A Practical Training Report On SAP R/3 –Human Resource (HR ) Taken at DCM SHRIRAM CONSOLIDATED LTD TRAINING HELD FROM (May 21 st 2009 to June 20 th 2009) Rajrani Kala & Vyavsayik Prashikshan Sansthan, Kota Submitted to: Submitted to: Mr. M. S. Rau Mr. R.S. Malik (Additional General Manager) (Assist. General Manager) Shriram Training Centre ISD
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A
Practical Training Report
On
SAP R/3 –Human Resource (HR )
Taken at
DCM SHRIRAM CONSOLIDATED LTD
TRAINING HELD FROM
(May 21st 2009 to June 20th 2009)
Rajrani Kala & Vyavsayik Prashikshan Sansthan, Kota
Submitted to: Submitted to:
Mr. M. S. Rau Mr. R.S. Malik
(Additional General Manager) (Assist. General Manager)
Shriram Training Centre
ISD
Submitted By:
Mayank Saini
Maharishi Arvind Inst. Of Eng. and Technology, jaipur
Acknowledgement
I owe a huge debt of thanks to a large number of people without whom this
practical training of mine would not have been possible. I express my sincere
gratitude to the management of DSCL, Kota for giving me the opportunity to
get a first hand technical knowledge.
I am extremely grateful to Dr. M.S.Rau, for permitting me to take training at
their prestigious organization. I am also grateful to Mr. K.R.S. Khinchi,
without whom my training at this organization would not have been possible.
I would like to express my sincere thanks to Mr. R S Malik, Miss Neha
Sharma & all for their able guidance in the core subject matter & scholarly
suggestions, prudent admonition, effective management which made my
training process smoother. I would like to thank everyone who helped me in
every way and made me feel much better & comfortable at the training place.
Mentor: Neha Sharma
Preface
A very important element of the curriculum of an IT student is the
Practical Training. As a part of the academic syllabus of 3 year degree
course of B.Tech, each student under the Maharishi Arvind Inst. Of Eng.
And Technology, jaipur is required to undergo a practical training of 30
days after completion of VI Sem. , of the course. I underwent this training at
DSCL, Kota.
The object of this training is to provide a chance to the student to have an
insight in the practical working environment in an industry. Such type of
training helps the student to prepare herself for working in the real & practical
industry environment where she has to apply the knowledge she has taken
during the degree course. This helps the students to be more confident &
efficient when she faces the real industry after completion of her degree
course.
I take pleasure in submitting this report on “ SAP R/3 -Human Resource”. In
the present era, the ERP application software package SAP is now the
backbone of every IT/Non-IT Company.
I hope this report will give a brief idea on SAP Management at DSCL, Kota
Mayank Saini
Date:
Contents
o Acknowledgement
o Preface
o History of DSCL
o Company Profile
o History of Organization (Kota Unit)
o Enterprise Resource Planning
Preamble
Evolution of ERP
Need of ERP
Feature of ERP
Components of ERP
Implementation of ERP
Functionality in different ERP Software’s
Benefits of ERP
Suppliers of ERP
o Introduction to SAP
o Basic SAP modules
o PROGRAMMING ABAP/4
o Architecture of SAP R/3
o Quick Tour of the SAP User Interface
o Human Resource
Overview
Module of HR
Structure of Personnel Administration
Info type Group
Action hiring
HR T-codes
Payroll basics
Payroll performance
Payroll Driver
Payroll schema
Payroll relevant files
Internal tables for payroll
Period parameters
Data modifier
Payroll period
Period number
Retroactive accounting
Payroll past
Retroactive accounting limit
Retroactive accounting relevance
Retroactive accounting recognition
Status indicator
o Important points
o Conclusion
o References
HISTORY OF DSCL
Nothing can better sum up the homage paid to great philanthropist Sir Shri Ram who began as a humble worker and went on to setup one of India’s largest business houses – THE DCM GROUP. Not only did Lalaji achieve great height in business enterprise but also participated in crucial early stages of nation building. Everyone is familiar with the multiple facets industries and institutions on which he left his imprint like DCM limited, Bengal Potteries, Jay Engineering Works, Sindri Fertilizers, Lady Shri Ram College, Shriram College of Commerce, Delhi School of Economics, many sugar mills and umpteen others.
