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Getting Started with PEP

This document mostly focusses on the pre-requisites to run a successful projection. It will guide through the minimum master data required to run any PEP Projection.

The pre-requisites for this document are:

  • The ‘Overview of PEP versions’ document describes the different type of PEP Projections and their usage. Based on this overview, one can decide the type of projection to be run and then refer to this document to know exactly where to begin.
  • The ‘PEP Configuration’ document describes the various configurations to be maintained to run a projection successfully.

The above two documents will help to get a better insight on the different types of PEP Projections available and the configurations required for a successful run of each of the different types. After maintaining configuration the required Master Data can be built.

1. Projection screen, combo edit rules and hierarchies

PEP scenarios require a set of Master Data to be maintained as a pre-requisite in order to begin with the PEP calculations. Without this data, the calculations are not possible.

The following infoobjects master data to be loaded before running any projection.

InfoObject Name

Description

/PBFBI/FM_AREA

FM Area

/PBFBI/EMPLOYE

Employee

/PBFBI/POSTN

Position

/PBFBI/JOB

Job

/PBFBI/FUND_CT

Fund Center

/PBFBI/FUNDPGM

Funded Program

/PBFBI/FUNCARA

Functional Area

/PBFBI/GRANT

Grant

/PBFBI/FUND

Fund

/PBFBI/CMMT_IT

Commitment Item

/PBFBI/BEN_ARE

Benefit Area

/PBFBI/BEN_PLN

Benefit Plan

/PBFBI/PYSCLVL

Pay Scale Level

/PBFBI/PPERIOD

Performance Period

After loading master data to above Infoobjects, we need to create hierarchies for the same and the list of infoobjects as mentioned below.

  • /PBFBI/FUND_CT
  • /PBFBI/GRANT
  • /PBFBI/FUNCARA
  • /PBFBI/CMMT_IT
  • /PBFBI/FUND
  • /PBFBI/FUNDPGM

Hierarchies:

A hierarchy is a method of displaying a characteristic structured and grouped according to individual evaluation criteria.

Example

Once the InfoObject master data and at least one hierarchy has been built for each of the 5 FM dimensions listed then the last step is to maintain the combo edit rule with the hierarchies. For more details PBF application help for Budget Form Configuration, Creating a Combo Edit Rule

2. PEP Master Data Requirements

PEP scenarios require a set of Master Data to be maintained as a pre-requisite in order to begin with the PEP calculations. Without this data, the calculations are not possible.

The following Infoobjects master data to be loaded before running any projection.

InfoObject Name

Description

/PBFBI/FM_AREA

FM Area

/PBFBI/EMPLOYE

Employee

/PBFBI/POSTN

Position

/PBFBI/JOB

Job

/PBFBI/BEN_ARE

Benefit Area

/PBFBI/BEN_PLN

Benefit Plan

/PBFBI/PYSCLVL

Pay Scale Level

Please refer to the following link to maintain the master data:

Maintaining BI Master Data - SAP Public Budget Formulation - SAP Library

2.1. FM Area (/PBFBI/FM_AREA)

The master data screenshot for Financial Management Area as mentioned below.

During the PEP Calculation, the FM Amount is driven by the currency maintained here. If there is any other currency maintained in any of the master data, then it is taken as the alternate currency. The FM Amount is then converted from the FM Area Currency to the Alternate amount currency as per the currency conversion maintained and thereby, stored as a separate column.

2.2. Pay Scale Maintenance

The Pay Scale Master Data and Pay Scale Level details should be maintained for proper PEP Calculations.

The salary details for any employee or position can be defined in 2 ways:

  • Fixed Salary: A fixed Annual Salary Amount is declared while creating the employee/position MD
  • Pay Level Salary: The salary is taken from the Pay Table maintained using the Pay Level Maintenance Screen.

Based on the Annual Salary Amount maintained in any of the above two choices, the salary for each period is calculated. We can assign Fixed Salary to the employees and positions while maintaining the respective MD, however, the step increase still depends on the Pay Level Details i.e. the step increase rate, the step months – months after which the 1st increase has to be given. Therefore, the Pay Level MD should be maintained.

To maintain the Pay Level Details, please refer to the link below:

Creating Pay Levels - SAP Public Budget Formulation - SAP Library

2.3. Creating Benefit Area and Plan

In order to assign any benefits to the Job/Position/Employee MD, the Benefit Plan and Benefit Area MD has to be maintained. It will be only after the creation of the Benefit Area and Plan that we can assign the respective benefit to the Job or Position or Employee.

