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Employee Terminations (569)

Employee Terminations (569). SAP Best Practices. Purpose, Benefits, and Key Process Steps. Purpose This scenario describes the typical process when an employee has decided to retire from the company or has been terminated. Benefits

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Employee Terminations (569)

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  1. Employee Terminations (569) SAP Best Practices

  2. Purpose, Benefits, and Key Process Steps • Purpose • This scenario describes the typical process when an employee has decided to retire from the company or has been terminated. • Benefits • The organizational structures in the system are kept in alignment to the actual enterprise • The employee master records are updated, so payroll and benefits administration remain accurate • Key Process Steps • Employee Separation Administration Processing

  3. Required SAP Applications and Company Roles • Required SAP Applications • SAP enhancement package 5 for SAP ERP 6.0 • Enterprise roles involved in process flows • Administrator (HCM) and various HR Departments

  4. Detailed Process Description • Employee Separation Administration Processing • Termination Action is executed • Employee submits notice of resignation • Event is added to employee’s master record • Retirement Action is executed • Employee notifies HR of plans to retire • Event is added to employee’s master record • External Termination Action is executed • Temporary worker’s assignment has ended • Event is added to employee’s master record

  5. Process Flow Diagram Employee Separation Administration Processing Maintain Company Organizational Structures (560) Separation due to retirement? Employee Voluntary Separation, Death, LOA, Retirement Determine Retirement Package Yes Retirement Action New Hire / Rehire Administration (563) No Non-employee? Quota Payouts Due? Determine Last Day of Employment and Payment Terms Benefits Administration (575) External Termination Action Yes No No Yes Benefits Administration (575) Termination Action Offcycle Payroll Processing (577) Payroll and Post Payroll Processing (575) Conduct Exit Interview and Collect Employee Content Benefits COBRA Processing (not in scope) Administrator (HCM) and other HR Personnel Maintain Company Organizational Structures (560) SAP ERP Reporting for HCM (559)

  6. Diagram Connection Legend <Function> Hardcopy / Document External to SAP Financial Actuals Business Activity / Event Budget Planning Unit Process Manual Process Process Reference Existing Version / Data Sub-Process Reference Process Decision System Pass/Fail Decision

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