Defining an SAP ERP HCM global template includes creating global HR process flows, SAP ERP HCM concepts (i.e., configuration and development standards), and localization (i.e., country-specific requirements to support legal compliance, payroll, and government reporting). These components are instrumental in ensuring your global solution is practical for your organization and that you can use it across all countries (Figure 1).

Figure 1

Deliverables of a global template

Not adhering to the global template could result in the following:

• Various naming conventions — Failure to follow naming convention standards set in the global template could result in reporting inconsistencies
• Localized HR business process — Not following standard HR processes could result in an inconsistency in master data and workflow routings. This complicates the solution.
• Inconsistent HR structures — Veering away from the HR structures defined in the global template leads to inconsistent reporting and configuration settings. It also could lead to an inconsistent reporting hierarchy that is used to base direct reports and authorizations from the manager portal in SAP ERP.
• Increased support costs — Not having a standard global solution requires more country-specific support and maintenance. For example, if the solution varies greatly from country to country, you need to offer additional training.

Global HCM Process Flows

Establishing a global process flow for each HR process (e.g., hire, transfer, or performance appraisal) is the first key step in defining a global template. Global process flows help set the foundation for business requirements gathering, configuration, and development. For example, an HR process flow for the transfer employee process helps capture the main actors in the event as well as what SAP workflow routings are needed.

Making your HR process global ensures that SAP workflows are standard in nature and reused from country to country. It also reduces the costs for country-specific training and documentation. In addition to simpler workflow design and maintenance, global HR processes ensure more efficient HR management across the globe, simplify activities when new countries are converted into the SAP system, and illustrate global definition of HR roles and responsibilities (which helps define HR security standards).

At the very least, I recommend you create a global HR process flow for the following HR transactions: hire, rehire, transfer, termination, country-transfers, pay changes, and expatriate assignment. Of course, there may be local variations due to local legislation or country-specific legal reasons, but the main concept of each process should be global in nature.

Global SAP ERP HCM Concepts

After defining the HR process flows, the next step is to define the global SAP ERP HCM concepts. This includes defining the personnel and enterprise structure, personnel actions, and SAP infotypes that you must use in any country implementation. Creating these global concepts makes future rollouts more efficient because much of the design is already complete. It also promotes global reporting and a standard HR solution across the globe.

Enterprise and Personnel Structure

Defining the SAP ERP HCM structures globally is an important step in defining the global template. The enterprise and personnel structures should be designed so they support the solution in every country (not just the initial implementation if on a phased rollout) and should be enforced for all further country implementations. A common setup for the enterprise structure is to base the personnel area by location and the personnel subarea to be a union, business unit, or department.

Of course, the different process teams also need to be involved to ensure that their configuration requirements can be fulfilled for payroll, time, and benefits. For the personnel structure, the employee group and employee subgroup should follow naming standards that are common across several countries. Table 1 shows a common example of a personnel structure in the US.

Table 1

Personnel structure example

For more details on how to effectively design HR structures for your global template, refer to my HR Expert article: “How to Design SAP HR Structures to Work Best for Your Company.”

Personnel Actions

Configuring personnel actions for global use is instrumental in reducing complexity in reporting, workflow, data conversion, and interfaces. Having only one action type for each type of personnel event (e.g., hire, rehire, termination, or paid leave of absence) is key in defining the global template and is possible by enforcing the adoption of global-based reason codes.

A common mistake project teams make during implementations is to create different action types for different countries based on reason code and infotype requirements. For example, you may need different infotypes and reason codes for a new hire action based on specific countries (i.e., hire action in the US includes infotype 0077 [additional personal data], but a hire action in Germany does not require infotype 0077 for employees). To use global personnel actions while still meeting country-specific requirements, use the InfoGroup modifier (IGMOD) feature to ensure reason codes are global in nature. IGMOD allows you to use one action type (regardless of country) and modify it to allow for country-specific variations. You can access and maintain the IGMOD feature using transaction PE03.

Figure 2 shows that the new hire action (Z0) for the US calls an IGMOD of 10.

Figure 2

IGMOD feature within transaction PE03

Figure 3 shows how the IGMOD features call IGMOD 10 to bring up US-specific infotypes.

Figure 3

US-specific infotypes from IGMOD 10

Global Infotypes

Promoting the use of common SAP infotypes that must be used for every country also ensures a standard solution and design. For example, the following infotypes are global in nature and are typically part of any SAP ERP HCM global template:

• IT0000 — Actions
• IT0001 — Organizational assignment
• IT0002 — Personal data
• IT0006 — Address
• IT0007 — Planned working time
• IT0008 — Basic pay
• IT0009 — Bank details
• IT0019 — Reminder of dates
• IT0041 — Date specifications
• IT0105 — Communications

The SAP ERP HCM global template should describe which infotypes are used across all countries. As you implement a new country, you define the global infotypes and assess which country-specific infotypes are required.  

