oraclepayroll earnings & deductions

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R12.xOracle PayrollFundamentals: Earnings andDeductions

Student Guide

D60573GC10

Edition 1.0

December 2009

D66014


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Copyright 2009, 2010, Oracle and/or its affiliates. All rights reserved.

Disclaimer

This document contains proprietary information and is protected by copyright and other intellectual property laws. You may copy andprint this document solely for your own use in an Oracle training course. The document may not be modified or altered in any way.Except where your use constitutes "fair use" under copyright law, you may not use, share, download, upload, copy, print, display,perform, reproduce, publish, license, post, transmit, or distribute this document in whole or in part without the express authorizationof Oracle.

The information contained in this document is subject to change without notice. If you find any problems in the document, pleasereport them in writing to: Oracle University, 500 Oracle Parkway, Redwood Shores, California 94065 USA. This document is notwarranted to be error-free.

Restricted Rights Notice

If this documentation is delivered to the United States Government or anyone using the documentation on behalf of the UnitedStates Government, the following notice is applicable:

U.S. GOVERNMENT RIGHTSThe U.S. Governments rights to use, modify, reproduce, release, perform, display, or disclose these training materials are restrictedby the terms of the applicable Oracle license agreement and/or the applicable U.S. Government contract.

Trademark Notice

Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective

owners.

Author

Pragya Singh Nair

Technical Contributors and Reviewers

Prasad Mutnuru

This book was published using: OracleTutor


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Copyright Oracle 2009. All rights reserved.

R12.xOracle Payroll Fundamentals: Earnings and Deductions Table of Contentsi

Table of Contents

Introduction to Payroll Earnings and Deductions........................................................................................1-1Introduction to Payroll Earnings and Deductions..........................................................................................1-3Objectives......................................................................................................................................................1-4

Earnings and Deductions - Structure .............................................................................................................1-5Earnings and Deductions Structure.............................................................................................................1-9Earnings.........................................................................................................................................................1-11Deductions.....................................................................................................................................................1-12Gross and Net Earnings .................................................................................................................................1-13Elements ........................................................................................................................................................1-14Predefined Elements......................................................................................................................................1-16Element Templates ........................................................................................................................................1-17Global HR and Payroll Extracts ....................................................................................................................1-18Balances.........................................................................................................................................................1-19Formulas........................................................................................................................................................1-20Processing......................................................................................................................................................1-21Quiz ...............................................................................................................................................................1-22Summary........................................................................................................................................................1-26

Element Setup for Payroll...............................................................................................................................2-1Element Setup for Payroll..............................................................................................................................2-3Objectives......................................................................................................................................................2-4Topics ............................................................................................................................................................2-5Payroll Balances Overview............................................................................................................................2-6Balances.........................................................................................................................................................2-7Example of a Defined Balance ......................................................................................................................2-8Predefined Balance Dimensions....................................................................................................................2-9Balance Dimensions in Formula....................................................................................................................2-10Balance Attributes .........................................................................................................................................2-11Balance Categories ........................................................................................................................................2-12Base Balances................................................................................................................................................2-13

Defining Balances Feeds ...............................................................................................................................2-14Defining Feeds Using Element Classifications..............................................................................................2-15Creating Individual Balance Feeds................................................................................................................2-16Defining Balance Feeds.................................................................................................................................2-17Quiz ...............................................................................................................................................................2-18

Writing Formulas ............................................................................................................................................3-1Writing Formulas...........................................................................................................................................3-3Types of Formulas.........................................................................................................................................3-4Writing Formulas...........................................................................................................................................3-5Formula Components ....................................................................................................................................3-6Component - Input Values From Elements ...................................................................................................3-7Component - Functions .................................................................................................................................3-8Using the ROUND Function .........................................................................................................................3-9

Component - Statements................................................................................................................................3-10Aliases ...........................................................................................................................................................3-11Setting Default Values...................................................................................................................................3-12Checking Default Values...............................................................................................................................3-13Inputs Statement ............................................................................................................................................3-14The Return Statement ....................................................................................................................................3-15IF Statement...................................................................................................................................................3-16Component - Comments................................................................................................................................3-17Component - Variables..................................................................................................................................3-18


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R12.xOracle Payroll Fundamentals: Earnings and Deductions Table of Contentsii

Database Items...............................................................................................................................................3-19Easy Access to Data in Formulas ..................................................................................................................3-20Global Values ................................................................................................................................................3-21Local Variables..............................................................................................................................................3-22Component - Constants .................................................................................................................................3-23Component - Expressions and Arithmetic Operators ....................................................................................3-25Quiz ...............................................................................................................................................................3-26

Defining Formula Results and Processing Rules ..........................................................................................4-1Defining Formula Results and Processing Rules...........................................................................................4-3Formula Processing Rules .............................................................................................................................4-5Formula Result Types....................................................................................................................................4-7Quiz ...............................................................................................................................................................4-9

