Prepared by : HR Tech team.

This document basically gives a Brief overview about HR-Benefits.

Contents :
Introduction to Enrollment
Introduction to Benefit Offer
Introduction to Benefit Area
Introduction to Benefit Category
Introduction to Benefit Plan types
Introduction to Benefit Plans
Introduction to First
Program Grouping
Introduction to Second Program Grouping
Benefits Eligibility
Benefits Participation
Benefit Plan Costs
Introduction to HR Forms
Standard Reports in Benefits
Infotypes used in Benefits
Transactions Used in Benefits
Benefit Plans Specific to USA
Benefit Plans Specific to ASIA
Prededuction
Definitions

Introduction to Benefits

In a competitive employment market, benefits play a significant role in total

compensation offers designed to attract and keep the best possible
employees. The SAP Benefits (PA-BN) component offers you powerful and
comprehensive tools for creating and managing tailor-made benefits
packages for your employees. It allows you to administer an extensive range
of benefit plans, and its sophisticated configuration options can
accommodate complex plan definitions.
The Benefits application component offers comprehensive tools for
administering employee benefits in an organization. It provides all the
concepts and functions that are needed to manage extensive and highly
individual benefits packages for the employees of an organization.
Benefits integrates to SAP's International Payroll, however, it does not
integrate to every SAP Country Payroll version.

If we want to use Benefits for a Country Payroll version that is not

integrated, in conjunction with non-SAP payroll software or an external
payroll service, we must provide our own interface for the transfer of data.
The Benefits Administration component provides the functions needed to
handle the organization's benefits administration processes. It enables us to
perform the following key activities:

Enroll employees in benefits plans and terminate enrollments

Monitor eligibility

View information about current benefit enrollments

Print enrollment and confirmation forms

Transfer data electronically to plan providers

ENROLLMENT :
This is a process of enrolling employees of an organization for Benefit
Plans depending on their eligibility.

The Enrollment function enables us to enroll employees and, where possible,

make changes to employee benefit elections as required for the following
tasks:

Enrollment of employees during an open enrollment period in plans for

the coming season

Enrollment of new hires in plans that are automatically offered

Enrollment of new hires in default plans as an interim measure, until

they have made their benefits choices

Adjustment of plan enrollments as a result of employee life or job

changes

There are four types of Enrollments. They are

1. Open Enrollment Offer
2. Default Enrollment Offer
3. Automatic Enrollment Offer and
4. Adjusted Enrollment Offer

These Enrollments are also known as Benefit Offers.

OPEN ENROLLMENT
An open offer is the most unrestricted type of offer. It is generated by
the system when you start enrollment for a date that lies within an open
enrollment period. Only those plans are available in an open offer for which
the employee fulfills certain eligibility criteria, as defined in Customizing.
A period of time during which an organization allows its employees to enroll
in new benefits plans or change existing benefits elections.
The benefits offer set up for open enrollment is valid only during the open
enrollment period. Plans available for selection during the open enrollment
start on a future date, typically at the beginning of the coming year.
Open enrollment is implemented in the USA and Canada.
Example
A company allows its employees to choose their benefits on an annual basis
for the coming year. The open enrollment period is 1 Oct 1999 to 30 Nov
1999, and any new benefits elected by employees are valid from 1 Jan 2000
to 31 Dec 2000.
Default
A plan in which employees can be enrolled before they communicate their
benefits elections to the benefits office.

Default plans are typically used for giving short-term coverage to new hires
and therefore often allow little flexibility to the employee regarding the
plan terms.
Automatic

A plan in which employees are enrolled without the requirement that they
consent to the enrollment or make any elections within the plan. An employee
is enrolled in all relevant automatic plans at all times.
Automatic plans are often provided at no extra cost to the employee and
often allow little flexibility to the employee regarding the plan terms.
Adjusted
A personal or organizational change experienced by an employee, as a result
of which the employee is allowed to change his/her current benefit
elections.
In the SAP System, the adjustment reason is a user-defined parameter to
which certain adjustment permissions are assigned for different types of
benefit plan.
The following are examples of adjustment reasons:

Marriage

New dependent

Hiring (initial enrollment)

Job change

Benefit Area
Benefit areas allow you to have separate administration of different
benefit plan pools.
This division is primarily for administrational purposes and would not
normally be used

for eligibility.
This is a primary subdivision of plan set up within the benefits component.
Benefit areas are set up and function completely independently of each
other.
Typically, employees will be enrolled in a benefit area that groups them
according to common attributes such as country or organizational
assignment.
Below mentioned are some of the Benefit Areas :
Benefit Area

