Entering content frameProcess documentation Exercising Awards Locate the document in its SAP Library structure

Purpose

This process enables awards to be exercised with the help of Workflow.

Prerequisites

Note

For more information, see the Compensation Management IMG under Planning and Administration ® Long-Term Incentives ® Workflow ® Set up ‘Follow-up Action after Award Exercised’ Workflow.

Process Flow

  1. The employee exercises the award using the ESS service Exercises Awards in the company Intranet.
  2. The system sends a work item to the HR administrator responsible for this employee.
  3. The HR administrator receives the work item, which contains information on the award which has been exercised.
  4. The HR administrator orders authorizes the bank

    5. to buy a certain number of shares and to credit them to the employee’s securities account.

    to transfer a certain number of shares from the company’s securities account to the employee’s securities account.

  5. The bank carries out the request and informs the HR administrator of the exact price

    6. at which the shares were bought.

    at the time of the transfer.

  6. The HR administrator enters the price as the fair market price in the work item and confirms that the he or she has carried out the relevant follow-up actions.

    7. Note

    The fair market value is required so that the employee may be taxed correctly.

  7. The system deletes the work item from the HR administrators integrated inbox.

Result

The award has been exercised.

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