r12.x oracle payroll fundamentals: earnings and...

R12.x Oracle Payroll Fundamentals: Earnings and Deductions Student Guide

D60573GC10

Edition 1.0

December 2009

D66014

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THESE eKIT MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM ONLY. COPYING eKIT MATERIALS FROM THISCOMPUTER IS STRICTLY PROHIBITED

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 and print 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 authorization of Oracle. The information contained in this document is subject to change without notice. If you find any problems in the document, please report them in writing to: Oracle University, 500 Oracle Parkway, Redwood Shores, California 94065 USA. This document is not warranted 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 United States Government, the following notice is applicable: U.S. GOVERNMENT RIGHTS The U.S. Government’s rights to use, modify, reproduce, release, perform, display, or disclose these training materials are restricted by 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: Oracle Tutor

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Copyright © Oracle 2009. All rights reserved.

R12.x Oracle Payroll Fundamentals: Earnings and Deductions Table of Contents i

Table of Contents

Introduction to Payroll Earnings and Deductions........................................................................................1-1 Introduction to Payroll Earnings and Deductions..........................................................................................1-3 Objectives ......................................................................................................................................................1-4 Earnings and Deductions - Structure .............................................................................................................1-5 Earnings and Deductions – Structure.............................................................................................................1-9 Earnings.........................................................................................................................................................1-11 Deductions.....................................................................................................................................................1-12 Gross and Net Earnings .................................................................................................................................1-13 Elements ........................................................................................................................................................1-14 Predefined Elements ......................................................................................................................................1-16 Element Templates ........................................................................................................................................1-17 Global HR and Payroll Extracts ....................................................................................................................1-18 Balances.........................................................................................................................................................1-19 Formulas ........................................................................................................................................................1-20 Processing......................................................................................................................................................1-21 Quiz ...............................................................................................................................................................1-22 Summary........................................................................................................................................................1-26

Element Setup for Payroll...............................................................................................................................2-1 Element Setup for Payroll..............................................................................................................................2-3 Objectives ......................................................................................................................................................2-4 Topics ............................................................................................................................................................2-5 Payroll Balances Overview............................................................................................................................2-6 Balances.........................................................................................................................................................2-7 Example of a Defined Balance ......................................................................................................................2-8 Predefined Balance Dimensions ....................................................................................................................2-9 Balance Dimensions in Formula....................................................................................................................2-10 Balance Attributes .........................................................................................................................................2-11 Balance Categories ........................................................................................................................................2-12 Base Balances................................................................................................................................................2-13 Defining Balances Feeds ...............................................................................................................................2-14 Defining Feeds Using Element Classifications..............................................................................................2-15 Creating Individual Balance Feeds ................................................................................................................2-16 Defining Balance Feeds.................................................................................................................................2-17 Quiz ...............................................................................................................................................................2-18

Writing Formulas ............................................................................................................................................3-1 Writing Formulas...........................................................................................................................................3-3 Types of Formulas .........................................................................................................................................3-4 Writing Formulas...........................................................................................................................................3-5 Formula Components ....................................................................................................................................3-6 Component - Input Values From Elements ...................................................................................................3-7 Component - Functions .................................................................................................................................3-8 Using the ROUND Function .........................................................................................................................3-9 Component - Statements................................................................................................................................3-10 Aliases ...........................................................................................................................................................3-11 Setting Default Values...................................................................................................................................3-12 Checking Default Values...............................................................................................................................3-13 Inputs Statement ............................................................................................................................................3-14 The Return Statement ....................................................................................................................................3-15 IF Statement...................................................................................................................................................3-16 Component - Comments ................................................................................................................................3-17 Component - Variables..................................................................................................................................3-18

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R12.x Oracle Payroll Fundamentals: Earnings and Deductions Table of Contents ii

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

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

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

Advance Pay.....................................................................................................................................................6-1 Advance Pay..................................................................................................................................................6-3 Advance Pay Process.....................................................................................................................................6-4 Advance Pay Example...................................................................................................................................6-5 Advance Pay Process.....................................................................................................................................6-7 Advance Pay By Element Process .................................................................................................................6-8 Advance Pay Events ......................................................................................................................................6-9 Absence Element Inputs ................................................................................................................................6-10 Element Description ......................................................................................................................................6-11 Information Elements ....................................................................................................................................6-12 Direct Payment Elements ..............................................................................................................................6-13 Processing Advance Pay................................................................................................................................6-14 Advance Pay for a Batch ...............................................................................................................................6-15 Processing Advanced Pay by Element...........................................................................................................6-16 Quiz ...............................................................................................................................................................6-17

