Three Tips for Handling Grandfathered Quota Balances

  • by Jennifer Adams, Principal Consultant, AspireHR
  • May 26, 2011
Do you have employees who are in the same group, category, or union who should receive different entitlements due to being grandfathered into a previous program? SAP ERP HCM provides several different methods for handling grandfathered plans. I explain three of the options for handling the generation of quota entitlements for these employees using example scenarios.
Key Concept
Grandfathered quota entitlements are typically based on belonging to a group prior to the change date. Those already receiving the benefit continue to receive the same leave entitlement benefits by being grandfathered into the existing plan, while new employees receive the new leave entitlement benefits.

Many organizations, through acquisitions, union contract negotiations, or general policy adjustments, have separate leave entitlement plans for the same group of employees. SAP ERP HCM quota functionality provides several different standard options to support the need to apply different quota generation rules based on various factors. You can use the following three options individually or in conjunction as needed by your organization.

This article does not go into detailed configuration of the quotas, which you can find in other HR Expert articles.

Tip 1: Configure the Relationship to Enterprise Entry Date 

If your organization reevaluates its leave policy and determines that leave entitlement will be adjusted for all new employees, but will be left at current levels for existing employees, you can easily accommodate this change using the Relationship to enterprise Entry Date function. This is best used when the reason for being grandfathered is based on being hired prior to a specific date. While you can meet this requirement using a personnel calculation rule in time evaluation, the Relationship to enterprise Entry Date configuration setting can accomplish the same task more easily. You set it in the Selection Rules; an example of how to change the Relationship to enterprise Entry Date is shown in Figures 1 and 2. Follow menu path Time Management > Time Data Recording and Administration > Managing Time Accounts Using Attendance / Absence Quotas > Calculating Absence Entitlements > Rules for Generating Absence Quotas > Define Quota Rules for Quota Type Selection.

Jennifer Adams

Jennifer Adams has 15 years of SAP ERP HCM experience and currently works as a principal consultant with AspireHR, specializing in Time Management and US payroll. She will be a presenter at the HR 2011 conference to be held March 8 to 11 in Las Vegas. Her topic will be “A Comprehensive Guide to Configuring, Integrating, and Optimizing the Family Medical Leave Act (FMLA) Workbench.” Jennifer also has experience with Compensation Management, Personnel Administration, and Benefits. Before that, she spent 12 years in systems analysis and design for mainframe environments, supporting multiple business streams.

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