term cutoff benefit help what is
Meaning of benefit cutoff day. What is it: salary groups, age groups, and seniority groups are.

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Definition benefit cutoff day

BENEFIT CUTOFF DAY title: benefit cutoff day (PA-BN) (SAP Library - Glossary)
BENEFIT CUTOFF DAY category: Benefits (PA-BN)
BENEFIT CUTOFF DAY explained:

A specific date for which benefit salary and employee salary groups, age groups, and seniority groups are determined.

Depending on how plans are set up, the system must determine values for these variables to calculate costs, credit, coverage, and estimated contribution for employees. To do this, the system reads the relevant employee master data records on one of the following dates:

The calculation base date (default) A cutoff date determined using an algorithm, relative to the cutoff day (overrides the calculation base date)

The algorithm for the calculation of the cutoff date is as follows:

The cutoff day consists of a day and a month, so the system begins by inserting the year from the calculation base date to form a date. If this date is after the calculation base date, the system sets it back by one year. If the date is to be used for salary calculation only, the system also checks if the employee has a Basic Pay record (infotype 0008) on this date. If this is not the case, the date is set to the start date of the first Basic Pay record for the employee

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