HCM carve-out from the SAP system

SAP environments that combine SAP ERP and HCM systems are a common practice. The key benefits of this solution include cost savings from maintaining fewer SAP instances and enhanced seamless integration (interfaces) between system components. On the other hand, however, a system containing an HCM module must be updated frequently to reflect changing regulatory requirements. With regard to the rest of the ERP environment, users usually prefer stability over frequency of patch uploads. In addition, more people have access to the shared system, making it difficult to maintain the security of sensitive HR data.

Another argument in favor of carving out the HCM system is the planned migration to the SAP S/4HANA platform. Separating these systems allows for distinct migration project schedules for ERP and HCM.

The easiest way to carve out an HCM system from an ERP system is to create a copy of the system, change the SID and SAP license number, and customize and build new interfaces between the systems. This approach ensures a quick separation of the HR and ERP systems, but leaves unnecessary data in both systems. After the split, HCM data remains in the ERP system and vice versa.

Naturally, the question about deleting unnecessary information arises. Such an operation is not easy in SAP. Firstly, it takes a lot of time, and secondly, not everything can be deleted by standard means. Some data can be deleted manually, some using a tedious archiving procedure, and some data cannot be deleted by standard means.

Dedicated tools are available to help clean the system of unnecessary data or assist in selectively copying only chosen data. All for One Poland offers the All for One Carve-out Kit product. Using this tool, you can quickly delete the data of a module that is no longer needed or an unnecessary SAP organizational unit (e.g. the entire company code and dependent organizational units). So you can delete HCM data from the ERP system and ERP data from the HCM system.

Additionally, All for One Carve-out Kit allows you to copy selected data to a clean copy of the system. This enables the creation of an HCM system in a way that allows for even better limitation of the data necessary for HR operations. Therefore, initially on the basis of the ERP system, you can create a so-called empty shell, without transactional and master data, and in the next step copy HCM data to this system.

If a customer is planning to migrate to the SAP S/4HANA platform and wants to separate HCM and ERP systems, three scenarios are possible:

• a carve-out project conducted before the migration to S/4HANA;
• an HCM carve-out project after migration to S/4HANA;
• combining the HCM carve-out during the transformational migration to S/4HANA.

The last scenario reduces the time of the entire project (one project instead of two consecutively), its cost and the involvement of business users in testing the changes in the system.

Also, this type of project is not new to All for One Poland – we have the tools to support this approach and experience from many completed projects. If you intend to carve out your HCM system from your SAP ERP system or merge separate SAP systems in one system – feel free to contact us.

All for One Poland specializes in projects related to changes that may concern both the company’s business, as well as IT strategy and the way SAP environment is managed. They include SAP S/4HANA migration projects, cloud migrations and technology migrations, as well as mergers and carve-outs, business reorganizations and harmonizations, as well as data migrations.

SAP HCM system carve-outs from SAP is one of the types of SAP system transformation projects carried out at All for One Digital Transformation Center.

In 2022 and 2023, our consultants delivered large projects of HCM carve-outs from SAP. The first project was carried out for an international packaging recycling company based in Germany. The project lasted six months. During data carve-out, additional selection was made by organizational unit. The second project was carried out for a German group of companies combining real estate management, the hotel industry and beverage production. During this project, the consultants did not transfer HR data, but removed redundant HCM data from a copy of the SAP system. The project lasted five months.

In 2023/2024, we performed a complex SAP ERP/HCM to S/4HANA conversion project for an educational institution from the Middle East region. During this project, we performed the merge of data of employee groups, employee subgroups, personnel events from the SAP HR system, and employee data cleaning. The project lasted ten months.

DTC is an All for One division established in 2018. It is focused on the implementation of SAP transformation projects, including migrations to SAP S/4HANA. It brings together more than 50 consultants divided into several teams. High competence and years of experience are confirmed by numerous certifications from SAP and other partners. DTC has already carried out more than 160 transformation projects, including more than 70 migrations to S/4HANA.