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Human Resources Processes with ERP
module uses Cross Application Time Sheets (CATS) to record employee working times
and provide data to other modules, including the following:
• SAP Controlling module—Monitors and manages costs
• SAP Payroll module—Calculates employee pay; payroll data is then
transferred to the Financial Accounting module for payroll processing
(issuing paychecks as well as making payments for taxes, health insurance
payments, retirement contributions, etc.)
• SAP Production Planning module—Determines whether enough labor is
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available to support production plans

Payroll Processing
Payroll processing is probably the most important function of a human resources
department. Employees are, not surprisingly, very particular about being paid the correct
amount at the correct time. Without proper management of the payroll process,
employees might not be paid for all of the hours they worked, they might not be paid at
the appropriate rate, or they might have too much or too little money withheld from their
pay for taxes and benefits. Mistakes in payroll can cause significant job dissatisfaction.
The two key processes in determining the pay an employee receives are calculation of
the remuneration elements and determination of statutory and voluntary deductions. The
remuneration elements of an employee’s pay include the base pay, bonuses, gratuities,
overtime pay, sick pay, and vacation allowances the employee has earned during the pay
period. The statutory and voluntary deductions are paycheck withholdings, including
taxes (federal, state, local, Social Security, and Medicare), company loans, and benefit
contributions. Properly determining the pay for an employee requires accurate input data
and correct evaluation of remuneration elements and deductions.
The process of determining each employee’s pay is called a payroll run. In the payroll
run, the SAP ERP system evaluates the input data and notes any discrepancies in an
error log. Payroll employees review the error log, make any necessary corrections, and
repeat the payroll run until no errors are recorded. Then the payroll run is used to
generate employee pay statements, process electronic funds transfers to individual
employees’ bank accounts, submit tax payments to the appropriate government entities,
and perform other calculations as required by human resources and accounting.

Travel Management
Many companies spend a substantial amount of money on employee travel, and managing
travel and its associated expenses can be a significant task. A travel request, which may
originate with the employee or the employee’s manager, is the first step in the travel
management process. Travel requests usually require management approval, and the
organizational level at which travel must be approved may depend on the duration,
location, and cost of the travel. Once management has approved the travel, employees
must make their travel reservations. Because airfare, hotel, and rental car costs can vary
widely, companies frequently require employees to make reservations through either a
company travel office or a travel agency that is under contract to the company. The
employee must keep receipts for expenses incurred during the trip in order to complete an
expense report and receive reimbursement. The SAP ERP Travel Management system
facilitates this process by maintaining travel data for each employee—including flight,

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