Controlling the Frequency of Processing an Element ..................................................................................5-1Controlling the Frequency of Processing an Element....................................................................................5-3Overview .......................................................................................................................................................5-4Frequency Rules ............................................................................................................................................5-5Skip Rule Formulas .......................................................................................................................................5-7Skip Rule Formula Example..........................................................................................................................5-8Quiz ...............................................................................................................................................................5-9

Advance Pay.....................................................................................................................................................6-1Advance Pay..................................................................................................................................................6-3

Advance Pay Process.....................................................................................................................................6-4Advance Pay Example...................................................................................................................................6-5Advance Pay Process.....................................................................................................................................6-7Advance Pay By Element Process.................................................................................................................6-8Advance Pay Events ......................................................................................................................................6-9Absence Element Inputs ................................................................................................................................6-10Element Description ......................................................................................................................................6-11Information Elements ....................................................................................................................................6-12Direct Payment Elements ..............................................................................................................................6-13Processing Advance Pay................................................................................................................................6-14Advance Pay for a Batch ...............................................................................................................................6-15Processing Advanced Pay by Element...........................................................................................................6-16Quiz ...............................................................................................................................................................6-17

Retro Pay..........................................................................................................................................................7-1RetroPay ........................................................................................................................................................7-3RetroPay Process...........................................................................................................................................7-4How RetroPay Works: Balances ...................................................................................................................7-5How RetroPay Works: Elements...................................................................................................................7-6How RetroPay Works: Element Entries ........................................................................................................7-7Types of RetroPay .........................................................................................................................................7-8Enhanced RetroPay Example ........................................................................................................................7-9Features of Enhanced RetroPay.....................................................................................................................7-11Setting Up RetroPay by Element...................................................................................................................7-13Retroactive Element Definition.....................................................................................................................7-15Setting Up Enhanced RetroPay .....................................................................................................................7-16Running Enhanced RetroPay.........................................................................................................................7-17Costing RetroPay Results ..............................................................................................................................7-18RetroCosting..................................................................................................................................................7-19Quiz ...............................................................................................................................................................7-20

Net-to-Gross and Proration ............................................................................................................................8-1Net-to-Gross and Proration............................................................................................................................8-3Net-to-Gross ..................................................................................................................................................8-4Creating a Net-to-Gross Earnings Type (U.S./CA) .......................................................................................8-5


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R12.xOracle Payroll Fundamentals: Earnings and Deductions Table of Contentsiii

Creating a Net-to-Gross Earnings Type (U.K.) .............................................................................................8-6Net-to-Gross Processing Excluding Balances ...............................................................................................8-7Proration ........................................................................................................................................................8-8Proration Setup ..............................................................................................................................................8-9Historic Rates (U.K.).....................................................................................................................................8-10Rate Type Information...................................................................................................................................8-11Element Attribution Information...................................................................................................................8-12Contract Types Table.....................................................................................................................................8-14Quiz ...............................................................................................................................................................8-15Summary........................................................................................................................................................8-20

Element Design Wizard...................................................................................................................................9-1Element Design Wizard.................................................................................................................................9-3Generating Earnings and Deductions Elements.............................................................................................9-4Element Design Wizard.................................................................................................................................9-5Element Design Wizard: Process Flow .........................................................................................................9-7Quiz ...............................................................................................................................................................9-8

Managing Third Party Payments...................................................................................................................10-1Managing Third-Party Payments...................................................................................................................10-3Objectives......................................................................................................................................................10-4Topics ............................................................................................................................................................10-5

Third-Party Payments Overview ...................................................................................................................10-6Third-Party Payments....................................................................................................................................10-7Entering Third Party-Payments for an Employee..........................................................................................10-8Payee: Organization.......................................................................................................................................10-9Payee: Contacts .............................................................................................................................................10-10Recording Third-Party Payments for an Employee.......................................................................................10-11Managing Deductions....................................................................................................................................10-12Third Party Processing Priorities...................................................................................................................10-13Protected Earnings.........................................................................................................................................10-14Producing Checks/Cheques for Third-Party Payments..................................................................................10-15Producing Checks/Cheques for Third- Party Payments.................................................................................10-16Quiz ...............................................................................................................................................................10-17Summary........................................................................................................................................................10-20


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R12.xOracle Payroll Fundamentals: Earnings and Deductions Table of Contentsv

Preface

Profile

Before You Begin This Course

Working experience with Oracle Applications

Prerequisites

There are no prerequisites for this course.

How This Course Is Organized

This is an instructor-led course featuring lecture and hands-on exercises. Online demonstrationsand written practice sessions reinforce the concepts and skills introduced.


