SAP HCM (HR) Organizational Structure Basics: What is Personnel Subarea?

Personnel sub areas are a subdivision of the Personnel Area. Personnel Subareas are used in personnel administration, personnel time management, and payroll accounting in SAP. In Customizing, the personnel subarea is identified by a four-digit alphanumeric key. The respective country-specific control features are stored here.

The most important organizational functions of personnel subareas are:

• Specify country groupings. The master data entry as well as setting up and processing of wage types and pay scale groups depend on country groupings. The grouping must be unique for each company code.
• Assignment of a legal person to differentiate between companies legally.
• Determination of groupings for time management to, for example, set up work schedules and substitution, absence and leaving types.
• Generation of default values regarding pay scale type and area for an employee’s basic pay.
• Definition of a public holiday calendar.
• Defininition of personnel sub area-specific wage types per personnel area
• The personnel sub area is a selection criterion for evaluations