Termination.

Termination

Agenda Welcome Introduction of facilitators Logistics and Ground Rules
Objectives and overview of the course

Introducing the players
Trainer Participants

Logistics and Expectations
Training facility information (breaks, lunch, etc.) Cell phones / Blackberrys on silent mode No during training Participate in group activities Respect time frames

Termination Termination Overview Termination
Pre and Post Termination Activities Record of Employment (ROE) Reports and Auditing

Course Objectives At the end of this course, you will be able to:
Explain and execute the Termination Process Audit transactions to validate results Describe the integration points with other SAP functional areas

Overview Termination Overview Termination

Overview At the end of this module, you will be able to:
Describe new terms and concepts associated with Termination Explain and understand the Termination Action Explain and understand the pre and post termination activities Explain and understand the processing of a Record of Employment Explain and understand report and audit transactions

Termination Process There are several steps contained within the termination process It is important to note the sequence of the actions Any monies owed the employer must be recovered. Pay special attention to the dates being used to perform each step of the process Be sure to reinforce the importance of the effective dates for each of the actions within the termination process, any action dates are very important

Termination The Personnel Action (PA40) for Termination is the first step in the termination process. There are many reason codes to choose from when processing a termination action. PA40 is used to perform a separation of an employee from the board. Once the employee is terminated they are no longer active in SAP. New screen shot

Termination (cont’d) It is important to ensure that the correct date is used. Also verify if the position the employee is leaving is to be made vacant. The system will advance one day to the termination date

Personnel Action - Termination
When performing the Personnel Action for a Termination, all of the infotypes that need to be maintained are displayed automatically, one after the other. Infotype ... Org.Assign. (Infotype 0001) Actions (Infotype 0000) Personnel actions PerNo. Start Hiring Org. Change Termination 4711 Personnel actions group all of the infotypes together that must be maintained when a particular HR process is performed, such as when an employee is hired, or when an organizational change takes place. Each personnel action contains the infotypes for which data must be entered for the HR process in question, and displays them one after the other for you to maintain. This ensures that all of the information relevant to the process is entered in the system. This function also makes it easier for you to enter data, because it prevents you from having to access each individual infotype. After you have saved a record, the system displays a new infotype for you to process. When you perform an action, you may want to skip a particular infotype without entering any data, or even cancel the action. At the end of the sequence, the system returns to the initial screen after saving which signifies the end of the process

Pre and Post Termination Activities / Checklist
Ensure all quota entitlements are verified. Process a smooth bank adjustment if necessary. Ensure all monies owed to the employer are recovered prior to paying out any monies owed to the employee. What you do in the system affects what someone else is responsible for. If an employee has exceeded their vacation entitlement or whether they have a remaining balance

Pre and Post Termination Activities / Checklist (cont’d)
Another important part of the termination process is to ensure that participation in any benefit plan(s) is delimited. Again, it is very important to ensure the correct date is used to process the action to terminate the employee’s benefits. Benefits Termination Date – Is the first day that the employee is not at work (termination date Oct 30, Benefits terminate date the 31st)

Record of Employment The next step in the termination process is to produce a Record of Employment.

Report and Auditing Transactions
Report and auditing procedures are followed to verify completeness and accuracy of the transactions processed. Ultimately, to ensure that the employee’s final pay is processed properly and that the employee’s file is accurate and complete. Various custom designed and standard reports are available to confirm that the termination process has been completed. Reports exist to verify that the termination action has been processed, that any quota entitlements are paid out or recovered, that the employee’s smooth bank has been settled in the last pay period of their employment and that a Record of Employment has been processed.

Module Review (User Guide 1-8)
1. What is the first step in the termination process? 2. List some pre and post termination activities. 3. Why perform an audit or your work?

Answers to Module Review
1. What is the first step in the termination process? The separation of the employee is the first step in the termination process and is accomplished by performing a PA40 Termination Action. 2. List some pre and post termination activities. Quota payout or recovery, benefits termination, record of employment, smooth bank adjustment 3. Why perform an audit of your work? An audit must be performed to ensure that all actions within the termination process have been performed and that the employee’s final pay is processed properly.