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

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

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R12.x Oracle Payroll Fundamentals: Earnings and Deductions Table of Contents iii

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

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

Managing Third Party Payments...................................................................................................................10-1 Managing Third-Party Payments ...................................................................................................................10-3 Objectives ......................................................................................................................................................10-4 Topics ............................................................................................................................................................10-5 Third-Party Payments Overview ...................................................................................................................10-6 Third-Party Payments ....................................................................................................................................10-7 Entering Third Party-Payments for an Employee..........................................................................................10-8 Payee: Organization.......................................................................................................................................10-9 Payee: Contacts .............................................................................................................................................10-10 Recording Third-Party Payments for an Employee .......................................................................................10-11 Managing Deductions....................................................................................................................................10-12 Third Party Processing Priorities ...................................................................................................................10-13 Protected Earnings.........................................................................................................................................10-14 Producing Checks/Cheques for Third-Party Payments..................................................................................10-15 Producing Checks/Cheques for Third- Party Payments.................................................................................10-16 Quiz ...............................................................................................................................................................10-17 Summary........................................................................................................................................................10-20

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R12.x Oracle Payroll Fundamentals: Earnings and Deductions Table of Contents v

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 demonstrations and written practice sessions reinforce the concepts and skills introduced.

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R12.x Oracle Payroll Fundamentals: Earnings and Deductions Table of Contents vi

Related Publications

Oracle Publications Title Part Number

Oracle Payroll Processing Management Guide E13514-03

Additional Publications

• System release bulletins

• Installation and user’s guides

• Read-me files

• International Oracle User’s Group (IOUG) articles

• Oracle Magazine

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R12.x Oracle Payroll Fundamentals: Earnings and Deductions Table of Contents vii

Typographic Conventions

Typographic Conventions in Text Convention Element Example Bold italic Glossary term (if

there is a glossary) The algorithm inserts the new key.

Caps and lowercase

Buttons, check boxes, triggers, windows

Click the Executable button. Select the Can’t 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.ora file. Password: User tiger as 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 (but Oracle Payables)

Italic Emphasized words and phrases, titles of books and courses, variables

Do not save changes to the database. For further information, see Oracle7 Server SQL Language Reference Manual. Enter [email protected], where user_id is the name of the user.

Quotation marks

Interface elements with long names that 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.x Oracle Payroll Fundamentals: Earnings and Deductions Table of Contents viii

Typographic Conventions in Code Convention Element Example Caps and lowercase

Oracle Forms triggers

When-Validate-Item

Lowercase Column names, table names

SELECT last_name FROM s_emp;

Passwords DROP USER scott IDENTIFIED 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 userid FROM 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 Invoice then Entry then Invoice Batches Summary.

2. (M) From the menu, select Query then Find.

3. (B) Click the Approve button.

Notations:

(N) = Navigator

(M) = Menu

(T) = Tab

(B) = Button

(I) = Icon

(H) = Hyperlink

(ST) = Sub Tab

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R12.x Oracle Payroll Fundamentals: Earnings and Deductions Table of Contents ix

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.x Oracle Payroll Fundamentals: Earnings and Deductions Table of Contents x

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Copyright © Oracle, 2009. All rights reserved.

Introduction to Payroll Earnings and Deductions Chapter 1 - Page 1

Introduction to Payroll Earnings 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. O

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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, and

writing 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 any

backdated payments or deductions. • Advance Pay

- Advance Pay enables you to pay an amount to employees for holiday or other events 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 payroll relevant 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 for their 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 Payroll calculates a partial payment and adjusts future payments.

