Determine Payment Frequencies and Dates

This section contains information about the way in which you determine frequencies and the relevant data for preparing payments in Social Services. The system uses a period toolset with complex setting options here (see Period Toolset in Social Services).

If you want to use this function, you must activate the business function Social Services - Benefit Calculation (CRM_IPS_4S_1) and the business function Social Services - Benefit Calculation and Payment (ERP_IPS_4S_1).

Prerequisites

You define the parameters required in the period toolset, which you control by making settings in Customizing. Data replication requires all definitions for the period toolset to be consistent in the ERP and CRM System.

Period toolset in the ERP System
Customizing for Public Sector Management under Social Services Basic Settings Periods and Due Date Rules Settings Define Periods and Due Date Rules .
Period toolset in the CRM System
Customizing for Customer Relationship Management under Industry-Specifc Solutions Public Sector Social Services Integration Periods and Due Date Rules Settings Define Periods and Due Date Rules .

Features

To enable you to use the comprehensive setting options to maximum advantage for the Social Services component and be able to determine consistent payment frequencies and due dates, make settings for Social Services in the period toolset in the following sections of the Customizing activity:

Define the payment frequency under Define Frequencies
Determine the following dates under Define Due Date Rules:
- Due date
- Reference date in social service plan
- Latest release date for a social service plan

Process

Define Payment Frequency

You use the payment frequency (target frequency) to define the time intervals at which benefit payments are to be made. The system generates a net calculation document for each individual payment, in which it groups all entitlement items for the valid period for subsequent processing (billing, invoicing). The payment frequency also defines the frequency of tax deductions, since tax is also calculated during the net calculation.

The due date rule for a current benefit payment is found during the current payment period. You can also use a due date rule to define a due date that is not found during the current payment period.

You should observe the following points when defining the payment frequency:

What frequency is to be used to make benefit payments?
Which payment frequency is required for which net calculation, for example with reference to tax calculation?

You can select a payment frequency virtually independently of the defined entitlement frequency. However, it must be possible to assign every entitlement period to a corresponding payment period using the available period mapping logic (define period mapping categories).

Determine Dates

Due Date

The due date defines when a specific payment amount is to reach the recipient's account. You must therefore schedule all activities that are required to make the payment to the recipient in relation to the due date.

You can define the rules used to define the due dates separately for:

Regular payments (future payments)
Extraordinary payments (one-off, retroactive, such as over and underpayments)

If regular and extraordinary payments are to be made collectively using a net calculation document, you must assign the same due date rules to both payments. If extraordinary payments are to be made independently of regular payments, you must assign various due date rules.

Due date rules for regular payments must be based on payment periods such as the end of the month or the last working day of the week. This means the due date for a regular payment is always defined uniquely.

You can select due date rules for extraordinary payments according to two different criteria:

The due date rule is based on a payment period.
You use this option if an extraordinary payment is to be made at a specific time or is to be made for a payment period.
The due date rule is based on the current date.
You use this option if an extraordinary payment is to be made as quickly as possible.

Reference Date in Social Service Plan

To identify whether the payment for a specific payment period can be made as part of a regular payment, the system determines the due date for this payment period using a due date for regular payments. The system also determines the reference date as a key date for a payment. The system then compares the due date with the reference date calculated:

If the planned due date is later than the reference date, the payment can be made with the regular payment.
If the planned due date is earlier than the reference date, the system cannot create the payment with the regular payment. It must then be created as a retroactive payment. In this situation, the system has to determine the actual payment period for the retroactive payment.

Example Example

A typical rule used to define the reference date is "Today plus Y". Y represents the estimated processing time for billing and invoicing here.

End of the example.

Latest Release Date for a Social Service Plan

Release of a social service plan is the final step before benefit calculation and payment. If the approval process is taking too long, you can adjust the key date for billing. The benefit payment can no longer be made with a regular payment. To avoid such situations occurring, the system determines the latest possible approval date and checks it when it processes the social service plan. If this date is exceeded, the social service plan can only be approved once a new gross payment calculation has taken place. This means the system can ensure that the approval is available on time and that benefit payments can be made according to the plan.

Example Example

A typical rule used to define the lastest possible approval date is the "Earliest due date for social service plan payments minus "Y". Y represents the estimated processing time for billing and invoicing here.

End of the example.