Welcome to this eBook with highlights of SAP Country Version Spain, HCM

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After completing this lesson, you will be able to: �  Explain the highlights of SAP Localization of Human Capital Management for

Spain

In this eBook, you’ll learn about Localization of Human Capital Management in Spain.

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HCM localization for Spain is available since 1988, it is one of the oldest ones in SAP. It is one of the most complex country versions. We support Spanish specific business processes and legal requirements and continue providing localized functionalities via EHP based on our customers’ feedback. There’re approximately 450 customers that are using SAP HCM.

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Personnel Administration and Payroll have been localized and have lots of country specific functionalities. As for Master data, we have a way to save information regarding social insurance, employee tax data, garnishments and ERE (employment regulation file). All of them are taken into account for calculating a correct payroll with taxes, social insurance contributions, and other payments as the special payments. In Spain there are several regions regarding taxes that have different ways of calculation. We cover Basque Countries and Navarra Region. Moreover, Spanish tax government requires some information to be sent to them by companies. Our system generates the following forms towards Tax authorities: 110, 111, 190, 219, 296, 345 and tax certificates for employees.

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Another important department in the Government is Social Insurance treasury. Our product is localized for General Regime (no agricultural is included here), artists and sea regime. The last two ones have some exceptions. We are able to generate files to RED system. The most important was TC that includes information regarding contribution bases and payments to Treasury; however it is being replaced by another complete process that is called “Direct Contribution System” (Sistema de Liquidación Directa in Spanish). SLD process in SAP is covered by several reports: Basis file generation report, file processing and status handler report to know how an employee status is with regards to the Direct Contribution System process. Moreover, we have reports to generate files like FDI and AFI. Regarding the information that has to be provided to the Public Employee Service, our system is capable of generating files with an xml format given by SPEE regarding contracts, work accidents and dismissal certificates, they are Contrat@, Delt@ and Certific@2 respectively.

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We would like to specify a bit more about Direct System Contribution in Core and what you have to cover this requirement. There are several reports that are available in order to make a complete process between the authorities and the employer. Social Insurance requires the following files to request them information: Draft copy request file Calculated contribution request Confirmation request file And Workers and intervals request file Those “requests” can be created using a report that is called SLD: Request Files. There are other files that are created by Social Insurance as a response of the previous ones, they are: Calculation File Contribution data message (IDC) And Response file All of them can be processed by our system with a report that is called SLD: Files processing. It is possible to compare the information calculated by payroll with the contribution calculated by Social Insurance. IT is also possible to compare a basis file with an IDC file previous to send the Basis File to authorities and avoid some rejections. And you can process the responses file, to check Employee by Employee the rejections that are generated by Social Insurance. And Last but not lease, we have the basis file, this is the most important file in the process and can be generated by our report SLD: Basis File. There are other files that are not supported by the system and cannot be processed. Anyway, with all the reports created to manage SLD, there is another program that could guide you through the whole process. Status Handler compile the whole process and allow the HR administrator to manage SLD.

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To be a bit concrete, our functionality called Certific@2 is able to create an xml file with data that is taken from the system. We provide the generation of three types of files: - Dismissal certificates, whenever an employee leaves the company. - Dismissal certificates when an employee is going to an ERE. - And activity periods when the employee is in a reduction of employment (ERE) during a period of time.

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Garnishments is a functionality in order to retain some money of the employee from the payroll directly. It is due to some judicial processes. We have five types of garnishments that are taken into account in the payroll: - Deduction based on percentage. - Deduction based on fix amount. - Deduction up to a total amount - Deduction based on scale IPREM. - Deduction based on scale IPREM up to a total amount.

We can explain them a bit more. The first three ones here: Deduction based on percentage, the deduction in the payroll is a percentage of the net amount the employee is receiving. Deduction based on a fix amount, the deduction is a fix amount during a period of time defined in the master data of the employee. Deduction up to a total amount. In the sentence the employee has to pay a fix amount of money, and it is paid little by little during months. It is possible to save the total amount and the monthly amount to reduce. Every month the money is being reduced up to the total amount.

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The last ones are a bit complicated and are defined by law. The net amount of the employee is split into different parts and depending on where they are, the deduction is a different percentage. We have the first one where you have to define the time that the garnishment has to be deduct, and the last one where you should include the total amount to be deducted at the end, and the employee will have the payroll reduced until the date where the debt is finished. It is possible to include some reduction in the punishment if the employee has any familiar charges.

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Here you can see how the info type looks like. If you see there are places to include the type of garnishment and where to send the money that is reduced from the payroll.

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In EhP4, a new functionality was included in our localization for Spain. The name is off-cycle, that means a way of calculating payroll outside the normal periods. It is possible to calculate payroll and make the accountancy independently as soon as you need it.

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The functionality includes a new scheme through you are able to calculate normal payroll and off-cycle ones. Off-cycle run takes care of taxes and social insurance. The normal business in Spain includes special payments and bonus payment.

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In EhP5 there are two new functionalities: The first one is Pension Plan for Spain. For that a new info type to record master data has been created, a new payroll function for taking the information into account and a way of generating 345 form for tax authorities. Everything together is our new functionality Pension Plan.

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Our pension plan is organized in the following way: The customer can create several plans depending on the managerial entity (bank, mutua, etc). And every plan can have different subplans, the subplan is how and what amount is diverted to the pension plan, normally they are classified by employee groups, like managers, team leaders, etc…

Here you can see as an example the info type where the master data is saved. Plan and subplan proposed different data behind that determines how to calculate the amounts. That proposals can always be changed by the user, in case it is needed. The payroll is in charged of calculating all the amounts and create the transfer to the different entities.

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Another development in EhP5 is Contract management, that includes several functionalities that have been include in one repository. - Contract printing. We have the possibility of printing contracts in PDF directly from the employee master data. - Contrat@. It is possible to generate the xml file with information regarding a group of employees. - Contract tracking. With this tool, it is possible to see in a look, the movements in a contract of an employee. Beginning of bonification, endings, beginning of contracts, endings, changing of contracts… etc - Contract change. This tool adds the possibility of changing contracts when an event is made. It is possible to decide which type of changing have to be flagged and make the change accordingly. - Massive contract creation. This part of the big report includes a way of generating contracts for a group of employees at the same time. - The report can include every specific report the customer has for managing contracts.

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Here you have the screen shot with the report and the way of going to the different tools. We clarify two of them in the following slides.

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The creation of contracts in a massive way include the creation of basic copy and a way of managing the different additional clauses. That additional clauses depend on the type of employee almost always.

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The functionality of contract tracking gives a report with information of events that have been decided by the user. In the following slide you will have an example of that.

Here you can see the example for a contract tracking tool of two employees.

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You can find also in EhP6 another functionality called Massive generation of IRPF. This include the creation of an XML file with the format given by AEAT. That file can be uploaded in the AEAT program directly and the AEAT get another xml file with information about tax indicators that correspond to each employee. That file can be uploaded in our system again and compare both calculations. We give customers the possibility of deciding which one they want to use.

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You should now be able to: � Explain the highlights of SAP Spain Localization Human Capital Management

For more information on topics discussed in this lesson, see the references listed here.

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