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 are the logical grouping of different benefit plans. Each Plan type is identified by a unique identifier, which is a maximum of four characters. 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. 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. 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. These needs are most often associated with health, dependent care or legal benefits. 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 groupings. 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.
Benefits Infotypes:. This Infotype stores the benefit area, first program grouping, and second program grouping assignments of the employee. This record is essential for benefits plan enrollment. What is Benefit Area? Benefits area allows having separate administration of different benefits plan pool.
BAREA feature can be used to maintain values for benefit area. We can create different Benefits by considering following factors:. What is First Program Grouping? A first program grouping means identifying a group of employees with common characteristics in order to determine on a high level the benefits available for that group. What is Second Program Grouping? A second program grouping means identifying a group of employees with common characteristics in order to determine on the next lower level the benefits available for that group.
An employee must have a General Benefits Information record before enrolling in a benefit plan. During enrollment, the system refers to the first and second program grouping of employees in order to determine which benefit plans the employee is permitted to participate in.
A General Benefits Information record must also exist before creating an Adjustment Reasons Infotype record for an employee. Here consider an XYZ organization, having employee benefits eligibility primarily based on the work location, working hours and Full-time or Part-time working for a minimum of 30 hours. Benefits Ineligible employees are a set of Employees for whom Benefits are not available.
We can separate the group of employees on the basis of Employee group and Employee Subgroup at the Personnel Administration level. Employee Group:. The Employee group allows dividing the Employees into groups and defining their relationship to the enterprise. For ex. Employee Subgroup:. The employee subgroups are subdivision of the Employee group. System automatically maintains this combination depending on. This Infotype stores details of the health plans in which the employee is enrolled.
For each health plan in which the employee participates, a separate record exists. The dependents chosen by the employee are marked here. Benefits of SAP MM With customer demands changing rapidly, an organization's efficiency is measured primarily by its ability to cater to the market demands in the shortest time possible.
Financial Accounting module helps one to get the real-time financial position of an enterprise in the market. At SAP, we offer some of the best employee benefits in our industry, from performance-based rewards to uber comprehensive packages. We recognize that different people have different needs, and our benefits extend beyond health care coverage and retirement plans, with a variety of options to help you juggle the demands of your career and life.
Sub components submodules , tcodes, tables and PDF reference materials. Join Meta-Analysis Resources. Powered by. You identify each benefit plan with a unique identifier - maximum four characters. Benefit Plan types are used for enrollment and the system does not allow an employee to enroll in more than one benefit plan per plan type. Benefit plan structure at the granularity level is defined by Benefit Plans.
You can group multiple Benefit plans under a particular plan type. All the benefit Plans are identified with a unique identifier, which consists of maximum of four characters as mentioned above. Benefit plans within the health plan category cover the basic health needs of an employee. A typical health plan might provide an employee with medical, dental or vision coverage. Similarly, you can have an Insurance plan, which is used to provide monetary amounts of coverage payable to the employees in an organization.
To setup account balance to meet spending needs, a spending account can be used that provides an employee with the opportunity to establish account balances. Most common needs that can be associated with spending account includes health, dependent care, and legal benefit, etc.
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