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OHBEN1182 - Define Cost Variants

OHBEN1182 - Define Cost Variants

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In this step you define cost variants to determine which factors influence the cost of a miscellaneous plan for an employee. Variants are plan-specific; each plan has its own variant(s).

You do not enter any actual costs in this step. You simply define the possible ways in which costs for a plan can vary depending on selected criteria. You determine how costs vary for plan options in the step Define Miscellaneous Plan Attributes.

Note that you only need to define cost variants for those plans that you specified as cost/credit-relevant and requiring a cost variant in the step Define Miscellaneous Plan General Data.

Before you start to define variants, you need to do the following:

  1. Determine how often cost varies for different plans and any plan options.
This indicates how many cost variants you need.
If coverage is defined for the plan, proceed as follows:
  • If a plan has set flat coverages and corresponding flat costs, define a cost variant for each flat cost.

  • If the plan has flat coverages, and the flat costs are directly proportional to coverage, define only one cost variant.

  • If an employee can choose any amount of coverage within a range and the cost of the coverage is directly proportional to the coverage, define only one cost variant.

  • If the plan has no coverages but different options that have different costs, define one cost variant for each different cost.

  1. Determine how costs vary according to employee data.
This determines how you need to set up your variants using employee groupings.
For each variant, you can specify a parameter group and cost grouping to determine cost. You can also indicate whether the gender of employees and whether or not they are smokers are cost criteria.

The Company Car plan has two plan options:

  • Small Car
  • Large Car

Each option has a flat monthly cost, which varies according to how far employees live from their place of work.

The plan needs a cost grouping set up to differentiate by zip code, and two cost variants set up as follows:

  • SMCT - period Monthly and Cost grouping selected
  • LGCT - period Monthly and Cost grouping selected

You have created any parameter groups that you want to assign to your variant in the step Define Parameter Groups.

  1. Select the period for which the variant is valid.
This period applies to all rules associated with the variant.
  1. Specify the criteria that are relevant to the calculation of cost in the variant.
    1. If required, enter a parameter group and indicate which of the referenced employee criteria groups you want to use.
    2. Set the Cost grouping indicator if you want to use this feature to group employees.
    3. Indicate whether the gender of the employees and whether or not they are smokers are cost criteria.
    4. Specify whether the age, gender, and/or smoker data of the employee, spouse, or domestic partner is used as the basis for calculating cost.
    5. Set the Step limit indicator if you want to define a graduated cost calculation for different levels of coverage.





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