SAP HCM Interview questions

13 min read

Are you preparing to attend the interview for an SAP HCM Developer role but are unsure how to prepare for it? What are the most likely SAP HCM interview questions that the interviewer will ask? You’ve arrived at the right place. We’ve compiled a list of the most frequently asked SAP HCM interview questions, typically asked in multiple interviews. This list of questions is for you if you are an SAP technology expert.


Q1. What is an ERP?

ERP is an abbreviation for “Enterprise Resource Planning.” ERP software includes programs in all major business areas, such as acquisition, marketing, material management, production, marketing, finance, and accounting (HR).


Q2. Make a List of Various Components Of The Enterprise Structure In Systems, Applications, And Products (sap) In Human Capital Management (hcm)?


The following are the enterprise structure components in SAP HCM:

  • Client
  • Company code
  • Personnel area
  • Personnel subarea

Q3. Explain the Company Code?

The company code is a four-character alphanumeric code that defines a completely independent company.


Q4. What do you understand by Client In The SAP System?

A client in the SAP R/3 (R stands for Real-time) system is an organization and a legal entity. A client holds the highest position among all organizational units. It stores master data for various business processes, such as customers, products, and vendors. In the SAP R/3 system, clients are represented by a three-digit number.


Q5. What Is a Personnel Area?

A personnel area is a company code subunit. It is an organizational unit that represents a department within a company and is organized based on personnel administration, time management, and payroll accounting criteria. It takes the form of a four-character alphanumeric code. The personnel area code for a corporation, for example, is CORP.


Q6. What is Human Resource Management?

Human resource management is the essential method for dealing with the powerful and effective management of individuals in an organization or association to the point where they help their business gain an advantage. It is intended to boost an individual’s performance and an employer’s goals. Human resource executives are primarily concerned with the employees who work for the company.

Q7. Define the SAP HCM Workflow?

SAP HCM Workflow automates corporate operations and assigns tasks to the appropriate people at the proper time.


Q8. What do you understand about Personnel Subareas?

A personnel subarea is the subset of the personnel area that can be further subdivided based on geographical location or strategic line of business. It takes the form of a four-character alphanumeric code. For example, if an organization’s branches or locations are defined as personnel areas, its departments, such as HR and ADMIN, are its personnel subareas.

Q9. What Do You Understand By Personnel Structure?

Personnel structure is the organizational structure of employees. It is made up of employee groups and employee subgroups. You can divide employees into groups and define their relationship to the enterprise using the employee group. The following are some important organizational functions that an employee group can perform:

  • When data is entered, create default values for the payroll accounting area or the employee’s basic pay.
  • Developing selection criteria for use in evaluations
  • Making a unit for use in authorization checks.


Q10. What are the different types of ERP?

  • Generalist ERP
  • OPEN Source ERP
  • Vertical ERP
  • Small Business ERP


Q11. What Are The Functions Of The Personnel Administration Module?

The Personnel Administration module performs the following functions:


  • Providing the authorizations required for master data maintenance
  • Providing a personnel number to those being recruited
  • Maintaining the viability of other sub-applications within and outside of HCM
  • Keeping credibility in personnel administration
  • Creating input templates for personnel management
  • Creating work processes for personnel administration
  • Creating user interfaces.


Q12. What are Infotypes In SAP HCM?

Infotypes are employee characteristics that are controlled by the system. Infotypes are used to store employee-related information.


Q 13. Why do organizations choose SAP?

SAP ERP programming is a centralized management system. The unified framework eliminates information duplication, gaps, and repetition. It continuously distributes data across all offices. SAP ERP provides control over a variety of business metrics. The centralized network improves efficiency, provides better stock management, improves quality, lowers raw material costs, flawless HR management, reduces costs, and improves benefits. Organizations can improve individual needs and produce better results.


Q14. What is the Best Way To Hire A New Employee?

To hire a new employee, use the PA40 transaction code. The PA30 transaction code is then used to handle all employee information forms.


Q15. What Are Features In SAP HCM?

Features are decision trees that can be customized in the SAP HCM Implementation Guide (IMG) screen and are made up of technical fields with default values for easy access.

Q16. What is Global Employment in Sap Hcm?

A global employee has personnel assignments with one or more affiliated enterprises in more than one country simultaneously.


Q17. What are the different modules in SAP?

