SAP HCM (Human

Capital Management)
Questions and Answers
1. What is SAP HCM?
• SAP HCM (Human Capital Management) is a module in SAP ERP (Enterprise Resource Planning)
that deals with managing employee data, payroll, talent management, and other HR-related
processes within an organization.

2. What are the key components of SAP HCM?

• The key components of SAP HCM include Personnel Administration (PA), Organizational
Management (OM), Time Management (TM), Payroll, Benefits Administration, Talent
Management, and Learning Solutions.

3. What is Personnel Administration (PA) in SAP HCM?

• PA is a core component of SAP HCM that manages employee master data such as personal
information, organizational assignment, and contractual data.

4. What is Organizational Management (OM) in SAP HCM?

• OM is responsible for modeling an organization's structure, including departments, positions, and
reporting relationships.

5. What is Time Management (TM) in SAP HCM?

• TM handles time-related processes such as time recording, attendance, absence management,
and time evaluation.

6. What is Payroll in SAP HCM?

• Payroll in SAP HCM is used to calculate employee wages and salaries, including tax deductions
and other payroll-related tasks.

7. What are Benefits Administration in SAP HCM?

• Benefits Administration manages employee benefits such as insurance, retirement plans, and
other employee welfare programs.

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8. What is Talent Management in SAP HCM?
• Talent Management encompasses processes related to recruiting, performance management,
career development, and succession planning.

9. What are Learning Solutions in SAP HCM?

• Learning Solutions enable organizations to manage employee training and development
activities, including course scheduling, enrollment, and tracking.

10. How does SAP HCM integrate with other modules?

• SAP HCM integrates with other SAP modules such as Finance (FI), Controlling (CO), Materials
Management (MM), and Sales and Distribution (SD) to facilitate seamless data exchange and
process integration.

11. What is SAP SuccessFactors?

• SAP SuccessFactors is a cloud-based Human Capital Management (HCM) suite that offers
solutions for core HR functions, talent management, payroll, and workforce analytics. It
complements SAP HCM by providing additional functionalities and a modern user interface.

12. What is the difference between SAP HCM and SAP SuccessFactors?
• SAP HCM is an on-premise solution, while SAP SuccessFactors is a cloud-based solution. SAP
SuccessFactors also offers additional functionalities such as workforce analytics, social
collaboration tools, and mobile access.

13. How do you create a new employee record in SAP HCM?

• You can create a new employee record in SAP HCM using transaction code PA40 (Personnel
Actions). Enter the personnel number of the new employee and select the appropriate personnel
action type to create the record.

14. What is an Infotype in SAP HCM?

• An Infotype is a data structure used in SAP HCM to store and manage specific types of employee
information, such as personal data, organizational assignment, and payroll data.

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15. What is a Wage Type in SAP HCM?
• A Wage Type in SAP HCM represents a specific type of payment or deduction in an employee's
payroll, such as basic pay, overtime, bonuses, or tax withholdings.

16. How do you configure Time Management in SAP HCM?

• Time Management in SAP HCM is configured using transaction code SPRO (SAP Project Reference
Object). Configuration involves setting up work schedules, attendance and absence types, time
quotas, and time evaluation rules.

17. What is Time Evaluation in SAP HCM?

• Time Evaluation is a process in SAP HCM that calculates employee attendance, absences, and
other time-related data based on configured rules and policies.

18. How do you process payroll in SAP HCM?

• Payroll processing in SAP HCM involves executing the payroll run (transaction code
PC00_M99_CIPE) to calculate employee wages and salaries based on time and attendance data,
wage types, and tax regulations.

19. What are Personnel Actions in SAP HCM?

• Personnel Actions in SAP HCM represent HR processes such as hiring, termination, promotion,
transfer, and salary changes. They are executed using transaction code PA40.

20. What is the Employee Central component in SAP SuccessFactors?

• Employee Central is the core HR module in SAP SuccessFactors, responsible for managing
employee master data, organizational structure, and employee self-services.

21. What is the Talent Management module in SAP SuccessFactors?

• The Talent Management module in SAP SuccessFactors includes solutions for recruiting,
onboarding, performance management, goal management, and succession planning.

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22. What is Employee Self-Service (ESS) in SAP HCM?
• ESS allows employees to perform HR-related tasks and access personal information such as leave
requests, time entries, payslips, and benefits enrollment through a self-service portal.