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Related Publications

Oracle Publications

Title Part Number

Oracle Payroll Processing Management Guide E13514-03

Additional Publications

System release bulletins

Installation and users guides

Read-me files

International Oracle Users Group (IOUG) articles

Oracle Magazine


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R12.xOracle Payroll Fundamentals: Earnings and Deductions Table of Contentsvii

Typographic Conventions

Typographic Conventions in Text

Convention Element Example

Bold italic Glossary term (ifthere is a glossary)

The algorithminserts the new key.

Caps and

lowercase

Buttons,

check boxes,

triggers,

windows

Click the Executable button.

Select the Cant Delete Card check box.

Assign a When-Validate-Item trigger to the ORD block.

Open the Master Schedule window.

Courier new,

case sensitive

(default is

lowercase)

Code output,

directory names,

filenames,

passwords,

pathnames,

URLs,

user input,usernames

Code output: debug.set (I, 300);

Directory: bin(DOS), $FMHOME(UNIX)

Filename: Locate the init.orafile.

Password: User tigeras your password.

Pathname: Open c:\my_docs\projects

URL: Go to http://www.oracle.com

User input: Enter 300

Username: Log on as scott

Initial cap Graphics labels

(unless the term is a

proper noun)

Customer address (butOracle Payables)

Italic Emphasized words

and phrases,

titles of books and

courses,

variables

Do notsave changes to the database.

For further information, see Oracle7 Server SQL Language

Reference Manual.

[email protected], where user_idis the

name of the user.

Quotation

marks

Interface elements

with long namesthat have only

initial caps;

lesson and chapter

titles in cross-

references

Select Include a reusable module component and click Finish.

This subject is covered in Unit II, Lesson 3, Working with

Objects.

Uppercase SQL column

names, commands,

functions, schemas,

table names

Use the SELECT command to view information stored in the

LAST_NAME

column of the EMP table.

Arrow Menu paths Select File> Save.Brackets Key names Press [Enter].

Commas Key sequences Press and release keys one at a time:[Alternate], [F], [D]

Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]


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R12.xOracle Payroll Fundamentals: Earnings and Deductions Table of Contentsviii

Typographic Conventions in Code

Convention Element Example

Caps and

lowercase

Oracle Forms

triggers

When-Validate-Item

Lowercase Column names,

table names

SELECT last_nameFROM s_emp;

Passwords DROP USER scottIDENTIFIED BY tiger;

PL/SQL objects OG_ACTIVATE_LAYER(OG_GET_LAYER (prod_pie_layer))

Lowercase

italic

Syntax variables CREATE ROLE role

Uppercase SQL commands and

functions

SELECT useridFROM emp;

Typographic Conventions in Oracle Application Navigation Paths

This course uses simplified navigation paths, such as the following example, to direct you

through Oracle Applications.

(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve

This simplified path translates to the following:

1. (N) From the Navigator window, select Invoicethen Entrythen Invoice Batches

Summary.

2. (M) From the menu, select Querythen Find.

3. (B) Click the Approvebutton.

Notations:

(N) = Navigator

(M) = Menu

(T) = Tab

(B) = Button

(I) = Icon

(H) = Hyperlink

(ST) = Sub Tab


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R12.xOracle Payroll Fundamentals: Earnings and Deductions Table of Contentsix

Typographical Conventions in Oracle Application Help System Paths

This course uses a navigation path convention to represent actions you perform to find

pertinent information in the Oracle Applications Help System.

The following help navigation path, for example

(Help) General Ledger > Journals > Enter Journals

represents the following sequence of actions:

1. In the navigation frame of the help system window, expand the General Ledger entry.

2. Under the General Ledger entry, expand Journals.

3. Under Journals, select Enter Journals.

4. Review the Enter Journals topic that appears in the document frame of the help system

window.


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R12.xOracle Payroll Fundamentals: Earnings and Deductions Table of Contentsx


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Copyright Oracle, 2009. All rights reserved.

Introduction to Payroll Earnings and DeductionsChapter 1 - Page 1

Introduction to PayrollEarnings and Deductions

Chapter 1


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Introduction to Payroll Earnings and Deductions


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Objectives

Objectives

This introduction additionally details at a high level the topics contained in the Payroll

Earnings and Deductions module.


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Earnings and Deductions - Structure

Earnings and Deductions Structure

In this class, you will learn about:

1. Earnings, initiate earnings and earnings types.

2. Deductions, initiating deductions and pre-tax deductions.

3. Payroll Balances and how to define payroll balances.

4. How to write payroll formulas using the Formula window and the FastFormula Assistant.

5. Defining Formula Results and Processing Rules

6. How to control the frequency of processing an element, defining frequency rules, andwriting a skip rule formula.

7. Advance pay and marking an element for advance pay.

8. Retro pay and setting up enhanced retro pay.

9. Setting up net to gross processing (UK), proration, and historic rates (UK).

10. Using the element design wizard to set up pretax deductions for iterative processing.

11. Set up and use deduction templates and professional body memberships (UK).


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12. Set up Pretax Deductions for Iterative Processing (UK).

