TheBasicsOfClaimsProcessing TG 12.15.10

The Basics of Claims Processing

About Symphony

• SAP Services Partner with an exclusive focus on SAP HCM consulting services

• Headquartered in Charlotte, North Carolina

• WBE certified by the WBENC (Women’s Business Enterprise National Council)

About Symphony’s Team

• Platinum level consultants with both business and SAP experience

• Global Consulting Expertise strengthened by numerous multi-

country HCM roll outs

• Industry Focus includes:

Public Sector (Local, State, Federal, K-12)

Manufacturing & Distribution

Utilities/Oil and Gas/

Chemicals

Life Sciences

Consumer Goods

What to do?!

Year End Process Considerations

YANAOn Demand

Adjustments Off-cycle

In This Session …

• Expand your SAP Payroll knowledge with an introduction to

payroll claims processing

• Learn the basics of payroll claims and see how to configure

and enable claims in SAP Payroll

• Gain an understanding of what typically causes claims and

how SAP Payroll reacts to them, and review the process by

which SAP Payroll automatically recovers claims from future

payrolls

• Explore methods for tracking and determining the amount of

claims, including when and how to use the Reconciliation and

Claims Reports to gather information about the claim

SAP New Solution for Salary Overpayments

Claims vs. Salary Overpayment

Salary Overpayment Solution

• Customers will no longer need to create clearing wage types matching every possible taxability to ensure accurate clearing of overpayments

• Year end tax filing will no longer be complicated by claims situations

• Solution is Concurrent Employment enabled

• Configuration setting that turns on or off the automatic clearing of overpayments as well as setting overpayment recovering threshold levels

• Ability to collect back over time and adjust taxable at the point of the collection is made

Salary Overpayment Solution

• Ability to check minimum wage requirements before recovery of overpayment

• Payroll results cluster table – overpayment collection table which stores the details of the overpayment and balance information

• Payroll functions to calculate the overpayment and allow for the repayment of the debt based on configuration

• Ability to override business rules through an overpayment recovery infotype. This infotype also tracks employee consent , employer notification attempt, total forgiveness, partial forgiveness, repayment amount

Payroll Process

• With the activation of the US Overpayment Recovery Solution, there is an additional processing step to create the master data relevant for the overpayments created in payroll. There is a new transaction/utility updates the employee’s master data with per pay period overpayments

Payroll Process

• The payroll

process with the

activation of the

US Overpayment

Recovery Solution:

Infotype IT 0909

Implementation Requirements

• ERP 6.0 Enhancement Package 4 SP02

• Prior to going live, all existing claims (/561) must be

cleared in productive environment

• Once activated, it must not be deactivated

• Configuration based on business requirements

Customizing

• Technical Wage Type to Support this process:

– /580 - Overpayment Balance

– /581 - Amount Recovered

– /582 - Prior year Overpayments

– /583 - Amount forgiven

– /584 - Total Amount Overpaid

– /585 - Previous Period Overpaid Balance

Concurrent Employment Specific

For Example:

What We’ll Cover …

• Review of payroll claims

• Which reports find claims?

• Claims clearing process

• Claims that cross years and the Claim of Right Rule

• Configuring your system for clearing payroll claims

• Wrap-up

What is a Payroll Claim?

• A claim is a dollar amount that an employee owes an

employer due to an overpayment

– Claims result from net pay less than zero

– Examples:

• An employee is paid in advance and then terminates

employment

• An employee is on leave with benefits continuing to be

deducted, and when the employee returns from leave, the

first pay period earnings do not cover the balance of benefits

deductions from missed payroll periods

What is a Payroll Claim?

• Claims are frequently due to a retroactive deduction in

pay:

– Examples:

• An employee’s work time does not create enough

earnings/gross pay to cover scheduled deductions

• An employee does not work any hours for the pay

period, yet has deductions scheduled to be

withheld

During Payroll Processing

• An amount is created by the system in technical wage type

“/561 Claims” whenever the system detects that a system-

generated technical wage type “/560 Amount Paid” is less

than zero:

– This happens as a result of a negative offset to net pay

– Two prime examples of conditions under which net pay is

less than zero:

• A retro-calculation has occurred

• A non-exempt hourly employee does not work enough

hours and has no sick time left to take and therefore

will receive no pay

Timing

• When to take action:

– Employee will not receive future payments

– Repayment to be a fixed amount per period until

satisfied

– Claim will not be recovered in current year







• Wrap-up

Which SAP Reports Inform About Claims?

