Social Service Reductions

Social Services: Reductions
Public
Business Background
Explanation
A reduction in SAPs Social Services Solution is used to reduce the gross

entitlement amount of a set of entitlements explicitly.
An example of a reduction could be a sanction.
© 2014 SAP AG or an SAP affiliate company. All rights reserved. Ramp-Up Knowledge Transfer Customer 3
Kinds of Reductions
Benefit Specific Reductions & Cross Benefit Reductions
The solution supports 2 kind of reductions
• Benefit specific reductions

• These are “assigned” to an entitlement item by having the same
• Beneficiary
• Payment recipient
• Tax category
• Decision unit (for composite scenarios)
In addition they have the benefit of the entitlement item as reference benefit and an overlapping period
• Cross benefit reductions

• These are “assigned” to a set of entitlement item by having the same
• Beneficiary
• Payment recipient
• Tax category
• Decision unit (for composite scenarios)
for an overlapping period
Process
Reduction Process: Determination & Calculation
Creation:
• It can be created manually or by the system (reduction determination  new process

step after the entitlement determination)
• The reduction determination can be customized in an own IMG activity but can just be
triggered together with the entitlement determination
Calculation:
• The reduction amount can be entered manually (one amount per reduction item) or it
can be calculated by the system
• Like for entitlements it can be customized how manual entitlement amounts shall be
handled in the calculation step
• The reduction calculation can be customized in an own IMG activity but can just be
triggered together with the entitlement calculation (reduction calculation  new
process step after the entitlement calculation)
Reduction Process: Tax Category Determination
Tax category determination:
• The tax category of entitlements and reductions is determined in a separate step

after the calculation has been executed
• Tax category determination is determined per entitlement / reduction item
• The tax category can just be determined automatically
Reduction Process: Gross Payment
Gross payment:
The logic regarding reductions is similar to the logic of the former releases for
entitlements but
• Regular payments for reductions have a negative sign
• If the reduction amount has to be changed for reductions in the past then
• Increasing reduction amount is leading to an overpayment item
• Decreasing reduction amount is leading to a underpayment item
Example: Over- / Underpayment as a Result of Reduction
SSP 1
Benefit 1: 100,-
„GPD 1“
Regular: 100,- Regular: 100,- Regular: 100,- Regular: 100,-
Follow-up
SSP 2
Benefit 1: 100,-
Reduction1: - 35,-
„GPD 2“
„Overpayment“: 35,- „Overpayment“: 35,-
Entitlement Period
Reduction Process: Reduction Adjustment
Reduction Adjustment:
The logic regarding adjustment items for reductions is the same like for entitlements
Reduction Process: Net Calculation & Billing
Net calculation:
• The logic regarding grouping of gross payment items to net calculation

documents is unchanged
• Deductions logic also not changed
Billing:
• Reference benefit information is available here  it is possible to post benefit

specific reductions on the same contract account like the corresponding
entitlement
Examples of Valid and Invalid Reduction Scenarios
Benefit Specific Reduction
Example 1
Benefit 1
400,- 400,- 350,- 350,-
Reduction 1
- 50,- - 75,- 0,- - 75,-

Sum per entitlement period
350,- 325,- 350,- 275,-
Benefit 2 no reduction for Benefit 2
100,- 100,- 100,- 100,-

100,- 100,- 100,- 100,-
Entitlement Period
Example 2
Benefit 1
400,- 400,- 350,- 350,-
Reduction 1
- 50,- - 75,- - 400,- - 75,-

350,- 325,- - 50,- 275,-
Benefit 2 no reduction for Benefit 2
100,- 100,- 100,- 100,-

100,- 100,- 100,- 100,-
Entitlement Period
Cross Benefit Reduction
Example 3a
Benefit 1
400,- 400,- 350,- 350,-
Reduction 1
- 50,- - 75,- - 400,- - 75,-

450,- 425,- 50,- 375,-

Benefit 2
100,- 100,- 100,- 100,-
Entitlement Period
Cross Benefit Reduction
Example 3b
Benefit 1
400,- 400,- 350,- 350,-
Reduction 1
- 700,- - 75,- - 400,- - 75,-

- 200,- 425,- 50 275-

Benefit 2
100,- 100,- 100,- 100,-
Example 4a – non Overlapping Same Reduction
Benefit 1
400,- 400,- 350,- 350,-
Reduction1
- 50,-
Sum per entitlement

period
350,- 

Sum per entitlement
period
400,-
Reduction 1
- 350,- - 250,-

0,- 100,-
Entitlement Period
Example 4b – Overlapping With Different Reductions
Benefit 1
400,- 400,- 350,- 350,-
Reduction 1
- 50,-
Reduction 2
- 350,- - 250,-
 
0,- 150,- 350,- 350,-
Entitlement Period
Example 4c – Like 4b but sum of Reduction Amount is to High
Benefit 1
400,- 400,- 350,- 350,-
Reduction 1
- 150,-
Reduction 2
- 350,- - 250,-

- 100,- 150,-  350,- 350,- 
Entitlement Period
Example 4d – Overlapping Same Reduction
Benefit 1
400,- 400,- 350,- 350,-

