Show TOC

 Integration with Human Resources Locate this document in the navigation structure

Use

The integration of Funds Management and Human Resources (HR) provides you with a tool you can use to assign the expenses and commitments from payroll accounting to the individual responsibility areas (funds centers) and, if required, fund and functional area in Funds Management. There are different expenditure account assignments possible in Funds Management corresponding to the tasks of an employee.

Personnel commitment is created using the commitment processor in the component Position Budgeting and Control ( PA-PM-PB). The commitment is then gradually reduced by payroll postings.

Therefore, before you can create personnel commitment in Funds Management, you must be using the component Position Budgeting and Control . If you are not using this component, you cannot create commitment. The assignment of expenditures only takes place with payroll.

The personnel expenditures are assigned automatically with the payroll posting as it is not possible to enter account assignments for payroll. Because of this, you must define how the system should determine the account assignments – grant, fund, functional area, funds center and commitment item - relevant for Funds Management with the payroll posting.

The defined account assignments can be determined, depending on the account assignment element, from the personnel master record and the assignment to CO objects. How you define the account assignment determination for the payroll posting depends on whether you are using Controlling integrated with Funds Management and whether the posting integration is active.

Note Note

For more information on the account assignment determination, see Integration Human Resources: Account Assignment Determination . There are two different scenarios from the combinations described which require different Customizing and different account assignments, although their features are the same. These differences are mentioned in sections “ Prerequisites ” and “ Features ”.

If you want to change the scenario after production startup, you must note that these changes necessitate extensive Matching Activities .

End of the note.

Prerequisites

For information on which main prerequisites must be fulfilled for personnel expenses updating in Funds Management, see Prerequisites for Updating in Funds Management

Above all, make sure that Funds Management is activated in Customizing as an existence check of the account assignment elements and the automatic transfer of posting data from HR Management to Funds Management, where the commitment data and actual data is updated, will only work after the activation. See Activating Funds Management for more information about activating FM.

The following settings are also necessary

  • Public Sector Management Customizing

    If you use the account assignment elements fund, functional area or grant, the date must be defined in step Activate Account Assignment Elements , by which time these account assignment elements must be defined when creating new/changing existing HR master records for the infotypes.

  • Personnel Administration Customizing

    To enable you to provide the relevant infotypes with FM account assignments, the fields funds center, fund, functional area and grant and, if required, (for scenario 2) funds center and commitment item must be ready for input. You make these settings in the Customizing of Personnel Administration and Personnel Time Management . See Customizing Field Status for more information.

  • Creating valid HR master records

    If you have already been using HR for some time, the infotypes in existing personnel master records are not automatically provided with an account assignment. You must therefore create a new info record from the start date of the integration and delimit the old record. From this date, you must enter a grant, fund, and functional area, and if necessary (for scenario 2), funds center when creating or changing a record of infotypes 0001, 0027 (sub type 01) and when creating or changing the cost assignment in the infotypes 0014, 0015, 2001, 2002, 2003, 2004, 2005 and 2010.

    For more information on creating HR master data and infotypes, see the documentation on components Personnel Administration (PA-PA) and Payroll (PY).

  • Organizational Management

    If you are using the component Organizational Management together with component Personnel Administration , you can define the necessary account assignments in Organizational Management in infotype 1018 in the organizational unit and/or position. See the Organizational Management component documentation for more information.

  • Customizing Funds Management (necessary for scenario 2)

    In IMG activity Define Start for Integration HR (without Personnel Commitment Scenario 2) in the Customizing of Funds Management Government , you must define for each company code of the event, from when the account assignment element funds center must be defined when creating new/changing already existing HR master records for the infotypes.

Features

You can assign personnel expenditures of an employee to the account assignments in Funds Management in one of the following ways:

  • Assigning a master funds center for an employee

    If the total personal expenses of an employee are to be posted to only one FM account assignment, you need only define one account assignment in Infotype Organizational Assignment ( 0001 ).

    Note Note

    If you are using the grant, fund and functional area, you must define the account assignments in addition to the master account assignment in the infotypes for cost distribution (infotype 1018 or 0027) with a percentage of 100%. This is necessary as only the cost center in infotype 0001 can be reconciled when a change is made to the master cost center in Organization Management, but not the grant, fund and functional area.

    End of the note.