• Every pay period, use a combination of the following

reports:

• Payroll Reconciliation: PC00_M10_REC or RPCPRRU0

• Wage Type Reporter: PC00_M99_CWTR or SA38-

H99CWTR0

• Display Payroll Results: PC_PAYRESULT

• Claims Processing: PC00_M10_CLAIMS or Components

of a Claim: RPCLMSU0

22

• Selection criteria– Run for a specific payroll period or for a range of time that does not

relate to a specific payroll period

– Wage type application = CLMS

– Detailed/Totals view: EE Data = Check Marked

Payroll Reconciliation: PC00_M10_REC or RPCPRRU0

Payroll Reconciliation: PC00_M10_REC or RPCPRRU0

• Results of this report are limited to the amount of individual claims for a broad range of time & do not provide sufficient data to clear the claim

• Comparison between technical wage types “/561 Claim” and

“/5PY Good Money” cannot be made

This report is best used only

for the current payroll as it

cumulates results and is not

useful information for clearing

the claim.

Wage Type Reporter: PC00_M99_CWTR

• Selection criteria

• Run for a payroll interval or for an individual payroll period

• Select Wage type /561 Claim from the dropdown menu

Wage Type Reporter: PC00_M99_CWTR

• Results are limited to the amount of the claim and when it occurred

• Insufficient details to clear the claim because a comparison between

“/561 Claim” and “/5PY Good Money” cannot be made

Display Payroll Results: PC_PAYRESULT


• Only personnel number is required

Display Payroll Results: PC_PAYRESULT

• Results are limited to the amount of the claim and when it occurred

• Limited detail; not enough to clear the claim

Claims Processing: PC00_M10_CLAIMS or RPCLMSU0


– Select a specific

payroll period or

a range of time

that does not

relate to a

specific payroll

period

– Personnel

number(s) or

Payroll area for

entire group of

employees


Results

• Components of the claim shown under “Tax Amounts” and

“Deduction Amounts Wagetype”

• Provides sufficient data to resolve a claim – a comparison between

“/561 Claim” and “/5PY Good Money” can be made


/561 – Claim Amount

/5PY – Good Money

Taxability Repay Amounts:

Wage type and Proc. Class 71

Tax amounts: Overpaid

Deduction wage types:

Pre- and post-tax

deductions

• Three possible scenarios exist with wage types “/561

Claim” and “/5PY Good Money”

– /561 = /5PY

– /561 < /5PY

– /561 > /5PY

• Determining a solution for clearing a claim depends on

the comparisons between these two technical wage

types.








• Wrap-up

Wage Types Used When Clearing Claims

• /560 Amount Paid (Net Pay)

• /561 Claim

– Created when Net Pay /560 falls below zero

• /5PY Good Money

– Must always be positive for taxes to be calculated

Terminology Used When Clearing Claims

• Tax classification

Used by Processing Class 71 to group wage types in specific

tax categories.

• Earnings

Regular wages have a tax classification of 1

Severance payments have a tax classification of S

• Deductions

401K pre-tax contributions have a tax classification of L

Wage Types Used When Clearing Claims

• The following SAP model wage types are used to create customer wage types during configuration.– MFT1 – Claim Forgiveness (Forgiven Claim (Txblty 1))

– MRP1 – Claim Repayment (Clear Claim (Txblty 1))

– MDRC – Deduction Recovery (at least three variants)

– 1DRC – Recovery, which posts to forgiveness

– 1CBC – Recovery, which posts to claims (clear balance of claim)

– MP10 – Periodic Claim Repayment for Payment plan (IT 0014)

– MP11 – Total Claim Amount – Balance (IT 0015)

– MP12 – Claim Repayment Accumulation

– MCOR – Claim of Right

Steps for Clearing Claims

• Identify employees with claims (/561) using reports

– Run the Payroll Reconciliation report for wage type /561 for

current payroll period only

• Identify components of the claim for each employee

– Run Claims report for claims that occurred in current payroll or

during the current year only

• Decide on one of three procedures to clear the claim:

– Total forgiveness

– Full repayment

– Partial repayment

Three Procedures for Clearing Claims

• Total forgiveness

– All claims for an employee are forgiven

• Full repayment

– All claims are repaid by employee via check or payment plan

• Partial repayment

– Partial amount of claim is forgiven for an employee

– Partial amount is repaid by employee via check or repayment

plan

Total Forgiveness Procedure

• The employee will not repay any overpaid amount

– Examples of when used

• Terminated employees who have received

overpayments and no agreement exist to pay back

amount

• Employees on leave who will not be back to work

to receive a payment in the current year

• Use Infotype 0267 “Additional Off-Cycle Payments”

