Foundation Data Workshop
Agenda
• Key Principles
• Organization Structures
• Job Structures
• Pay Structures
• Associations
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Key Principles
Foundation Data – Key Principles
• Some attributes in Employee Records refer to referential data called
Foundation Objects
• Use of Foundation Data ensures consistency and facilitates reporting
• Foundation Objects include Organization, Job and Pay structures
• Values defined in Foundation Data can be automatically propagated or
defaulted in employee records
• Relationships can be built between Foundation Objects in order to filter
lists of values that are proposed to users in employee records
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Foundation Data – Key Principles
• Typical use cases
Every employee in Paris office has the same business address => it is
not needed to enter this address for every employee based in Paris
office
All employees working in French legal entity should have standard
weekly hours defaulted to 35
The list of locations (offices) depends on the legal entity the
employee works in
Reports need to be generated for all employees based in Western
Europe
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Foundation Data – Key Principles
• Relationships (aka Associations)
 relationships to be built depend on the
customer internal organization
 filters will be automatically created
Legal Entity
Business Unit
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Department
Department
Cost Center
Cost Center
Organization Structures
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Foundation Data – Organization Structures
• 8 organization structures are available
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8
Legal Entity
Business Unit
Division
Department
Cost Center
Location
Location Group
Geo Zone
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Foundation Data – Organization Structures
• Organization structures
 In Job Information, employee is assigned to Legal Entity, Business Unit,
Division, Department, Location and Cost Center
Lists of
Legal Entities, Business Units,
Divisions, Departments,
Locations, Cost Centers
come from Foundation Data
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Foundation Data – Organization Structures
• Legal Entity
 A Legal Entity represents a company as registered against country laws. It
cannot span across more than one country
 The country in Legal Entity determines the country of the employee for
Job Information, Employment Details and Compensation Information
 It is mandatory to define and use Legal Entities in Employee Central
 Country specific attributes can be configured at Legal Entity level
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Foundation Data – Organization Structures
• Legal Entity
Country is mandatory
– Legal Entity cannot
span across multiple
countries
Standard Hours and
Currency can be
used as default
values at employee
level
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Foundation Data – Organization Structures
• Country of Legal Entity determines country specific attributes at employee
level
Country of Legal
Entity
is USA
Job Information
attributes specific to
USA are exposed
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Foundation Data – Organization Structures
• It is possible to define country specific attributes at Legal Entity level
Country = USA
USA country specific
attributes
are exposed
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Foundation Data – Organization Structures
• Business Unit
 One Business Unit record represents one operating unit. It is a logical
segment of a company representing a specific business function
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Foundation Data – Organization Structures
• Division
 Division is one of the organizational entities; it can have a hierarchical
structure using the 'parent' field
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Foundation Data – Organization Structures
• Department
 Department foundation object stores all the departments of a company
for example Human Resources, Finance, Sale etc.
 A Department is usually founded by a Cost Center
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Foundation Data – Organization Structures
• Cost Center
 Cost Center foundation object stores all the cost centers of a company.
Generally cost centers are defined in the ERP Financial system and cost
centers information can be imported from this system
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Foundation Data – Organization Structures
• Location
 Location foundation object stores address information of all physical
offices for a company
 International address formats are supported
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Foundation Data – Organization Structures
• Location
Selected Country
determines Address
format
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Foundation Data – Organization Structures
• Location Group
 Location groups are primarily used for reporting purposes and can be
used to group multiple locations; for example location group Western
Europe might contain locations Munich, London and Paris etc.
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Foundation Data – Organization Structures
• Geo Zone
 Geo Zone can be used to group multiple locations; for example geo zone
EMEA contains locations Munich, London, Paris, and Warsaw etc.
 Geo Zone is commonly used with Pay Range definition to allow for
regional pay variations
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Job Structures
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Foundation Data – Job Structures
• 2 job structures are available
 Job Classification
 Job Function
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Foundation Data – Organization Structures
• Job structures
 In Job Information, employee is assigned to a Job Classification
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List of
Job Classifications
comes from Foundation Data
All rights reserved.
Foundation Data – Job Structures
• Job Classification
 Job Classification foundation object stores all job codes defined in
a company and information associated with these job codes
 Country specific attributes can be configured at Job Classification
level
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Foundation Data – Job Structures
• Job Classification
Values defined at
Job Classification
level can be used to
populate employee
data
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Foundation Data – Job Structures
• When employee is assigned to a given Job Classification
Employee’s Job
Classification is set
to Director of Human
Resources
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Foundation Data – Job Structures
• The system can be configured in such way that employee Job Title, Pay
Grade, and Standard Weekly Hours are pre populated by values stored
in Job Classification Foundation Object
Job Title, Pay Grade
and Standard Hours of
employee are pre
populated with vlaues
defined for Director of
Human Resources
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Foundation Data – Job Structures
• Job Classification
Country specific
attributes can be
defined at Job
Classification level
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Foundation Data – Job Structures
• Job Classification
Select country from
the list
Country specific
attributes are
exposed
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Foundation Data – Job Structures
• Job Function
 Job Function describes main functions such as HR, Finance...
 Several Job Classifications can be linked to the same job function.