13. Manage Third-Party Payments.

14. Wage Attachments (US and Canada).

15. Court Orders and Arrestments (UK).

16. Set up Pension Providers, Types, and Schemes.

17. Deferred Compensation Plans and Tax-sheltered Annuities.

18. State Retirement System Plans.


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Earnings and Deductions - Structure















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Earnings

Earnings

The four ways of calculating earnings are:

RetroPay

- You use RetroPay to ensure that your payroll run for the current period reflects anybackdated payments or deductions.

Advance Pay

- Advance Pay enables you to pay an amount to employees for holiday or otherevents scheduled for a later period than the current pay period.

Net-to-Gross- Net-to-gross processing enables you to calculate the gross amount you need to pay

to meet a fixed net amount, for example a bonus.

Proration

- Proration enables you to calculate proportionate earnings amounts whenever payrollrelevant data is changed during a payroll period because of, for example, a pay rate

change.


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Deductions

Deductions

The five categories of deduction are:

Proration: Enables you to calculate proportionate earnings amounts whenever payroll

relevant data is changed during a payroll period because of, for example, a change of

allowance or deduction

Savings and Retirement: Most enterprises provide plans that enable employees to save fortheir retirement. Your company may help too by matching a portion of the amount

employees invest.

Third Party Payments: Third Party Payments enable you to make both single and

recurring deductions from employees salaries for involuntary deductions incurred by

court debts or fines, and to specify either corporate bodies or individuals as payees.

Arrears Management: If an employee has insufficient funds to pay the full installment of

a deduction, you can use Arrears Management to determine how Oracle Payrollcalculates a partial payment and adjusts future payments.

Benefits Premiums: You can set up deductions to deduct the premiums that employeeshave to pay to be eligible for certain benefits.


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Gross and Net Earnings

Gross and Net Earnings

Gross earnings are made up of several components such as Salary, Bonus, and

Allowances and you create elements to represent these values.

You derive net earnings by subtracting the deductions from gross earnings.

For example, you could define an element called Wage for hourly paid employees. You

classify it in the predefined classification Earnings which determines when it is processedin the payroll and what balances it feeds. The deductions that you similarly define are

deducted when you process the payroll and they can also feed balances.


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Elements

Elements

Elements are the components in the calculation of employee pay. Each element represents a

compensation or benefit type, such as salary, wages, stock purchase plans, and pensioncontributions. Elements can have user-defined names, types, and values. You can use elements

to:

Capture any type of information

Define eligibility based on assignment criteria

Provide online or batch entry options

Using the diagram above as an example, consider the following values: Element is wage

Classification is earnings

Balance is taxable earnings

Input Value is hours worked

Formula is wage=hours_worked * hourly rate


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Processing Rules are a processing frequency of weekly

Eligibility Rules are employees on weekly payroll


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Predefined Elements

Predefined Elements

A different set of predefined elements is supplied for each legislation, to meet its particular

legislative requirements for such areas as court orders, sick pay or vacation pay. These areautomatically installed, along with formulas and balances required for processing. They simply

need to be linked to employees or assignments to identify eligibility and costing requirements.

In some legislations, other elements are predefined to enable rapid implementation. These

elements represent common requirements in those legislations for areas such as regular salary

or shift pay. However, you dont have to use them. You can use them as templates for creating

your own elements to more closely match your business requirements, if necessary.

Refer to the User Guides or online help for full details of all predefined elements.


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Element Templates

Element Templates

In addition to predefined elements, in some legislations you can generate elements from

templates to meet common requirements. On the template window, you specify a few basicrules (such as selecting a calculation method) and Oracle Payroll generates the elements,

formulas, and balances you require. For example, the US and Canadian legislations include

Earnings and Deductions windows for this purpose. The UK legislation contains Absence and

Pension Scheme windows amongst others. These templates enable you to easily set up sick payand maternity pay or the pension providers, pension types and pension schemes for your

employees.


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Global HR and Payroll Extracts

Global HR and Payroll Extracts

Global HR and Payroll extracts can report on any earnings, deductions or information

elements. For example, you can use a Full Extract to report on everyone who has been paid abonus or contributed to a pension and use a Changes Extract to report on changes to personal

or contribution data.


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Balances

Balances

Balances show the positive or negative accumulation of particular values over periods of time.

The pay values of elements processed in the payroll run feed the balance value.


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Formulas

Formulas

Elements are processed during payroll runs according to business rules for each element. Many

of these rules are defined in formulas written using Oracle FastFormula. Payroll formulas foreach element let you calculate the actual payments or deductions that are made during each

payroll run. The processed results for each element are called Run Results. The Run Results

then become balance feeds for different balances. Some balance feeds are predefined to feed

required statutory balances and you can also create your own balance feeds to your own user-defined balances.

Formulas obtain some of the required data from entries to their elements input values. The

formulas also obtain information from database items. Much of the information in the OracleHRMS database, including extensive information on employees and assignments, is available

to formulas as database items.