SAP ERP HCM Development Standards

A common misconception with defining an SAP ERP HCM global template is that it is only related to configuration. However, defining development standards for use across countries is also a main component of the template. This includes, but is not limited to, the following:

• Global reports, interfaces, conversions, enhancements, forms (RICEF) list: When defining your RICEF inventory, it is important that the new development objects are global in nature. Designing and reviewing reports, workflows, and enhancements with regional input reduces the need for additional customizations. It also helps further develop the adoption and communication of the global template.

• Common function modules or programs: Many projects go with the approach of having custom ABAP code that do the same type of function duplicated across several RICEF objects. For example, a project may have specific logic that should be shared across all interfaces and reports to identify an employee’s manager. Instead of hard-coding this logic across the different RICEF objects, the logic should be within one specific global template function module and called by the different RICEF elements. This helps cut down on development and maintenance costs, and streamlines the development life cycle. Other key common functions within the function module could be obtaining manager information, obtaining the manager’s manager information, or calculating dates (e.g., service dates and benefit dates).

Localization

As I mentioned earlier, 75% of the SAP ERP HCM global template should cover the design for any country. This leaves 25% of the solution to be country specific in nature. Such localization may be required due to local legislation, legal compliance, or government reporting. The global template should link to the localization documents (e.g., configuration rationale and process design documents) and clearly capture what was designed for each specific country. When local requirements arise, make sure they integrate well with the global design and other process teams.

You should only deviate from the global template when local legal requirements cannot be covered globally — for example, in the US, equal opportunity employment and affirmative action reporting. As a country rolls out SAP ERP HCM, the project team needs to identify key data elements and reports that the global template does not cover. These local requirements are mostly likely supported by SAP as many country-specific infotypes and reports available to support local legislation and taxes. Some examples include:

• US: 1610 (US job attributes), 0210 (withholding information W4/W5 US), and 0234 (additional withholding information US)
• Australia: 0188 (tax Australia) and 0227 (TFN Australia)
• India: 0585 (section 80 deductions), 0586 (section 80C deductions), 0587  (provident fund contribution), 0588 (other statutory deductions), and 0001 (subtype ESI)
• Germany: 0013 (social insurance D), 0020 (DEUEV), 0029 (workers’ compensation), and 0079 (SI additional insurance)
• Italy: 0154 (social security and contribution data), 0155 (additional administrative data), 0483 (CAAF data clearing), and 0659 (INAIL management)
• Japan: 0140 (social insurance basic data), 0141 (social insurance premium data), 0142 (residence tax information), and 0853 (Shukko external organization)

SAP has country-specific infotypes is several countries; the above are only examples.

Best Practices with Defining a Global Template

When defining an SAP ERP HCM global template, it is very important that all project leadership in every region in which your organization is located adopts the template. Engaging regional leaders early in the rollout and gathering their feedback helps you apply the global template to current and future SAP ERP HCM implementations. Consider the following best practices when defining your global template:

• Send out questionnaires: At the beginning of the project, create and send detailed HR questionnaires to capture business requirements for each region. The questionnaire should capture information such as employee record data, data values for key elements on the global infotypes, and HR structures. Once you receive the feedback, update the global template with the approved changes and communicate changes with the rest of your team (Figure 4).

• Engage regional leads: Set up routine calls with the regional leads to keep them updated on the progress of the global template. Consider their recommendations and ask them about how they think the global template will work for their country.

• Obtain sign-off: At the end of the blueprint phase, obtain sign-off from project leadership and the regional leads to ensure they understand and accept the template

• Change the control board: The global template should always follow a strict governance process. Any changes to the global template should be approved by a sounding board (i.e., several people with different responsibilities on the project) to ensure that updates do not negatively affect the global solution.

Figure 4

Steps to define a global template

Mark S. Jackson

Mark Jackson has been working with SAP ERP HCM for more than 12 years and specializes in SuccessFactors Employee Central and the SAP ERP HCM Personnel Administration and Organizational Management modules. He has had numerous experiences with implementing and leading SAP ERP HCM and SuccessFactors globally and is a subject-matter expert in defining global templates for SAP/SuccessFactors implementations.

You may contact the author at Mark.S.Jackson@gmail.com.

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