EhP4_Overpayment Recovery_03312010 (2).pdf

SAP ERP Human Capital ManagementSalary Overpayment Recovery Solution March 31, 2010 Agenda 1. 2. 3. 4. 5. Solution Overview Implementation Requirements Business Scenario Reporting / Utilities Customizing © SAP 2007 / Page 2 Salary Overpayment Unable to collect back overtime and adjust taxable's at point of collection Claims are only generated when the salary overpayment exceeds the amount able to be recovered.Solution Overview Claims vs. Crossing tax year functionality is manual Clearing claims and recovery the claim is manual Claims (generation of /561) Salary Overpayment A claim should never be generated because the system determines true salary overpayments and moves then to a salary overpayment table. Ability to collect back overtime and adjust taxable's at the point of collection Crossing tax year functionality is automated in the solution No need to clear claims and the recovery is based on business rules © SAP 2007 / Page 3 . © SAP 2007 / Page 4 . Solution is Concurrent Employment enabled. Year end tax filing will no longer be complicated by claims situations. total forgiveness. This infotype also tracks Employee Consent . repayment amount. Employer Notification attempt. partial forgiveness.Solution Overview Salary Overpayment Solution Customers will no longer need to create clearing wage types matching every possible taxability to ensure accurate clearing of overpayments. Ability to check minimum wage requirements before recovery of overpayment. Payroll functions to calculate the overpayment and allow for the repayment of the debt based on configuration Ability to override business rules through an overpayment recovery infotype. Configuration setting that turns on or off the automatic clearing of overpayments as well as setting overpayment recovering threshold levels Ability to collect back over time and adjust taxable at the point of the collection is made. Payroll Results Cluster table – Overpayment collection table which stores the details of the overpayment and balance information. Solution Overview Payroll Process With the activation of the US Overpayment Recovery Solution. There is a new transaction/utility updates the employee’s master data with per pay period overpayments. there is an additional processing step to create the master data relevant for the overpayments created in payroll. © SAP 2007 / Page 5 . Solution Overview Payroll Process The Payroll Process with the activation of the US Overpayment Recovery Solution: Release Payroll Start Payroll Payroll Run Complete (OK)? Yes Check Completeness Exit Payroll No Corrections Subsequent Activities Master Data Corrections Overpayment Utility (updates to infotype 0909) © SAP 2007 / Page 6 . Implementation Requirements ERP 6. Once activated. it must not be deactivated. all existing claims (/561) must be cleared in productive environment. Configuration based on business requirements © SAP 2007 / Page 7 .0 Enhancement Package 4 SP02 Prior to going live. 33 effective PP02. Before executing PP03. an overpayment of $1000.33 in salary with wage type 1002 After payroll has been exited the Payroll Audit process determines the employee should have been paid $1083. Overpayment recovery solution has been activated and payroll will recover the overpayment according to the business rule framework.Business Scenario Employee Scenario PP02/02 Employee paid $2083. the employee’s master data is corrected causing a retroactive payroll run to PP02.00 would be generated for PP02/03. © SAP 2007 / Page 8 . Therefore. Business Scenario (continued) Business Rules Overpayment Recovery Solution Active (T77S0) Employer Operates in Colorado requiring an employee’s consent to recovery any salary overpayments Upon employee’s consent the employer may recover 10% of gross earnings or a greater amount authorized by the employee (override) Minimum wage check not invoked © SAP 2007 / Page 9 . Business Scenario (continued) PP02/03 WT 1002 restated as paid since the money has not been recovered. © SAP 2007 / Page 10 . PP02/03 WT /584 is calculated with the gross overpayment for WT 1002. PP03/03 WT /580 is generated in current period with the gross overpayment. © SAP 2007 / Page 11 .Business Scenario (continued) The Payroll CLM cluster table stores the relevant overpayment results for the employee. The employer has selected employee consent obtained and employer notification provided. payroll will not begin recovery until infotype 0909 has been updated with EE Consent. (continued) State requires employee consent therefore based on the configuration.Business Scenario The Recovery Process…. © SAP 2007 / Page 12 . The Overpayment Recovery utility is processed to update infotype 0909 with all employees in PP03 that generated an overpayment. Business Scenario (continued) The master data….US