Oracle Applications R12 - Payroll Elements Setup

8/11/2019 Oracle Applications R12 - Payroll Elements Setup

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OracleApplications

R12

PayrollElementsSetup

The basic idea in writing this article is just to show the use of elements,links, and balances working in Oracle Payroll.

2009

SikandarHayatAwan

[email protected]

www.erpstuff.com

11DEC2009


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www.erpstuff.com | 11-DEC-2009 2-21

Oracle Applications R12 Payroll ERPSTUFF

Business RequirementOrganization is giving loan facility to the employees so they can take loan (we will use car loan in ourexample) and can pay on equal Installments. We need to setup in Oracle Payroll so in each payroll run(salary calculation) the amount should be deducted. At the end the use/need of Fast Formula will beexplained while the use or explanation of Fast Formula is not in the scope of this article. After setting it upwe will run quick pay to view the results. This is just a very basic level example so please consider it onlyfor learning purposes. We will work in two sections 1stSetup and then Testing.

We will use Oracle Applications R12 Vision instance the one I used to write this article is 12.0.6.

What to do?

DataResponsibility UK HRMS ManagerEmployee AbbottLoan Amount 3000

Installment Amount 1500Payroll Process MonthlyBalance Remaining Balance

Now lets start by first defining elements to capture user input of Total Loan Amount and then InstallmentsAmount.


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Elements Setup

HRMS:Total Compensation > Basic > Element Description

Change effective date.Type of this element should be nonrecurring as we want this to be executed only once to input Car LoanAmount.Save the data.


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Select Primary Classification as Information.Click on Input Values [B].

Enter the required information.Save the data.

Now we will define another element of type recurring to deduct Installments.

HRMS:Total Compensation > Basic > Element Description


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Save the data.Click on Input Values [B].As the primary classification is Deductions so Oracle automatically added Pay Value.

Save the data.The definition of two elements is completed and now we need to link these with certain criteria.

HRMS:Total Compensation > Basic > Link


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First search Car Loan and select Monthly in Payroll, save the data.


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Secondly search Car Loan Installment and select Monthly in Payroll.Save the data.

So for we have completed two tasks first is defining elements and then linking these to our Monthlypayroll.

Our next step would be to do something to keep remaining balance once deduction is done. Like

Car Loan 3000 AddInstallment 1500 Subtract

-------Balance 1500 Update

====

Installment 1500 Subtract-------

Balance 0 Update====

Open the Balance form and define a balance.

HRMS:Total Compensation > Basic > Balance


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Enter required information and save the data.

Select Car Loan element and select it as ADD and then Car Loan Installment element as Subtract.

Save the data and go back to main screen.Click on Dimensions [B].


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Select _ASG_ITD.Save the data.

Name Description Grossup Balance Status_ASG_ITD Assignment Level all time

_ASG_PROC_PTD Assignment Level in the current earnings period_ASG_RUN Assignment Level within a run_ASG_YTD Assignment Level within a year

Great the setup is done now time to test it. Now we need to test it while keeping in mind that theemployee we will select should be Assigned monthly payroll otherwise we will not be able to assignelement to him/her.


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Testing SetupHRMS:People > Enter and Maintain > Search > Assignment > Entries [B]

Search your desired employee in my case he is Abbott.

Click Assignment [B].


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Confirm if the Payroll in Monthly in the top right area of this screen.Click Entries [B].

Select a new record and select Car Loan.As the element is Nonrecurring that why it got to date.


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Add another record and select Car Loan Installment.Click Entry Values [B].


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Enter Installment Amount. Here we will have only two Installments of 1500 each.Close this window.Save the data.


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Now we will run quick pay to view the results.Click Others [B].

Click Element Selection [B].


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Deselect all other elements.Save and close this screen.Click on Start Run [B].

If the status is complete then click on View Results [B]then Run Results and in case of any error resolvethat first and Retry.


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Great it is showing 1500 deduction.

Selecting Car Loan row and click Run Result Values.

Here it is showing the Total Loan Amount we entered in element.Close these screens and go back to Payroll run screen.Now again click on View Results and this time select Balances from the LOV.


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This is showing us the remaining balance of 1500 as we already deducted 1500.

Now as we want to run another quick pay so change the effective date to one month later. Like our firstpayroll was for November so now we will run for December this is because our payroll is monthly.


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Click Element Selection

Make sure only Car Loan Installment is select and also notice our Car Loan element is no more as that wasone time only to capture total amount.Save and close this screen.Click Start Run [B].


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Our Quick Pay is complete.Now we will check our calculation in the same way we did earlier.

Again deduction of 1500.


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Great our remaining balance is 0.

Questions yet to be answered

What will be remaining balance if you run Quick Pay for 3rdmonth? When Installment of 1500 will stop and who will stop? Can I check if the remaining balance is 0 (zero) then no more deductions?

Answer

Now here is the role of Fast Formula which we will try to discuss in next article.

Hopefully now you got a good idea how we setup to make such deductions and now to control itsprocessing we are feeling the need of Fast Formula.

Thanks

Your feedback is highly appreciated at [email protected]

Oracle Applications R12 - Payroll Elements Setup

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