The Delhi Cloth and General Mills Co. Ltd. (DCM) was founded in 1889 with the establishment of a spinning mill at Delhi. Thereafter, the company expanded and diversified into large segments of industrial areas and played a leading role in the industrialization of India.
In 1990, to create more manageable business entities DCM Ltd. was restructured into four separate companies. DCM Shriram Consolidated ltd. (DSCL) took over 1/3rd of the businesses by merging of following units of erstwhile DCM:
Shriram Fertilizer & Chemicals, Kota - Fertilizers, Plastics, Chlor Alkali and Power.
Shriram Cement Works, Kota – Cement.
Swatantra Bharat Mills and DCM Silk Mills, Delhi – Textiles.
In decade 1990-2000 DSCL added the following units to its portfolio:
Energy Intensive Business: Chemicals, PVT Resins, Cement.
Value Added Businesses: Fenesta Building Systems, PVC Compounds, Energy Services.
Other Businesses: Textiles.
Company Profile
DSCL is a Rupees 15.50 billion, public listed company, based in North India with a core sector business portfolio comprising fertilizers, chlor alkali, chemicals, plastics, cement, textiles and sugar.
A leading Indian organization, DSCL aspires to become a world-class enterprise that is responsive to change, outward looking, competitive, delivers superior quality at low cost, with focused businesses and robust financials.
DSCL has been built on core values of being caring, credible and fair with all stakeholders, committed to continuous improvement; and being a responsible corporate citizen.
DSCL has built an enabling work culture and believes in releasing human energy within the organization through participation, teamwork, professionalism, entrepreneurship, openness and upholding human dignity. The Company is committed to enhancing the employability of individuals through competence building via continuous training and development activities.
DSCL believes in a pro-active Industrial Relations policy and has an enviable track record in this field. Employee welfare is given utmost priority and is institutionalized across the organization.
DSCL has initiated several management initiatives in the recent past for upgrading the organization, the major ones being Institution Building, Quality Management.
ISO 9000 Certification and implementation of SAP R/3 ERP package Information Technology. The Company provides aspiring professionals opportunities to grow in a challenging and up-to-date environment. DSCL’s
recruitment policy values merit, are egalitarian, do not differentiate on the basis of sex, caste or religion, and targets the best professionals. Compensation is commensurate to qualifications, experience and ability.
HISTORY OF ORGANISATION (KOTA UNIT)
As for back in 1961 the fledgling beginning of one of the company’s biggest Chemical complex took its roots at Kota by laying the foundation stone in Vinyl and Chemical Industries which is known today as SHRI RAM FERTILIZERS AND CHEMICALS.
The company under the continuous expansion programs diversified from chemical to fertilizers and cement. Cement plant is the first of its kind in the Country and second in the world because of its Calcium Hydroxide sludge based technology instead of conventional lime stone raw material.
The chronological history of its growth is detailed below:
Year Activity
1962 The foundation stone was laid for PVC plants.
1963 Caustic soda and calcium carbide plant were put on stream.
1964 PVC plant was commissioned
1964 The foundation stone was laid for fertilizer plant
1969 Urea fertilizers plant of 70 tons/day.
1970 Power plant commissioned and inaugurated by Late Smt. Indira Gandhi
1971 The capacity of the Fertilizer plant was increased to 930 TDP.
1972 The capacity of the caustic soda plant was increased to 100 TDP.
1974 The caustic soda fusion Plant was commissioned.
1976 India’s largest 20 MV indigenous carbide furnace was commissioned.
1978 PVC Plant capacity increased to 65 TPD.
1979 The capacity of PVC Plant was increased to 100 TDP.
1984 Cement plant of 600 TDP using calcium Hydroxide waste from carbide plant was commissioned.
1984 Commissioning of bag house in calcium carbide plan and ESP for 35 MW. 1988 Power plant and cement plant for controlling the pollution.
