PBF PEP: Overview of Versions
The purpose of this document is to provide information of the different versions of PEP (Personnel Expenditure Planning) within PBF (Public Budget Formulation). The intent is to describe the various functionality that are available and help customers decide which versions would best suite their requirements. The steps involved with converting to the newer versions of PEP will also be discussed.
PEP allows forecasting of personnel expenditures to be included in a public sector organization’s formulation of the adopted budget or to carry out a mid-year analysis of year-end cost estimates. PEP uses information from the Human Resource (HCM) system to establish an organization’s position and employee salary and benefit costs. PEP supports various scenarios that can be used to further influence the salary and benefit costs. PEP results are posted to InfoCubes and reporting of the results can be used as input of personnel costs in the budget process.
Evolution of PEP
PBF 7.1 PEP
In PBF 7.1 release, PEP is based on a configurable fiscal year variant which determines the fiscal period mapping with the calendar month. The PEP results for the employees and positions are calculated for each fiscal period, for the entire projection duration. This is now referred to as ‘Fiscal Period PEP’.
Although the fiscal year variant is configurable, PBF requires it to have the following restraints:
- There can be only one fiscal year variant defined for PBF
- It must not be calendar based
- It must have 12 fiscal periods defined
- Each fiscal period must be limited to the calendar dates for a month
Fiscal period PEP provides a Projection Scenario screen for users to create projections. InfoObject master data for Jobs, Positions, Employees, Pay Scale Levels and Benefits are the sources for the projections. The Projection Scenario screen does provide a section where Pay Levels and Benefits amounts can be changed for the projection, without having to change the InfoObject master data.
PBF 8.0 PEP
In PBF 8.0 release the Fiscal Period PEP functionality is basically the same as provided in release 7.1. Some additional enhancements were added:
- Multiple currencies. An additional key figure for Alternate Currency has been added to the Projection InfoCubes. If some PEP InfoObject master data contains a currency other than the FM Area currency then results will be posted in both currencies.
- Employee / Position / Job interdependency support - Employees and corresponding Positions can be assigned to different Jobs. In release 7.1, if the position and its corresponding employees are assigned to different job classes, this is considered an error whereas PEP 8.0 will produce results.
- The major new functionality introduced is the What-if Scenario. What-if scenarios first require a ‘reference projection’, which is a Fiscal Period PEP projection executed with the Save Master Data option. After the reference projection has been executed and results are posted then users can execute What-if projections that allow specific changes on top of the reference projection. It offers a way to tweak projection results without making changes to the underlying Employee and Position master data, such as:
- Adding substitute values for Pay Scale details Step Months, Next Pay Scale Group and Next Pay Scale
- Adding and removing benefits for specific employees and/or positions
PBF 8.1 PEP
In PBF 8.1 Release, Flexible Pay Period projections are introduced for customers who prefer to have PEP results aligned with payroll pay periods. Pay Period PEP produces results by pay periods and fiscal periods. To execute Pay Period PEP projections, the pay period type ( bi-monthly, flexible 26 pay periods, weekly, etc. ) needs to be configured and a pay period calendar needs to be uploaded to PBF. Multiple pay period types and pay tables are allowed.
Pay Period PEP supports Attrition and Backfill Scenarios. Attrition and Backfill projections first require a ‘reference projection’, which is a Pay Period PEP projection executed with the Save Master Data option. After the reference projection has been executed and results are posted then users can execute Attrition and Backfill projections that will calculate employee attrition and position backfill amounts based on configured Attrition and Backfill rules. The rules can be configured for attrition only (workforce reductions), backfill only (workforce hiring) or attrition with backfill parameters.
Flexible Source functionality is also supported by Pay Period PEP. Flexible Source allows Employee and Position master data for PEP to be stored in DSO objects rather than the Employee and Position InfoObjects. This functionality provides true versioning of Employee of Position master data for PEP projections. There are several setup steps and configuration required to use this option. First the desired Employee and Position master data need to be loaded into PBF DSOs. Next Queries to retrieve the DSO data need to be created. PBF includes templates for the DSOs and Queries required for this process. Finally the DSO and query names need to be configured for PBF via SPRO. Then when users execute a Pay Period projection they can specify on the projection screen which DSO source data to use.
Summary of PEP functionality by PBF version
The following table illustrates which PBF release supports the various PEP functionality:
|PBF release||Fiscal Period PEP|
|Pay Period PEP|| Attrition and|
| Flexible Source MD|
(*) Only supported with Fiscal Period PEP
(**) Only supported with Pay Period PEP
For more information on PEP in PBF release 8.1 see the PBF Application Help.
Fiscal Period PEP VS Pay Period PEP
Please note that while PBF 8.1 does support both Fiscal Period and Pay Period PEP, it is recommended that customers use only one of these and not both. The major considerations for deciding which type of PEP to use are reporting needs, supported functionality and sizing.
Why use Fiscal Period PEP?
If Pay Period results are not needed for reporting then Fiscal Period PEP should be used. Fiscal Period PEP has an advantage over Pay Period PEP in that it will produce less results records. The lowest level of results will be the fiscal period. Additionally if the Employee and Position InfoObject master data does not change often, such that attrition or new hiring does not have a significant impact on personnel budgets, or versioning of the master data is not important, then those are justifications for using Fiscal Period PEP.
Why use Pay Period PEP?
If Pay Period results are needed for reporting, then Pay Period PEP should be used as the results will be in both fiscal period and pay period. There are other considerations, such as sizing of PEP results. Pay Period PEP produces more result records because when the pay period crosses fiscal periods then the results will have at least 2 records, with the pay period amounts split out by fiscal periods. Refer to the PBF 8.1 Sizing Guide for details on Pay Period PEP results.
Having attrition or hiring rates that have significant impact on personnel budget amounts is a valid reason to use Pay Period PEP. Pay Period PEP supports Attrition and Backfill projections which will consider configurable Attrition and Backfill rules that can be applied to the PEP results.
If having the capability of using different sources of Employee and Position master data for PEP executions is crucial then Pay Period PEP should be used. The new Flexible Source functionality introduced in PBF 8.1 provides this capability and it is supported only by Pay Period PEP.
Converting from Fiscal Period PEP to Pay Period PEP
If you are currently running Fiscal Period PEP and would like to change over to use Pay Period PEP you must first upgrade to PBF 8.1, and there are a few new configurations and master data that will need to be maintained. The good news is that the bulk of PEP master data is used by both types of PEP including:
- Pay Scale data
- Benefit rates
- Benefit rules (some additional data needed)
The following tasks need to be completed to convert to using Pay Period PEP:
- Upgrade to PBF 8.1 and install PBF 8.1 content. See the PBF 8.1 Upgrade Guide for more information.
- Review the PBF 8.1 Sizing guide for evaluating the higher sizing requirements of Pay Period PEP results
- Configure Pay Type(s). See Solution Manager for PEP configuration details.
- Upload Pay Period table. See Solution Manager for PEP configuration details.
- Configure Pay Period Process Chains. See Solution Manager for PEP configuration details.
- Maintain Benefit Rules Pay Periods – The screen has been enhanced with a comparable Pay Period tab to configure the applicable pay periods and accumulators for Benefits. This provides the same functionality as the Months tab provides for Fiscal Period PEP. See the PBF 8.1 Application Help for more information.
- Adjust reporting tools to use the Pay Period PEP MultiProviders/InfoCubes