• Benefits Premiums: You can set up deductions to deduct the premiums that employees have 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 processed in 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 pension contributions. 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 are automatically 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 don’t 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 basic rules (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 pay and 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 a bonus 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. O

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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 for each 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 element’s input values. The formulas also obtain information from database items. Much of the information in the Oracle HRMS 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 calculations required 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 status—for example, a different formula for employees 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 Payroll Chapter 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 can have 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 primary or 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 cannot change 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. O

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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 intersection entity 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 be the 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 a secondary 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 feed the 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. O

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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. O

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

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Quiz

Answer: 1

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Quiz

Answers: 1, 3

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Writing Formulas Chapter 3 - Page 1

Writing Formulas Chapter 3

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Writing Formulas

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Types of Formulas

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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 a payroll 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. O

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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 must declare the input value type (date or text). Identify the inputs required for the calculation and where 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 value to 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. O

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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 that divides 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. O

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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 a payroll period.

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

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Easy Access to Data in Formulas

Easy Access to Data in Formulas FastFormula uses information in the FastFormula Application Dictionary when it runs a formula that refers to a database item. The Dictionary contains the information that FastFormula requires to generate the SQL and PL/SQL error checking code that extracts the database item. Some database items require certain contexts. The Database Items window displays these only when you are creating a formula type that provides these contexts. For example, database items that require the Assignment ID display when you create an Oracle Payroll formula. This is because the assignment context is always available when the Payroll run calls the formulas.

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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, for example, 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 single quote 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 the word 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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Component - Expressions and Arithmetic Operators

Component – Expressions and Arithmetic Operators Please refer to the additional guide for labs and/or demos for this lesson

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Quiz

Answer: 1

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Answer: 2

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Defining Formula Results and Processing Rules Chapter 4 - Page 1

Defining Formula Results and Processing Rules Chapter 4

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Defining Formula Results and Processing Rules

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Formula Processing Rules

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 more than 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 Processing Rules

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Formula Result Types

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Formula Result Types

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

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Quiz

Answer: 2

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Quiz

Answers: 1, 2, 4, 6

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Controlling the Frequency of Processing an Element Chapter 5 - Page 1

Controlling the Frequency of Processing an Element Chapter 5

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Controlling the Frequency of Processing an Element

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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 process

them at periodic intervals. • Skip Rules

- Define skip rules if you want conditional processing of any element using a formula to 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 a month. You can define these deductions as nonrecurring and use BEE to make the entries as required.

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Skip Rule Formulas

Skip Rule Formulas In the US and Canada, skip rules are usually generated along with elements, formulas, and balances, when you initiate earnings and deductions using the Earnings or Deductions windows.

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

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Quiz

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Advance Pay Chapter 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 where the 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. Oracle Advance 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 generate pay.

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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 manage personal or other changes. The net payment must equal the advanced payment each period. Therefore, when Oracle Payroll 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 a deferred 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 the the 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 into separate 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 overall accuracy 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 the checks 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 the Advance 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 choices available are:

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

• Include as an Advance Element – the Advance Pay by Element process uses this attribute. 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 pay period:

• 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 is not deferred, the application makes additional payment during the absence of the employee. 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 also need 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 recover

advanced 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 the absence period (for example, a bonus), these can be paid either to the employee in that period 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 the

pay 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 BEE Rollback 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 the current 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. Please refer to the additional guide for labs and/or demos for this lesson.

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Quiz

Answer: 1

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Retro Pay Chapter 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 pay negotiations, 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 duration you 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 to Net), 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 RetroPay for 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 balance adjustments when the next payroll run processes the RetroPay elements.

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How RetroPay Works: Elements

How RetroPay Works: Elements RetroPay brings the differences in the calculations forward to the current pay period as element entries. Oracle Payroll calculates and makes payments by processing these elements and then adjusts balances by the results of processing these elements. The classification of the RetroPay Element is very important in making adjustments to the correct balances. You should use the Earnings classification to adjust all gross-to-net balances automatically.

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How RetroPay Works: Element Entries

How RetroPay Works: Element Entries Because the element entries are processed as part of the regular pay cycle, you have a second level of control to manage special earnings or deductions. For example, what do you do if the result of the RetroPay calculation is a negative earnings amount? You cannot automatically take the money from the employee, and, even with agreement, the deduction may exceed the earnings for the current period. Additionally, what do you do if the result is a large earnings amount and the employee elects to have it paid in several pay periods to optimize tax deductions? With Oracle’s RetroPay solution, you get an element entry, so you control what happens to the results of retro-processing.

• If you feed the RetroPay result to the pay value, Oracle Payroll makes the payment automatically.

• If you feed the result to another input value, then you use a formula to process and pay the result.