23. What is Manager Self-Service (MSS) in SAP HCM?

• MSS enables managers to perform HR-related tasks such as approving leave requests, managing
team schedules, and accessing employee performance evaluations through a self-service portal.

24. What is the difference between a Personnel Area and a Personnel Subarea in SAP HCM?
• A Personnel Area represents a specific geographical area or organizational unit within a
company, while a Personnel Subarea represents a subdivision of a Personnel Area, typically
based on factors such as location, department, or plant.

25. How do you configure Organizational Management (OM) in SAP HCM?

• Organizational Management in SAP HCM is configured using transaction code PPOMA_CRM.
Configuration involves creating organizational units, positions, and reporting relationships.

26. What is a Pay Scale Structure in SAP HCM?

• A Pay Scale Structure in SAP HCM defines the salary ranges and grades within an organization,
along with the corresponding wage types and pay scale levels.

27. What is a Wage Type Catalog in SAP HCM?

• A Wage Type Catalog in SAP HCM is a predefined list of wage types used to represent different
types of payments, deductions, and benefits in payroll processing.

28. How do you perform personnel administration tasks in SAP HCM?

• Personnel administration tasks in SAP HCM involve maintaining employee master data,
organizational assignments, contractual information, and other personnel-related data using
transaction codes such as PA30 and PA40.

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29. What is SAP HR Renewal?
• SAP HR Renewal is an enhancement package for SAP ERP HCM that provides a new user
interface, additional functionalities, and improved user experience for HR processes.

30. What is SAP Fiori?

• SAP Fiori is a collection of user-friendly applications and interfaces designed to simplify and
streamline SAP software usage across various devices, including desktops, tablets, and
smartphones.

31. What is SAP UI5?

• SAP UI5 is a development toolkit for building web applications with responsive user interfaces
based on HTML5, CSS, and JavaScript. It is used to create custom applications and extensions for
SAP software, including SAP HCM.

32. What is Employee Central Payroll in SAP SuccessFactors?

• Employee Central Payroll is a cloud-based payroll solution within SAP SuccessFactors that
provides payroll processing capabilities integrated with core HR functionalities.

33. What is a Payroll Schema in SAP HCM?

• A Payroll Schema in SAP HCM is a set of rules and procedures used to calculate employee payroll
based on inputs such as time data, wage types, and tax regulations.

34. How do you define a Pay Scale Type in SAP HCM?

• Pay Scale Types in SAP HCM represent different pay scale structures within an organization, such
as hourly rates, monthly salaries, or annual salaries.

35. What is a Personnel Calculation Rule in SAP HCM?

• A Personnel Calculation Rule in SAP HCM is a set of conditions and formulas used to calculate
employee payroll, time quotas, or other personnel-related data.

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36. What is the SAP Payroll Control Center (PCC)?
• The SAP Payroll Control Center (PCC) is a central platform for managing and monitoring payroll
processes, data consistency, and compliance across multiple payroll systems and countries.

37. What is a Garnishment Order in SAP HCM?

• A Garnishment Order in SAP HCM is a legal order requiring an employer to withhold a portion of
an employee's wages to satisfy a debt or obligation, such as child support or tax levy.

38. How do you configure Benefits Administration in SAP HCM?

• Benefits Administration in SAP HCM is configured using transaction code SPRO. Configuration
involves setting up benefit plans, eligibility rules, enrollment options, and premium calculation
methods.

39. What is the Time Management Status Infotype in SAP HCM?

• The Time Management Status Infotype (IT0003) in SAP HCM stores information about an
employee's time recording status, including clock-in and clock-out times, attendance, and
absences.

40. What is Personnel Cost Planning in SAP HCM?

• Personnel Cost Planning in SAP HCM involves forecasting and budgeting for employee-related
costs such as salaries, benefits, and training expenses based on organizational plans and
personnel data.

41. What is a Time Evaluation Schema in SAP HCM?

• A Time Evaluation Schema in SAP HCM defines the sequence of steps and rules used to process
time data and calculate employee attendance, absences, and time quotas during time evaluation.

42. What is a Personnel Subarea Grouping for Time Quotas in SAP HCM?
• A Personnel Subarea Grouping for Time Quotas in SAP HCM is a grouping of personnel subareas
used to assign different time quotas and accrual rules based on specific organizational criteria.