Termination At the end of this module, you will be able to:
Describe new terms and concepts associated with Termination Explain and execute the Termination Action Explain and understand the validity periods and when to delimit Describe the integration points with other SAP functional areas

Terms and Concepts New terms and concepts introduced through this module. Create Vacancy Termination Date User Guide 2-2 Create Vacancy - – when an employee leaves a position, and there is a requirement to fill the position, a vacancy can be created. If Yes is selected from the Create Vacancy Dialog Box, than the position is made vacant as of the date entered. If No is selected the position will show as still being filled. Termination Date – the effective date of a termination action is the last day the employee is active and receiving pay. Therefore, the termination date is the first day an employee is no longer active. For example, if October 10 is used as the effective date of the action, October 11 is the employee’s termination date.

Termination When an employee is terminated a Personnel Action (PA40) is executed. It is very important to note that the start date of the action is actually the last day the employee is still active = effective date of the action. SAP uses the effective date to assign an end date to the employee’s record and creates the termination action with the following day (the first day the employee is no longer active) = termination date. The last day the employee is still active and receiving pay is the effective date of the action.

Creating a Vacancy When a position is created, a vacancy is created as a result. When the employee is hired into a position, the position is filled. Therefore, when the employee is terminated the position is returned to vacant status. In some situations you may not want to create a vacancy from a termination. For example, if an employee is hired to replace an employee on the leave. The termination of the “replacing” employee would not require a vacancy to be created. Speak to the integration with Organizational Management with regards to managing positions and vacancies.

Termination and Position Number
Each position created will have a unique 8 digit position number. For example: When the employee is hired into a position, they are assigned to that particular position and number. When the employee is terminated from the position they must be removed from the position and placed in inactive status. The employee’s file will show them residing in position which represents the integration: default position. The employee will remain in the default position until such time as they are rehired.

Delimiting During the Termination Action
Recurring Payments/Deductions such as Canada Saving Bonds and United Way contributions must be stopped or delimited when the employee is being terminated. Objects on Loan should also be delimited signifying that the employee has returned any items or equipment they were issued during their employment. Recurring Payments and Deductions are created using infotype 0014 and will continue until such time as the balance is reached (entered through IT0015 Additional Payment) or the infotype is delimited. Objects on Loan are created using infotype 0040 and signify that an item or piece of equipment is “on loan” to the employee.

Demonstration and Practice
Exercise 1 – Terminate Casual Employee Exercise 2 – Terminate Non Teaching, Non Smoothed Employee

1. Explain the termination date. 2. What part does the position number play in an employee’s termination? 3. Explain ‘delimit’ during the Termination action.

1. Explain the termination date. An employee’s termination date is the first day an employee is no longer active (i.e. The day after the employee’s last day of work). In SAP, when the Termination Action is executed the employee’s last day of work is entered as the start date of the action.

2. What part does the position number play in an employee’s termination? In SAP each active employee occupies a position with an associated position number that identifies the position (i.e ). When an employee is terminated a vacancy is created for the position they are leaving. When an employee is no longer active, the position number on the employee’s record becomes

3. Explain delimiting during the Termination Action. Upon the employee’s termination, any recurring payments/deductions and/or objects on loan must also be ended (delimited). The infotypes that need to be delimited are part of the Termination Action and will appear automatically for delimiting if the employee has any active recurring payments/deductions or outstanding objects on loan.

Pre and Post Termination Activities
At the end of this module, you will be able to: Describe new terms and concepts associated with pre and post termination activities Explain and understand the pre and post activities associated with Termination Describe the integration points with other SAP functional areas

Terms and Concepts New terms and concepts introduced through this
module. Quota Quota Compensation Method Retro Quotas are yearly entitlements, as per individual Collective Agreements, which are drawn from using absence codes. Quotas are generated automatically at the beginning of the entitlement year or at the time of hire (i.e. vacation, sick etc.), or generated through time entries in CATS (i.e. overtime lieu) and are a fixed number of hours or days per year based on the employee’s length of service. Quota Compensation Method a time quota compensation method forms the subtype of Time Quota Compensation (IT0416). For example, 0701 vacation compensation. Quota Compensation Method – Specify which quota is being paid Retro - a retroactive calculation is the calculation of a previous payroll period while in the current payroll period.

