- SAP Managed Tags:
This is the part 2 of the series of TO blogs. This part will cover implementation of time served based entitlements. There may be certain types of leaves that employees are entitled to, but only after serving a certain amount of time. We will look at various aspects from a technical as well as functional point. We will revisit the deduction rules and see how some of the latest offerings from SAP solves some really vexed problems.
A case in point would be the Long Service Leave in Australia. Furthermore, each state has its own flavour. For example, in one of the states, the legislation states that (purely for explanation purpose, liable to change with legislation):
In very simple terms, if the employee sticks with the organisation for 10 years, they have an entitlement for 8.67 weeks and in every subsequent step of 5 years the entitlement will pro-rate.
The requirement is sufficiently simple but the interpretation is not! What if you start as a Part Time employee and then move to Full Time employment. Can you still be away for 8.67 weeks? That would seem unfair on a career Full Time worker. What happens to a career Full Time Worker who decides to go Part time in her 11th year of employment? Does she still get only 8.67 weeks? How do you handle employees on a roster? Often times, in resources sector people work on rosters - wherein they continuously work for certain number of weeks and are off site for certain number of days. For example, three weeks on and two weeks off, etc? How are the leaves deductions managed and calculated? Lets look at a working example.
We define our requirements as follows:
1. A calculated amount of leave must be accrued daily.
2. Based on a calendar, the first tranche of the accrued leave must be transferred as entitlement after a continuous service of 10 years.
3. Subsequent to that, after every 5 years of continuous service, the accruals must be transferred to entitlements.
Coming back to the first point, a "certain amount" of leave must be calculated. Think of this as your base entitlements in SAP HR. The T559L where you maintain this value. In our case, we will simply maintain this in a look up table in SF, like below (48.75 hours turns out to be 13 weeks equivalent! Yes, you can go above 8.667 but not below):
And you can use the value in the above look up table in the accrual rule as below:
A different contract may have 10 weeks equivalent, for example and that entry in the lookup table will automatically lend itself to accrual calculation for the specific employee.
Coming back to the second point, the above calculations calculate the accruals but are transferred to entitlements on a specific day. Let's look how, that could be accomplished.
The initial transfer rule as you can see, sets the initial transfer date as 10 years from date LSL anniversary date. LSL Anniversary date is like a certain date of date type in IT0041. Usually the hire date but could be changed under some circumstances etc.
The subsequent transfer date rule ( set it to 5 years, 1 year or whatever. These days some company offer annual subsequent entitlements to reduce their LSL liability or make it more easier for employees to access their leaves, early. May their tribe increase!):
Pay attention to the accrual transfer rule, this transfer the regular entitlements on the specific dates ( initial, subsequent etc) but has a special enhancement to handle manager any ad-hoc changes. Think Quota corrections IT2013.
We are almost done as far as TAT is concerned. There is just one more rule, the recruit rule, but by now you would have guessed that all it does is, it creates a time account for the specific time account type and posts a zero hour credit.
This is everything on the Time account type. Of course, these may appear as real life rules, but these are illustrations only rules. The real rules, for example, would not accrue any leaves while the employee is no some kind of "Leave Without Pay" or participating in industrial action etc. But, you get the drift..
This is everything about time account type, lets get back to the time type configuration itself and explore some interesting stuff.
The time time is shown below. Nothing special here, except the Absence Counting Configuration. The posting rules specify the time account type from which this would be deducted.
The absence counting configuration allows us to define, in very simple terms, how many hours if at all, we want to deduct for every single instance of approved time off. For example, if an employee were to apply for a leave between Monday and Friday (inclusive), one could use this rule to inspect every single day and calculate how many hours we would like to deduct. Under normal circumstances, a single instance of a leave is deducted simply for the number of hours that the employee is expected to work, normally the hours on the work schedule rule for that day. This is all fine, but when you consider that employees may actually work extended hours as part of rosters at remote sites, this gets a bit complicated. SAP HR consultants will intuitively recall the daily work schedule and the "variants" of the DWS. The variants of the DWS, thru configuration, would allow us to cap the deductions at a certain hour. The same (and more) could be achieved by the counting configuration.
In our example, the employee in question, was accruing leave at 48.75 hours a week or 13 weeks at the end of 10 years at the rate of 37.5 hours of week. If the leaves were deducted at normal hours using the daily hours in WSR, if the employee were working 10 hours a day, under changed working conditions, the employee would have far less less than the 13 weeks to enjoy their "Long Service". How is this to be handled? Enter Absence Counting Configuration.
The ACC has two parts:
1. The actual rule itself
2. On what days the rule must kick in.
In our case, I have set up the rule to kick in on all days of the week.
The rule itself checks, if the deduction is more than 7.5 hours. And if the deduction is more than 7.5 hours, then this is capped at 7.5 hours. What this does is, if the actual daily hours is more than 7.5 hours, the deduction is capped at 7.5 hours. So regardless of the hours you work as part of your roster, you can still avail 13 weeks at a clip of 7.5 hours. As an aside, if you worked full time for 10 years and then moved to an FTE of 0.5, then this would still allow you to be away for 26 weeks. Technically it is not 26 weeks of leave, as your non working days are simply not being counted.
Check this in action.
AN employee that works 12 hours on a particular day, requests LSL.
And just 7.5 hours are being deducted.
Following the configuration listed in part 1 of the blog, you can replicate both the accruals and entitlements into ECP. To calculate the LSL provisions, you need both accruals and entitlements. Once you get the entry into IT2020 into ECP, the standard payroll functions will be leveraged to calculate the provisioning.
To accomplish the above, two wage types were created by copying the model wt K202. One, called accrual and the other entitlement.
And they are mapped into the T5QLM table (view V_HRSFEC_T5QLM in SM30)
The time account types also need to be mapped to the wage types in the code value mapping table.
That's pretty much it, once you run the snapshot creation in SF, it should create data replication proxies like below. Out of sync means it is yet to be replicated into EC Payroll
You can run the absence replication transaction, HRSFEC_PTP_ABSE_REPL, it will replicate the data into ECP, infotype 2010.
And once you process pay, it will show up in the results. You can see the accrual and entitlement hours, below!
For those of you who are ABAP inclined like me, this is a good spot to see the whats and hows!. Of course, this is inside the function QLVPR, if you want to start from the root.
A word of caution here. If you have "built" the ECP using some lift-and-shift mechanism and have move the SAP HR On-Prem configuration to ECP without due consideration of impact analysis, there will be "double dipping". You accruals would be sum total of the traditional projections and IT2010. This would escalate the provisions. The provisions will be projecting the leave from the traditional configuration and adding the IT2010 bit as well. Obviously, this is wrong. As a centralised HRIS and Time Off Solution, all entitlements and accruals figures should be mastered from EC and ECP used only to ascribe a $ value. Anyways, what's a good project without an odd chuckle, some head scratching and finding out what's under the hood.
1 Comment