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Pay Structures
Foundation Data – Pay Structures
• 7 pay structures are available
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Pay Group
Pay Grade
Pay Range
Pay Component
Pay Component Group
Pay Calendar
Frequency
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Foundation Data – Pay Structures
• Pay structures in Compensation Information
An employee belongs to
one Pay Group
Pay Component Group
amount is calculated and
displayed
An employee can have
multiple Pay Components
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Foundation Data – Pay Structures
• Pay Grade is entered in Job Information
Pay Grade is entered in
Job Information
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Foundation Data – Pay Structures
• Pay Group
 People who share the same payroll related attributes can be grouped into
one pay group, for example, EMEA employees who are all paid by SAP
Payroll
 Pay Groups generally do not span multiple countries
 Pay Groups are mostly used for payroll interface
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Foundation Data – Pay Structures
• Pay Group
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Foundation Data – Pay Structures
• Pay Grade
 Pay Grade represents the grading structure that is in place in an
organization, and is normally associated with Job Classification
 Pay Grade is used to regroup Job Classifications sharing same Pay Ranges
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Foundation Data – Pay Structures
• Pay Range
 Pay Ranges are used to define minimum, median and maximum points of
salary range
 The system calculates compa ratio and range penetration using Pay
Ranges
 Pay Ranges are by default associated to Pay Grade, Geo Zone and Legal
Entity
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Foundation Data – Pay Structures
• Pay Range
By default Pay Range is
defined by Pay Grade,
Geo Zone and Legal
Entity.
This can be changed by
configuration.
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Foundation Data – Pay Structures
• Pay Component
 Pay Component foundation object stores all elements that are paid to
employees, like: base salary, bonus target, car allowance etc.
 An employee may have an unlimited number of Pay Components
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Foundation Data – Pay Structures
• Pay Component have the following attributes
 Type: Amount or Percentage. If type = Percentage, the amount on which
the percentage is applied needs to be defined
 Recurring: recurring components are components that are paid every
month, quarter, year… such as base salary, car allowance etc.
Non recurring components are used for exceptional payments
 Is Earning indicates whether the component is an earning or a deduction
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Foundation Data – Pay Structures
• Pay Component have the following attributes
 Currency, Frequency, Value: by default, it is possible to define the
amount, currency and frequency of the component. In such case, these
values can be propagated at employee level
e.g. 5000 EUR / month
 Can Override: if this attribute is set to no, then Currency, Frequency and
Value cannot be modified by the user at employee level. The values
defined at the component level cannot be changed once the component
is assigned to the employee
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Foundation Data – Pay Structures
• Pay Component have the following attributes
 Target: this attribute enables to identify components that will be used to
define target pay such as target bonus
 Tax Treatment: can be used to indicate if a component is taxable or not
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Foundation Data – Pay Structures
• Pay Component
Base Salary is recurring
Pay Component.
Can Override = Yes
Target = No
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Foundation Data – Pay Structures
• Only Recurring Pay Components with Target = No can be selected in
Compensation section
Recurring = Yes
Target = No
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Can Override = Yes
Amount can be changed or
entered for Base Salary
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Foundation Data – Pay Structures
• Pay Component
Type = Percentage, the
amount on which
percentage is applied
needs to be determined.
Can Override = No
Target = Yes
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Foundation Data – Pay Structures
• Only Recurring Pay Components with Target = Yes can be selected in Pay
Targets section
Recurring = Yes
Target = Yes
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Can Override = No
Bonus amount cannot be
modified
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Foundation Data – Pay Structures
• Pay Component Group
 A Pay Component Group is an aggregation of Pay Components
 The amount of a Pay Component group is equal to the sum of the pay
components it includes. The system automatically does annualization and
currency conversion during the calculation
 Typically 2 Pay Component Groups are defined : Total Earning Opportunity
and Annualized Salary
 Only one Pay Component Group can be used for Compa Ratio and Range
Penetration calculation
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Foundation Data – Pay Structures
• Pay Component Group
Total Earning Opportunity
amount will be provided in
USD
It is displayed on
Compensation Information
UI
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Foundation Data – Pay Structures
• Pay Component Group
Compa Ratio = Employee
Compensation / Mid-point
Range
Penetration
=
of Pay
Range
(Compensation – Range Min)
Various Pay Component
/
GroupMax
amounts
are Min)
(Range
– Range
calculated and displayed
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Foundation Data – Pay Structures
• Pay Calendar
 Pay Calendar foundation object stores all the pay periods within a year
 Pay Calendar can only be created if it is linked to a Pay Group
 This is mostly used for integration with payroll system
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Foundation Data – Pay Structures
• Pay Calendar
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Foundation Data – Pay Structures
• Frequency
 Frequency is used by Pay Component foundation object, to indicate the
frequency at which a pay component is paid, for example, Annually,
Monthly, etc.
 It is also used at employee level
 The most frequently used frequencies are delivered by SuccessFactors
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Foundation Data – Pay Structures
• Frequency
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Associations
Foundation Data – Pay Structures
• Associations
 It is possible to create relationships between Foundation Objects in order
to filter lists of values that are proposed to the user
 Associations are optional and configurable
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Foundation Data – Pay Structures
• Associations
Location is associated to
Legal Entity
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Foundation Data – Pay Structures
• Associations
List of Locations proposed
to the user depends on
Legal Entity
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Data Definition
Requirements definition
For Referential Data, the customer must determine
 The Foundation Objects that will be used
 The countries that will be supported
 For each structure
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which standard attributes are used
which custom attributes should be added
if country specific attributes are needed
 If relationships need to be built between Foundation Objects
 The detailed definition of each attribute
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label, type (date, text, …), maximum length
if the attribute is required
if a picklist should be associated to the attribute
NOTE: Foundation Objects need to be configured first. Referential data should be loaded
first.
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Questions
?
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Thank You
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