Pre and Post Termination Activities
When an employee is terminated it is critical to ensure that the employee’s master data is up to date If a message is displayed that negative quota exists, it means that the employee has more absences recorded than actual quota available. Verify through Quota Overview (PT50) if quota exists to off-set negative balance (i.e Overtime Bank). If not a Quota Recovery is required. - If no error message is received, verify through Quota Overview (PT50) if quota exists to be paid out. All attendances and absences must be entered in CAT2 in order to have accurate information to verify the amount of quota used against the amount of actual quota earned. Once the amount of actual quota is calculated (manual process), a Manual Quota Correction is processed through Maintain HR Master Data (PA30) to reduce the employee’s quota generated by the system to the actual amount earned up to termination. After the Personnel Action (PA40) Termination is executed and the Manual Quota Correction has been entered. Time Evaluation (PT60) must be run to evaluate the entries made. To determine if sufficient quota exists to cover the number of absence days taken or to identify if any errors have occurred the Time Evaluation Message Display report (PT_ERL00). This report will identify if any errors were discovered as a result of Time Evaluation being run. It is important note: a quota recovery must be processed prior to any payout.

Pre and Post Termination Activities (cont’d)
When an employee is terminated it is critical to ensure that the employee’s master data is up to date - Perform a Quota Correction (PA30) if necessary Perform a PA40 Termination Run report PT_ERL00 after time evaluation has been run the previous evening. This report will identify if any errors were discovered as a result of Time Evaluation being run All attendances and absences must be entered in CAT2 in order to have accurate information to verify the amount of quota used against the amount of actual quota earned. Once the amount of actual quota is calculated (manual process), a Manual Quota Correction is processed through Maintain HR Master Data (PA30) to reduce the employee’s quota generated by the system to the actual amount earned up to termination. After the Manual Quota Correction has been entered, perform the Personnel Action (PA40) Termination. The quota correction must be completed first. It is executed and the Manual Quota Correction. Time Evaluation will be run by central pay. The time administrator is the only one with the security to run time evaluation. To determine if sufficient quota exists to cover the number of absence days taken or to identify if any errors have occurred the Time Evaluation Message Display report (PT_ERL00).This can be run after central pay has run time eval. This report will identify if any errors were discovered as a result of Time Evaluation being run. It is important note: a quota recovery must be processed prior to any payout.

Quota Recovery Quota Recovery in processed in CAT2
The original absence code on the actual day taken must be changed If the employee has banked overtime this will be used to off-set the negative quota balance If no overtime exists the absence will be changed to unpaid leave This is a refresher from the Quotas course to see how everything ties together. Quota recovery must be processed prior to any payout being made. When changing the original absence code you must make the change on the same day. For example, delete code 0100 (vacation) and replace it with 0215 (time in lieu of overtime)

Quota Compensation Quota Compensation is processed through Maintain HR Master Data (PA30) The applicable Compensation Method is chosen through Time Quota Compensation (IT0416) Compensation method 0701 will be used to payout regular vacation and carry over, while 0703 will be used to payout out any banked overtime.

Compensation Dates and Units
SAP will hold history of quotas for all years. Use caution to compensate the correct quota All units are in hours for non-teaching and days for teaching A reminder as a refresher Pay strict attention to the Deduction To and From fields to ensure that you compensate the correct absence quota. When using infotype 0416 Quota Compensation, all the quotas for all years will be displayed for the employee. Also, pay attention to the unit the quota is expressed in: all quotas will be expressed in days for teaching employees and in hours for all other employees (non-teaching).

Smooth Bank Adjustment
If the employee is being terminated before the end of the school/contract year and has had smooth parameters set, then the Time Transfer Specifications (IT2012) flags must be modified Time Transfer Type 1150 – Smooth: Planned Work Days must be modified to represent the actual number of planned work days of the employee Time Transfer Type 1148 – Smooth: # of PPs must be modified to represent the actual number of pay periods over which the employee’s pay is being smoothed The end-user defining the parameters which the system will then use to retroactively recalculate the smooth bank.

Smooth Bank Adjustment (cont’d)
The original infotypes are being modified, so the system will retro back to the start date of the smooth period to re-calculate the employee’s pay. Run the Smooth Adjustment Report to verify the employee’s balance. SAP will automatically process the adjustment; however, the user has the ability to process the adjustment manually.