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43. What is Personnel Development in SAP HCM?
• Personnel Development in SAP HCM involves managing employee training and career
development activities, including competency assessments, training needs analysis, and
development planning.

44. What is SAP ERP HCM (Human Capital Management)?

• SAP ERP HCM is the on-premise version of SAP's Human Capital Management software, providing
comprehensive solutions for managing HR processes, payroll, talent management, and workforce
analytics.

45. What is the purpose of the Enterprise Compensation Management (ECM) module in SAP HCM?
• The Enterprise Compensation Management (ECM) module in SAP HCM is used to manage
employee compensation programs, including salary structures, bonus plans, merit increases, and
long-term incentives.

46. What is the Personnel Development Planning Infotype in SAP HCM?

• The Personnel Development Planning Infotype (IT1005) in SAP HCM stores information about an
employee's career aspirations, training goals, and development plans.

47. What is the Employee Interaction Center (EIC) in SAP CRM?

• The Employee Interaction Center (EIC) in SAP CRM is a centralized platform for managing HR-
related inquiries, requests, and services for employees and managers.

48. How do you configure Payroll Control Records in SAP HCM?

• Payroll Control Records in SAP HCM are configured using transaction code PE03. Configuration
involves defining payroll areas, payroll periods, control parameters, and other payroll-related
settings.

49. What is the Time Data Recording (TDR) Infotype in SAP HCM?
• The Time Data Recording (TDR) Infotype (IT0050) in SAP HCM stores information about an
employee's time recording device, such as a time clock or electronic time sheet.

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50. What is the Personnel Cost Planning Profile in SAP HCM?
• The Personnel Cost Planning Profile in SAP HCM defines the parameters and methods used for
personnel cost planning, including cost elements, valuation bases, and planning periods.

51. What is Retroactive Accounting in SAP HCM?

• Retroactive Accounting in SAP HCM is the process of adjusting payroll results for past periods
due to changes in master data, wage types, or legal requirements.

52. What is a Pay Scale Group in SAP HCM?

• A Pay Scale Group in SAP HCM is a grouping of employees with similar job roles or pay grades for
payroll and reporting purposes.

53. How do you configure Absence Quotas in SAP HCM?

• Absence Quotas in SAP HCM are configured using transaction code PT60. Configuration involves
defining absence types, quota deduction rules, and quota generation methods.

54. What is a Benefits Area in SAP HCM?

• A Benefits Area in SAP HCM represents a specific set of benefit plans and programs offered to
employees within an organization.

55. What is the Personnel Action Status Infotype in SAP HCM?

• The Personnel Action Status Infotype (IT0000) in SAP HCM stores information about the status of
personnel actions such as hiring, termination, or promotion.

56. How do you assign a Pay Scale Structure to an Employee Group in SAP HCM?
• You can assign a Pay Scale Structure to an Employee Group in SAP HCM using transaction code
SPRO. Configuration involves linking the pay scale structure to the employee group via personnel
calculation rules.

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57. What is the SAP Payroll Control Center (PCC) Cockpit?
• The SAP Payroll Control Center (PCC) Cockpit is a central dashboard that provides real-time
visibility into payroll processes, errors, and compliance issues across multiple payroll systems.

58. What is the Time Recording Info type in SAP HCM?

• The Time Recording Infotype (IT0050) in SAP HCM stores information about an employee's time
recording methods, such as manual time entry or electronic time clocks.

59. What is Concurrent Employment in SAP HCM?

• Concurrent Employment in SAP HCM allows an employee to hold multiple positions or
assignments within the same or different organizational units simultaneously.

60. How do you configure Payroll Posting to Accounting in SAP HCM?

• Payroll Posting to Accounting in SAP HCM is configured using transaction code PC00_M99_CIPE.
Configuration involves defining posting variants, wage types to G/L account mappings, and
posting periods.

61. What is the difference between Gross Pay and Net Pay in SAP HCM?
• Gross Pay in SAP HCM refers to an employee's total earnings before deductions, while Net Pay
refers to the amount of money an employee receives after deductions such as taxes, benefits, and
contributions.

