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OHAQTRM00020 - Set Up Redundancy Rules for Paying Leave Quotas

OHAQTRM00020 - Set Up Redundancy Rules for Paying Leave Quotas

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In this Customizing activity, you set up additional information required to pay leave on termination/redundancy. The information entered for each absence quota type is used to:

  • Define which part of leave is paid out (entitlement, accrual or both)
  • Define whether and how leave loading is paid out
  • Define the number of years an employee must work before leave is paid out

You may use Quota type selection rule group to control absence quota type selection based on the employee's organization assignment during time evaluation. Now, you proceed to process leave based on leave and absence quotas in Personnel Time Management.

Before you can process leave-loading payments on termination/redundancy, you must configure the standard setup for leave loading payments used by payroll. To do this, go to SAP Reference IMG -> Payroll Australia -> Leave provisions and payments (Leave Quotas) -> Leave Loading.

The standard system contains model redundancy rules and wage types that you can copy and modify.

SAP recommends that you set the Quota type selection rule group by using the feature QUOMO. The other methods of configuring Quota type selection rule group are by using:

  • Function MOD in the time evaluation schema
  • A personnel calculation rule you have written yourself in the time evaluation schema

If you require to set the Quota type selection rule group through the time evaluation schema, using the above two methods, then you must set the Quota type selection rule group to blank in this table.

To set up the additional information required to pay leave on termination/redundancy, do the following:

  1. Choose Edit → New entries.
  2. Enter the employee subgroup grouping and the personnel subarea grouping for time quota types, the quota type selection rule grouping if applicable, the absence quota type, the reason for the leave quota, the redundancy model, and the validity period.
Note that configuring the quota type selection rule group is not mandatory.
  1. If necessary, in Max Contin Yrs enter the maximum number of continuous years the employee must have worked before the absence quota type is paid on termination.
In case you do not want to check the length of service before paying the absence quota type, leave this field blank.
  1. In the Parameters for leave payment section, do the following:
    1. Select the Pay Entitlementindicator to pay leave loading on the quota type's entitlement value.
    2. In Entitlement Wage Type, enter the leave entitlement wage type.
    3. Select the Pay accrualindicator to pay the leave type accrual payable on termination for the absence quota type.
    4. In Accrual Wage Type, enter the leave accrual wage type.
    5. In case the entitlement is less than 0 and you do not want to pay the accrual, select the No accrual if entitlement <=0 indicator.
    6. In Compensation method, enter the compensation method to use, to create quota compensation record for entitlement.
    7. If the absence quota type is marginally taxed on payment, you must nominate a non-marginally taxed wage type in the Negative entitlement wage type field. This prevents any marginal taxing errors when a quota payment is negative.
Note: If the reason for termination is genuine redundancy, early retirement or invalidity, enter wage types for employees both Below Pension Age and Above Pension Age. For other reasons of termination the wage type you enter in Below Pension Age will be applicable for employees both below and above pension age.
  1. In the Parameters for leave loading payment section, do the following:
    1. Select the Pay on remaining entitlement indicator to pay leave loading on the remaining entitlement portion.
Choose this option only if leave loading is configured for 'Paid when taken'.
  1. Select the Pay on entitlement transfer till notice date indicator to pay leave loading on the entitlement transfer till notice date.
Choose this option only if leave loading is configured for 'Paid on Entitlement transfer'.
  1. Select the Pay on accrual indicator to pay leave loading on the leave type's accrual value.
  2. If the reason for termination is genuine redundancy, early retirement or invalidity, enter the Leave loading wage type for employees both Below Pension Age and Above Pension Age. For other reasons of termination the wage type you enter in Below Pension Age will be applicable for employees both below and above pension age.
  3. Enter the Leave loading percentage.
  • Save your entries.





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