Overpayment Recovery Infotype (IT 0909) © SAP 2007 / Page 13 . . Auto-clearing at the state level is OFF State minimum wage check not active Recovery threshold set to 10% of /101 Work tax area defined by the work tax area infotype ( IT0208) © SAP 2007 / Page 14 .Business Scenario (continued) The business rule framework…. Business Scenario Recovery through payroll… (continued) © SAP 2007 / Page 15 . Business Scenario Recovery through payroll… (continued) © SAP 2007 / Page 16 . US Overpayment Recovery Report Reporting tool to review the details of an overpayment for an employee or for a group of employees during a specific payroll period.Reporting / Utility US Overpayment Recovery Utility As part of the payroll process. the utility will be executed to update all relevant overpayments and necessary master data according to business configuration. © SAP 2007 / Page 17 . payroll will evaluate the configuration of PCL 77 for each wage type to determine whether it should be included in the overpayment calculation process.Customizing Technical Wage Type to Support this process: /580 /581 /582 /583 /584 /585 Overpayment Balance Amount Recovered Prior year Overpayments Amount forgiven Total Amount Overpaid Previous Period Overpaid Balance Additional Wage Type Configuration: Assign Overpayment Recovery Processing Class for earning wage types (PCL 77) Processing class 77 should be configured for all earnings that may cause an overpayment. Within the payroll function USCLM. © SAP 2007 / Page 18 . Check wage type permissibility for infotype 0909 (table V_T512Z) Wage types which have a PCL 77 configured with a value of a ‘1’ should also be configured as a permissible wage type for the US Overpayment Recovery Infotype (IT 0909). 00’ should be entered with the appropriate effective dates. It must be activated with the subsequent configuration in payroll.Customizing The overpayment recovery solution must be activated at a system level. a value of a ‘1. Activation of auto-clearing functionality (V_T511k – AUTCL) At an organization level. © SAP 2007 / Page 19 . Return Value: ‘X’ = Active and ‘ ‘ Inactive (blank) Once activated. there are additional configuration settings to address customer specific business requirements through standard configuration. a value of a ‘1. When the AUTCL is inactive. the system will not automatically forgive overpayments in a termination. Activation of auto-forgiveness for terminated employees (V_T511k . When this functionality is inactive. payroll will not recover overpayments without the Overpayment Recovery Master Data defining the employee consent and applicable master data. Activation of prior year balances (V_T511k – REPYR) This setting determines whether payroll should move prior year repayments as a post-tax deduction and recovery accordingly. To activate this functionality. It can result in inconsistent payroll results. this provides auto-clearing functionality.00’ should be entered with appropriate effective dates. a value of a ‘1.00’ should be entered with the appropriate effective dates. This setting should not be turned off once it is turned on. then the recovery process will continue adjusting taxable's as the recovery is made from the employee’s pay. If this is not active. To activate this functionality.FGVTR) This setting will automatically forgive overpayments during a termination. When the AUTCL is activated payroll will begin to recover overpayments using the rule framework (threshold rules). To activate this functionality. Activation of Overpayment Recovery (T77S0 – CCURE / NWCLM ) This setting activates the Overpayment Recovery Process in Payroll. defines whether minimum wage check is required at the state level and whether employee consent is required. Define threshold rules & forgiveness This setting defines a rule. © SAP 2007 / Page 20 . wage type and operation of the rule.Customizing Business Rule Framework Minimum wage check This table stores the value for the state minimum wages. Assign Threshold Rules to Criteria This setting links the criteria key to the threshold rule. This specifically defines the criteria. amount/percent. you should not enter net wage types for calculation of recovery Define Rule criteria. Define conditions for Rules This setting links the threshold rule to a condition for rule. search help and priority This setting defines the criteria to be used in the recovery and a priority when multiple criteria's are defined. In condition for rules. the effective dates and whether the rule allows for automatic forgiveness of an overpayment in a retroactive termination. This will be evaluated when it is required to check that the employee will earn at least minimum wage after recovery of an overpayment in a pay period. Wage type priority This setting defines the priority of a wage type in the recovery