Extraction of Payroll Cumulations 

Use

This function enables you to extract cumulated results from payroll and store them on a special infotype record as the basis for retirement plan calculations. Cumulated payroll results are required for the following calculations:

If you determine length of service for retirement plans using the hours-counting method (see Service Calculation), information about the pensionable hours of employees is required for the calculation of service within your SAP System or by your third party administrator (TPA). This information can only be determined from payroll results.

If you define dynamic eligibility rules based on length of service using the hours-counting method, information about hours is also used by the dynamic eligibility check to determine to determine the eligibility service, and therefore eligibility dates of employees.

Your TPA requires information about the pensionable earnings of employees and, if applicable, contributions made to retirement plans in order to calculate the employee retirement income.

By extracting earnings, hours, and any retirement plan contributions to the Retirement Plan Cumulations infotype (0602), you therefore make this data readily accessible for inclusion in an IDoc to be sent to the TPA and, if necessary, for service calculation in your SAP System using the hours-counting method.

Prerequisites

Before you extract payroll data, you must ensure that this data is stable, and that no further retrocalculations will take place for the periods whose data you are extracting.

Features

The extraction function reads information about earnings and hours, which are stored on a special compensation wage type set up in Customizing. Exactly which data is stored on this wage type is determined by compensation models that are also set up in Customizing. If your retirement plans have contributions, it also reads information about contributions from the appropriate wage types. For more information about the relevant wage types refer to the Benefits section in your country version of the Payroll Implementation Guide.

You can manually adjust accumulations of hours, earnings, and contributions, should this be necessary. Manual adjustments are stored as separate records on the Retirement Plan Cumulations infotype (0602). Since they can span several cumulation periods, they are not attributed with a calendar type for cumulation.

Activities

The intervals at which you need to run an extraction depend on the following factors:

The period over which hours are cumulated in order to determine eligibility influences how often you need to run an extraction to provide up-to-date information for dynamic eligibility checks. For example, if you cumulate hours over a period of a month, you need to run an extraction each month for the identical period prior to running a check.