Oracle Payroll has predefined formulas specific to your legislation such as calculationsrequired for employee tax withholding and employer taxes.


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Processing

Processing

Element entries are processed by formulas during the payroll run. The payroll run may use a

different formula depending on the assignment statusfor example, a different formula foremployees on sabbatical leave. The formula can produce several outputs:

A direct result to update balances

Messages for information and control

Other results that update, stop, or change the sub-priority of other element entries


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Quiz

Answer: 1


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Quiz

Answer: 2


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Quiz

Answer: 1


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Quiz

Answer: 2


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Summary

Summary

Please refer to the additional guide for labs and/or demos for this lesson.


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Element Setup for PayrollChapter 2 - Page 1

Element Setup for Payroll

Chapter 2


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Element Setup for Payroll


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Objectives


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Topics


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Payroll Balances Overview

Payroll Balances Overview

Balances show the accumulation of values over a period of time. An important feature of

balances in Oracle Payroll is that they are rule-based calculations. Each local payroll canhave predefined balances and rules which simplifies managing the balances for legislative

reporting purposes. When you add or adjust source values, the application adjusts all related

balances. You can also define your own balances and rules to suit your requirements.


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Balances

Balances

Two distinct rules determine a balance value. Balance Feeds control the type of values to

include + or and Balance Dimensions control the number of values to include.

Balances accumulate the results from processing elements or input values. When you define a

balance, you define which elements and input values feed the balance. You can select primaryor secondary classifications to include the pay value from all elements within that

classification. For example, Earnings or Bonusable. You can also select individual elements

to include specific Pay or Input values.

The Balance Dimension Rules break down into two specific areas:

Timespan

- This is either predefined periods such as run, period, quarter, year or user-defined

periods such as hire or rolling-year.

Level

- Either person or assignment.


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Example of a Defined Balance


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Predefined Balance Dimensions

Predefined Balance Dimensions

The balance dimensions follow local legislative rules, which either sum the balance since the

start of the tax year or sum the balance since a transfer from a different tax district. You cannotchange predefined balances or dimensions.


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Balance Dimensions in Formula

Balance Dimensions in Formula

When you define a balance, the application automatically generates a database item for each

dimension so you can use it in payroll formulas.


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Balance Attributes

Balance Attributes

Balance attributes enable you to identify which balances should be used in which reports.

Attribute definitions must be defined prior to creating an attribute, which is the intersectionentity between defined balances and attribute definitions. For example, a balance attribute

could be SOE Earnings Year to Date.

Attributes can be predefined by localizations, created as a result of predefined defaults or be

user defined.


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Balance Categories

Balance Categories

As with element classifications, balance categories are assigned to balances as appropriate.


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Base Balances

Base Balances

A Base balance enables relationships to be implied between two balances. This relationship

can be relied upon when processing and reporting. For example, Loan Repayment could bethe base balance for Loan Repayment Arrears.


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Defining Balances Feeds

Defining Balances Feeds

You can select elements to feed a balance in three ways:

Select a primary classification. The run results of all elements in the classification feed

the balance.

Select a secondary classification. You choose which elements from a primary

classification (such as Earnings) are to feed the balance by giving these elements asecondary classification. It is the run results of the elements that feed the balance.

Select an individual element. You can select either the run result or an input value to feedthe balance. The input value must have the same unit of measure (such as hours or

number) as the balance.

You can choose any number of classifications (either primary or secondary) or any number of

elements to feed a balance, however you cannot use a mixture of classifications and individual

elements to feed a balance.


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Defining Feeds Using Element Classifications

Defining Feeds Using Element Classifications

If the Earnings classification feeds a balance, then all elements with Earnings as their primary

classification feed this balance automatically.


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Creating Individual Balance Feeds

Creating Individual Balance Feeds

A single element can feed any number of balances. If you choose to feed a balance using an

element, you can either select the run result or an input value to feed the balance.


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Defining Balance Feeds

Defining Balance Feeds

Both the Element and Balance windows have buttons that open a Balance Feeds window. You

use the Element window if you want to feed an element to one or more balances that individualelements feed. You use the Balance window if you want to feed a balance from either

classifications or individual elements.

A primary balance is one that a single element feeds into. You can use this type of balance if

no balance feeds exist for it, with the exception of the balance initialisation feeds. Oracle

HRMS automatically creates the associated feed when you create a primary balance.



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Quiz

Answer: 1


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Quiz

Answer: 1


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Quiz

Answers: 1, 3


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Writing FormulasChapter 3 - Page 1

Writing Formulas

Chapter 3


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Writing Formulas

Writing Formulas

Formulas are generic expressions of calculations or comparisons you want to repeat with

different input values. They take input from a window, a database, or a process, such as apayroll run and they return values or messages. Oracle Fast Formula provides a simple

vocabulary and syntax to let you write formulas using English words and simple mathematical

functions.