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Types of RetroPay

Types of RetroPay • RetroPay by Aggregate: Combines all adjustments for all the previous processes into one

entry for each balance • RetroPay by Run: Enables you to see how adjustments are distributed across the

individual runs reprocessed. You may have multiple runs in any period. • RetroPay by Element: Enables you to see how adjustments are distributed at the element

entry level • Enhanced RetroPay: Provides a data-driven mechanism and is based on the Retropay by

Element solution, Enables you to identify the reasons for backdated changes to individual elements, and Reprocesses an assignment from the exact point at which a change occurred rather than reprocessing the entire pay period because it contains a backdated change

You can use only one type of RetroPay for a period. You must not reprocess the same data at a later time using a different method.

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Enhanced RetroPay Example

Enhanced RetroPay Example The employee has a monthly pay of 1000 with a tax rate of 10% for the January-March period. In April, there is a backdated rise to 1200 effective from January and the tax rate changes to 20%. Enhanced RetroPay by Element breaks down the payments and allows you to see all backdated changes at individual element level.

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Enhanced RetroPay Example

Enhanced RetroPay Example This example shows a payroll run for the periods January-March. If the current period is April, and you run a RetroPay from January using the Enhanced RetroPay method, then Oracle Payroll uses the 10% tax rate when reprocessing the January-March period. For a retrospective change of salary to 1200, the additional amount of 200 would result in an additional retrospective tax deduction of 20 for each month, using the 10% rate.

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Features of Enhanced RetroPay

Features of Enhanced RetroPay • Differentiates between a corrective change (for example, required when you have entered

wrong information) and a deliberate back-dated change (for example, a back-dated pay change). Different types of change require the application to produce different results depending on statutory rules. Enhanced RetroPay addresses these requirements effectively.

• Supports your requirement to differentiate between normal and retro earnings, usually required for legislative reporting, by enabling context overrides. For example, you may need to report the results of a retro calculation against a different context from the original payment or deduction, such as reporting of retro calculation of social insurance contributions against an alternative contribution code.

• Introduces retro assignment, which provides an individual start date for each assignment. This new feature offers better processing efficiency by running the RetroPay process only from the date when the assignment changed.

• Enhanced RetroPay eliminates the unnecessary recalculation of periods prior to a retro change. In order to recalculate a previous pay run, the existing RetroPay methods delete

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the existing results and then reinstate them after the recalculation. However, Enhanced RetroPay displays the status of the existing results as Deleted and requires only a single update to the status after the recalculation. This feature reduces the time required to delete the run results and associated values. Enhanced RetroPay also introduces run balances that speed up the re-derivation of latest balances within the retro process.

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Setting Up RetroPay by Element

Setting Up RetroPay by Element To set up RetroPay by Element, you:

• Create the retroactive element. By default, when you process an element in the RetroPay by Element process, a retroactive non recurring element with the same name as the original element is created. However, you can create a retroactive element with a different name from your user-defined elements. The new retroactive element should have the following attributions Non-recurring and Multiple entries allowed.

• If you create a new retroactive element, enter its name in the RetroPay Element field of the Element Description window for the corresponding element. For example, you could call the retroactive element Retro Overtime and then the retro amounts do not appear on the SOE under the same name as the base element Overtime.

• Link elements (base and corresponding retro) to your payroll. • Enter retroactive changes using DateTrack. • Create an element set including the elements for retroactive processing, for example, base

elements such as Company Overtime.

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• Create an assignment set including the assignments to use in the retro comparison.

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Retroactive Element Definition

Retroactive Element Definition You use RetroPay by Element to calculate a breakdown of retroactive payments by elements and time periods in which they were earned. Having separate RetroPay elements for each element included in the Retropay process means that they appear as separate entries on the pay advice and can be costed separately.

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Setting Up Enhanced RetroPay

Setting Up Enhanced RetroPay The setup steps are as follows:

• Set up a RetroPay definition that groups RetroPay components. • Create Retro Components. • Define the RetroPay elements that will receive the retroactive adjustments. • Link the RetroPay elements to the relevant payroll. • Enter retroactive changes using DateTrack.