  • Percentage breakdown of expenses for an employee to several account assignments

    If you need a breakdown of expenses corresponding to the tasks of an employee, you must define several account assignments and a percentage rate for the cost distribution in infotype Cost Distribution Person(0027).

    If Organizational Management is active, you can also define this distribution in infotype cost distribution (1018) for the organizational unit or Position. If a valid record exists for both infotypes (0027 and 1018), the entries in infotype 1018 override the entries in infotype 0027 in the payroll. If no entries are maintained in infotype 0027, the cost distribution from infotype 1018 (organizational unit or position) is used. As a rule, the following applies: The account assignments in subordinate organizational units and positions are passed on to persons if no valid record is defined.

    If you distribute less than 100% of the expenses, the remaining percentage is posted to the account assignment of infotype 0001 . You must therefore always define the account assignments in Infotype 0027 (Person) if one person occupies more than one position.

  • Assigning separate salary elements individually

    If you need an individual distribution (for example, exceptions) of individual salary components, you can define an account assignment in the corresponding infotypes. These account assignment entries then override the entries defined in infotype 0001 during the payroll.

    In addition, it is possible to specify a commitment item in these infotypes (only scenario 2). (If scenario 1) is active (posting integration with CO), you are not allowed to enter a commitment item. This commitment item is then posted when a personal settlement is made instead of the commitment item being determined from the derivation strategy valid for your clients.

    You can define an account assignment in the following infotypes:

    Recurrent refs./deductions (0014)

    Supplementary payment (0015)

    Absences (2001)

    Attendances (2002)

    Substitutions (2003)

    Availability for duty (2004)

    Overtime (2005)

    Remuneration documents (2010)

    Posting Payroll Accounting

In settlement posting, the commitment items are posted according to the entries made in the infotypes (scenario 2) or from the derivation strategy valid for your client (for example, a commitment item from the assignment to the G/L account). For more information on account assignment derivation, see the documentation Account Assignment Derivation .

The funds centers are determined in scenario 1 in accordance with the derivation strategy from the CO object in scenario 2 from the entries in the infotypes.

Fund, functional area and grant are posted to the info types according to specifications in the infotypes, irrespective of your derivation strategy.

Note Note

An employee, however, can take part in scenario 2 and scenario 1 during the distribution of expenses (infotype 0027) if you are using different scenarios for the integration of HR in different company codes. This is possible because you can define the CO account assignments (for scenario 1) and the FM account assignments (for scenario 2) in separate lines in infotype 0027. Each line belongs to a company code. The company codes can be different to the company code of the person in infotype 0001. For the company code in which the scenario 1 is active, the FM account assignment elements are derived from the CO account assignment. The FM account assignment elements defined in infotype 0027 are then posted for the company code in which scenario 2 is active.

End of the note.

Posting personnel cost advances

Depending on whether the employee advances are budget relevant for you, you can process employee advances posted through a clearing account in two ways:

  • Advances are not budget relevant and should not be displayed in the budget of Funds Management: To do this, you must assign a commitment item that has financial transaction 50 and item category 3 to the advance account.

  • In this case, you must define a commitment item in the advance account with financial transaction 30 and item category 3. In addition to this, you must assign a dummy funds center to this commitment item.

Considerations in Retroactive Accounting

If you execute retroactive accounting after the start of integration, which takes place in the time before the integration you have to take account of the following:

Whilst posting retroactive accounting differences, posting records arise which have no funds center. These posting records are usually posted in the current posting period. This however requires the inclusion of a funds center. The inclusion of a funds center is required when posting from the integration date onward.

You must define in your derivation strategy that a funds center (such as HR accumulation point) can be derived from Commitment Items that are assigned to the expenditure accounts for wages and salaries. Otherwise the system does not find a funds center when posting the retroactive accounts and the posting is rejected.

When you post, the posting data then flows to this funds center automatically. You enter the HR collecting point as part of master data maintenance. It should have the following characteristics:

  • It must be part of the funds center hierarchy.

  • You may not enter a budget for it.

  • You may not post other business transactions to it.

  • The availability control must not find any errors.

To do this, in IMG activity Define Specific Tolerances for Availability Control of Funds Management Government , define a specific tolerance for this funds center. You must only specify a budget profile if you defined that, only a warning should be issued for transaction 30 (actual posting) when the defined tolerance limits are exceeded. For more information, see Availability Control Settings .