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Formula Components

Formula Components

Different components make up a formula. These can include assignment statements, different

types of input, and expressions.


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Component - Input Values From Elements

Component - Input Values From Elements

Input values are the most efficient way to access the input values of the element with which

you associate the formula.

Some examples of INPUTS are:

Inputs are Hours, Rate, Rate_Code (text)

Inputs are Amount, Percentage, Jurisdiction (text)

Inputs are Start_Date (date), End_date (date)

Inputs are person_id to easily access person-related information in formula functions

If the value is not a numeric, that is money, integer, number, for example, then you mustdeclare the input value type (date or text). Identify the inputs required for the calculation andwhere they come from.


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Component - Functions

Component - Functions

Functions manipulate data in various ways. Some of the types of functions available in

FastFormulas are:

Text Functions

Numeric Functions

Date Functions

Data Conversion Functions

Functions to Get Values from Tables

Functions for Accrual Type Formulas

Functions to Call a Formula

Functions to Set and Get Globals (SQL*Plus)


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Using the ROUND Function

Using the ROUND Function

Here is an example using the ROUND function to round a calculated value to 2 decimal places.


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Component - Statements

Component - Statements

Statements are instructions that Oracle Fast Formula carries out. You can use the following six

types of statement:

Alias Statement (ALIAS varname1 AS varname2)

Default Statement (DEFAULT FOR varname2 IS constant)

Inputs Statement (INPUTS ARE bonus, start_date (date))

Assignment Statement (varname1 = expression)

If Then [Else] Statement (IF expression1 THEN statement

[ELSE statement]) Return Statement (RETURN variable1, variable2)


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Aliases

Aliases

The use of aliases makes a formula easier to read. You can use aliases for global values and

database items. Using an alias is more efficient than assigning a database item or global valueto a local variable with a short name. You can use aliases in all the statements except the

default statement where you must use the full database item name.


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Setting Default Values


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Checking Default Values

Checking Default Values

You can check if the value was defaulted in processing by using the If.then (..) else (..)

statement and raising an error message.


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Inputs Statement

Inputs Statement

When a formula requires more than one input value from the element, the statement should be:

INPUTS ARE input_value1, input_value2, and so on. In the above example, assume you pay

some salaried employees using a recurring element called Salary. The salary element has an

input value called Amount. To calculate the monthly salary payment you need a formula thatdivides the input value into twelve.


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The Return Statement

The Return Statement

In the formula, you define:

The inputs to the formula

The calculation to execute

Any conditions using If.. Then() Else() statements

The values to return


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IF Statement


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Component - Comments


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Component - Variables

Component - Variables

You use variables in a formula to access information. The data type of a variable determines

the type of information the variable holds and can either be numeric, text, or date.


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Database Items

Database Items

Database items exist in the application database and have a label, hidden from users, that the

application uses to find the data. Two types of database items exist:

Static database items: These are predefined and include standard types of information,

such as sex, birth date, and work location of an employee, or the start and end dates of apayroll period.

Dynamic database items: The application generates these items from your definition ofelements, balances, absence types, grade rates and pay scale rates, and flexfield segments.


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Global Values

Global Values

Global values are datetracked so you can make effective changes ahead of time. You can only

change the value using the Globals window and values are datetracked.

They are independent values that store reference type data for the enterprise. For example, you

might want to reference a contribution limit value for employer contributions.


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Local Variables


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Component - Constants

Component - Constants

Numeric Constants:

Enter numeric constants without quotes. Precede negative numbers with a minus sign (-).

Numbers may have a decimal component after a decimal point. Do not use exponents and

floating point (scientific) notations. Do not use commas or spaces in a number. So, forexample, you cannot use 10,000 or 10 000.00 as numeric constants.

Text Constants:

Enclose text constants in single quotes. They may contain spaces. You can represent the singlequote character in a text constant by writing it twice (''). Note that this is not the same as the

double quote (").

Date Constants:

Date constants contain a date. Enclose dates in single quotes and follow immediately with theword date, in brackets. Use the format YYYY-MON-DD HH24:MI:SS or DD-MON-YYYY.


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We recommend that you use the first format if you want to compile the formula under different

language settings.


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Defining Formula Results and Processing RulesChapter 4 - Page 1

Defining Formula Results andProcessing Rules

Chapter 4


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Defining Formula Results and Processing Rules


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Defining Formula Results and Processing Rules


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Formula Processing Rules


Elements and formulas are associated when you define Processing Rules for the element. In

other words, what happens to the results returned from the formula. You can have one or morethan one Processing Rule for each element and you can have one or more results for each

processing rule:

The direct result is the Pay Value

Update or stop entries

Return warning, error, or information messages


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Formula Result Types


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Please refer to the additional guide for labs and/or demos for this lesson


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Quiz

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Controlling the Frequency of Processing an ElementChapter 5 - Page 2


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Overview

Overview

The two types of rules you can use to control when an element is included in a payroll run are:

Frequency Rules

- Define frequency rules for recurring types of element where you want to processthem at periodic intervals.