Total Forgiveness Procedure• The procedures for clearing claims involves running payroll

for affected employees

– In the event that an employee is inactive, you will have to adjust the

“Run payroll up to” date (Infotype 0003) for the employee accordingly

in order for payroll to run

Total Forgiveness Procedure Considerations

• If outstanding deductions exist, you must determine

which of them, if any, should be refunded to the

employee

• If all deductions are to be written off, enter the total

amount of the deductions in the customer wage type

field on Infotype 0267


• If you are refunding any deductions, only use customer

copy of SAP model wage type MDRC of our example

(on Infotype 0267) to reflect those that are written off

– By leaving a difference between wage types /561 and /5PY,

the system will process the refund

• However, you will also need to adjust the

accumulations

– You can do this via subtype ADJT on Infotype 0221 by

entering negative deduction amounts using the actual

deduction wage types


• If the difference results from the refund of a pre-tax

deduction, you must offset the refunded pre-tax

deduction with a copy of SAP model wage type MDRC

wage type such as 1DRC or 1CBC

• See OSS note 332601 for further details

1. Create off-cycle run using “Additional Payment” reason

2. Use Wage Type with matching Tax Classification

3. Start payroll

4. Save

5. Display payroll results to verify that /561 no longer exists

Tax Classification

0

Tax Classification

0

Off-Cycle

Workbench

PC00_M10_CLAIMS report


Full Repayment Procedure

• Examples of when used

– Scenario 1: Employee offers to pay in full with check

– Scenario 2: Employee is set up on a repayment plan via regular

payroll deductions

• Infotypes used

– Scenario 1: IT 0267, IT 0221

– Scenario 2: IT 0267, IT 0014, IT 0015

29

Scenario 1:

Two-step Process to Repay in Full by Check

1. Offset /561 Claim and /5PY Good Money using the claim clearing wage type(s) in IT 0267 through the Off-Cycle Workbench (transaction PUOC_10)

– This step also includes clearing deductions if necessary (for example, using copies of Wage Types MDRC,1DRC,1CBC) in IT 0267, whenever the claim /561 does not equal Good Money /5PY)

• This is done using

negative amounts

2. Enter gross receipt of repayment check via Infotype 0221/ADJT

using the Adjustment Workbench (transaction PAUX)

• Choose “Payroll Results Adjustment” from the Adjustment Reason

field

• Enter adjustment date

• Choose “without tax calculation (ADJT)

• Click on the “Enter data”

icon to proceed to

“Create Payroll

Adjustments”

Scenario 1:


32

The gross repayment amount and the negative

tax amounts will equal the repayment amount

of the check provided by the employee.

Tax amounts to be cleared in Step 2

Amount cleared from the claim in

Step 1

Scenario 1:


Clearing the Claims and Validating the Results

• Execute (run) payroll by clicking on the button

• Check your results in the employee’s payroll results (Trans

PC_PAYRESULT) to validate the change

33

Results of Scenario 1

• In Step 1, both /5PY and /561 are brought to zero (0) in

payroll using Infotype 0267 in trans PUOC_10 Off-Cycle

Workbench

• The wage types post to the same FI account as /561

• Claims will cleared from payroll but still exist in FI

• In Step 2, the entries in Infotype 221 will clear the claim in

FI using transaction PAUX Adjustment Workbench

• The receipt of repayment from the employee via check is

entered into Infotype 221/ADJT using the same wage types as

those used in the claims report

34

Scenario 2:

Steps to Repay in Full via Payroll Deductions

• When /561 Claims equals /5PY Good Money

1. Offset the /561 Claim and /5PY Good Money using the claim

clearing wage type(s) in IT 0267

2. Set up a payment plan using IT 0014 for each individual

deductions and IT 0015 for the balance amount

36

The deduction wage types used to recover the overpayment must be configured to post to

the same account(s) as the claims. In this way, each deduction will reduce the claim in FI.

