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HR - Time Management (for Payroll processing) 

SAP HR Time Management functionality includes time collection, evaluation of time and absence data for payroll, leave management and reporting. It also automatically calculates leave accruals, overtime, shift premiums and bonuses.  

Time data is used to process Payroll, internal & external reporting. Payroll needs Time data to process:

  • Hours worked
  • Overtime
  • Shift times
  • Vacation
  • Absence to be paid

Time is also used for 

  • Internal reporting - by management to evaluate and project costs.
  • External reporting - tracking of time data for Labor Union requirement etc. For eg. Labor union requires statistical data concerning the amount of overtime spent on certain shifts etc.

Time data is stored in various infotypes. This data is evaluated according to various rules during time evalution and the processed data is transferred to payroll.

Time data is generally collected by a third party recording terminal. Time data is recorded in various ways. eg. Punch cards, Manual time sheets that stores hours worked for each day along
with any absenses. 

All the absence's and attendance in a day are uploaded into SAP and analysed using the pre-defined times in the employees Work Schedule rule. After processing the time events, the system generates wage types and time types based on pre-defined rules within the time evaluation program. These wage types and time types are then used for Interfacing to payroll, reporting etc.


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