Reduction 1
- 50,-

Reduction 1
- 350,- - 250,-
Entitlement Period
Benefit Specific Reduction + Cross Benefit Reduction
Example 4e – Overlapping Same Reduction
Benefit 1
400,- 400,- 350,- 350,-
Reduction 1
- 50,-
Reduction 1
- 350,- - 250,-
 
0,- 150,- 350,- 350,-
Entitlement Period
Example 5
Benefit 1
400,- 400,- 350,- 350,-
Reduction 1
- 50,- 0,- - 350,- - 250,-

350,- 400,- 0,- 100,-
If the reduction
amount is
calculated by the
system
entitlement
periods with
amount 0 are
allowed.
Entitlement Period
Reductions as Part of a Decision
Decisions That Contain Reductions
There are 3 kinds of decisions which could contain reductions:
• Mixed decision
• Entitlement decision
• Reduction decision (new kind of decision)
Reduction Decision
• Separates the reduction aspect of the decision i.e. reductions can be updated /
maintained without determining / calculating the eligibility / entitlements once
more. These aspects shall stay untouched.
• For the eligibility results and entitlement items just the actual information (of the
decision flow) is displayed “read only” on the reduction decision.
• Can be used in decision flows with mixed decisions as well as in decision flows
with pure decisions
• Could just be a follow up decision in a decision flow that contains an overlapping

entitlement item for the decision period of the reduction decision
• You do not need to set up a new transaction type for reduction decisions. Any
mixed or entitlement decision can be used as reduction decision if it is used in
the corresponding change process customizing. Eligibility determination,
entitlement determination and entitlement calculation will not be executed.
New Reductions AB
New button to create cross benefit decisons

New with Ref.Benefit to create benefit specific
reductions
AB is available on mixed decisions,

entitlement decisions
and reduction decisions
Reduction Details Page
Item assessment status also for reduction items
Behavior like for entitlements
Gross Entitlement Amounts AB
Here also reductions are displayed

Benefit specific reductions are displayed directly under
the corresponding entitlement
Cross benefit reductions are displayed at the end of the
list (of the decison unit)
The Gross Payment Amount AB is Unchanged …
…but the Details for Regular Payments…
Here also reductions are displayed

Benefit specific reductions are displayed directly under
the corresponding entitlement
Cross benefit reductions are displayed at the end of the
list (of the decison unit)
…and the Details for Overpayments / Underpayments
Reductions and Reduction reference benefit is also
Planned Payments displayed here
Decision Flow:
Reduction Items / Gross Entitlement Amounts
New Reduction items AB

Gross entitlement amount AB enhanced (same logic like on social service plan)
Decision Flow:
Gross Payment Overview
Decision Flow:
Gross Payment per Entitlement
Just reduction determination and reduction calculation
Reduction Decisions can be triggered on a reduction decision
Entitlement determination and entitlement calculation
cannot be triggered on a reduction decision
Special flag to mark a reduction decision
Customizing
CRM: Reduction Determination
Own entry in
SSP customizing
Same as for
entitlements
CRM: Transaction Type
New entry for SSPs to

maintain reduction
proposal profile
CRM: Change Process G007
SAP delivers a new change process G007 using business transaction G007 to
create a reduction decision for transaction type SSP
You can use business transaction G007 to also enable reduction decisions as follow
up decisions of your social service plans
ERP Customizing
Define your reduction

calculation exit strategy
here
Define here how manual

entered reduction amounts
shall be treated during
calculation (per SSP type)
BAdI for Gross reduction

calculation
Here you can implement

your tax category
determination per SSP
item
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All rights reserved.
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trademark information and notices.
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.
National product specifications may vary.
These materials are provided by SAP AG or an SAP affiliate company for informational purposes only, without representation or warranty of any kind,
and SAP AG or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP AG or
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Social Service Reductions

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Social Services: Reductions

A reduction in SAPs Social Services Solution is used to reduce the gross

An example of a reduction could be a sanction.

The solution supports 2 kind of reductions

• Benefit specific reductions

• Cross benefit reductions

• It can be created manually or by the system (reduction determination  new process

Tax category determination:

• The tax category of entitlements and reductions is determined in a separate step

• Tax category determination is determined per entitlement / reduction item

• The tax category can just be determined automatically

• Regular payments for reductions have a negative sign

• The logic regarding grouping of gross payment items to net calculation

• Deductions logic also not changed

• Reference benefit information is available here  it is possible to post benefit

Benefit 2 no reduction for Benefit 2

100,- 100,- 100,- 100,-

Sum per entitlement period

Benefit 2 no reduction for Benefit 2

100,- 100,- 100,- 100,-

Sum per entitlement period

Sum per entitlement period

Sum per entitlement

Sum per entitlement period

There are 3 kinds of decisions which could contain reductions:

• Reduction decision (new kind of decision)

• Could just be a follow up decision in a decision flow that contains an overlapping

New button to create cross benefit decisons

AB is available on mixed decisions,

Here also reductions are displayed

Here also reductions are displayed

New Reduction items AB

Special flag to mark a reduction decision

New entry for SSPs to

Define your reduction

Define here how manual

BAdI for Gross reduction

Here you can implement

National product specifications may vary.

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