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Running Enhanced RetroPay

Running Enhanced RetroPay This slide summarizes the processing options when you run Enhanced RetroPay. The parameters that you choose are:

• Effective Date, which is the date from which you want to begin your RetroPay processing • Payroll

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Costing RetroPay Results

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RetroCosting

RetroCosting The RetroCosting process ensures that the costing information entered for payroll processing is correct. The process recalculates costing records using current costing information and then compares these results with the existing costing information. Please refer to the additional guide for labs and/or demos for this lesson.

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Quiz

Answer: 2

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Quiz

Answer: 3

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Net-to-Gross and Proration Chapter 8 - Page 1

Net-to-Gross and Proration Chapter 8

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Net-to-Gross and Proration

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Net-to-Gross

Net-to-Gross Net-to-Gross processing enables you to calculate the gross amount needed to meet a fixed net amount, for example a bonus. You define an earnings type that is a fixed net amount and the taxes and other deductions you are willing to pay by selecting the balances that can be used in the Net-to-Gross processing.

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Creating a Net-to-Gross Earnings Type (U.S./CA)

Creating a Net-to-Gross Earnings Type American and Canadian users create a Net-to-Gross earnings type using the Earnings window. Initially, you should ensure that you set your effective date early enough to handle any historical entries you may want to make. The calculation rule you select generates a formula called <earnings name>_GROSSUP_FLAT_AMOUNT, which you can configure if necessary. Please ensure that you select the correct calculation rule for your country:

• GROSSUP_FLAT_AMOUNT_NONRECUR (US) • Flat Amount for Net to Gross (Canada)

You review the list of balances in Grossup Processing and clear any Include checkboxes for balances that you want to exclude from the Grossup processing. You can also exclude balances for individual element entries using the Exclude Balances window. After you save your work, you can review the components for the earnings and make changes to them. However, you cannot amend any details using the Earnings window. Instead, you have to delete all generated components and re-initiate the earnings.

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Creating a Net-to-Gross Earnings Type (U.K.)

Creating a Net-to-Gross Earnings Type Users in the United Kingdom create a Net-to-Gross earnings type using the Element Description window. Initially, you should ensure that you set your effective date early enough to handle any historical entries you may want to make. The earnings element should be non recurring, disallow multiple entries, and use the iterative formula DEFAULT_GROSSUP. You can enter an iterative priority if you want to determine the sequence of adjustment during iterative processing. Elements with a lower priority number are adjusted first. Correct calculation of Net-to-Gross depends on having the correct input values available:

• Amount (desired net pay). • To Within (the amount by which actual net can differ from desired net after normal

processing. This value must not be 0, but can be a nominal amount such as 0.01). • Method (Interpolation or Binary). • Low Gross, High Gross, Remainder, and Additional Amount (The

DEFAULT_GROSSUP uses these inputs to calculate the grossup amount). Iterative processing rules specify how to use the iterative formula results to control the processing. Each formula result must adjust the input value of the same name.

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Net-to-Gross Processing Excluding Balances

Net-to-Gross Processing Excluding Balances When you define a balance, you can select the Grossup check box. By default, this balance is then included in all Net-to-Gross processing. However, you can exclude a balance from the net-to-gross processing of a particular element using the Grossup Processing window (U.S. and Canadian users) or Exclude Balances window. Use the list of values in the Exclude Balances window to check which balances are included.

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Proration

Proration Oracle HRMS enables you to calculate proportionate earnings amounts whenever data that is relevant to a payroll changes during a payroll period. Various events can trigger the need for proration. For example:

• An assignment begins or ends. • A salary amount changes. • A pay rate changes. • Working hours change. • Allowances or deductions change.

Proration unit can be periods, days, or hours. You can apply Proration to a monetary, time-based, or numeric amount.

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Proration Setup

Proration Setup To prorate an earnings element, such as basic salary, you assign an event group to it. An event group is a collection of proration points that share similar characteristics. You can create an event group for all proration points that affect an employee’s salary, for example. This event group could contain proration points such as salary increases, assignment changes, and pay rate changes. You then process the element using a formula that handles proration. You can either use a payroll formula that handles proration or create a separate proration formula, using the predefined examples, that runs after the main payroll formula only in payroll periods when a proration event occurs.

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Historic Rates (U.K.)

