Performing Period-End Processing

Objective

After completing this lesson, you will be able to perform period-end processing to manage year-end time account balances.

Period-End Processing

Period-end processing is performed when the accrual year ends and follow-up actions on time accounts must take place.

When the end of the bookable period of an account is reached, you typically want to close that account so that it cannot be used for further bookings. Also, you decide how to deal with a remaining balance on that account, for example:

  • The balance is set to zero so that the employee cannot use it anymore.

  • The remaining balance is carried forward from the old account to the new one.

  • The remaining balance is carried forward, but only up to a certain limit. For example, if an employee has eight days of vacation remaining, but the carryforward limit is five days, only those five days are carried forward. The other three are lost.

  • The remaining balance is paid out to the employee and the account is set to closed.

Period-end processing is done by using a Time Off calendar for the Period-end Processing scenario. Period-end processing is only required for recurring time accounts. You access the calendars in the Admin Center by choosing Manage Time Off Calendars.

There is also an automated period-end processing option. See the Time Account Type documentation for information on how to set this up. Once you have done so, you don't have to do anything in Manage Time Off Calendars. The job runs automatically per the criteria that you enter in the Time Account Type.

You define your period-end processing logic in a business rule. Here, you can set the account to closed and also create time account bookings of type period-end processing to adjust or to move the open balance.

If you use a scenario to carry balances forward to the follow-up account, run an account creation calendar before you start the period-end processing calendar run to make sure that all needed time accounts are created.

Configure Period-End Processing

Let us see how to configure the period-end processing with the help of an example:

The accrual frequency is annual and on the end date of the period, the remaining balance must be carried over to the next year and the account must be closed out. If the account that the balance must be carried over to does not exist, zero out the balance and close the account.

Note

A message can be raised instead of zeroing out the balance and closing the record if the new account does not exist.

Steps

  1. Select Configure Business Rules→Create New Rule.

  2. Scroll down to Time Management.

  3. Select Period-End Processing.

  4. Enter the Rule Name and Rule ID and continue.

  5. Configure the rule as in the following figure.

    The configuration of period-end processing rule is displayed.
    The configuration of period-end processing rule is displayed.

  6. Assign the period end rule to the time account type as in the following figure. Set the Period-End Processing Automation field to Automatic At End Of Booking Period. This setting causes the period end rule to be triggered one day after the end of the bookable period.

    The Time Account Type: PTO - Paid Time Off page is displayed.
    The Time Account Type: PTO - Paid Time Off page is displayed.

    For additional examples of period-end processing rules, review the document Business Rules in Employee Central in the SAP Help Portal.

Execute Period-End Processing

To execute the period end process, proceed as follows:

Steps

  1. Select Manage Time Off calendars.

  2. Select New Calendar and make entries as in the following figure.

    The New Calendar: Period-End Processing page is displayed.

  3. Select Save.

  4. To execute the period end process, select Run.

    The Manage Time Off Calendars page is displayed.

Create a Period-End Processing Rule

Business Example

You need to configure the Time Accounts for some U.S. employees. Initially, you will create and assign the time profile to a single user for testing. You will also use the previously created Holiday Calendar, Work Schedule, Time Types, and Time profile.

You need to configure the period-end processing (PEP) for the Vacation Time Account. In this scenario, vacation leave is accrued every year, with each employee receiving 12 days. At the end of the year, the remaining balance must be carried over to the next year and the account must be closed out. If the account that the balance must be carried over to does not exist, zero out the balance and close the account.

Note

The scenario also requests for the maximum balance of 60 days; however, our accrual rule is enforcing the maximum.

Note

This exercise requires you to have successfully completed the exercises: Create a Custom Holiday Calendar, Create a Period Work Schedule, Setup a Time Type and Time Profile, Create Time Accounts and Assign Time Profiles, and Configure an Accrual Rule with Seniority and Caps.

Steps

  1. Create a Period-end Processing for your VACATION_US Time Account Type with the following details:

    Create a PEP Rule

    FieldValue
    Rule NameVacation US Period End Processing
    Rule IDVAC_US_PEP
    Start Date01/01/1990
    The PEP rule is displayed.
    The PEP rule is displayed.

    1. Navigate to Configure Business Rules.

    2. Select Create New Rule and choose Time Management: Period End Processing as your Rule Scenario.

    3. Fill in the Rule Details based on the table: Create a PEP Rule.

    4. Choose Continue.

    5. Fill out the If and Then statement of the rule based on the information in the preceding two figures.

  2. Assign the period-end processing rule to the Vacation Time Account Type.

    1. Navigate to Manage Time Off Structures.

    2. Search for Time Account Type: VACATION_US.

    3. Choose Take Action→Make Correction and add your Vacation US Period End Processing Rule (VAC_US_PEP) to the Period-End Processing Rule field.

    4. Choose Save.

  3. Run a period-end processing simulation for this year. Create and simulate a period-end processing calendar using December 31 of this year as the start and end date for the VACATION_US Time Account Type.

    1. Select Manage Time Off Calendars.

    2. Select the + New Calendar link to create the time account (if not already created) as follows:

    3. From the dropdown, select Period End Processing.

    4. Enter the name of the run in the Name field: Vacation US PEP.

    5. Enter the Time Account Type: VACATION_US.

    6. Enter the Start Date (the start date of the accrual period, for example, December 31, yyyy).

    7. Enter the End Date (the end date of the accrual period, for example, December 31, yyyy).

    8. Select Save and Simulate.

    9. Review the output of the job in Scheduled Job Manager.

Summary

  • Period-end processing runs at the end of a booking period and determines what happens to any remaining balance. The four options are: zero it out, carry it forward in full, carry it forward up to a cap (excess is lost), or pay it out and close the account.
  • The logic is defined as a business rule of type Period-End Processing and is triggered via a calendar run in Manage Time Off Calendars. An automated option is also available directly on the time account type.
  • Period-end processing only applies to recurring time accounts. Permanent accounts do not have a period end.
  • If carrying balances forward, always run an account creation calendar first to make sure the next period's accounts exist before the period-end processing calendar runs.
Learning
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