Full and Final Settlement

[chandra_sekhar96]

Dear Experts,

Need your Suggestions for Full and Final settlement

My client wants to Use Termination work bench for paying full and final settlement.

I have gone through the links which posted earlier and has gain some idea on it.

But i am not getting the clarity that. what is the Notice date and Leaving date ?

and one more node i have seen that is Configuring notice pay and Calculation Method for Notice pay.

Could you please give any one with example how this Work bench calculates the Payments .

and is there is any formula we need to set up for IT0016 ?

And one more thing we have developed one custom function for Paying the Gratuity and if employee eligible his gratuity will get updated in IT0015.

Need your valueble suggestions to complete my task.

Thanks in Advance.

Sekhar.

[Former Member]

Hi Sekhar,

Termination Workbench helps in terminating an employee from the payroll. It computes various types of payments due to, or payable by the employee at the time of termination.

Notice Date : The date on which employee puts his paper

Leaving Date : Last working day of an employee.

Eg. As per the company policy, if employees notice period is of 3 months & if employee resigns on 1st January then Notice Date will be 1st January while Leaving Date will be 31st March.

It is necessary to maintain following infotypes if you are using Termination Workbench.

1) IT 0016 - Here we maintain employment contract details

2) IT 0041 - Here we maintain normal retirement date of an employee.

3) IT 0185 - Here we maintain Gratuity & Superannuation trust details for an employee.

4) IT 0015 - Termination Workbench updates the payment records in the Additional Payments info type (0015).

5) IT 0000 - Termination Workbench delimits the employee in the Actions info type (0000).

Termination workbench reads the relevant info types and determines the amounts payable to the employee. This amount can be of Gratuity, Superannuation, Notice Pay or leave encashment. The newly generated amount gets updated in IT 0015. A batch session is created while executing this transaction. It also delimits the employee in the Actions info type (0000).

In the final payroll run, all the values entered in IT0015 via termination workbench will be calculated.

Thanks & Regards,

Monali

[chandra_sekhar96]

Hi Monali,

Thanks for the Very useful info.

When i executed the Work bench only Leave encashment wage type is getting updated. Supernnaunation and others are not updating.

one more thing,for gratuity we are using one custom program for payment. is it also one of the reason y gratuity wage type is not updating when i execute the work bench ?

please suggest.

[chandra_sekhar96]

Hi,

Sorry, Superranuation is not maintained for this employee.

[former_member182083]

Hi Sekhar,

Say according to your company policy notice period is 2 months, then the day employee put his resignation is Notice date and 2 months from that date will be leaving date.

With regards,

S.Karthik

[chandra_sekhar96]

Hi Karthik Sir,

Good evening,Thanks for your response.

Do you prepared any blog for Termination work bench ?

IF yes, please share or else please share any useful info.

Is IT0016 is mandatory for executing termination work bench ?

Please suggest.

[former_member182083]

Hi Sekhar,

IT 16 is mandatory for Termination Workbench. We will create WIKI document for Termination workbench and upload it shortly.

With Regards,

S.Karthik

[chandra_sekhar96]

Hi Karthik,

I have tried one employee in quality.

when i have executed the Term Bench,i am getting the window like below.

and records in infotype 185 also maintained.

PFB the screen shot.

and i have maintained IT0016 like below.

I am not getting the amount 23,600 how it is coming ?

please suggest.

[chetan13]

Hello Sekhar

Can you please check SAP Note No. 374197 - FAQ: Termination Workbench

Leave Encashment

Model Wage Type MLE0

Setting for Indirect Evaluation - A in V_T511

Setting for RAP Indicator - Cessation Payment in V_T7INA9

Setting for Tax Code - SLEA in V_T7INT9

Set the default amount in V_T510

Regards

Chetan Bajaj

[chandra_sekhar96]

Hi Chetan,

In order to work Termination work bench, is we should implement the suggest Snote ?

Please suggest.

[chetan13]

Hi Sekhar

This is a FAQ Note related to Termination workbench.

Kindly go through and check the configurations as per the same.

This note provides technical information of Termination and answers to some common problems from OSS messages.

Regards

Chetan

[chandra_sekhar96]

Hi Chetan/Monali.

Is we need to configure Notice pay wage type ?

Please suggest

[chetan13]

Hi Sekhar

Go to transaction SE38 > Select Documentation > Report

HINCTER0

___________________________________________________

Short Text

Program HINCTER0

Title

Termination workbench

Purpose

The purpose of the Termination Workbench is to provide the user with an easy way to carry out termination process of an employee and doing the final settlement.

Integration

Prerequisites

Before the temination workbench can be executed, the following actions need to be completed:

1. Maintaining infotype 16: Data need to be captured here to determine the notice period from the employer side and notice period from the employee side. These data will be used to determine the leaving date once the notice date is known. Also this will be required to calculate the Notice Pay due to/ owed to the employee.

2. Maintaining infotype 41: This infotype needs to be maintained in order to capture the date of normal retirement for an employee. This date is used in cases of voluntary retirement.

3. Maintain the constant 'Notice pay calculation method' (NPCMT) in the view 'Payroll Constants' (V_T511K). This can have values 1 or 2. For further information, see the IMG documentation for the node 'Calculation method for Notice Pay' (this comes under the node for Termination).

Features

The Termination Workbench is capable of carying out the following tasks:

1. Carrying out the 'Leaving' action, by delimiting infotype 0.

2. Delimiting all other relevant infotypes

3. Calculation of all reimbursement amounts.

4. Calculation of Gratuity and Superannuation amounts.

5. Calculation of Notice Pay.

6. Populating infotype 15 with all the payments and deductions required to be made for final settlement.

Selection

The initial selection contains the following parameters:

1. Employee Number.

2. Reason of termination.

3. Notice date.

Standard Variants

None provided.

Output

The output of the termination workbench is a batch session which when executed will delimit all the infotypes. Also the workbench will put all reimbursement amounts in IT0015.

Activities

1. Run the transaction PC00_M40_TERM or go through the following menu path: Human Resources -> Payroll -> Asia/Pacific -> India -> Subsequent Activities -> Period Independent -> Termination -> Termination Workbench.

2. Fill in the required data (Employee number, Reason of termination & Notice date) on the screen and press 'Enter'.  This action will default the 'Leaving date' according to the period of notice maintained in IT0016. In case, the actual 'Leaving date' is different from the defaulted one, modify it and press 'Enter' again. In this case, a Notice Pay will be calculated.

3. If the data on the screen is satisfactory, press 'Display'. A new screen will come up showing all reimbursements. No of continuous years of service for Gratuity and Superannuation will also be displayed. Check all the data and modify if necessary.

4. Provide the name of the batch session to be created.

3. Create the batch session by pressing the 'Process' button.

4. Go to transaction SM35 or follow the menu path.

5. Execute the batch session in the foreground.

Hope it helps.

Regards

Chetan

[chandra_sekhar96]

Hi karthik Sir,

That will be really helpful.

Thanks in Advance.

[chandra_sekhar96]

Hi Chetan,

In my system all the config nodes are maintained.

Could you please let me know what date type we need to maintain in IT41 ?