62. What is the Personnel Subarea Grouping for Subsequent Activities in SAP HCM?
• The Personnel Subarea Grouping for Subsequent Activities in SAP HCM is used to define rules for
processing subsequent personnel actions such as promotions, transfers, or salary changes based
on organizational criteria.

63. What is Personnel Cost Forecasting in SAP HCM?

• Personnel Cost Forecasting in SAP HCM involves predicting future personnel expenses based on
workforce plans, salary projections, and cost center budgets.

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64. What is the Time Management Grouping in SAP HCM?
• The Time Management Grouping in SAP HCM is used to group employees for time evaluation
purposes based on organizational criteria such as work schedules or collective agreements.

65. How do you configure Dynamic Actions in SAP HCM?

• Dynamic Actions in SAP HCM are configured using transaction code SMOD. Configuration
involves defining rules and conditions to trigger automatic actions or validations during
personnel processes.

66. What is a Wage Type Model in SAP HCM?

• A Wage Type Model in SAP HCM is a predefined template for creating wage types based on
specific business requirements, such as earnings, deductions, or benefits.

67. What is Payroll Simulation in SAP HCM?

• Payroll Simulation in SAP HCM allows users to run hypothetical payroll scenarios to preview the
impact of master data changes, wage type configurations, or legal updates before executing the
actual payroll run.

68. What is the Time Quota Compensation Infotype in SAP HCM?

• The Time Quota Compensation Infotype (IT0416) in SAP HCM is used to adjust employee time
quotas, such as compensating for overtime worked or deducting for absences taken.

69. How do you configure Shift Planning in SAP HCM?

• Shift Planning in SAP HCM is configured using transaction code PPOME. Configuration involves
defining shift patterns, work schedules, and shift sequences for employees.

70. What is the Absence Valuation Rule in SAP HCM?

• The Absence Valuation Rule in SAP HCM determines how absences are valued or paid, including
rules for calculating pay rates, entitlements, and deductions for absence types.

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71. What is Cross-Application Time Sheet (CATS) in SAP HCM?
• Cross-Application Time Sheet (CATS) in SAP HCM is a tool for recording and managing employee
time data across different applications, such as project systems, plant maintenance, or production
planning.

72. What is the Time Manager's Workplace (TMW) in SAP HCM?

• The Time Manager's Workplace (TMW) in SAP HCM is a web-based interface that allows time
administrators to manage and monitor employee time data, attendance, and absences.

73. What is Personnel Cost Collection in SAP HCM?

• Personnel Cost Collection in SAP HCM involves gathering and consolidating employee cost data
from various sources, such as payroll runs, time evaluations, and benefits processing, for
reporting and analysis purposes.

74. What is the Payroll Status Infotype in SAP HCM?

• The Payroll Status Infotype (IT0003) in SAP HCM stores information about an employee's payroll
status, including payroll area, period, and control records.

75. How do you configure Absence Counting Rules in SAP HCM?

• Absence Counting Rules in SAP HCM are configured using transaction code PT61. Configuration
involves defining rules for counting and deducting absences based on absence types and
employee entitlements.

76. What is Retroactive Accounting Run in SAP HCM?

• Retroactive Accounting Run in SAP HCM is a payroll process that recalculates employee pay and
deductions for past periods to account for retroactive changes in master data or payroll
calculations.

77. What is the Time Quota Generation Rule in SAP HCM?

• The Time Quota Generation Rule in SAP HCM determines how employee time quotas such as
vacation or sick leave are accrued or generated based on predefined rules and criteria.

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78. How do you configure Time Recording Profiles in SAP HCM?
• Time Recording Profiles in SAP HCM are configured using transaction code PT60. Configuration
involves defining time recording parameters such as tolerance limits, rounding rules, and clock-in
methods.

79. What is the Integration between SAP HCM and SAP SuccessFactors?
• The integration between SAP HCM and SAP SuccessFactors allows seamless data exchange and
process synchronization between the on-premise HR system (SAP HCM) and the cloud-based HR
suite (SAP SuccessFactors).

80. What is the Employee Master Data Infotype in SAP HCM?

• The Employee Master Data Infotype (IT0002) in SAP HCM stores basic personal information
about an employee, such as name, address, date of birth, and marital status.

81. What is Time Management Status in SAP HCM?

• Time Management Status in SAP HCM indicates an employee's time recording status, including
clock-in and clock-out times, attendance, and absences.

