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Benefit category is always maintained in SAP HR system. In the implementation projects, you choose only those functions that you need for the processes in your project. The division is performed primarily for administrational purposes and would not normally be used for eligibility. To reduce the complexity of the configuration process in the SAP Reference IMG, you generally create separate implementation projects. Benefits play an important role in employee retention to keep the best possible employees in a company.Benefits Management in SAP HR is integrated with the international Payroll component. For more information, see SAP Reference IMG. Benefit Categories are again divided into Plan types and every category can contain one or more Benefit Plan types.The grouping of different benefit plans is done in Benefit Plan type. This is a primary subdivision of plan set up within the benefits component.Benefit areas in SAP HR are independent from each other.


SAP delivers an Implementation Guide, the SAP Reference IMG, that contains the work steps for all applications as IMG activities in the SAP System. In SAP, SAP Reference IMG provides all the required and important configuration steps to meet the functional areas of SAP. You generate separate project IMGs for each implementation project and for release updates.You can generate views to structure your project activities by selecting attributes by specified criteria. Given below are the key benefit categories −In SAP HR system, all these categories are predefined and HR system handles each category differently. Most common needs that can be associated with spending account includes health, dependent care, and legal benefit, etc.Following are the common benefit plan types for each of the plan categories − However, integration is not supported for every country version of SAP Payroll.To use Benefits Management for a country payroll, which is not integrated, in conjunction with non-SAP payroll software or an external payroll service, you must provide your own interface for the transfer of data.Enrollment is a process of enrolling employees of an organization under the benefit management. It allows an employee to enroll in all relevant automatic plans at all times.Automatic Enrollment plans are normally provided to the employees at no extra cost and also allow little flexibility to the employee regarding the plan terms.An organizational change or a personal change for an employee that allows an employee to change his/her current benefit elections.The adjustment reason is normally a user-defined parameter to which certain adjustment permissions are assigned for different types of benefit plan.Some examples of adjustment reasons are Marriage, Hiring (initial enrollment), New dependent, Job change etc.Using Benefit areas, you can have separate administration of different benefit plan pools. Enrollment Plan selection for an employee depends on employee eligibility.The Enrollment function allows you to enroll the employees and to make changes to the employee benefit selection as required for the following tasks −Following are the types of enrollment that can be used −An open Enrollment offer is the most unrestricted type of offer.Open enrollment type is generated by the system when you start enrollment for a date that lies within an open enrollment period.It includes only those enrollment plans, which require the employees to meet some certain criteria. The implementation guide is grouped by modules and business process that take place in every SAP R/3 module.

Steps: - Hit the New entries button - Enter your own Benefit area and Country grouping - Hit the Save button . The implementation guide is a hierarchical structure of the application areas in the component hierarchy. Type in the T-Code SPRO under That got to Main Menu which is IMG. IMG>Personnel Management>Benefits>Basic Settings>Define benefit areas.

SAP Reference IMG can be viewed using SAP SPRO transaction code or through SAP menu path Tools > Business Engineering > Customizing.

It allows you to have separate administration or separate benefit plan pools.

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