Creating Personnel Area

Creating - Personnel Area, Personnel Sub
Area, Employee Group & Employee Sub

Group
This article explains step by step flow of Creating the following,
1. Personnel Area
2. Personnel Sub Area
3. Employee Group
4. Employee Sub Group.
Personnel Areas
A personnel area is a Personnel Administration specific unit and is the subunit of the company
code. The individual personnel areas in a company code have four digit alphanumeric
identifiers. The personnel areas within a client must be clear.
Personnel area has the following functions:
 The personnel area is used to generate default values for data entry, for example, an
employee’s payroll area.
 The personnel area is a selection criterion for reporting.
 The personnel area constitutes an authorization check unit.
The personnel area is an organizational unit that represents a specific area of the enterprise
and is organized according to aspects of personnel, time management and payroll. A
personnel area is divided into several personnel subareas.
Recommendation
Always create personnel areas with a four-character key. If necessary, compare the definition
of the personnel areas with the persons responsible for payroll and time management
Navigate to Transaction Code SPRO - SAP Customizing Implementation Guide
And follow the below path to create Personnel Area

Enterprise Structure -> Definition -> Human Resources Management -> Personnel Areas
Execute ‘Personnel Areas’

Click “Copy, delete, check personnel area”
Then Click “ Copy Org. Object”
Enter the Personnel Area Value “PA01”, as mentioned below.

Click Enter.
And created personnel Area (PA01) will appear as mentioned below.

Click the “Structure” to View the overview of Created Personnel Area
Then Click “ Navigation”

Click Enter and Scroll Down to view the Created Personnel Area

Assign Personnel areas Address and Details
Choose Personnel Area as shown below.

List of Personnel Area will be displayed.
Choose the Personnel Area ‘PA01’

Assignment of Personnel Area to Company Code
The Created Personnel Area has to be assigned to the company code. Only one company code
can be assigned to a personnel area.
When creating a personnel number, the corresponding company code is allocated to it in the
infotype Organizational allocation (0001), depending on the enterprise structure in which the
employee is situated.
Example
The Hamburg, Cologne and Berlin sites of Company X all belong to one company code.
Requirements
If the Financial accounting component not implemented, it is mandatory to create the

company codes.
Follow the below Path.
Enterprise Structure -> Assignment -> Human Resources Management -> Assignment of
Personnel Area to Company Code
Execute ‘Assignment of Personnel Area to Company Code’
Choose the Personnel Area ‘PA01’ and Assign the Company Code
Select the Company code from ‘Search Help’ as shown below.

Then choose the Country grouping

And save the settings
Personnel Subareas
A personnel subarea represents a subunit of the personnel area. It is at this level that the
organizational control of pay scale structures, wage type structures, and work schedules
occurs. A personnel subarea is identified by a four-character alphanumeric code.
Use
The personnel subarea has the following functions:
 Determines the country grouping; relevant for master data entry, and setting up and
processing wage types and pay scale groups in payroll
 Determines groupings for Time Management; work schedules etc. can be set up
according to the personnel subarea
 Generates default values for the pay scale type and area in an employee's basic pay
 Determines the holiday calendar
Example
The Berlin site of Company X is physically separated by a railroad line. This could mean that
two different tax or employment offices are responsible for the respective areas. In this case, it
would define a personnel area "Berlin" and two personnel subareas.
Recommendation
If a personnel subarea is not in enterprise structure, it is still mandatory to set up at least one
personnel subarea (for example, "blank") for each personnel area so that personnel subarea
can assign the business characteristics to it.
Follow the below Path to create personnel subarea
Enterprise Structure -> Definition -> Human Resources Management-> Personnel Subareas
Execute Personnel Subareas
Then Click ‘Create personnel subareas’

Give the Personnel Area ‘PA01’
Then Personnel Subarea will be created and Assign the desired Text.
Then Save the Values.
Employee Groups
Employees are divided within a company into employee groups. This is a fairly high level
division which defines the relationship, employees have to the company on the basis of their
working status. For example, common employee groups in personnel administration would be
active employees, retirees/pensioners, early retirees.
The following essential organizational functions can be carried out using the employee group:
 Generating default values when entering data; for example, for the payroll accounting
area or for the basic pay of the employee
 Generating a selection criterion for evaluations
 Generating a unit for the authorization check
Use
In the GB Model Company, employees are divided into the following employee groups:
 1 – active employee
 2 – retiree/pensioner
 3 – early retiree
 9 – external employee
Activities
1. Check the standard employee groups.
2. Create new employee groups if necessary.
3. Delete all sample entries not required.
Follow the below path to Create an Employee Group
Enterprise Structure -> Definition -> Human Resources Management-> Employee Groups

Employee Subgroups
An employee subgroup is a further subdivision of the employee group. Within the active
workforce, the employee group can be subdivided into subgroups based on how and when the
employees get paid. The main difference here is that salaried workers have a set salary,
whereas wage-earners are paid for the work they perform; they are either paid for the time
they work, i.e. per hour, or for some other unit, such as piece work.
Employee subgroups are grouped further for the purposes of the following:
 Payroll calculation rule

 Primary wage types
 Collective agreement provision
 Work schedule
 Time quota
 Appraisal
 Employment status
Example
Within the employee group Active, to distinguish between industrial workers, pay scale
employees, trainees and executive employees. This distinction enables to do the following:
 Evaluations for which certain employee subgroups can be included or excluded.
 Certain personnel administrators should only be allowed to edit the data of certain
employee subgroups.
 Depending on the employee subgroup, generate different default values in master data
processing (for example, executive employees have entitlement to more leave than pay
scale employees).
Use
The employee subgroups in the GB Model Company are as follows:
 Weekly waged
 4 weekly waged
 Salaried staff
 Pay scale salaried
 2 weekly waged
 4 weekly non-hourly
 Sales personnel
Follow the below path to create Employee Subgroup
Enterprise Structure -> Definition -> Human Resources Management-> Employee Subgroups
Define employee subgroup

Click ‘New Entries’ to Define custom Employee Subgroup

Creating Personnel Area

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Creating - Personnel Area, Personnel Sub

Area, Employee Group & Employee Sub

Personnel area has the following functions:

Navigate to Transaction Code SPRO - SAP Customizing Implementation Guide

And follow the below path to create Personnel Area

Execute ‘Personnel Areas’

Then Click “ Copy Org. Object”

Enter the Personnel Area Value “PA01”, as mentioned below.

And created personnel Area (PA01) will appear as mentioned below.

Then Click “ Navigation”

Choose Personnel Area as shown below.

Choose the Personnel Area ‘PA01’

If the Financial accounting component not implemented, it is mandatory to create the

Follow the below Path.

Select the Company code from ‘Search Help’ as shown below.

Then choose the Country grouping

The personnel subarea has the following functions:

Follow the below Path to create personnel subarea

Then Click ‘Create personnel subareas’

 Generating a selection criterion for evaluations

 Generating a unit for the authorization check

1. Check the standard employee groups.

2. Create new employee groups if necessary.

3. Delete all sample entries not required.

Follow the below path to Create an Employee Group

 Payroll calculation rule

 Evaluations for which certain employee subgroups can be included or excluded.

The employee subgroups in the GB Model Company are as follows:

Follow the below path to create Employee Subgroup

Define employee subgroup

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