Skip Rules

- Define skip rules if you want conditional processing of any element using a formulato determine when to process and when to skip.


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Frequency Rules


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Frequency Rules

Frequency Rules

Once or twice, yearly deductions can be processed on monthly, quarterly or semi annual

payrolls. The frequency rules for these periods refer to periods within a year instead of within amonth. You can define these deductions as nonrecurring and use BEE to make the entries as

required.


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Skip Rule Formula Example

Skip Rule Formula Example

This example is a formula that does not process a union fees deduction when the annual

balance for the union fees is greater than 10000.



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Advance PayChapter 6 - Page 1

Advance Pay

Chapter 6


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Advance Pay


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Advance Pay Process

Advance Pay Process

Advance Pay enables you to pay an aggregated amount to employees for holiday or other

events scheduled in advance of the current pay period. For example, a factory shutdown wherethe payroll department also closes. This typically applies to weekly or biweekly paid

employees or shift workers. In these instances, you can calculate and deduct taxes as if

earned in future pay periods even if different tax rules apply. You can also ensure that any

changes to pay or benefits in their absence are reflected when they return to work. OracleAdvance Pay also checks the overall results when an employee returns to work as payments

received in advance are likely to cross over upper and lower tax bands and distort taxed

liabilities.


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Advance Pay Example

Advance Pay Example

Here is an example to illustrate a simple case:

A weekly paid employee is going on leave in weeks 24 and 25 is entitled to pay for that time in

week 23.

In week 23 the Advance Pay process calculates the correct Net Pay net of tax and other

deductions, for weeks 24 and 25 and creates a non-taxable payment of 150 in week 23.

The overall effect should be to pay the employee 225 in week 23 and 0 in weeks 24 and 25.

Note:If the person is a timecard-based employee and the only pay is based on timecard data,

you also need to make sure you have default timecards entered for weeks 24 and 25 to generatepay.


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Advance Pay Example

Advance Pay Example

Oracle Payroll manages the overall accuracy of the process by creating recovery elements in

each pay period. This mechanism enables continued processing of the employee to managepersonal or other changes.

The net payment must equal the advanced payment each period. Therefore, when OraclePayroll processes the employee in weeks 24 and 25 the net pay should be 75. If nothing has

changed then the recovery element zeros out net for the period and the employee is not paid.

The Advance Pay process internally runs the Gross-to-Net processes to derive the net result for

each pay period.

If a difference in net then additional processing triggers in the return to work period with adeferred payment or recovery.

However, in normal circumstances the person returns to work. The clear up element identifies

no changes and the person receives regular pay for the period.


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Advance Pay Process

Advance Pay Process

The process does not generate entries where the amount calculated is zero or negative.

Messages are generated for all assignments where this is the case and you can view these in thethe Payroll Message Report.

The following information displays when the Advance Pay process successfully completes:

The process check box is selected.

The amount of the advance is displayed.

If you select the Defer checkbox, the Deferred Payments region shows the period for which

payments to the assignment are deferred to.Note: Processing differs for Arrears and Non-arrears payrolls.

Arrears payrolls

The process only performs runs in memory for periods containing an entry for the element.

Non-arrears payrolls

The process calculates the current period and the advanced periods.


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Advance Pay By Element Process

Advance Pay By Element Process

Some localizations require an advance pay method which does not aggregate the payments

over the leave period but actually calculates a breakdown of the net advance amount intoseparate amounts for each pay and deduction element for each payroll period within the time

period specified. Advanced Pay by Element meets this requirement. It can be used instead of or

as well as Advance Pay, but the two should not be used for overlapping pay periods.

The Advanced Pay tab in the Element window that you use to control the advance pay

elements appears if the ADV_CLEARUP legislation rule is seeded within the

pay_legislation_rules.

Similarly to the Advanced Pay process, Advanced Pay by Element manages the overallaccuracy of the process by creating recovery elements in each pay period. These elements

recover the exact amount advanced for that week and not an aggregated amount. Continued

processing of the employee to manage personal or other changes still takes place and so do thechecks for difference in net for additional processing in the return to work period.


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Advance Pay Events

Advance Pay Events

If the event (advance leave booking) applies to one assignment, you use the Advance Pay

window from the assignment. If the event applies to many assignments, then you use theAdvance Pay Batch Setup window that can automatically create advance pay details for an

assignment set.


