SAP HCM for SAP S/4 HANA and why should you care?

SAP now offers a large number of HCM products and usage variants, and since October 2022 another option has been added: SAP HCM for SAP S/4HANA.   

In this blog post we take a look at the system. We'll go over what it does and doesn't include, how it can benefit your business, and what considerations you should make.  

SAP HCM for SAP S/4HANA is the successor to the current SAP HCM ERP system, the maintenance of which ends on December 31.12.2030, 4 at the latest. The SAP HCM for SAP S/XNUMXHANA can therefore be understood as an on-premise successor system to the current SAP HCM ERP system.  

The system is announced to end maintenance by 2040. One can therefore speak of a high level of investment security in this context. Fine; let's go tackle the migration, inform IT quickly and make an appointment.  

We have to disappoint you, unfortunately it's not that simple. A large number of decisions need to be weighed up and evaluated. So many that they cannot all be covered in this post. We will try to address at least a few important points. When making a decision, always bear in mind that SAP wants and will change its entire business model towards cloud operation.  

Functional content of SAP HCM for SAP S/4HANA 

SAP HCM for SAP S/4HANA

SAP HCM for SAP S/4HANA

Note that Travel Management is part of SAP S/HANA FI.

The content is largely based on the content of the current SAP ERP HCM. Talent management is also based on the current solutions.

When does it have to be switched to SAP HCM for SAP S/4HANA due to the end of maintenance?

2025, 2027 or not until 2030?

This question is easy to answer. The compatibility package, which enables you to operate the SAP HCM ERP system on a HANA database, can still be used until December 31.12.2025, 2027. After that, the SAP HCM ERP system has to be migrated. If you operate the SAP HCM ERP system on a different database, you can continue to work with this setup until 31.12.2030, even until December XNUMX, XNUMX, if increased maintenance costs are accepted.

Current maintenance commitments from SAP

With regard to the time horizon of the decision, it is important to analyze the current technical setup of the SAP HCM system with regard to the use of the compatibility package. This package ensures that SAP ERP systems can be operated on an S4 HANA database. The compatibility package is contractually limited to December 31.12.2025, 31.12.2027 for use by SAP for the SAP HCM ERP system and most other ERP modules. If the SAP HCM ERP system is operated on an alternative database, the current maintenance commitment by SAP is limited until December 31.12.2030, XNUMX and the extended maintenance until December XNUMX, XNUMX.

It can become problematic if the SAP HCM is operated with the other modules on one instance. In this case, it is very likely that the other modules will migrate to an S2025 Hana solution before 4. In addition to a possible upgrade to SAP HCM for SAP S/4HANA, there is the option of carving out the HCM to another system, which is probably not cost-effective.

Content SAP HCM for SAP S/4HANA - what's in it, what's not?

The most important changes in terms of "what is included" and "what is no longer included" in SAP HCM for S/4HANA are included in Note - 3091160 - General Approach and Strategy.

From the author's point of view, the information currently worth mentioning is the following:

Note 3091160 - what is removed and what is new

https://launchpad.support.sap.com/#/notes/3091160

Important changes

  • Infotype 2005 Overtime
    • Solution: Use of other time management infotypes (e.g. 2002/2011 i V m 2007)
  • The "old" personnel cost planning based on, among other things, IT1015 is not part of the SAP HCM for SAP S/4HANA
    • Solution: Conversion to the PA-CP
  • Manager's Desktop (PA-MA)
    • Solution: MSS FIORI
  • Recruitment (PA-RC), the old "BP" infotypes
    • Solution: E Recruiting or SuccessFactors Recruiting
  • Posting of the L&G settlement with the reports RPCIPE00_OLD & RPCIPE00_OLD_CE
    • Solution: RPCIPE00/01 or RPCIPE01_CE
  • KK1 interface to terminals
    • Solution: HR-PDC interface
  • ... further adjustments please refer to the note

The easiest way to find out what's new is in the SAP Road Map Explorer.

Recruitment to hire 2023: https://roadmaps.sap.com/board?PRODUCT=73554900100800000266&range=CURRENT-LAST&PROCESS=E2E_TWM#Q1%202023

New in SAP HCM for SAP S/4HANA

SAP HCM for SAP S/4HANA - A strategic decision

Also important in this context are the licensing costs redesigned by SAP, which are based exclusively on the employee master records used and the additional functions used (payroll, time), regardless of whether they are external, internal or retirees. This should definitely be weighed up before the decision is made.

A "pure" upgrade to the new system can be a sensible alternative if a company is not currently including the switch to SuccessFactors in its strategic considerations and time management and its integration into the payroll is so complex that it does not make sense in a hybrid user concept are mappable.

A migration to SAP HCM for SAP S/4HANA is probably the variant that involves the fewest process changes, but must also be regarded as a conservative variant.

Further possibilities are the transformation to a SuccessFactors Employee Central Payroll (EC P) system, to the license model RISE with SAP in the Private Cloud Edition, RISE with SAP & SuccessFactors Employee Central as a hybrid model and most recently SAP HCM for SAP S/4HANA on Prem and SuccessFactors Employee Central as a hybrid model.

The current change scenarios

In conclusion, ein SAP S/4HANA system can be very flexibly connected to a SuccessFactors system, e.g. B. via the SAP Cloud Platform, now part of the SAP Business Technology Platform. Since SuccessFactors currently still has the functional gap of payroll, many customers will end up with hybrid solutions. The license costs for the HR master records only have to be paid once, regardless of where they are maintained in SAP HCM or SuccessFactors. However, we recommend using SuccessFactors Employee Central as the leading system.

We will continue to keep you informed of developments on this topic Ongoing hold. Especially when the first project experiences have been made.

Do you have any questions or need further help? Contact us via the contact form and send us a message.

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