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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
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


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
• 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


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.


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.


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.


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.


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.


A personal or organizational change experienced by an employee, as a result

of which the employee is allowed to change his/her current benefit

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


Typically, employees will be enrolled in a benefit area that groups them

according to common attributes such as country or organizational
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
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.
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.
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

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.
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.


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 (Infotype 0167)

Insurance Plans (Infotype 0168)
Savings Plans (Infotype 0169)
Spending Accounts (Infotype 0170)
Credit Plans (Infotype 0236)
Stock Plans (Infotype 0375)
Miscellaneous Plans (Infotype 0377)
General Benefits Data (Infotype 0171)
Family/Related Person (Infotype 0021)
External Organization (Infotype 0219)
Date Specifications (Infotype 0041)
Monitoring of Dates (Infotype 0019)
COBRA Qualified Beneficiary (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 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




HRBENUSCOB03 COBRA Participation



HRBENUSCOB06 COBRA Enrollment Form

HRBENUSCOB07 COBRA Election Period


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