Historic Rates The historic rates functionality is U.K. specific. It retrieves a datetracked money value and recalculates it according to different time-dimensions (converting a daily wage to hourly). You can use historic rates to determine employee payments at the rate that applied when the work was done, rather than at the current rate. Historic rates are the values of a specific element or combination of elements, based on a specified time dimension at a specified date. They can take into account an assignment’s FTE and length of service, if the rate of pay varies with these factors. To calculate pay using historic rates, use the GET_HISTORIC_RATE function in your payroll formula. This function returns the rate. The parameters for the function are:

• The element or group of elements (a rate type) • The time dimension (such as hourly) • The effective date

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Rate Type Information

Rate Type Information For most rate calculations, a single element provides the pay rate. However, some rate calculations are the sum of multiple elements. For example, a holiday rate could be the sum of:

• Basic pay (held as a progression point) • Shift Allowance (an input value) • Bonus (a global value)

The same element can be part of any number of rate types. For example, the basic pay element could also be part of the sickness rate type. You use a rate type to group elements that form a single pay rate when they are added together. You create a rate type using the lookup type PQP_RATE_TYPE and you use the element Rate Type extra information type to specify the rate types to which an element belongs.

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Element Attribution Information

Element Attribution Information You use this element extra information type to specify:

• Time Dimension (hourly, daily, or periodic). • Pay Source Value, which can be either grade rate, spine point, rate type, element name,

global value, or input value. • Qualifier (the name of the source specified in Pay Source Value). • If the value is subject to FTE, ensure that you have entered Working Hours and

Frequency in the Assignment window for your employees. • Whether the formula must adjust the rate according to length of service. • Factor %’s

- These attributes apply only if you have a pay source value of element name or rate type. You enter whether to apply a % or factor, what this figure actually is, or the input value that holds the figure.

• Whether the process should return values only for assignments that are linked to the element.

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• Whether the formula should adjust rates by term-time hours divided by annual hours. This check only applies to employees whose annual term-time hours are defined on the Contract table.

If you base a historic rates calculation on an element input value, you also have two options: • If the element allows multiple entries, you can use the sum of all the entries in the historic

rates calculation. • If a lookup determines the input value, you can use the lookup meaning or the lookup

code in your formula.

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Contract Types Table

Contract Types Table You use the user-defined PQP_CONTRACT_TYPES table to specify attribution for each contract type:

• Total annual hours worked • Total annual overtime hours worked • Total annual term-time hours worked • Number of days, weeks, or months in year • Adjustment factor for length of service

The historic rates function uses this information about each contract type to convert values held for one time dimension to another dimension. For example, if a rate is held as an hourly rate and needs to be returned as a daily rate, the function calculates an annual value by multiplying the rate by Annual Hours, and then then divides this value by the Days Divisor. You assign an employee to a contract type on the Extra Details of Service window.

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Quiz

Answer: 2

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Quiz

Answers: 2, 4, 6

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Quiz

Answers: 1, 4

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Answer: 1

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Summary


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Element Design Wizard Chapter 9 - Page 1

Element Design Wizard Chapter 9

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Element Design Wizard

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Generating Earnings and Deductions Elements

Generating Earnings and Deductions Elements The two ways of generating earnings and deduction elements are:

• Template Elements: You can use the Configuration Workbench to select many earnings and deductions from a template library for your country and industry into a template set. The Workbench creates the elements, formulas, balances, and formula result rules that Oracle Payroll requires to process each earnings and deduction type. You can configure the components that the Configuration Workbench generates for you.

• Generated Elements: This method of initiating earnings and deductions depends on your localization. Typically you use the Earnings and Deductions windows, Element Design Wizard, or other template windows for specific earnings and deduction types. The application generates the elements you require, along with balances, balance feeds, and formulas. You can configure generated elements and formulas to match any special requirements.

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Element Design Wizard This browser-based wizard guides you through the definition of all typical earnings and deductions you need to administer a payroll. The Element Design Wizard provides the following templates that enable you to complete your definitions quickly and with less risk of error:

• Earnings Templates, such as Flat Amount, Percentage of Earnings, and Hours X Rate • Deductions Templates, such as Flat Amount and Percentage of Earnings

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Element Design Wizard: Process Flow

Element Design Wizard: Process Flow Please refer to the additional guide for labs and/or demos for this lesson.