Name of HR country

01

Germany

02

Switzerland

03

Austria

04

Spain

05

The Netherlands

06

France

07

Canada

08

Great Britain

09

Denmark

10

USA

11

Ireland

12

Belgium

13

Australia

14

Malaysia

15

Italy

16

South Africa

17

Venezuela

18

Czech Republic

19

Portugal

20

Norway

21

Hungary

22

Japan

Benefit Category :
Benefit Category is the broadest classification of a benefits. Categories are
maintained by SAP .
The following plan categories are provided by SAP:

Health Plans

Insurance Plans

Savings Plans

Stock Purchase Plans

Flexible Spending Accounts

Credit Plans

Miscellaneous Plans

These categories are predefined because the system handles each

differently. In order to reflect your own requirements regarding the
categorization of plans, you define plan types within these categories.
Benefit Category is the highest level in the Benefit Plan structure . Benefit
Categories are again divided into Plan types . Every Category may consist of
one or more Benefit Plan types .

Benefit Plan Types

Benefit Plan types are the logical grouping of different benefit plans. Each
Plan type is identified by a unique identifier which is a maximum of four
characters.

Ex :
MEDI - Comes under Health Plan Category ( MEDI => Medical )
DCAR - Comes under Flexible spending Accts ( DCAR => Dependent Care
Spending )
LIFE - Comes under Insurance Plans Category ( LIFE => Life Insurance )
SAVE - Comes under Savings Plans Category ( SAVE => Savings )
STPC - Comes under Stock Option Category ( STPC => Stock Purchase )
CAR - Comes under Miscellaneous Plans Category ( CAR => Company Car )
CRED - Comes under Credit Plans Category ( CRED => Flex Credit )

Plan types are a control mechanism for enrollment, since the system does not
allow an employee to enroll in more than one benefit plan per plan type. This
allows you, for example, to offer a choice of regular health care from
different providers under one plan type, without the risk of accidentally
enrolling an employee in more than one of these benefit plans.
Within each plan category (for example, Insurance Plans) you should define
one plan type for each sort of benefit plan that the employee is likely to
elect (for example, Life Insurance, Spousal Life, Supplemental Life). Thus an
employee can elect a plan from the Life Insurance as well as from the
Spousal Life plan type.
Example
The following are examples of plan types for each of the plan categories:

Health Plans

General medical care

Dental care

Vision care plan

Insurance Plans

Basic life insurance

Dependent life insurance

Supplemental life insurance

Savings Plans

Retirement plan

Savings plan

Stock Purchase Plans

Own company stock plan

Flexible Spending Accounts

Health care spending account

Dependent care spending account

Credit Plans

Cafeteria plan

Miscellaneous Plans

Company car

Benefit Plans
The Granularity level in the Benefit Plans Structure is identified by Benefit
Plans. Many Benefit plans may be grouped together under a particular plan
type.The benefit Plans are also identified by a unique identifier which is of a
maximum of four characters.
Ex : MEDI , DENT , VISI for Health Plans Category ( MEDI Plan Type )

Benefit plans within the health plan category cover the basic health needs of
an employee. A typical health plan might provide the employee with medical,
dental or vision coverage.
Insurance plans provide monetary amounts of coverage payable to the
employee or designated beneficiaries.

A savings plan allows an employee to accumulate capital within a company

sponsored benefit plan.
A spending account provides an employee with the opportunity to establish
account balances to meet anticipated spending needs during the course of
the employee's benefit plan year. These needs are most often associated
with health, dependent care or legal benefits.
Benefit first program grouping
The first program grouping is a method of grouping employees for purposes
of macro eligibility. The second program grouping is a second, identical
method of grouping employees into other macro eligibility groups.
The cross reference of these two groupings places every employee into a
benefit program.
First program groupings are a means of identifying a group of employees who
share a common set of benefits and eligibility criteria.
Example
An organization offers one set of benefit plans for hourly-paid employees
and a different set for salaried employees. Hourly-paid employees may enroll
in medical, dental and life insurance plans after a four month waiting period.
Salaried employees may enroll in medical, dental, life and vision plans after a
one month waiting period.
Benefit second program grouping
The second program grouping is a method of grouping employees for
purposes of macro eligibility. The first parameter grouping is a second,
identical method of grouping employees into other macro eligibility
groupings.
The cross reference of these two groupings places every employee into a
benefit program.

Second program grouping is a means of subdividing your first program

groupings depending upon their employment status.
Example
An organization offers one set of benefit plans for full-time employees and
a different set for part-time employees. Full-time employees may enroll in
medical, dental and life insurance plans after a four month waiting period.
Part-time employees may enroll in medical, dental, life and vision plans after
a one month waiting period.
Eligibility
The important part in the Benefits is Identifying the all the Eligible
Employees for a given Benefit Plan .
This can be achieved using function module
HR_BEN_CHECK_MICRO_ELIGIBILITY. This function module determines
whether a person is eligible or not .
Similarly to determine the Eligibility date and the Participation date of an
employee for a benefit plan we can use the function module(s)
HR_BEN_CALC_ELIGIBILITY_DATE for eligibility and
HR_BEN_CALC_PARTICIPATION_DATE for participation date .

Infotypes used in Benefits

Here below is the most commonly used Infotypes.
Health Plans
Insurance Plans
Savings Plans
Spending Accounts
Credit Plans
Stock Plans
Miscellaneous Plans

(Infotype 0167)
(Infotype 0168)
(Infotype 0169)
(Infotype 0170)
(Infotype 0236)
(Infotype 0375)
(Infotype 0377)

General Benefits Data

Family/Related Person
External Organization
Date Specifications
Monitoring of Dates
COBRA Qualified Beneficiary

(Infotype 0171)
(Infotype 0021)
(Infotype 0219)
(Infotype 0041)
(Infotype 0019)
(Infotype 0211)

Control Tables / Catalog Tables

Control tables are master table,here below is some control tables used.
T5UBA --- Benefit Plans
T5UB1 --- Benefit Plan type
T5UBU --- Benefit Program
T5UB3 --- Benefit Area

Benefits Specific to USA :

The Benefits which are specific to USA are
COBRA plans
Flexible Spending Accounts and
Tax Sheltered Annuity Plans,
The Benefit Plans specific to ASIA are
Cloth reimbursements
COBRA : Consolidated Omnibus Budget Reconciliation Act of 1985
This Plan requires the vast majority of employers to offer continuation of
coverage to covered employees and their dependents who, due to certain
COBRA qualifying events, lose group health plan coverage.

COBRA Events
This component enables you to identify employees who are COBRA-qualified
beneficiaries and their qualified dependents. Depending on your customizing
settings, you can collect individuals for some or all of the following COBRA
qualifying events:

Termination of employment

Death of employee

Reduction in work hours

Entitlement to Medicare

Divorce

Legal separation

Loss of dependent status

Bankruptcy of employer

The collection of COBRA events is the first step in the COBRA

administration process. You typically run the collection for all your
employees in the background.

Standard Reports in Benefits

Eligible Employees
(Report RPLBEN01)
Participation
(Report RPLBEN02)
Health Plan Costs
(Report RPLBEN03)
Insurance Plan Costs
(Report RPLBEN04)
Savings Plan Contributions
(Report RPLBEN05)
Vesting Percentages
(Report RPLBEN06)
Changes in Benefits Elections
(Report RPLBEN07)
Flexible Spending Account Contributions (Report RPLBEN08)
Changes in Eligibility
(Report RPLBEN09)
Employee Demographics
(Report RPLBEN11)
Changes in Default Values for General Benefits Info (Report RPLBEN13)

Costs/Contributions for Miscellaneous Plans (Report RPLBEN15)

Stock Purchase Plan Contributions
(Report RPLBEN16)
Benefit Election Analysis
(Report RPLBEN17)
Contribution Limit Check
(Report RPLBEN18)
Enrollment Statistics
(Report RPLBEN19)
Create Payment List Report
(RPUBENPAYRQ)
Actual Hours report
(RPUBEN47)
HR Benefits transaction list
Transaction
Code