82. How do you configure Pay Scale Areas in SAP HCM?

• Pay Scale Areas in SAP HCM are configured using transaction code SPRO. Configuration involves
defining geographical or organizational areas for payroll processing and reporting.

83. What is the SAP Fiori Time Sheet app?

• The SAP Fiori Time Sheet app is a mobile application that allows employees to record and
manage their working hours, attendance, and absences using a modern and intuitive user
interface.

84. What is the Personnel Calculation Rule Group in SAP HCM?

• The Personnel Calculation Rule Group in SAP HCM is used to group related personnel calculation
rules for payroll processing, time evaluation, or benefits administration.

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85. What is Payroll Area in SAP HCM?
• A Payroll Area in SAP HCM represents a specific payroll processing unit within an organization,
typically based on factors such as geographical location, legal entity, or collective agreement.

86. How do you configure Benefit Plan Types in SAP HCM?

• Benefit Plan Types in SAP HCM are configured using transaction code SPRO. Configuration
involves defining different types of benefit plans such as health insurance, retirement savings, or
tuition reimbursement.

87. What is the Personnel Subarea Grouping for Subsequent Activities in SAP HCM?
• The Personnel Subarea Grouping for Subsequent Activities in SAP HCM is used to define rules for
processing subsequent personnel actions such as promotions, transfers, or salary changes based
on organizational criteria.

88. What is the Pay Scale Structure in SAP HCM?

• The Pay Scale Structure in SAP HCM defines the salary ranges, grades, and levels within an
organization, along with the corresponding wage types and pay scale groups.

89. How do you configure SAP Fiori Apps for HR in SAP HCM?
• SAP Fiori Apps for HR in SAP HCM are configured using the SAP Fiori Launchpad Designer.
Configuration involves selecting and configuring relevant apps for different HR processes such as
leave requests, time entry, or performance management.

90. What is the Time Management Status Infotype in SAP HCM?

• The Time Management Status Infotype (IT0003) in SAP HCM stores information about an
employee's time recording status, including clock-in and clock-out times, attendance, and
absences.

91. What is the Personnel Cost Planning Profile in SAP HCM?

• The Personnel Cost Planning Profile in SAP HCM defines the parameters and methods used for
personnel cost planning, including cost elements, valuation bases, and planning periods.

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92. How do you configure Payroll Control Records in SAP HCM?
• Payroll Control Records in SAP HCM are configured using transaction code PE03. Configuration
involves defining payroll areas, payroll periods, control parameters, and other payroll-related
settings.

93. What is the Garnishment Order Infotype in SAP HCM?

• The Garnishment Order Infotype (IT0194) in SAP HCM stores information about legal orders
requiring an employer to withhold a portion of an employee's wages to satisfy a debt or
obligation.

94. What is Concurrent Employment in SAP HCM?

• Concurrent Employment in SAP HCM allows an employee to hold multiple positions or
assignments within the same or different organizational units simultaneously.

95. How do you configure Dynamic Actions in SAP HCM?

• Dynamic Actions in SAP HCM are configured using transaction code SM30. Configuration involves
defining rules and conditions to trigger automatic actions or validations during personnel
processes.

96. What is a Pay Scale Group in SAP HCM?

• A Pay Scale Group in SAP HCM is a grouping of employees with similar job roles or pay grades for
payroll and reporting purposes.

97. What is the SAP Payroll Control Center (PCC) Cockpit?

• The SAP Payroll Control Center (PCC) Cockpit is a central dashboard that provides real-time
visibility into payroll processes, errors, and compliance issues across multiple payroll systems.

98. What is Retroactive Accounting in SAP HCM?

• Retroactive Accounting in SAP HCM is the process of adjusting payroll results for past periods
due to changes in master data, wage types, or legal requirements.

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99. How do you configure Benefits Administration in SAP HCM?
• Benefits Administration in SAP HCM is configured using transaction code SPRO. Configuration
involves setting up benefit plans, eligibility rules, enrollment options, and premium calculation
methods.

100. What is the Integration between SAP HCM and SAP SuccessFactors?
• The integration between SAP HCM and SAP SuccessFactors allows seamless data exchange and
process synchronization between the on-premise HR system (SAP HCM) and the cloud-based HR
suite (SAP SuccessFactors).

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