1989 Adsorption unit for Ammonia recovery in Urea Plant
1996 Certification for compounding.
1997 Certification of Fertilizer group.
1997 Certification of Shriram Cement Work.
1997 Certification of Chloral Alkali Group.
1997 Certification of Shriram Environment and allied services.
1998 World class Enterprise wide Resource Planning (ERP software SAP R/3) implementation with best business practices.
1998 PVC compounding capacity is being increased from 75 MT/PM to 2000 MT/PM.
1999 Installation of Hydrogen bottling facility.
2000 Commissioning of 30 TPD stable balancing Power Plant.
2001 Poly Aluminum chloride Plant established. They have as many as 230 wholesalers and 463 retailers for marketing its products. It has its divisional office in all-metropolitan cities and important cities
ENTERPRISE RESOURCE PLANNING
Preamble:
Enterprise Resource Planning is the latest high end solution,
information technology has lent to business application. The ERP
solutions seek to streamline and integrate operation processes and
information flows in the company to synergies the resources of an
organization namely men, material, money and machine through
information. Initially implementation of an ERP package was possible
only for very large Multi National Companies and Infrastructure
Companies due to high cost involved. Today many companies in India
have gone in for implementation of ERP and it is expected in the near
future that 60% of the companies will be implementing one or the other
ERP packages since this will become a must for gaining competitive
advantage.
Evolution of ERP
In the ever-growing business environment the following demands are
placed on the industry:
Aggressive Cost control initiatives
Need to analyze costs / revenues on a product or customer
basis
Flexibility to respond to changing business requirements
More informed management decision making
Changes in ways of doing business
Difficulty in getting accurate data, timely information and improper
interface of the complex natured business functions have been
identified as the hurdles in the growth of any business. Time and again
depending upon the velocity of the growing business needs, one or the
other applications and planning systems have been introduced into the
business world for crossing these hurdles and for achieving the
required growth. They are:
Management Information Systems (MIS)
Integrated Information Systems (IIS)
Executive Information Systems (EIS)
Corporate Information Systems (CIS)
Enterprise Wide Systems (EWS)
Material Resource Planning (MRP)
Manufacturing Resource Planning (MRP II)
Money Resource Planning (MRP III)
The latest planning tool added to the above list is Enterprise Resource
Planning.
Need for ERP
Most organization in the world have realized that in the rapidly
changing environment, it is impossible to create and maintain a custom
designed software package which will cater to all their requirement and
also be completely up-to date. Realizing the requirement of user
organizations some of the leading software companies have designed
ERP software which will offer:
An integrated software solution to all functions of an organization.
Since ERP solutions address the entire organizational needs, and
not selected island
of the organization
ERP introduction brings a new culture, cohesion, and vigor to the
organization.
After ERP introduction the line managers would no longer have to
chase information,
check compliance, rules or conformance to budget.
ERP systems similarly would relieve operating managers of routine
decisions and
leave them with lots of time to think, plan, and execute vital long-term
decisions of an organization.
ERP systems lead to significant cost savings by continuously moni-
toring the
organizational health. The seemingly high initial investments become
insignificant in the face of hefty long-term returns.
ERP provides best business practices in the industry thus overcom-
ing shortened life
cycle which calls for continuous design improvement, manufacturing
flexibility, and
super efficient logistics control; in short a better management of the
entire
supply chain.
Features of ERP
Some of the major features of ERP and what ERP can do for the
business system are as below:
ERP facilitates company-wide Integrated Information Sys-
tem covering all functional areas like Manufacturing, Selling
and distribution, Payables, Receivables, Inventory, Ac-
counts, Human resources, Purchases etc.,
ERP performs core corporate activities and increases cus-
tomer service and thereby augmenting the Corporate Im-
age.