52

Partial Repayment Procedure

• Employee and employer negotiate an amount to be

repaid

• Examples of when used

– Scenario 1: Employee pays with check

– Scenario 2: Employee is set up on a repayment plan via regular

payroll deductions

• Infotypes used

– Scenario 1: IT 0267, IT 0221

– Scenario 2: IT 0267, IT 0014, IT 0015

53

Scenario 1:

Steps to Partially Repay by Check

• Step 1 - Determine the amount to be repaid and the

amount to be forgiven

• Step 2 - For the amount to be forgiven, follow the same

procedure as the forgiveness scenario using IT 0267

• Step 3 - For the amount to be repaid, determine the tax

amounts to be refunded

– Use a payroll simulation run to determine the amount of taxes to

be refunded for the repaid amount

Scenario 1: Steps to Partially Repay by Check

• Step 4 - Recover the payment amount– In IT 0267, separate the amounts of the total /5PY Good Money amount

by:

• Gross forgiveness amount (using the 9FTX series of wage types)

• Gross repayment amount (using the 9RPx series of wage types)

– The /5PYamount is not the amount of the check the employee provides the employer; the gross repayment amount less the tax amounts equals the amount the employee provides the employer

– The gross forgiveness and gross repayment must equal the /5PY Good Money

39

The gross repayment amount and the negative tax amounts will equal the repayment

amount of the check provided by the employee.

Scenario 1:

Steps to Partially Repay by Check

• Step 4 - Recover the payment amount (cont.)– When /561 Claims is greater than /5PY Good Money, you

must also enter the deduction amounts using 9DRC for after tax forgiveness, 1DRC for pre-tax forgiveness, and 1CBC for pre-tax claims clearing

– In IT 0221/ADJT, enter the following:• Gross repayment amount (using 9RPx series of wage types)

• Employee and employer tax amounts as negative amounts (using the /4XX series of wage types)

40

The gross repayment amount and the negative tax amounts will equal the

repayment amount of the check provided by the employee.

56

• Step 1 – Determine the amount to be repaid and the

amount to be forgiven

• Step 2 – For the amount to be forgiven, follow the same

procedure as the forgiveness scenario using IT 0267

• Step 3 – For the amount to be repaid, determine the tax

amounts to be refunded

– Use a payroll simulation run to determine the amount of taxes to

be refunded for the repaid amount

Scenario 2:

Steps to Partially Repay via Payroll Deductions

42

• Step 4 – Recover the payment amount via payroll deduction plan– In IT 0267, enter the following:

• Separate the amounts of the total /5PY Good Money amount

• Gross forgiveness amount (using the 9FTX series of wage types)

• Gross repayment amount (using the 9RPx series of wage types)

The gross forgiveness and gross repayment must equal the /5PY Good Money

Scenario 2:


42

• Step 4 – Recover the payment amount via payroll deduction plan (continued):– When /561 Claims does not equal /5PY Good Money, you must

also:

• Enter the deduction amounts using 9DRC for after tax forgiveness, 1DRC for pre-tax forgiveness, and 1CBC for pre-tax claims clearing in IT 0267

• Enter gross repayment amount (using 9RPx series of wage types) in IT 0221/ADJT

• Enter the EE & ER tax amounts as negative amounts (using the /4XX series of wage types) in IT 0221/ADJT

Scenario 2:


42

• Step 4 – Recover the payment amount via payroll

deduction plan (continued):

– In IT 0014, enter the amount to be deducted from each payroll

run (using 9Rx0 series of wage types)

– In IT 0015, enter the entire net repayment amount (using the

9Px1 series of wage types)

Scenario 2:


60







• Wrap-up

Claims that Cross Years

• When wage overpayments are paid, they are

considered wages at the time of payment and

reported as current year payments– If these amounts are deducted from wages in the same year they

are paid, the deductions are taken on a pretax basis

• This is called the “wage offset” method

45

Claims that Cross Years

• The same rule does not apply if the repayment

occurs in a subsequent tax year– With respect to the repayment of salary advances and

overpayments that cross tax years, the “claim-of-right” rule

applies

45

Wage Offset vs. Claim-of-Right: IRS IRC Section 1341

• Why the wage offset method is incorrect when repayments cross tax years

– Under wage offset, the employee is given full credit for FIT on the repayment

– Under claim-of-right rule when salary repayment is $3000.00 or less, the repayment is subject to the 2% floor on miscellaneous itemized deductions

46

Wage Offset vs. Claim-of-Right: IRS IRC Section 1341

• Why the wage offset method is incorrect when repayments cross tax years (continued):– If wage offset method is used in subsequent tax year and if

employee repayment is less than $3000.00, the employee receives a greater FIT reduction than actually entitled to under the claim-of-right rule because the 2% floor on miscellaneous itemized deductions is avoided

– Using wage offset method in subsequent tax years, employees and employers are able to obtain FICA and FIT refunds beyond the three-year statute of limitations

46

What is the Claim-of-Right Rule?

