Employment Agreement
Termination 
Purpose
This process calculates the amounts of wage types valid for indemnity payments (by the employer) if the employee’s employment contract is terminated.
The termination may be processed in all types of processing: regular, special processing (off-cycle) and correction.
Prerequisites
IMG chapter customization: Payroll ® Employment Agreement Termination.
Process Flow
Agreement Termination Infotype (IT 0661)
The Agreement Termination infotype (IT 0661) centralizes all indemnities and payments regarding the employment agreement termination and allows each employee to be treated individually. This infotype is divided into three sections:
1. Information: Informs all data necessary to identify the employee. The only input necessary in this section is the employee’s termination date (last active date)
2. Predefinition: Contains all data necessary to define indemnity payments. In this section, one indicates the situation or the reason that resulted in the work agreement termination, the data related to the prior notice, to the FGTS and to article 479.
3. Indemnity payment: This section is used to show data simulations and to manually overwrite and validate indemnity payments.
The data entered in the “Predefinition” section only influence the indemnities entered in the Indemnity Payment section.
The P0661 function (in scheme BR00) determines which indemnities must be paid. The corresponding Wage Types are transferred to the Internal Table (IT) and processed by calculation rules BRS0, BRS1, BRS2, BRS3 e BRS4.
„Predefinition“ section fields
· Prior Notice:
The values are brought from the BRPRN feature or from the V_T7BRT0 view.
The values can be changed in the infotype
The valuing is performed by a function
The output model type is /370, but the wage type is customizable
The evaluation base is /B06
Note: Prior notice and article 479 never occur simultaneously.
· Article 479
The values are brought from the BR479 feature or from the V_T7BRT0 view.
The values can be changed in the infotype
The valuing is performed by a function
The output model type is /371, but the wage type is customizable
The evaluation base is /B08
· FGTS
The values are brought from view V_T7BRT0
The values can be changed in the infotype
The valuing is performed by a function
The output types can be customized
The balance can be read from IT0661 or IT0015 (type M143)
Indemnities
· Christmas bonus: The results originate from the Christmas bonus command. The output type is /335, valued by /B09.
· Christmas bonus with prior notice: The results originate from the Christmas bonus command. The output type is /335, valued by /B09.
· Christmas bonus – Article 497: The results originate from the Christmas bonus command. The output type is /370, valued by /B09.
· Labor union basic date: The values can be changed in infotype IT0661 The valuing is performed by a function and the evaluation base is /B06.
· Termination on Friday: The values can be changed in infotype IT0661 The valuing is performed by a function and the evaluation base is /B06.
Average Calculation
For nearly all of the indemnities, payment information is divided into a “wage part” and “variable parts”. For the variable parts, it is common to compute an average of the last 12 months or of the current year. This configuration can be totally customized. For our company model, we use one example with three variable parts:
Basic Wage (normally /B0*). The relevant type for these bases is /1S0 (generated in the BRSAL function).
Average of variable part 1: Commissions. /0V0
Average of variable part 2: 50% Worked Overtime. /0V1
Average of variable part 3: 100% Worked Overtime. /0V2
These types are generated in function BRINI. The values are calculated according to customizations of tables V_T51AV_* by function AVERA, saving the results in field “RTE”.
For the worked overtime averages, a valuing is necessary. Since the AVERA function saves the result in field “RTE”, the standard X015 rule cannot be used. The BRS0 rule performs this valuing according to T512W customizations for the /0V* types. In our model, these types are evaluated by type /001 or /0B3 (hourly wage). For evaluations with type /0B3, the BR00 scheme must generate this type in all processing runs.
For a few indemnities, the evaluation base must be defined as wage per day. The corresponding daily wage base for the variable salary averages is saved in the new types /0W*. This is run by rule BRS1.
The wage type for the payment of the variable portion of the pay is customized through the BRS2 calculation rule. In our model, the indemnity for the Christmas bonus variable part is saved in different wage types (/DR0, /DR1 and /DR2), while the indemnity for the variable part of the previous notice is only saved in type /372.
Christmas bonus payments are calculated for the months to which the employee is entitled (fractions). The value to be paid must be 1/12 for each month worked. At the end of one year, the employee receives an additional wage. The BRS3 rule divides the relevant type’s value by 12.
The BRS4 rule generates /0P* wage types.
BRINI Function
The BRINI function uses the new HRBR_TERMINATION_DATA function module. This function loads the admission and dismissal dates and, optionally, the termination measure (MASSN) and reason (MASSG). This function module is also used in infotype 0661’s logic flow.
If the first function parameter is not INITIAL, the /0V* types are generated with the value of the KGENAU (100000) constant in field BEPTE (RTE). These types can be used by AVERA to compute the averages of the variable salaries that will be used later as the evaluation base.
The function can be loaded several times, but only once to generate the /0V* types. The loading must be placed after the REFRESH IT command for off-cycles.
P0661 Function
This function is used to process infotype 0661, loading the corresponding payments for the stored indemnities.
The P0661 function first checks whether the amount and total fields of IT0661 are filled.
If these fields are filled, the values are considered and the corresponding payment is processed.
If these fields are empty, the indemnities are calculated according to the indemnity calculation rules (V_T7BR90 and V_T7BR97 views) customized in the system.
This function can be loaded to process the payment of a simple indemnity which for some reason must be valued during processing and before the payment of the remaining indemnities. Function P0661 uses the first parameter (COIND) as the code of the indemnity that must be paid separately.
Example:
P0661 5000
The 5000 indemnity is only paid in this load.
Report
The Termination Program (HLACTRM0) runs all actions necessary for employment contract terminations for an employee or for a group of employees. The program generates a list that shows the employees that were processed. The list shows the following information:
· Status: indicates the degree of success attained in processing each employee.
· Termination date: each employee’s termination date.
· Payment date: indicates the last payment date.
· Payment at termination: shows the total amount of payments made to the employee at termination. The payment list that is shown can be configured through a BAdI (see the Implementation Guide).
· Net amount: shows the net payment the employee will receive.
Customization for the Termination Program
If the standard system configuration for the Termination Program does not correspond to your company’s needs, SAP offers Business Add-Ins to customize the following IMG stages: Payroll calculation ® Employment contract termination ® Business Add-Ins (BAdIs).
See also: