Personnel Cost Planning and Simulation 

Purpose

This component enables you to execute operational personnel cost planning. You plan the development of your employees’ wages and salaries and employee benefit costs, for example, employer contributions to social insurance and further education and training costs. You can simulate different planning scenarios that are based on various assumptions and analyze the effects they have on the company. Personnel Cost Planning and Simulation enables you to support strategic personnel management and the overall strategy of your company.

Implementation Considerations

You can only use Personnel Cost Planning and Simulation if you implement Organizational Management.

Integration

With Other Application Components

Function Required	Component Required
Include all payment-relevant information from HR master data when creating personnel cost plans	Personnel Administration (PA-PA)
Include all payroll results when creating personnel cost plans	Payroll (PY)
Include all training costs when creating personnel cost plans Include personnel cost plans when creating the budget for Training and Event Management	Training and Event Management (PE)
Include compensation guidelines for employees or planned compensation for jobs and positions when creating personnel cost plans Include personnel cost plans when creating the budget for Compensation Management	Compensation Management (PA-CM)
Include personnel cost plans when generating commitment or budget data within personnel budget planning	Position Budgeting and Control (PA-PM-PB)
Include personnel cost plans in planning for the entire company	Controlling (CO)
Detailed reports, planned/actual comparisons	SAP Business Information Warehouse (SAP BW)

Features

●     You can include payment-relevant data in planning for the following standard cost objects:

○     Employees

○     Positions

○     Jobs

Payment-relevant data for jobs is pertinent if, for example, a position is vacant and no data is therefore available. In such cases, you can include the job data instead of the position data, in personnel cost planning.

○     Organizational Units

Payment-relevant data for organizational units includes, for example, training budgets stored for the organizational unit.

You can also use customer-specific cost objects.

●     Standard methods that you can enhance flexibly are available for data collection. This allows you to include company-specific data sources in your personnel cost planning. The system stores the generated data basis in separate planning infotypes.

●     You can use different planning scenarios to compare various assumptions for personnel costs such as different salary increases or increases to ancillary payroll costs. This enables you to simulate new compensation models and analyze their effects in detail.

●     You can execute cost planning runs for individual organizational units, parts of an organizational structure, or for the entire organizational structure.

●     You can decentralize parts of planning. Line managers can use a Web application to view, change, and enhance planning for their area of responsibility.

●     They can use the generated plan data in different ways in subsequent processes such as for creating the budget in Compensation Managementor for the entire company planning in Controlling.

●     SAP Business Information Warehouse (SAP BW) enables you to monitor the plan continuously and execute detailed reports.

Constraints

●     You cannot use plan versions you created with the previous Personnel Cost Planning component in the new Personnel Cost Planning and Simulation component.

●     You can only execute specific reports such as planned/actual comparisons in SAP BW.

●     Personnel Cost Planning and Simulation does not use SAP Business Workflow.