• Under the claim of right, special tax rules apply when an

employee has obligation to repay amounts received in

the prior year

• The special tax rules result in limiting the amount of FIT

that can be restored to employees when crossing tax

years

– When employers make pretax deductions for repayment

amounts in a subsequent year, they may be assisting employees

in obtaining a larger federal income tax reduction than is allowed

under the claim-of-right rule

47

Wage Offset Method vs. Claim-of-Right Method Example

Wage Overpayment and Payroll deduction (Repayment in same year as

Overpayment/Advance) Wage Offset Method

Pay Calculation 12-5-2010 Wage Payment 12-17-2010 Wage Payment

Gross Pay $500.00 $500.00

Overpayment/Repayment $50.00 -$50.00

Net Taxable Gross $550.00 $450.00

Fit at 15% $82.50 ($550.00 X 15%) $67.50 ($450.00 X 15%)

Social Security at 6.2% $34.10 ($550.00 X 6.2%) $27.90 ($450.00 X 6,2%)

Medicare at 1.45% $7.98 ($550.00 X 1.45%) $6.53 ($450.00 X 1.45%)

Net Pay $425.42 $348.07

• When an employee is required to repay amounts previously

reported as taxable income and the repayment occurs in a

subsequent tax year, then the claim of right rule applies

48

Wage Offset Method vs. Claim-of-Right Method Example

Wage Overpayment and Payroll Deduction

(Year Subsequent to Overpayment)

Claim-of-Right rule

Pay Calculation 12-5-2010 Wage Payment 1-4-2011 Wage Payment

Gross Pay $500.00 $500.00

Overpayment $50.00

Net Taxable Gross $550.00 $500.00

Fit at 15% $82.50 ( $550.00 X 15%) $75.00 ($500.00 X 15%)

Social Security at 6.2% $34.10 $31.00

Medicare at 1.45% $7.98 $7.25

Repayment -50.00

Net Pay $425.42 $336.75

49

68







• Wrap-up

69

Configuring the Claims Clearing Wage Types

• Verify that the Off-cycle Workbench configuration has been completed in order to clear claims

• Verify that Transaction PAUX, Adjustment Workbench has been configured in order to adjust wage types.

• Configure the Claims Report RPCLMSU0– Using transaction PC00_M10_Claims

• Configure the Claims Clearing wage types using either:– Report RPDLGA20 through transaction SA38 to report on which

wage types have been configured for claims processing and to configure additional wage types accordingly.

– Report Wage Type Utilization through transaction PC00_M99_DLGA20 to determine which wage types have been configured

70

Configuring the Claims Clearing Wage Types

• Wage Type Utilization report through transaction PC00_M99_DLGA20 - Selection criteria

– Enter the country grouping or accept the default

– Enter the validity period of wage types

– Select desired output

– Execute the report to run it by clicking on the “Execute” icon

Results of Running PC00_M99_DLGA20

• Click on “Meaning of

processing classes

and their values” to

expand and see the

details

• Click on “71 Wage

type tax classification”

to further expand

55

Results of Expanding the Wage Type Classification Section

• A folder to the left of the wage type indicates that wage

types are assigned to these tax classifications

56

It is important to identify

any customer wage type

which can cause a claim

to be created.

Results of the Wage Type Utilization Report PC00_M99_DLGA20

• Identify customer wage types assigned to the different tax

classifications

57

Results of Expanding the Wage Type Classification Section

Creating the Naming Conventions

Tip

• Examples of nomenclature for forgiveness

– 9 = Wage type is a customer wage type

– F = Forgiveness

– T = Tax Classification

– 0 to X = Processing Class 71 specification

• Examples of nomenclature for deduction recovery

– 9 = Wage type is a customer wage type

– D = Deduction

– R = Recovery

– C = Claims forgiveness

Assigning the Model Wage Type by Tax Classification

Earnings Tax Classification

PCL 71

Description

SAP MFT1 9FT0 0 Regular Taxable Wages

SAP MFT1 9FT1 1 Regular Wages

Deduction - Pretax

SAP MP11 9PL1 L 401K Pre-Tax

• Examples of assigning model wage types to customer

wage types used to forgive claims

58


Earnings Tax Classification Description

SAP MRP1 9RP0 0 Regular Taxable Wages

SAP MRP1 9RP1 1 Regular Wages

Deduction - Pretax

SAP MRP1 9RPL L 401K Pre-Tax


wage types used to repay claims by check

59

Assigning the Model Wage Type by Tax Classification (cont.)