Description

HR00

HR Report Selection

HRBEN0000

Benefits Application Menu

HRBEN0001

Enrollment

HRBEN0003

Eligibility Monitor

HRBEN0004

EOI Monitor

HRBEN0005

Enrollment Form

HRBEN0006

Benefits Employee Overview

HRBEN0007

General Employee Data

HRBEN0008

Report Selection

HRBEN0009

Benefits - Plan Overview

HRBEN0011

Benefits Cost Overview

HRBEN0012

Enrollment Automatic Plans

HRBEN0013

Enrollment - Default Plans

HRBEN0014

Termination of Participation

HRBEN0015

Confirmation Form

HRBEN0041

Jump from IMG into Maintenance Views

HRBEN0042

Configuration Consistency Check

HRBEN0043

Copy Benefit Area

HRBEN0044

Delete Benefit Area

HRBEN0045

Benefit Area Currency Conversion

HRBEN0046

Cost Overview

HRBEN0047

Check Actual Working Hours

HRBEN0049

Currency Conversion Benef. Infotypes

HRBEN0050

Copying templates in BDS

HRBEN0051

Maintenance of templates in BDS

HRBEN0052

IDoc Data Transfer

HRBEN0053

Copy Benefit Plan

HRBEN0054

Delete Benefit Plan

HRBEN0055

Adjustment Authorizations Overview

HRBEN0056

Standard Plans Overview

HRBEN0071

Eligible Employees

HRBEN0072

Participation

HRBEN0073

Health Plan Costs

HRBEN0074

Insurance Plan Costs

HRBEN0075

Savings Plan Contributions

HRBEN0076

Vesting percentage rate

HRBEN0077

Changes in Benefits Elections

HRBEN0078

FSA Contributions

HRBEN0079

Changes in Eligibility

HRBEN0081

Employee Demographics

HRBEN0083

Change in general benefits

HRBEN0085

Miscell. Plan Costs/Contributions

HRBEN0086

Stock Purchase Plan Contributions

HRBEN0087

Benefit election analysis

HRBEN0088

Contribution Limit Check

HRBEN0089

Enrollment Statistics

HRBEN00PAYRQ

Create Payment Requests

HRBENUS01

Benefits: COBRA Administration

HRBENUS02

FSA claim

HRBENUSCOB01

Collect COBRA Events

HRBENUSCOB02

Create COBRA Letters

HRBENUSCOB03

COBRA Participation

HRBENUSCOB04

COBRA Payments

HRBENUSCOB05

COBRA Cost Overview

HRBENUSCOB06

COBRA Enrollment Form

HRBENUSCOB07

COBRA Election Period

HRBENUSCOB08

COBRA Invoice

HRBENUSCOB09

COBRA Confirmation Form

HRBENUSCOB10

Data Transfer to Provider (COBRA)

HRCLM0001

Claims processing data entry

HRCLM0002

Claims processing Account records

HRCLM0010

Jump from IMG to maintenence views

HRCLM0015

Details of Entitlementsand Claims

HRCLM0020

Enrollment Claims

HRCMP0000

Compensation management

HRCMP0001

Compensation Administration

HRCMP0001_A

Compensation Adj. Reasons (Tree)

HRCMP0002

Comp. Adjustment over Org. Structure

HRCMP0003

Compensationi Adj.: Employee Selec.

HRCMP0004

Submit Compensation Adjustments

HRCMP0005

Approve Compensation Adjustments

HRCMP0006

Reject Compensation Adjustments

HRCMP0007

Activate Compensation Adjustments

HRCMP0010

Compensation Management: Budgeting

HRCMP0011

Budget Structure Maintenance: Create

HRCMP0012

Budget Structure Maintenance: Displ.

HRCMP0013

Budget Structure Maintenance: Change

HRCMP0014

Budget Administration: Display

HRCMP0015

Budget Administration: Change

HRCMP0020

Report selection

HRCMP0021

HR PA-CM: Access Ad HocQuery

HRCMP0022

HR PA-CM: SAP Query Access

HRCMP0030

Change Matrix Catalog

HRCMP0031

Display Matrix Catalog

HRCMP0041

Pay scale Increase

HRCMP0042

Pay Scale Reclassification

HRCMP0043

Pay Scale Reclassification by Hours

HRCMP0050

Job Pricing

HRCMP0051

Maintain Job (Compensation Mgmt)

HRCMP0052

Maintain Position (Comp. Mgmt)

HRCMP0060

Long-term incentives: granting

HRCMP0061

Long-term incentives: Exercising

HRCMP0062

Life events for long-term incentives

HRCMP0063

Expiration/forfeiting of ltis

HRCMP0064

Cancellation of long-term incentives

HRCMP0070

Workflow Custom. Comp. Adjustment

HROBJ

Customizing HR

HROM

Organizational Management reports

HRPAYDEBSA

Construction: Display Const.Sites

HRPAYDEBSP

Construction; Maintain Cons.Sites

HRPAYJP_COMMUTER

Commuting allowance management

HRPAYJP_COMMUTER_DIS

Commuting allowance management dis.

HRRSM00FBA

External HR Master Data

HRRSM00IMG

Customizing RSM

HRRSM00NUMKR

Maintain number range: HRSM_SEQNR

HRRSM00PAR

External HR Master DataParameters

HRUSER

Set Up and Maintain ESSUsers