Best practice for External/Contract Employees

[MuhammadIqbal_U]

Hi,

This question may be asked by many people but in small bit and pieces and therefore can not get the full picture.

I would like to know the external/contract employee's best practice in SAP for whole life cycle. (employees from third party and payment to the third party company)

It start from the

request for contract employees (PR?),

Contractual Agreement between company and third party (e.g. provide manpower for 2 years with monthly payment of 5k USD),

brining the employee to company, Organizational Structure ? (where these employee should be placed, if within specific department then how to differentiate the position and what is best practice),

hiring an employee (different employee group, no. ranges, payroll area),

Time sheet defaults (IT 315),

Time sheet (hourly time sheet, but the contract is monthly),

transfer of hours to .. (only CO or MM, best practice). invoicing processes (once vendor entry is created, I believe payment program in FI need to be process)

Thanks in advance if any one can help and/or refer to any SAP documentation.

Thanks,

[Former Member]

Hi Igbal.

You can differentiate the external / contract employee as below,

01. You can have seperate number ranage for them. example which can be started from 9XXXXXXX.

02. And you can have seperate EG- ESG - this will be helpful to segregate those employee for the authorization, reporting point of view and also activate some relevant  feature like ABKRS.

03. Since your not executing payroll for those employee's , you can have seperate payroll area for them which is for 'No Payroll'

04.You can maintain mini masters record for them like 0000, 0001,0002,0007,0016, 0315 etc (this is purly according to you requirement.

05.I hope your using CATS and transfering those time entries to the CO-MM.in this case you can maintain costcenter in IT0027. or you can maintain sender costcenter in 0315.

06. If your transfering to the MM module then maintain MM related receving object.

whether your going to maintain position / orgunit is purly depents on your requirement.

Regards,

Dinesh

[MuhammadIqbal_U]

Thanks Shan,

Exactly that is how I have configured, I am more interested in best practices of.

1) Org Structure for external employees (should be separate or within established ones recommended by SAP & Why)

2) What is best practice for payment process, should be transferred to PO(service entry) and process the invoice, or Co and process the invoice.

3) How PO should be maintained in MM e.g. usually contracts is based on monthly payment rate for example 5k per month, but services entry created through time sheet will be hourly, how it should be handled as system will not allow and what is the recommended way to maintain the PO data.