SAP MPx0 9P(0)0 0 Regular Taxable Wages

SAP MPx0 9P(1)0 1 Regular Wages

Deduction - Pretax

SAP MPx0 9P(L)0 L 401K Pre-Tax


wage types used for periodic claim repayment by payroll

deductions

– Used by Infotype 0014 Recurring Payments and Deductions

60




SAP MPx1 9P(0)1 0 Regular Taxable Wages

SAP MPx1 9P(1)1 1 Regular Wages

Deduction - Pretax

SAP MPx1 9P(L)1 L 401K Pre-Tax


wage types used for total claim amount

– Used by Infotype 0015 Additional Payments

61

Copying a Model Wage Type to a Series of Customer Wage Types

• Copy MFT1 to 9FT0 - 9FTX – For forgiveness

• Repeat process copying MRP1 to 9RP0 - 9RPX – Clears claims from Payroll for full or partial repayment

• Copy MDRC to:– 9DRC – post-tax deduction recovery for forgiveness

– 1DRC – pre-tax deduction recovery for forgiveness

– 1CBC – pre-tax deduction recovery for claims

• Copy MPX0 to 9P00 - 9PX0 (IT 0014)

• Copy MPX1 to 9P01 - 9PX1 (IT 0015)

• Copy MPX2 to 9P02 - 9PX2 (used for cumulations)

• Copy MCOR to 9COR used for Claim-of-Right

62

Forgiveness Table Showing Copied Wage Types

Example results

of what table

should be after

copying model

wage type for

MFT1

MFT1

Model

wage

type

copied to

this

series for

forgiving

claims

81







• Wrap-up

Best Practices regarding Claims Processing:

• Claims Processing– Best Practice

• Clear claims during the payroll cycle they happen in

• Use reports to help you identify claims before exiting payroll and avoid them early on

• Review business processes that create claims and be proactive to improvements to reduce YE processing time

• Use SAP Guide for Claims Processing “Clearing Claims from SAP Payroll” http://service.sap.com/HRUSA

• Identify the claims

• Determine process to clear

http://service.sap.com/HRUSA

83

Resources

• CCH Editorial Staff, Income Tax Regulations (CCH, February 2007) http://books.google.com/books?id=R3FpNnlAaWMC

• Steve Bogner, “Correctly Clear Claims in SAP’s US Payroll” Parts 1 and 2, (HR Expert, October and November 2005)

• Service Marketplace http://service.sap.com/HRUSA– Business Process Expert Community

– SAP Help Portal

– White papers

• Adjustment Processing

http://books.google.com/books?id=R3FpNnlAaWMC

http://service.sap.com/HRUSA

Resources (cont.)

• Debera J. Salam and Lucy K. Price, Principles of Payroll

Administration (Warren Gorham, 2004)

• WWW.IRS.GOV – “Repayments of Income” and

“Repayments under Claim of Right”

• SAP Note 332601 - CLS2000: Additional information when

clearing claims in SAP

http://www.irs.gov/

85

7 Key Points to Take Home

• Best practice: The best way to process claims is to prevent them from occurring

• Run wage type report for /561 before exiting each payroll

• Claims can be cleared via total repayment, partial repayment, or total forgiveness

• When clearing claims, it is vital that the wage type used to clear or recover the claim has the same taxability as the original overpaid wage type

• Crossing years adds complexity to clearing claims– Compliance with “Claim-of-Right” rule is accomplished via

copying the MCOR delivered to a customer wage type

86

7 Key Points to Take Home (cont.)

• Configuring the claims report is critical to determining

components of any claims

• Copying and configuring claims wage types to perform

specific functions is critical for comprehensive claims

clearing

87

Your Turn!

How to contact me:

Tom Gandolph

[email protected]

www.symphonyhcmexperts.com

www.facebook.com/symphonysaphcm

www.twitter.com/symphonysaphcm

mailto:[email protected]



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respective companies. Wellesley Information Services is neither owned nor controlled by SAP.

TheBasicsOfClaimsProcessing TG 12.15.10

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