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Absence Element Inputs

Absence Element Inputs

The Absence elements that you use to record a period of leave that is due payment in advance

requires the following inputs:

Number of hours/days leave due to be taken

Absence Start Date

Absence End Date

Pay Date (this is the end date of the period in which the advance payment is to be paid)

Advance Override (this is used to indicate that an absence should not be treated as

advance payable Y/N values) Advance Defer (if an employee receives any additional payments while on leave, the

payments can be deferred until the employee returns to work Y/N values)


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Element Description

Element Description

All elements involved in the advance pay process need to have certain attributions marked up

on the Element Window according to their advance pay processing requirements. The choicesavailable are:

Mark as Advance Pay Indicator this attribute determines if leave booked using thisspecific absence type is eligible for advance pay or not.

Include as an Advance Element the Advance Pay by Element process uses thisattribute. It highlights the element as an element to be processed in advance.

Deduct Advance Amount this attribute determines whether the element that has been

paid in advance needs to be deducted in the period of the leave booking.

Process Advance Entry in Run Payroll uses this flag to determine if the entry should be

processed in the payroll when you run Advance Pay.


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Information Elements

Information Elements

The advance pay process automatically generates information type element entries in each time

period to identify start and end dates for the event period of payment and each advance payperiod:

Advance Period entry in current pay period has two entry values : Start and End Dates

Advance Indicator entry in each advance pay period holds two status inputs:

- One to indicate Period is advanced

- One to defer any outstanding payments during the event period. If payment is

deferred, then the application carries forward the pay to return period. If payment isnot deferred, the application makes additional payment during the absence of theemployee. Typical use would be to defer payment until employee returns to work.

A key requirement for all predefined elements is to set up links to enable entries. You alsoneed to consider any special requirements for costing advance payments and enter cost

information at link or entry level.


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Direct Payment Elements

Direct Payment Elements

The advance pay process automatically generates the following direct payment element entries:

Advance Payment: Holds details of the pay amount advanced

Advance Recovery: Oracle HRMS generates recovery elements in each period to recoveradvanced payment amount.

Advance Clear Up: This is generated in the expected return to work period. If the

employee is overpaid during, or for the period of leave, then this amount is recovered

automatically in the pay period following the advance pay period.

Deferred Payments: When further payments are entered for the employee during theabsence period (for example, a bonus), these can be paid either to the employee in thatperiod or they can be deferred for payment in the period following the advance pay

period.

You also need to consider any special requirements for costing advance payments and enter

cost information at link or entry level.


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Processing Advance Pay

Processing Advance Pay

The basic steps to process Advance Pay are:

If required, set up an assignment set.

Using individual events or batch processes, enter the Advance Period information.

Run the Advance Pay Listing to identify assignments with advance pay entries for thepay period. It also contains the details of advance pay periods for employees due to

receive advance pay.

Run the Advance Pay process.

Run Payroll as normal.


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Advance Pay for a Batch

Advance Pay for a Batch

Once a batch transfers, you can purge them from the application using the Batch Header

window. If you create and transfer incorrect batches, you can remove them using the BEERollback process.


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Processing Advanced Pay by Element

Processing Advanced Pay by Element

The four basic steps to processing advance pay by element are:

You must enter advance leave bookings using BEE (Batch Element Entry) so that you

can manually manipulate the extra input values.

You can run the Advance Pay Listing report to highlight any absences that are advance

payable for checking purposes.

Run the Advance Pay by Element process to generate the necessary advance element

entries for the payroll. The effective date for this process should be the last day of thecurrent processing period and the Advance End Date is the end date of the range of dates

to check for absences.

Complete the normal payroll processes as normal.



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Retro PayChapter 7 - Page 1

Retro Pay

Chapter 7


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RetroPay


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RetroPay Process

RetroPay Process

You may need to manage back-dated or late notifications of changes to payroll processing.

This could be due to retroactive promotion, salary increase, or retroactive settlement of paynegotiations, for example. Always run RetroPay immediately before you run a payroll, and, for

greatest accuracy, as close to the cut-off date as possible. The cut-off date is the point at which

all data entry for the payroll is complete. You can run RetroPay:

In the next period for a prior period (for example, for a salary raise that was not notified

in time)

For any number of prior periods

Across tax and financial years, but you must choose the right defined-balance to

recalculate RetroPay automatically calculates the difference in results for the durationyou specify.


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How RetroPay Works: Balances

How RetroPay Works: Balances

RetroPay provides a common solution to meet the needs of all localized payrolls. It is based on

recalculating values in a defined balance. This balance could be a delivered balance (Gross toNet), an element-specific balance, or a user-defined balance for a set of elements.

Even if the balance does not exist, you can define a balance at any time and then run RetroPayfor that balance. Oracle Payroll does not store all balance values. Instead, it stores the rules

(element feeds and dimensions) for each balance and the run results that make up the balance.

Oracle Payroll does not perform any adjustments to historical balances.

The only permanent results of RetroPay are the entry values in the RetroPay elements.

RetroPay does not make any changes to audited payroll data. RetroPay makes balanceadjustments when the next payroll run processes the RetroPay elements.


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Retro PayChapter 7 -

oraclepayroll earnings & deductions

Documents