Benefits Termination Benefits Termination is the process within SAP to terminate an employee's participation in a benefit plan(s). The effective date of termination of benefits will be the first day the employee is no longer receiving any benefits, which is also called the “Termination Date”.

Demonstration and Practice
Exercise 3 – Terminate a Teaching Employee

1. What is a Quota Compensation Method ? 2. What vacation type will be compensated with the Compensation Method 0701 – Vacation Compensation? 3. How can over-used vacation quota be recovered?

1. What is a Quota Compensation Method? A time quota compensation method is the subtype of the Time Quota Compensation infotype 2. What vacation types will be compensated with the Compensation Method 0701 – Vacation Compensation? Regular and Carryover vacation are compensation with Compensation Method 0701. 3. How can over-used vacation quota be recovered? Over-used vacation quota can be recovered by recording the absence as overtime or unpaid leave to bring the negative vacation balance to zero.

Record of Employment (ROE)
Termination Overview Termination Pre and Post Termination Activities Record of Employment (ROE) Reports and Auditing

Record of Employment At the end of this module, you will be able to:
Describe new terms and concepts associated with the Record of Employment Explain and execute the Record of Employment process Describe the integration points with other SAP functional areas

Terms and Concepts New terms and concepts introduced through this module. Flat File - is an electronic record that is stripped of all specific application (program) formats. This allows the data elements to be migrated into other applications for manipulation. For the purpose of producing a Record of Employment from SAP, the flat file is saved with a .blk extension and is a readable text file used to transfer information to the HRSDC web site.

Terms and Concepts (cont’d)
ROE Web - consists of a suite of applications for Canadian employers to create and print valid ROEs using Internet technology which is also capable of submitting them directly to HRSDC electronically. Using ROE Web, the School Boards can extract high volumes of ROE data and use the ROE Workbench to create the flat file which is then submitted to HRSDC website for batch processing.

Terms and Concepts (cont’d)
ROE Workbench - is the SAP Payroll reporting tool which enables the production of ROEs. This tool also integrates with the Human Resources and Skills Development Canada (HRSDC) ROE Web application. The Record of Employment (ROE) Workbench is initially used to generate the form data needed to issue ROE forms to applicable employees. Once this data has been generated, it is also submitted to ROE Web which transmits the ROE data to HRSDC.

Record of Employment The Personnel Administration component is used to perform the appropriate Personnel Actions (i.e. Termination) which will justify the need for producing a Record of Employment. The SAP ROE Workbench application is used to actually create the ROE document. The ROE displays an employee’s insurable earnings and insurable hours.

Record of Employment (cont’d)
The ROE must be issued within five (5) calendar days. Information on the ROE determines whether a potential claimant qualifies for Employment Insurance benefits. EI eligibility is ultimately determined by Human Resources and Skills Development Canada (HRSDC). Set-up a monitoring of task within the Termination action to produce an ROE If eligible the information on the ROE will also determine if benefits are due, the duration and benefit rate that apply to their claim. The ROE must be issued within five (5) calendar days of an employee’s interruption of earnings, or the date that employer becomes aware of an earnings interruption.

HRSDC on the Web Website Address: www.hrsdc.gc.ca www.hrsdc.gc.ca
The HRSDC web site is a valuable resource which provides up-to-date information on the business rules and requirements for ROE processing. To access the site use the following link: In user guide highly recommended to use this site.

Record of Employment Processing
The steps involved in Record of Employment processing are as follows: Personnel Action is processed in SAP – either a termination action or leave of absence action will be processed Final data entry and preparation – verification of the employee’s quotas, either a payout or recovery, smooth bank adjustment and benefits termination Produce ROE in SAP 1. Personnel Action is processed in SAP 2. Final data entry and preparation 3. Produce ROE

Record of Employment Processing Options
Manual completion of ROE forms in triplicate. The Record of Employment (ROE) Workbench can be utilized to generate ROE form data directly from SAP. The data generated can then be used to submit employee information directly to the HRSDC electronically, reducing the need for manual completion of hard copy forms. The tool used to submit the data is the ROE Web. Manual Completion - one for the employee, one for the employer and one hard copy submitted to HRSDC – will always be an available option to the employer. Less room for error from transcribing from system to manual form.