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Quiz

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Quiz

Answer: 2

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Quiz

Answers: 1, 2

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Managing Third Party Payments Chapter 10 - Page 1

Managing Third Party Payments Chapter 10

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Managing Third-Party Payments

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Objectives

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Topics

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Third-Party Payments Overview

Third-Party Payments Overview Third-Party Payments are also known as Wage Attachments, Wage Garnishments or Court Orders, depending on your localization. Oracle Payroll features for third party payments enable you to:

• Create Third-Party Payments and determine which earnings are eligible for Third-Party Payments

• Administer fees for recouping processing costs of Third-Party Payments (if admin fees are payable for your localization)

• Establish the priority of payments if a worker has several Third-Party Payment obligations that cannot be met in a single pay period

• Stop making Third-Party Payments when your worker has discharged the obligation

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Third-Party Payments

Third-Party Payments Third-Party Payments are usually involuntary deductions incurred by court debts or fines, such as child support, but can be a voluntary deduction such as a charitable donation, union dues or subscriptions to professional organizations. Oracle Payroll enables you to process these deductions from the employee’s wages. Third-party payments in Oracle Payroll are rule driven, so you can tailor them to meet your business needs.

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Entering Third Party-Payments for an Employee

Entering Third-Party Payments for an Employee • Identify the recipients of the payments – Payee Organization or Person (Contact) • Create a specific payment method and add to payrolls as a valid payment method • Enter the third-party pay method as a personal Payment method for the employee – Select

the payee organization or person • Assign the wage attachment deduction element to the employee as an element entry –

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Payee: Organization

Payee: Organization Use the Organization window to pay to an organization:

• Create the location or address first • Create an organization name like Child Support Division of West Virginia, Internal

Revenue Service • Use Payee Organization classification

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Payee: Contacts

Payee: Contacts You create individual payees as contacts of the person making the deductions. In the Contacts window:

• Enter the name and address • Check the Payment Recipient box when you create the payee

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Recording Third-Party Payments for an Employee

Recording Third-Party Payments for an Employee Enter a Third-Party Pay Method on the Personal Pay Method window

• The system automatically makes this pay method the first priority. You cannot change this number.

• Choose the Payment Recipient by entering the payee organization or contact name. Enter the Wage Attachment on the employee’s Element Entries

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Managing Deductions

Managing Deductions Many Third-Party Payments are not on-going, therefore must be stopped. Depending on the payment, and whether the deduction is diminishing or on-going, you can set a deduction end date. Alternatively, set up the deduction for Oracle Payroll to stop processing when the balance is paid in full.

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Third Party Processing Priorities

Third-Party Processing Priorities You determine when to deduct each third party payment from an employees’ earnings, using element classifications and processing sequences. For example, you may need to ensure that Oracle Payroll processes court orders before other deduction types. You may also need to prioritize the court orders further to ensure that Oracle Payroll always processes child support deductions before education loans. In this example, these third party payments belong to an element classification with a low numbered processing sequence. This ensures they are processed before all other deductions. To ensure Oracle Payroll processes your child support payments before education loans, you could determine a secondary processing sequence. You do this in the Element Entries window. If you don’t specify a secondary processing sequence, third-party payments are processed in date order.

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Protected Earnings

Protected Earnings You can use the predefined formulas to determine how third party payments are processed in your organization. For example: Determine the amount of pay liable for third party deductions. For example, the employee’s take home pay after tax and other deductions, and the amount that is protected or exempt from third-party deductions.

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Producing Checks/Cheques for Third-Party Payments

Producing Checks/Cheques for Third-Party Payments Wage attachments are automatically processed by the payroll run. After the payroll run you run the PrePayments process.

- This uses personal payment methods for the types of payment and the amount of pay to distribute to each type.

When PrePayments are complete you are ready to produce a check file for third-party payments.

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Producing Checks/Cheques for Third- Party Payments

Producing Checks/Cheques for Third-Party Payments Payment of third-party payments generates one check/cheque per employee. For example, if several employees have wage attachments paid to the Child Enforcement Division in Georgia, then the system produces a separate check/cheque for each employee. Select the name of the third-party payment method. For Check/Cheque Style, select Third-Party Check/Cheque. The Sort Sequence defaults to:

• Organization, Person. • If other sequences are defined for your installation, you can select one of them.

Enter the Start Check/Cheque Number and submit.

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Quiz

Answer: 1

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Summary


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r12.x oracle payroll fundamentals: earnings and...

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