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Annual HRSP upgrade

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Every year we upgrade our SAP_HR and EA_HR components of our SAP ERP 6.0 EhP 5 system. I believe this is to comply with US federal tax regulations.

Are there legal repercussions if we do NOT perform this annual upgrade? Is there some type of year-end payroll task that cannot be accomplished?

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HRSP (or Support Package) addresses following:

a)Legal Requirements or rule changes from State or Federal governments (related to tax levels, reporting, etc.) - these are mostly annual

b)Corrections for issues (reported by customers or found by SAP). as per the pipeline that SAP would have

c)New features or enhancements to improve the package

Note some items in b) & c) may not apply to your installation, as you may not be using the relevant part of HR - for example you may not be using Training & Development.

The SP's are not annual only as seen in other countries like Australia.  It depends on SAP's schedules.

Applying SP's helps to ensure that the company follows the legal requirements.  It helps in other ways as can be seen above.  Usually, as observed in many installations, customers apply notes required for legal requirements and SP's (for other than legal requirements) one level before the latest.  It is probably similar to what you do for other software.

If you do not keep up with the SP's, you may run the risk of (a)not complying with legal requirements (b)not able to use the latest features.

Further notes:

1. Mostly everyone customizes schemas and PCRs - standard way is by copying SAP object to customer name/number range.  For example, U000 schema copied as Z000, pcr XPPF copied as ZPPF and the custom ones would be changed as required.   If you have changed the SAP schema instead of copying, then the changed SAP schema is saved in the T52C1.  Standard SAP schemas are in T52C0.  A user saved schema will not update T52C0.  When you next display/modify a user-modified SAP standard schema, txn PE01 brings the schema from T52C1 not T52C0.  Thus, when a SP changes such user changed SAP schema, you can not see the change d schema in PE01 txn.

Hence to get over such problem, one of the following alternatives may be used when SP changes a customized SAP schema:  Note this would apply only when you use standard SAP transactions(e.g., SPAM, SPAD) to apply a SP; not when you change a SAP schema manually in PE01 txn.

1.1)Using standard way of customising a SAP schema:

1.1.1)copying to Yxxx or Zxxx range

1.1.2)when SP changes the relevant SAP schema, copy the changes as required to the custom schema.

1.2)If you customize the SAP schema and save with the same name:

1.2.1)Copy the user changed schema to a different name (e.g., U000 copied to Y000)

1.2.2)Delete the user changed SAP schema.  Note this deletes the entries from T52C1 not from T52C0. (e.g., delete U000).  When you display now the same schema, it will bring the schema from T52C0 with any change from the SP.

1.2.3)Then you can apply any change from the copied previous version of customized schema.

I'd strongly recommend using standard way of customizing schemas and PCRs.

2. However there is only one table T52C5 to store PCR's whether a SAP one or a customer one.  When an SP changes a standard SAP PCR and you have a customized version, apply the changes from SP to the custom version as required.

3. As part of customization document, include following.  These help future changes and any support situations and avoids a consultant spending time unnecessarily going through the code, schema, PCR, etc.

3.1)List of customized ABAP objects (programs, functions, includes, etc), schemas and PCRs and corresponding SAP objects. 

3.2)Detailed document of each such customized object including the purpose, requirements, design, etc. 

Similarly there would be many other documentation needs for an implementation or modifications.  For example: naming conventions used, customizing PAs/PSA's, groupings with purpose/meanings, etc.

Ensure the document/s is/are kept up-to-date, with any changes.

Hope this helps

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Thank you Jagan

I understand the reasons behind the upgrade from the viewpoint of keeping the system current.

I know I could apply CLC's and notes to get around installing the support pack, but the business would like to avoid any upgrades to the system this year - if possible. I am trying to determine if this is feasible 

For example: The HR group at my company said they would not be able to provide an accurate W2 statement for employees without the annual HRPS upgrade. Is this true?