Mapping Plan Contributions to an Account – A summary of the activity

Through this activity, you can map each plan contributions with a General Ledger account number. This mapping is necessitated for Benefits Accounting, in which plan contributions are apportioned to various Accounts and Finance Books on the basis of grade sets, grades or departments. A plan contribution accounts can be classified as Contribution account, COBRA account, Service charge on COBRA account and Liability account. The contribution recovered from the employee and the employer is posted in the contribution account and the amount received from COBRA premium receipts is posted in the COBRA account. The service charges received for COBRA plans are posted in the service charge account and the contra entries for receipts are posted in the liability account.

For the individual plan contributions, you can choose to

• Specify a common account number across the employment units, grades or grade sets.

• Specify separate ledger account numbers from the Finance Book, for different employment units, grade sets, or grades.

Specify a Common Account Number: For example, in benefit definition unit ABC Inc., you can specify a single, common account number for the plan Health Plan of all employees across the organization units, grades and categories within ABC Inc.

HR System Parameters allows you to predefine whether you can assign account numbers by only employment units, only grade or grade sets. If “Null” is specified, you can assign account numbers for the plan based on all three, in any combination

Specify Separate Ledger Account Numbers:  You can specify ledger account number A/C 001 for the health plan of all General Managers of Grade 3. Similarly, for the same plan you can specify a different account number A/C 004 for all Senior Managers of Grade 4.

Thus, if you were to assign an account number for employees of the same grade for example, you would specify

• The grade

• The ledger account number to which the grade must be assigned

• The date from which the mapping of the grade to the account number takes effect

By assigning a separate ledger account number for each employment unit/grade/ grade set., you can facilitate costing, budgeting and other financial activities separately for these groups. Using the earlier example, from account number A/C 001, you can find out the contributions made for the health plan for General Managers of Grade 2, in the organization unit ABC Inc., from Feb 1 2002 to May 31 2002.

Getting familiar with the pages inside

The following table lists the pages involved in Map Plan - Account.

Prerequisites

The account numbers must have been defined in the finance books.