Controlling (CO), Enterprise Controlling (EC), Financial Accounting (FI), Human Resource (HR), Investment Management (IM), Materials Management (MM), Plant Maintenance (PM), Production Planning (PP), Quality Management (QM), Sales and Distribution (SD), and Treasury are all examples of business functions (TR)

Q18. How can any company use an organization plan?

The company’s organizational structure and reporting structure are described in the organization plan. The action plan is the current version of the plan, and the other plans are known as the staffing planning stages. The action plan is usually 01.


Q19. What is an evaluation path?

An evaluation path is a chain of relationships between individual and organizational objects in the organizational plan.

Q20. What Is Img?

IMG is a project management tool. It contains documentation on the SAP system’s implementation steps. It also aids in project control and documentation during implementation.

Q21. What is SAP R/3?


SAP R/3 is a client-server architecture with a three-tiered design. They are as follows: presentation layer, application server, and database. Because it is a client-server system, the gatherings/layers that comprise the R/3 framework are designed to work concurrently across a wide range of PC systems. When a company implements SAP programming, each component (or “layer” due to R/3) is stored, controlled, and prepared to use isolated and concentrated PC equipment.


Q22. What is the core difference between a job and a position?

The job is not specific; it is generic. Manager, Assistant Manager, Consultant, etc. Positions are linked to people. The position occupied by Persons is concrete and specific. (For example, Finance Manager, SAP HR Consultant).

Q23. What Do You Understand By Mandatory Activities?

Mandatory activities are those for which SAP does not provide default settings, for example, organizational structure. For activities classified as mandatory, customer-specific requirements must be saved.


Q24. What do you know about master data and transaction data?

Master Data: Data is made halfway and is significant for all applications. A vendor, for example, is a type of expert information used to make purchase requests or agreements.


Transaction Data: Data related to deal preparation is value-based information.


Q25. What do you understand by employee subgroup grouping for primary wage types used?

These groupings can specify which wage types can be entered for which employee subgroups.

Q26. What Are Optional Activities?

Optional activities are those for which SAP provides default configuration. If the default settings meet the requirements, they can be used.


Q27. Describe the various structures in SAP – HR?

SAP-HR has three structures: enterprise, unique, and organizational.

The enterprise structure consists of the company code, personal area, and personal sub-area.

Personnel Structure contains information about employees, such as employee groups, employee subgroups, and payroll accounting. The organizational structure includes organizational units, jobs, and designations.


Q28. How can you define default wage types for the Basic Pay Infotype?

The system can suggest a default wage type for basic pay (IT0008); however, the appropriate wage type must be included in a wage type model for this to happen. Here you define the default wage types and the order in which they should appear in the infotype Basic Pay and whether or not you can overwrite the default wage type.


Q29. What Are Non-required Activities?

Non-required activities are those for which SAP provides all default settings. These activities, like country-specific settings, are rarely used.


Q30. How would you record time in the SAP HR system?

SAP R/3 Time Management records employee timings such as hours worked, work excursions, leave, or replacements. Timekeeping is required to manage the payroll process.

These are a few important time transactions.


  • PA51: Display time data
  • PA53: Display time data
  • PA61: Maint. Time data
  • PA62: List entry for additional data
  • PA63: Maint. Time data
  • PA64: Calendar entry


Q31. What activities are possible when the payroll control record is set to Released for Payroll?

If you select the Release Payroll function from the menu, you are prevented from changing infotype data records that affect the past or present. This lock only applies to the personnel numbers in the payroll area in question. Changes that have an impact on the future are still permitted. Before beginning the payroll, you must run this function from the menu. If the payroll control record’s previous status was Exit Payroll, the Release Payroll function also increases the period in the payroll control record by 1.


Q32. What Do You Understand By Critical Activities?

Critical activities must be carried out with extreme caution because mistakes can have serious consequences.


Q33. What is BEX?

BEX stands for the business explorer, and it allows end-users to locate reports. BEX comprises three parts: BEX analyzer, BEX Map, and BEX Web. This enables them to view reports, analyze data, and conduct inquiries. These questions are recordable in the BEX program.


Q34. Can a posting run be deleted?

Yes, It is possible to reverse it before the bank transfer. Once the transfer is completed, the payments must be adjusted in the following payments.

Q35. What Are Personnel Development Plans?

Personnel development plans provide professional development for an organization’s employees. It can also be used for training and other job-related tasks.


