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OHAQTRM00012 - Set Up Severance, In Lieu and Additional Payments

OHAQTRM00012 - Set Up Severance, In Lieu and Additional Payments

ABAP Short Reference   General Data in Customer Master  
This documentation is copyright by SAP AG.
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In this step, you set up information on the severance pay, additional pay and payments in lieu of notice. Separate wage types should be used for each of these categories.

For severance pay, you:

  • Set up the wage type for severance pay.
  • Specify the number of weeks to be paid out for each year of service.
  • If required, set up an age field to check the employee's age.
  • Depending on whether the employee's age is greater or less than the specified age, enter a value against Weeks under age or Weeks over age.
  • You can configure the system to calculate pay based on completed weeks/months/days of service rather than only completed years of service.
  • You can set up a net dollar value to be paid as severance pay. If a figure is entered in the dollar value, the number of weeks will not be considered. The over age or under age options can be set up for a dollar figure for the net value and will not be multiplied with the period of service.
  • If necessary, you can set up minimum or maximum limits for the weeks or dollar values to be paid.

    If you choose minimum weeks to be paid out, in which case the system will first calculate the total weeks severance pay based on the rate and then compare the result with this minimum limit and act accordingly.

    If you choose minimum/maximum dollar figure to be paid out, the dollar amount entered will be compared with this limit.

For in lieu of notice, you:

  • Set up the wage type for in lieu of notice
The in lieu of notice entry is similar to the severance pay entry in that you specify an age that the system checks the employee's age against. If the employee's age is less than the specified age, the system processes the weeks under age value for the in lieu of notice period. If the employee's age is greater than the specified age, the system processes the weeks over age value for the in lieu of notice period.
You can specify a net dollar value for lieu of notice payment. You can also configure minimum or maximum payout options for this payment.

For additional payments you:

  • Set up the wage type for additional payment.
The additional payment entry is similar to the severance pay entry where you specify an age which is verified by the system. In case the employee's age is found less than the specified age, the system processes the weeks under age value for the period. In case the employee's age is greater than the specified age, the system processes the weeks over age value for the additional payment period.
You can specify a net dollar value (in Australian dollars) for additional payment. You can also configure minimum or maximum payout options for this payment.

The standard system contains model SAP wage types that you can copy or use.

The wagetypes set up as above will be used to pay out the amounts on termination. For calculation purposes, the wagetypes with setting of processing class 78 will be considered.

Example

For severance pay, say, wagetype I405 is set to pay out 4 weeks. This means that the wagetype which has PC 78 set to S ( like Bonus or Base salary) will be considered in the severance period i.e. 4 weeks. This wagetype should be specified in any of the infotypes like 0008 or 0015 for that employee.

E001- Base salary (with Processing class 78 set to S ) - Infotype 0008 - amount 120000.

Then E001 will be considered when runnig the payroll from temination date till severance pay enddate ( termination date + 4 weeks). Let us say this amount comes out to be 9230. Then 9230 will be paid out by the wagetype I405.

To set up information on severance pay, additional pay and in lieu of notice payments, you:

  1. Choose Edit -> New entries, and enter the redundancy model and the validity period.
  2. Enter the payment type of the redundancy rule:
To define an in lieu of notice payment, enter L.
To define a severance payment, enter S.
To define an additional payment, enter A.
  1. If required, enter the maximum number of continuous years that the employee must have worked before the payment type is paid out.
  2. Enter the relevant termination details.
  • In case of payment type S, to calculate based on part year service(days/weeks/months) you must select the Prorate part time period indicator and set up the Time unit for part period to the relevant period.

  • To pay out weeks, enter the number of weeks in Weeks paid field.

  • To pay out the dollar figure, enter the amount in Australian Dollars paid. The weeks paid will be ignored in this case.

  • To set up minimum payout option, choose the appropriate radio button as necessary and enter the minimum weeks/dollar figure.

  • To set up maximum payout option, choose the appropriate radio button as necessary and enter the maximum weeks/dollar figure.






CL_GUI_FRONTEND_SERVICES - Frontend Services   Vendor Master (General Section)  
This documentation is copyright by SAP AG.

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