How to Define and Configure Benefit Salary

  • by Clay Molinari, SAP HR Consultant, C&C Savant, Inc.
  • July 15, 2004
Quite a few steps are required to configure benefit salary and they are spread throughout the IMG. If you take the time to identify all of the criteria that can affect benefit salary and implement configuration and customer enhancements to automate your rules, then you can have a system that accurately calculates insurance coverage amounts for all employees at all times.

Quite a few steps are required to configure benefit salary and they are spread throughout the IMG. If you take the time to identify all of the criteria that can affect benefit salary and implement configuration and customer enhancements to automate your rules, then you can have a system that accurately calculates insurance coverage amounts for all employees at all times.

Many companies offer one or more insurance plans with coverage calculated as a factor of salary. One common example is a life insurance plan with coverage options of one, two, or three times the salary. Another is a long-term disability plan that offers 50 percent salary replacement coverage. Plans such as these make it necessary for the company to have a specific definition for “salary” as it relates to these benefits plans. In some cases, the definition of salary is different for each plan. SAP R/3 contains configuration options that allow the benefits administrator to have precise control over the calculation of the benefit salary for each plan. The configuration steps required to implement these rules are scattered throughout the IMG, but I’ve assembled them all here in this article.

Clay Molinari

Clay Molinari has 20 years of experience in the IT industry and has been working as an SAP HR consultant since 1997. He is currently president of C&C Savant, Inc., an SAP consulting firm that specializes in combining standard SAP configuration and custom ABAP programming to help its clients solve unique or complicated requirements.

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