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HR Budget Planning Cost Module

HR Budget Planning Cost Module

Planning the personnel budget is a significant component in any organization’s overall budget planning.

Allocating a budget that is as precise as possible, encompassing any foreseeable activity, prepares the organization better for navigating its best management path as far as identifying investment and development opportunities and in readying for the challenges it will face.

This process requires relating to multiple planning challenges:

  • Changes in cost of salary following changes in employee data (promotion, anticipated retirements, recruitment of new employees, and more).
  • Changes in salary agreements, fixed salary increases, updated rates, and so on.
  • Updates to salaries at the level of individual employees.
  • Changes in organizational structure such as the addition of departments and opening new positions as part of the organization’s expansion options, or alternately, closing and uniting departments and ceasing positions; mobilizing employees through efficiency processes between different units within the organization.

 

Precision budget planning allows real analysis at the execution stage, at any given moment, comparing budget to implementation, and providing managers with a truer real time picture of possible irregularities.  This assists in upholding budget targets.

The Personnel Cost Planning sub-module constitutes an integral part of the SAP HCM module, fully addressing planning requirements while fully adapting to the organization’s needs.

Personnel cost planning is based on employee file data, organizational structure, salary agreements and salary outcomes, and realizes SAP’s integrative abilities.

Budget planning takes into consideration all components impacting budgetary planning: current and planned organizational structure, filled and open positions, planning new positions, tight linkage to salary components for these structures, and the possibility of using real salary data from the previous year, or a theoretical salary structure.

A predefined salary, or an average salary relative to a specific job, can serve as the basis for operation positions.

This module allows working with several parallel planning methodologies:

  • Planning at the level of employee
  • Planning at the level of averages for a defined position
  • Planning at the level of organizational unit/s
  • Planning while activating the organization’s salaries regulations
  • Planning through overall implementation of factor based calculations

 

The module enables planning several parallel probabilities, based on diverse basic premises.

The outcomes of each probability are preserved as a possible budget version.  Managers can compare these probabilities and refine the basic premises, based on comparisons, until the finalized, authorized budget plan is achieved.

The web interface allows managing access to planning data. Every manager can view the data for the units she or he supervises, and influence budgetary planning: for example, managers can plan bonuses for employees subordinate to them.

Data for all managers is saved for each budget planning scenario.

The final version is sent to the CO module, and allows comparing the planned and actual budget data at any given time. 

Malam Payroll holds vast experience in activating this module: for example, Tempo Beer Industries Ltd used it with great success to plan the corporation’s 2016 budget in coordination with specific module adaptions for the company’s needs.

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