Personnel Cost Planning (PA-CM-CP)

Purpose

Personnel Cost Planning focuses on all a company’s personnel costs, wages, salaries, and employer contributions to social insurance, for example. This component enables you to determine current personnel costs as well as experiment with and project future costs. You can also work with costs that are not directly personnel related. You can, for example, calculate education and training costs as well as the cost of providing leisure activities for employees.

Integration

So that you can install Personnel Cost Planning, you must:

  • Maintain the organizational structure in the Organizational Management component.

    Integration with the Organizational Management component enables you to take organizational changes as well as changes in headcount into consideration in your planning. This is of particular importance if you are planning a reorganization or a change in headcount in your organization.

  • Maintain a job index which includes all the positions which exist in your company.

  • Assign all positions to organizational units within the organizational structure.

This means that you must create a record for the Relationship infotype between the position and the organizational unit (relationship A/B 003).

  • Maintain the Cost Planning (1015) and, if necessary, the Working Time (1011) infotypes, if you want to calculate the costs for vacant positions. This applies to all three planning bases: Planned compensation, basic pay and payroll results.

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

  • Install the Personnel Administration and Recruitment components, if you want to use basic pay and payroll results as calculation bases.

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

Note Note

If you do not install the Personnel Administration component and so cannot assign holders to positions, you can set a switch in Customizing which determines that the system handles any positions which are not occupied as vacant positions. Note, however, that this setting affects other areas in Personnel Management and Training and Event Management .

End of the note.

  • If you use planned compensation or basic pay, you must:

  • Create and maintain records for the Vacancy infotype (1007) for positions

  • Set up the Vacancy infotype (1007) in Customizing accordingly.

  • If you want to work with cost centers, you must:

  • Install the Controlling (CO) component

  • Assign organizational units to cost centers (relationship A 011)

Note Note

The inheritance principle applies when assigning organizational units to cost centers. This means that an organizational unit inherits the cost center assignment of the organizational unit it is subordinate to, unless you have explicitly assigned it to another cost center.

End of the note.

  • If positions are not assigned to the same cost center as the organizational units they are subordinate to, you must assign them directly to the relevant cost center (relationship A 011).

Features

This component also takes vacant positions into consideration and so, as compared to traditional cost planning tools, offers extremely precise planning capabilities.

This component also offers an array of display options. You can:

  • Download cost data into EXCEL™ spreadsheets.

  • Display cost data and plan scenarios as 3-dimensional bar charts in SAP Business Graphics

See also:

Cost Planning

Planned Compensation

Basic pay

Payroll results

Editing Plan Scenarios

Comparing Plan Scenarios

Integration with Controlling (CO)