ERP bridges the information gap across the organization.
ERP provides for complete integration of Systems not only
across the departments in a company but also across the
companies under the same management.
ERP is the only solution for better Project Management.
ERP allows automatic introduction of latest technologies
like Electronic Fund Transfer(EFT), Electronic Data Inter-
change(EDI), Internet, Intranet, Video conferencing, E-
Commerce etc.
ERP eliminates the most of the business problems like Ma-
ment, benefits administration and salary administration.
OM: Organizational Management OM assists in maintaining an
accurate picture of organization's structure, no matter how fast it
changes. It is systematic and forward planning tool that considers
the final effects of all personnel events thus it's complete solution
for personnel cost planning.
PA: Payroll Accounting PA addresses payroll functions from a
global point-of-view and gives the capability to centralize payroll
processing or decentralize the data based on country or legal en-
tities.
TM: Time Management TM is integrated with payroll accounting,
controlling, production planning, plant maintenance, project sys-
tem, external services and shift planning. It provides with a vari-
ety of standard reports that will assist in tracking and analyzing
employee time with completeness and accuracy.
PD: Personnel Development PD assists with planning, monitor-
ing, and analyzing scheduled seminars, training courses, and
business events, registration and booking, price determination
and invoicing.
PROGRAMMING ABAP/4
ABAP/4 is the programming language used by SAP’s developers to
build the transactions that make up the R/3 application. It’s also used
by corporations to customize the R/3 application. In general, ABAP/4
isn’t used by customers of SAP to develop complex applications from
scratch, but instead to provide additional business functionality. For
example, it’s not necessary for a customer to write a program in
ABAP/4 to manage inventory levels, because SAP has already written
transactions to accomplish this objective.
The two most common uses for ABAP/4 are producing custom reports
and developing custom interfaces for SAP. In this context, a report is
an ABAP/4 program that reads specific data from SAP’s database and
then displays the data via a computer screen or a printed page. An
interface, on the other hand, is an ABAP/4 program that moves data
into SAP, or reads data from SAP and writes it out to a system file to
be transferred to an external computer system, such as a legacy
mainframe. Other uses for ABAP/4 include conversion programs that
change data into a format usable by SAP, and custom transactions
similar to the SAP transactions that make up the R/3 application, but
are written by users to fulfill some business function not provide by
SAP.
HOW ABAP/4 AND DATA INTERACT IN SAP
Almost all ABAP/4 programs manipulate data from the SAP database
to some extent. Data manage by SAP is often broken into two cate-
gories: master data and transactional data (called documents in SAP):
Master data is information that usually corresponds to physical
objects, such as materials, vendors, customers, or plants.
A document is information that usually corresponds to an event
such as a purchase order, an invoice, a change in inventory, or a
sales order. Documents can be identified in the system by a
document number, which can be externally assigned or assigned
by SAP, depending on the configuration.
Master data is needed in order to create any document; for example,
an invoice can’t be created without a vendor to issue it. A change in
inventory, referred to in SAP as a material movement, must refer to a
material and a plant. Each SAP module has master data that it
manages and documents that are created in the course of normal
business operations. For example, the FI module, which manages
finances and accounting, manages master data such as general ledger
accounts and documents such as journal entries and check payments.
Linking SAP R/3 to Other Applications: BAPIs
SAP does not solve everything. For example, the firm s forecasting or
customer relationship management processes may not be modeled
within SAP. Where SAP does not provide a solution, it is possible to
bolt-on another application to attain the required functionality. SAP has
an open, component-based architecture that enables integration with
other applications. This architecture consists of two key elements:
1. SAP Business Objects are essentially black boxes that contain
SAP R/3 data and business processes, while suppressing the details of
their data structure or specific implementation details, and
2. BAPIs (Business Application Programming Interfaces) define how
the application links to SAP R/3.The result is a standard method of
communication between SAP R/3 and other applications. Business
Objects are the business-application versions of real-world entities,
such as a sales order or an employee. The core of the business object
is the actual data (for instance, an employee s name and id number.)
