Garnishment is collection of debt from an employee based on court order. Debt can child support, credit card debt, tax etc.
Following is the diagram which depicts flow of garnishment process and how SAP supports it.
· CCPA (Consumer Credit Protection Act) decides limits of the amount that can be garnished from an employee’s disposable income.
· Disposable Net Income: Disposable Net Income-Mandatory deduction like Taxes
· Allowable disposable net income-(Meant for child support) = Disposable Net Income*CCPA%limit
Infotype 0194 Garnishment Document
This Infotype stores following information regarding Garnishment.
- Status: Status could be active, released, pending .Garnishment is processed when its status is active.
- Category: It can store information about type of garnishment like child support, credit card debt etc.
- Priority: This field decides in case of more than one garnishment, which one should be deducted first.
- Apart from that it stores information of Jurisdiction, Vendor who has requested for garnishment
Infotype 0195 Garnishment Order
- Order Type: Order type are associated with order category. One can create order type and associate it with order category by following below IMG Path
IMG->Payroll->Payroll –USA->Garnishment->Master Data->Order Types
- Deduction: Deduction allows to store amount and frequency of deduction for respective garnishment order.
Infotype 0216 Garnishment adjustment
This IT stores information about refund given by vendor.
Rules, Functions and Schemas related to Garnishment
I have tried to list down rules, functions and schemas related to garnishment processing.
If I have missed any major rules/schema/function related to garnishments please provide your comments I will try to incorporate that in this document
UGIT checks wage types of IT tables and eliminates wage types which are not related to garnishment based on processing class 59 specification.
UGDN read wage types and transfer them to disposable net income wage type /G00 based on processing class 59 specification. Processing Class 59’s specification 1 means transfer to disposable income without changing sign and 2 means transfer value to/G00 with opposite sign.
UGRT works similar to UGIT except that it process RT tables’ wage type unlike UGIT which process IT table.
UGARN is the function which, read garnishments, checks garnishment switches, calculates differences when retroactive accounting is performed.
PITAB copies contents of one table to another in order to process the former table .After processing old (original) data can be reloaded to the table using PITAB.
UGRN executes following things.
- Reads garnishment with help of function UGARN.
- Copy IT table into AIT table with help of PITAB, so that IT can be processed for garnishments.
- UGIT selects garnishment related wage types and deletes wage types which are not related from IT (It checks processing class 59 specification and all except specification 0 are treated as garnishment wage types).
- Checks if refund is required to be paid.
- Then RT is checked for wage types which are eligible for garnishment and those wage types are added to IT with help of rule UGRT.
- UGDN calculates disposable net income.
- UGARN function calculates garnishment. Limit of deduction is considered based on model defined for order type in table T5UG4.
- UGGR calculates gross amount for Garnishment.
UGRR is the schema which is used to calculate garnishment for retroactive payroll run.