Q36. What is shift planning?


SAP Shift Planning enables your organization to complete a schedule that considers employee capabilities. You can also analyze their schedule and divide employees into teams and workgroups. SAP Shift Planning helps you examine and improve current labor force arrangements and screen and recreate future HR needs so you are completely prepared to respond to changes.


Q37. Is it possible to configure a single payroll to pay an individual in multiple currencies?

No, the system can be set up to play in multiple currencies but not pay out in various currencies.

Q38. What Is The Use Of Compensation Management?

Compensation Management enables you to specify the guidelines for an organization’s compensation policy, which aids in attracting and retaining the best employees. It is required for compensation administration, such as payroll processing.


Q39. What is payroll in SAP?

Payroll is a critical component of the SAP HR module used to manage employee salaries. SAP Payroll also computes the gross and net compensation. It includes installments for each employee and derivations made during the salary cycle.


Q40. How does the system understand when to trigger the retroactive accounting for a particular employee?

In IT 0003, you must include the retroactive accounting date in the relevant field. Otherwise, the earlier hiring date will be used.

Q41. What Is Employee Self-service (ess)?

With the help of various technologies, ESS enables an organization’s employees to create, view, and change data at any time and from any location. It provides employees with an employee-centric portal to access and modify job-related information.


Q42. What is a recruitment cycle?

The recruitment cycle is a term used to describe the entire recruitment process. Full Life Cycle Recruiting includes six fundamental stages from start to finish enlistment: planning, sourcing, screening, selecting, employing, and onboarding.


Q43. What Do You Understand By Personnel Structure?

Personnel structure is the organizational structure of employees. It is made up of employee groups and employee subgroups. You can divide employees into groups and define their relationship to the enterprise using the employee group.


Q44. What are different wage systems in SAP HR?

Wage types are divided into two categories. Primary and secondary wage types (technical wage types)

Primary wage : This wage type is divided into two categories. Time wage type and dialogue wage type

Dialogue wage: This type is used to maintain master data in the SAP system, whereas the time wage type is used once the time evaluation is complete and can only be maintained offline.

Secondary wage : This wage time is generated offline and during the payroll run. It is also used to accumulate different types of wages. The technical wage types are always preceded by “/.”


Q45. Which Personal Actions can you perform on an employee?


  • Hire
  • Change Organizational Unit/Position
  • Change of Pay
  • Transfer
  • Terminate
  • Retirement


Q46. What is Matchcode W?

Match Code W returns a list of all personnel numbers in the selected payroll area that have had their payroll run rejected due to incorrect data. This means that their payroll was not successfully processed. Matchcode W also includes personnel numbers if personnel data is changed during the payroll run’s correction phase.


Q47. What is NetWeaver?

NetWeaver is a collaborative innovation stage to the point where all of the mySAP suite items can run on a single instance of NetWeaver, known as SAP Web Application Server (SAP WEBAs). The advantage of NetWeaver is that you can access SAP data via the web (HTTP convention) or even mobile. Therefore you can save money on the costs associated with preparing clients for SAP Client-side GUI.


Q48. Make a list of List Time Related Infotypes that you have used.


  • 2001 – Absences
  • 2002 – Attendances
  • 2003 – Substitutions
  • 2007- Attendance Quotas
  • 0007- Planned Working Time


Q49. What are the term Fringe benefits?

These are the benefits that an organization provides to its employees and their salary or compensation. It is not always necessary to provide them directly in the form of a salary. They are typically non-wage compensation. Examples of common fringe benefits include:


  1. Making accommodations for the employee
  2. Insurance and other health benefits
  3. Income security
  4. Vacation
  5. Profit distribution
  6. Contribution to a loan
  7. Offering benefits to employees’ families, such as education loans


Q50. What is the term rewards management?

It is essentially a strategy through which an organization ensures that employees who perform well in their responsibilities and tasks are fairly rewarded and provided various benefits. The rewards can take the form of a gift, a salary increase, a promotion, etc.

With an effective rewards management approach, an organization can ensure certain benefits. The most significant advantage is that they can motivate other employees to do their jobs reliably and easily.

Final Thoughts

Reviewing these expert-selected questions will shift your perspective away from reacting to the interviewer’s questions and help you handle the interview confidently. TekSkilled has always trained SAP professionals to become proficient in their skills and take the first steps in this industry.

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