The interface is a set of clearly defined
methods, each specifying what operations can be performed on this
data (including the possibility of altering it).
Architecture of SAP R/3
The R/3 Basis system is a multi-tier client/server system. The
individual software components are arranged in tiers and function,
depending on their position, as a client for the components below them
or a server for the components above them. The classic configuration
of an R/3 System contains the following software layers:
Database Layer
The database layer consists of a central database system containing
all of the data in the R/3 System. The database system has two
components - the database management system (DBMS), and the
database itself. SAP does not manufacture its own database. Instead,
the R/3 System supports the following database systems from other
suppliers: ADABAS D, DB2/400 (on AS/400), DB2/Common Server,
DB2/MVS,INFORMIX, Microsoft SQL Server, ORACLE, and ORACLE
Parallel Server.
The database does not only contain the master data and transaction
data from your business applications, all data for the entire R/3 System
is stored there. For example, the database contains the control and
Customizing data that determine how your R/3 System runs. It also
contains the program code for your applications. Applications consist
of program code, screen definitions, menus, function modules, and
various other components. These are stored in a special section of the
database called the R/3 Repository, and are accordingly called
Repository objects. You work with them in the ABAP Workbench.
Application Layer
The application layer consists of one or more application servers and a
message server. Each application server contains a set of services
used to run the R/3 System. Theoretically, you only need one
application server to run an R/3 System. In practice, the services are
distributed across more than one application server. This means that
not all application servers will provide the full range of services. The
message server is responsible for communication between the
application servers. It passes requests from one application server to
another within the system. It also contains information about
application server groups and the current load balancing within them. It
uses this information to choose an appropriate server when a user logs
onto the system.
Presentation Layer
The presentation layer contains the software components that make up
the SAPgui (graphical user interface). This layer is the interface
between the R/3 System and its users. The R/3 System uses the
SAPgui to provide an intuitive graphical user interface for entering and
displaying data. The presentation layer sends the user’s input to the
application server, and receives data for display from it. While a SAP
GUI component is running, it remains linked to a user’s terminal
session in the R/3 System.
Quick Tour of the SAP User Interface
The SAP R/3 system presents a Windows interface with several of the familiar Windows functions for screen manipulation. The apparent simplicity of the interface hides the power of the menus residing within the menu bar at the top of the screen. The initial screen shows a menu bar with the following selections. The first level sub menus are listed below to give you an idea of where to start:
Logistics Materials Management Sales/distribution Logistics Execution Production Production-process Plant Maintenance Customer Service Quality Management Logistics controlling Project Management Environment Health & Safety Central Functions
Accounting Financial Accounting Treasury Controlling Enterprise Control Investment Mgt. Project management Real Estate
Human Resources Managers Desktop Personnel admin. Time management Payroll Training and Event Management Organizational Management Travel Information system
Information Systems Executive Information Systems Logistics Accounting Human Resources Project System Ad Hoc Reports General Report System
Tools ABAP/4 Workbench Accelerated SAP Administration ALE Business Communication Business Documents Business Framework Business Workflow CCMS Web Development SAP Script Hypertext Find
HUMAN RESOURCE
(HR Module)
Overview:
Human Resource is a complete integrated system for supporting
the planning and control of personnel activities. The Human Resources
modules provide an integrated human resources management system,
covering personnel planning and recruitment, personnel and salary ad-
ministration, payroll and personnel development.
HR provides solutions, planning and managing company’s hu-
man resources using integrated applications that cover all personnel
management task and helps to simplify and speed the process.
Modules of Human Resource (HR):
Personnel management (PM): PM is the complete solution for per-