Apart from this, the benefit calculations depend on the Benefit Rules and Benefit Rates maintained. Please refer to the Benefit Calculation Guide to know more about how to maintain the Benefit Rules and Benefit Rates and how benefits are calculated. If these rules are not maintained, then no benefit records will be seen in PEP Results even if they are assigned to the qualified Employee or Position.

Path:

PBF Administration->Master Data Maintenance->Search for /PBFBI/BEN_ARE and /PBFBI/BEN_PLN->Select the Object and Click on Maintain.

Benefit Area

Click on New->Enter Benefit Area->Click on Create->Enter Short description->Click on Save.

Benefit Plan

Click On New->Select Benefit Area from F4 Help->Click on New->Enter Benefit Plan->Enter Medium description->Click on Save.

Note: Benefit Plan is added only after creating Benefit area because the Benefit Plan is included under Benefit Area.

2.4. Maintaining Projection Distribution

This is an optional feature that is specific to Fiscal Period PEP. It is this distribution code value which is given at Job MD to calculate PEP Results based on distributions.

The projection distribution feature allows us to distribute salary and benefits based on percentage basis for all periods.

To create a Projection Distribution, follow the path below:
PBF Administration->PEP Maintenance->Fiscal Period PEP->Projection Distributions->Click On New->Enter the code

After entering the code->Click on Add->Add all pay period with percentage->Click on Save.

Note: Distribution code limited to four characters.

To see how the distribution affects PEP results please refer to the PEP How-to guide Fiscal Period PEP.

2.5. Job (/PBFBI/JOB)

Job Master Data has to be maintained before the creation of position or employee master data since; each employee/ Position has to be assigned to a corresponding job.

To know about maintaining Job MD, please see the link below:

Job Maintenance - SAP Public Budget Formulation - SAP Library

To learn about creating a new Job, please see the link below:

Creating a New Job - SAP Public Budget Formulation - SAP Library

Note: The Pay Level details and the benefits maintained in the Job Master Data are inherited by corresponding positions, if they are not maintained in the Position’s MD.

All fields present on the Job Maintenance screen are essential for PEP Calculation .

2.6. Position (/PBFBI/POSTN)

Position MD maintenance is one of the essential requirements for PEP Calculations.

To maintain Position MD, please see the link below:

Position Maintenance - SAP Public Budget Formulation - SAP Library

To create “New” Positions, please see the link below:

Creating a New Position - SAP Public Budget Formulation - SAP Library

All fields specified in the above links are related to PEP Calculations.

Important Notes:

  • To see any calculated position salary records, at least one vacant position should be qualified as per the projection selection criteria.
  • If benefits or pay scale levels are not maintained at Position MD, then they are inherited from the Job MD.
  • If the Position is inheriting the pay scale from the Job MD or define at the Position and the Salary Override flag is set to No, meaning the salary comes from the Pays Scale Master Data, then the Pay Scale level to be used must be maintained properly.
  • We can assign benefits to position master data if we want to calculate benefits. In a general scenario, benefits are likely to be used. To allocate salary to different Funds, allocations can be assigned. However, both benefits and allocations can be considered as optional as they may or may not be required for PEP projection.

2.7. Employee (/PBFBI/EMPLOYE)

Employee MD maintenance is one of the essential requirements for PEP Calculations.


To maintain Employee MD, please see the link below:

Employee Maintenance - SAP Public Budget Formulation - SAP Library

To create “New” Employee, please see the link below:

Creating an Employee - SAP Public Budget Formulation - SAP Library

All fields specified in the above links are related to PEP Calculations.

Important Notes:

  • For a successful PEP Projection, at least one employee/position/job should qualify the projection filter criteria. Only then, we will be able to see the salary records.
  • If benefits or pay scale levels are not maintained at Employee MD, then they are inherited from the Position MD and if they are not maintained at Position MD, then they are inherited from the Job MD.
  • If the Employee salary comes from the pay scale Master Data, either by inheritance from Job or Position MD or defined at the Employee level with the Salary Override flag set to No, then the Pay Scale level to be used must be maintained properly.
  • We can assign benefits to employee master data if we want to calculate benefits. In a general scenario, benefits are likely to be used. To allocate salary to different Funds, allocations can be assigned. However, both benefits and allocations can be considered as optional as they may or may not be required for PEP projection.

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