

If you do not use the Personnel Administration component and cannot assign holders to positions, you can set a switch in Customizing that tells the system to treat all unoccupied positions as vacant. However, be aware that setting this switch affects other areas in Personnel Management and Training and Event Management.

If you use projected pay or basic pay, you must do one of the following:

Create and maintain Vacancy infotype records (1007) for positions when appropriate
Adjust the Vacancy infotype setting in Customizing.

If you want to work with cost centers you must:

Use Controlling (CO)
Assign organizational units to cost centers (relationship A 011)

The principle of inheritance applies to the assignment of organizational units to cost centers. This means that an organizational unit "inherits" the cost center assignment of its parent organizational unit, unless you specifically assign it to a different cost center.

If positions are not assigned to the same cost center as their parent organizational unit, you must assign such positions to a cost center as well (same relationship as above).

Features

This component also considers position vacancies and so offers greater accuracy when compared to other cost planning tools.

This component also offers a wide range of data display options. For example, cost calculations can be:

Downloaded into EXCEL™, enabling you to work with a spreadsheet

Displayed using SAP Business Graphics, allowing you to display your results as a 3-dimensional bar graph

See also:

Integration with Controlling (CO)