6.2 Foundation Objects: Organization, Pay, and Job Structures
Key Takeaways
- XML-based foundation records are maintained in Manage Organization, Pay and Job Structures and imported with Import Foundation Data.
- MDF-based foundation records are maintained in Manage Data and imported with Import and Export Data.
- A Legal Entity cannot span more than one country, and its country controls the country-specific fields on employee job, employment, and compensation data.
- Cost Center is not part of the organizational hierarchy; it is usually assigned to the legal entity and sometimes to a department.
- Job Function groups job classifications for reporting and does not display on Job Information by default.
6.2 Foundation Objects: Organization, Pay, and Job Structures
Quick Answer: Foundation Objects (FOs) hold the organization, pay, and job structures that employee records reference. XML-based (legacy) FO records are managed in Manage Organization, Pay and Job Structures and imported with Import Foundation Data. MDF-based FO records are managed in Manage Data and imported with Import and Export Data. Set up foundation data before employee data, because employee records depend on it.
Two Kinds of Data
THR81 divides EC data into:
- Employee (HR) data: name, date of birth, nationality, job title, salary, and compensation.
- Organization data: departments, divisions, legal entities, job classifications, and pay structures. In SAP SuccessFactors these are Foundation Objects.
Foundation objects are standard, pre-delivered structures that can be customized. Their fields can reference picklists and other XML or MDF objects, which appear as drop-downs. Each FO has standard fields and custom fields, and several have country-specific fields.
Tools for XML-Based and MDF-Based Objects
| Task | XML-based (legacy) FO | MDF-based FO |
|---|---|---|
| Configure structure (labels, custom fields, associations) | Corporate Data Model | Configure Object Definitions |
| Create, edit, delete records | Manage Organization, Pay and Job Structures | Manage Data |
| Import records in bulk | Import Foundation Data | Import and Export Data |
Permissions that control foundation objects: Manage Foundation Objects, Manage Foundation Object Types, MDF Foundation Objects, and Metadata Framework (Section 7.5).
For any bulk action, the import file must match the object's configuration, so always download a fresh template first.
Effective Dating of Foundation Data
Most foundation objects are effective-dated. The first record marks when the object was created, and each change starts a new record on its effective date. For each record an administrator can:
- insert a new record with a past, present, or future effective date
- make a correction
- permanently delete an entry
A record can be used only from its effective start date. THR81's example: the legal entity ACE Germany (ACE_DEU), created on 01/01/1990, can be used for employee records on or after that date. The same rule explains a common error. You cannot associate a location with a legal entity if the location record is older than the legal entity record.
Organization-Related Foundation Objects
| Object | Key facts |
|---|---|
| Legal Entity | The company where the employee is hired and has a contract. It cannot span more than one country. Its country controls the country-specific data on the employee's Job Information, Employment Details, and Compensation Information. It maps 1:1 to a company code in EC Payroll, SAP HCM, and S/4HANA. The legal entity on a Position must match the one in Job Information. It is the highest object usable in the organization hierarchy. |
| Business Unit | A business area or line of business of the company (not geographical) |
| Division | A level below the business unit. It has a standard Parent Division field for hierarchy levels, and associations can link it to one or more business units. |
| Department | Similar to division, with a Parent Department field. It can be associated with divisions, and one department can belong to several divisions. |
| Cost Center | Where the employee's costs are assigned in payroll and finance. Not part of the organizational hierarchy. Usually assigned to the legal entity, sometimes to the department. It has a Parent Cost Center field and can store external IDs for financial systems. |
| Location | Address of each physical office. It can be associated with a Geo Zone and Legal Entities. International address formats come from the Corporate Address in the CSF Corporate Data Model. |
| Location Group | Optional geographical grouping of locations, used mainly for EEO reporting in the USA |
| Geo Zone | Groups locations. It has an Adjustment Percentage for cost-of-living pay-range adjustments and is used mainly with the Compensation module. |
SAP notes that in SAP SuccessFactors the position structure exists independently of the organizational structure. Position Management is covered in Chapters 11–13.
Pay-Related Foundation Objects
Pay data provides remuneration information such as pay components, pay frequency, pay group, pay grade, and pay range. A pay range has built-in associations, such as to a pay grade. Companies with enterprise or union agreements can use the Pay Scale Structure.
Job-Related Foundation Objects
- Job Classification: stores all job codes and their information, such as supervisor level, job level, regular/temporary, full/part time, employee class, job title, and pay grade. It can have country-specific fields.
- Job Function: sorts job classifications by the work performed; for example Developer and Developer Manager belong to Engineering. By default it is not displayed on Job Information and is used for reporting.
Worked Example from THR81
ACE Corp opens a Berlin office and enters the storage business:
| Task | Tool |
|---|---|
| Create Business Unit Storage (ACE_STOR) | Manage Data (MDF) |
| Create Location Berlin (DU_BER) with location group, timezone, geozone, legal entity, and address | Manage Organization, Pay and Job Structures (XML) |
| Import Cost Centers 500–502 | Import and Export Data (MDF): download template, fill, validate, check Scheduled Job Manager, import |
| Create Job Classification Storage Hardware Engineer (STHWEN) | Manage Data (MDF) |
| Create two Pay Ranges for the US and Germany | Manage Organization, Pay and Job Structures (XML) |
This shows which objects are MDF-based (Business Unit, Cost Center, Job Classification) and which are XML-based (Location, Pay Range).
Propagation from Foundation Data
Once foundation data exists, propagation rules fill parts of the employee record automatically, which reduces errors. Choosing the Engineer (ENG) job classification during a hire can fill the pay grade and weekly hours. Propagation rules are covered in Section 5.3.
An administrator must create a new Location record. Which tool is used?
Which statement about the Legal Entity foundation object is correct?
Which foundation object is not part of the organizational hierarchy and is usually assigned to the legal entity?