Record of Employment Processing Options (cont’d)
In cases when an individual ROE is required, the specific personnel number for the employee can be entered to perform the processing of an individual ROE. In cases when a significant volume of ROEs are required, For example, layoffs or workforce terminations, a range of numbers can be loaded from a text file and a batch of ROEs can be processed at the same time.

ROE Process A flat file for ROE Web Export ROE Workbench Upload
Download ROE Forms The ROE Workbench of SAP will generate the data for the Record of Employment which is exported and saved as a flat file. The flat file is then uploaded to the ROE Web which will electronically submit the information to HRSDC. The data is stored on the Web where it can be accessed and printed by the end user. Process – create ROE Workbench, log onto website upload file automatically validates the file, automatic submission to HRSDC, issues the ROE. ROE Web Online Data Entry: Employers will use common Internet browsers such as Netscape Navigator or Microsoft Internet Explorer to complete ROE forms on the Web and transmit them to HRSDC for validation. Valid ROEs will be acknowledged, assigned a serial number starting with "W" and saved into the HRSDC database for 11 years. Saved valid ROEs can be retrieved for printing at a later time. HRSDC LOOKS AFTER THE Security TO protect the the data exchanged between employers and HRSDC over the Internet. ROE form HRSDC

Module Review What information is displayed on the Record of Employment and what does it determine? The final decision on an employee’s eligibility lies with what organization? How can information on the organization be obtained? How is the Record of Employment provided to the HRSDC?

1. What information is displayed on the Record of Employment and what does it determine? The Record of Employment displays an employee’s insurable earnings and insurable hours. The information on the ROE determines whether a potential claimant qualifies for EI benefits, and if benefits are due, the duration and benefit rate to apply to their claim.

Answers to Module Review (cont’d)
2. The final decision on an employee’s eligibility lies with what organization? How can information on the organization be obtained? EI eligibility is determined by Human Resources and Skills Development Canada (HRSDC). Information on the HRSDC can be accessed through their website at . 3. How is the ROE information provided to the HRSDC? Once the information is generated from SAP, a flat file is saved and then uploaded to the ROE Web which will transfer the information electronically to the HRSDC.

Reports and Auditing At the end of this module you will be able to:
Explain the reports to verify your work

Audit Reports School Board Audit Report
Period when positions are unoccupied per org. unit Report Payroll Simulation

School Board Audit Report
The School Board Audit Report is a custom developed report and is accessible by entering the transaction code ZRHRPA003 in the command field, the report is used to monitor PA actions performed on employees and should be run in conjunction with the payroll simulation to validate that the PA action processed generates the correct result in payroll

Periods when positions are unoccupied per org. unit
The Period when positions are unoccupied per org. unit Report is a standard SAP delivered report and can be accessed either through the menu tree (Human Resources Organizational Management Info System Position) or by entered the transaction code S_AHR_ into the command field. This is used to report on vacant positions and should be run to validate that a position has been made vacant once an employee has been terminated.

Payroll Simulation Payroll Simulation is an SAP tool that can be accessed through the menu tree (Human Resources Payroll America Canada Payroll) or by entering the transaction code PC00_M07_CALC_SIMU in the command field. Payroll Simulation is used to perform calculation of the remuneration, tax amounts, insurance amounts, as well as other payments and deductions of an employee, for a particular period. A Payroll Simulation should be run whenever an action or time entry is made that will affect the employee’s pay. For example, entry of over time, unpaid leave or termination action.

Course Review and Evaluation
Final Review Review of Course Objectives Course Evaluation

Review of Course Objectives
At the end of this course, you should be able to: Describe new terms and concepts associated with Termination Explain and execute the Termination Process Audit transactions to validate results Describe the integration points with other SAP functional areas

Evaluation Please complete the course evaluation sheets.
Your input will help to shape future enhancements in the SAP Training Program.

Termination.

Similar presentations

Presentation on theme: "Termination."— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

Termination.

Similar presentations

Presentation on theme: "Termination."— Presentation transcript:

Similar presentations

About project

Feedback