process. Create the form routine in RPCALCU0 within customer include for any custom processing for recovery or overpayments. © SAP 2007 / Page 21 .Customizing Overpayment Recovery in Off-Cycle Processing (Transaction SM30 / Table: HRCCE_V_OCR) Defines which off cycle reasons are valid for overpayment recovery Schema Settings (payroll function: USCLM) Activate in sub-schema (or copy of sub-schema) UAL0 Location: Immediately after X023 Parameters within Non-CE payroll: Parameter 1 = CUST Calls form routine with the name OVERPAID_DEDUCTION_PROCESSING. Customizing Schema Settings (payroll function: USCLM) for Manual Checks Activate in sub-schema (or copy of sub-schema) UMC0 Location: Immediately after X024 Parameters within Non-CE payroll: Parameter 1 = CUST Calls form routine with the name OVERPAID_DEDUCTION_PROCESSING. Create the form routine in RPCALCU0 within customer include for any custom processing for recovery or overpayments. © SAP 2007 / Page 22 . Customizing Enhancement Spots: HRCCE_GET_CRITERIA_RULES .Customer defined threshold calculations HRCCE_WORKTAX_AREA .Customer defined work tax area User-Exits: PCBURZUS0 / Form: OVERPAID_DEDUCTION_PROCESSING Provided to allow for customizing in pre-tax deduction overpayment scenarios © SAP 2007 / Page 23 . © SAP 2007 / Page 24 .Then recovery will be 300 dollar. based on the threshold configuration.00 (ON) Then when rule framework is invoked it will take all earnings within the same tax company for active assignments based on the percentage and wage type defined in configuration. For example: Overpayment balance of 3000.00 Assignment 2 earns M003 = 2000. The recovery will be distributed based on the gross earnings.00 Total gross earnings towards /101 = 3000.00 created on Assignment 1 Assignment 1 earns M003 = 1000.00 Rule frameworks state recover 10 percent of /101.00 Total gross earnings towards /101 = 3000.00 Assignment 1 earns M003 = 1000.00 Assignment 2 earns M003 = 2000.Concurrent Employment Specific CE Configuration: Activation for recovery from all assignments (V_T511k . T511k RECAL = 0 or blank (OFF) Then when rule framework is invoked it will take earnings within same tax company for the assignment where the overpayment has been created.RECAL) T511k RECAL = 1.00 Rule frameworks state recover 10 percent of /101. Then recovery will be 100 dollars based on /101 of assignment 1. For example: Overpayment balance of 3000. © SAP 2007 / Page 25 .Concurrent Employment Specific Schema Settings (payroll function: USCLM) Activate in schema (or copy of sub-schema) U00C Location: Immediately after UAL0 Parameters within CE payroll: Par1 Function CUST Calls form routine with the name OVERPAID_DEDUCTION_PROCESSING Create the form routine in RPCALCU0_CE within customer include for any custom processing for recovery or overpayments. COLL Process Overpayments (called for each personnel assignment) RECO Process Recovery from the Person CUML Move Wage Type /580 from RT to RT_PERSON and cumulate. Concurrent Employment Specific Schema Settings (payroll function: USCLM) for Manual Checks Activate in schema (or copy of sub-schema) UM0C Location (s): First call: Immediately after X023 within subschema UM0C Second call: Immediately prior to UTAC within subschema UM0C © SAP 2007 / Page 26 . the functionality has been developed where the overpayments of the personnel assignments are grouped together in accordance with the tax company. The current limitation within this design is it isn’t overpayment specific therefore the exemption for the assignment is all or nothing. © SAP 2007 / Page 27 . recovery will occur from this assignment irrespective of the exempt flag set in Infotype 941 for this assignment. The grouping of the tax company is done through grouping reason XXNT. If the personnel assignment has an overpayment. Infotype 941 allows exemption from recovery for an assignment who does not have an overpayment. This infotype then allows for the complete exemption of an assignment from the overpayment recovery process.Concurrent Employment Specific CE Configuration: Grouping Reason / Rule XXNT In a CE Scenario. Override infotype – Exempt from Personnel Assignment (infotype 0941) This infotype will only be relevant when RECAL is active in T511k. Thank you! © SAP 2007 / Page 28 . Die Informationen. Die in diesem Dokument enthaltenen Informationen sind Eigentum von SAP. a. or consequential damages that may result from the use of these materials. SAP NetWeaver. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. hinsichtlich der Gewährleistung der Marktgängigkeit und der Eignung für einen bestimmten Zweck sowie für die Gewährleistung der Nichtverletzung geltenden Rechts. and/or development. unterliegen nicht dem Einfluss von SAP. Dieses Dokument enthält nur vorgesehene Strategien. 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