SAP HR in a smaller organization

Situations in which smaller, local branches of large companies use the SAP corporate template are quite common. However, due to the peculiarities of national regulations, the HR area often remains outside the scope of implementation. Especially in the case of entities with a small number of employees, companies even choose to implement a third-party HR system. This creates additional challenges related to the launch, integration and administration of two completely different business applications. Meanwhile, SAP HR (as well as cloud-available applications from the SAP family SuccessFactors) provide a friendly environment for smaller organizations as well.

In MAPAL’s case, the decision to implement the SAP HR system in the Polish branch was made by the German owner. Due to the intensive work in progress at the time related to the multifaceted expansion of the system, MAPAL was looking for a partner for the project that would guarantee professional execution, a safe start and trouble-free operation. SNP (now All for One Poland, still BCC at the time) presented the best proposals and references. We offered our experience in implementing HR and payroll systems integrated with time assessment.

Project implementation was an important experience for SNP for two reasons. First, because of the very good cooperation with the client; and second, because the developed implementation methodology proved equally effective for a project for an organization of several dozen people.

Implementation specifics

Despite the relatively small number of 50 employees, the project did not allow for any simplification. The solution had to provide for monthly-paid employees, hourly-paid employees and contractors. It also had to take into account the sharply different pay rules for hourly workers.

Our consultants, together with MAPAL’s finance department staff, conducted a needs analysis, cross-referenced the results with standard SAP functionalities and identified points where the SAP standard needed to be supported with customized solutions. As usual, it turned out that there were several such points.

Where are the customized solutions?

In payroll: grossing up of designated pay elements, components related to the specifics of the bonus system, the allowance system. It should also be noted that an integral part of the implementation is the acquisition of data from the client’s system, ensuring continuity of calculations and reporting (including the generation of consistent PIT returns).

In the evaluation of working time: dispersal of time recording, periodic settlement rules for overtime hours – in accordance with the Labor Code, but also taking into account customer requirements.

In the HR part, it was necessary to adapt to some solutions previously introduced by the German system owner (table T503, adding fields to the IT 0002 assumed by the client, translating the organizational structure).

The SAP-HR implementation was also complemented by a proprietary, repeatedly proven, program All for One e-Deklaracje, prepared for the current versions of PIT-11, PIT-8C, PIT-40, PIT-4R, PIT-8AR and IFT-1R forms in electronic form, accepted by the Polish Ministry of Finance. The program uses PIT files, created by standard HPLC* reports and saved in a central archive in SAP in XML format (and additionally in PDF format).

Due to a possible change in the form of PIT forms by the Ministry of Finance, which may result in a change in the XML schema of electronic tax returns, we are providing an additional support service. There will be no need to use it if the PIT forms are not changed.

Main phases of implementation

Phase 1 – Blueprint

The first stage was the development of a detailed concept, in which all the principles of operation and requirements for the system were established, together with the client, and then written down. The document describes both the business processes in all modules, the structures and ranges of master data, the principles of data migration from the client’s “old" system and a detailed implementation schedule.

In terms of payroll,a detailed list of payroll components, reporting and interface ruleswas prepared. The evaluation of working time was described from the interface side (it was decided to use PTMW, as still an effective SAP solution), from the process, output and reporting side. Different types of employment were taken into account, including part-time, disabled, juvenile employees. The principles of integration with payroll are described, i.e., the payroll components generated by time evaluation.

Phase 2 – Prototype implementation and testing

The concept phase was followed by a short period of relaxation for the client – in terms of the project, of course. In this phase, all the work was concentrated on the side of SNP (currently All for one Poland). We focused on building a prototype and testing it. After internal testing, the prototype was transferred to the test system, where the client conducted, with SNP support, acceptance tests. After positive tests, the prototype “went back" to the production system and was finally prepared for operation.

Integration

Cooperation with the system administrators on the client’s side turned out to be very effective – it was quickly possible to gain the client’s trust and create clear rules of interaction; this was all the more important as the system was integrated with SAP financial modules, international tables and summary reports. The result was an effective solution that is fully adapted to the daily work in the company’s Polish branch, while meeting the needs of the headquarters – in terms of integration and reporting.

Small system, big benefits
It might seem that payroll accounting is a simple matter and takes little time if a company – like ours – employs about 50 employees.
However, when, as in our case, different models of accounting are involved: monthly salaries, hourly salaries, plus separately contractors or disabled people, then the number of payroll components that need to be taken into account grows.
During the implementation we defined together with SNP consultants (currently All for One Poland) everything we needed. As a result, at the moment we have a solution that is exactly tailored to our needs, and on top of that we can develop it if necessary.
Payroll calculation is now much faster – it takes less time to prepare the payroll than before the implementation. We have also reduced the risk of human error, as data “pulls in" automatically. Thanks to integration with other SAP modules, we have also simplified reporting .
The entire implementation project went smoothly and without problems. SNP consultants did their best to give us a tool tailored for our company, making our work easier and meeting the requirements of the corporation.
Aneta Ligma-Jozefowska, Independent Accountant, MAPAL Precision Tools