Oracle Applications R12 - Payroll Setups v1.2

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Oracle Applications R12Payroll

2/24/2012www.erpstuff.com

Contributed by: Muhammad Abdul Majid & Zafar Iqbal (Pakistan)

Reviewed & edited by: Sikandar Hayat (Owner & Admin of ERPstuff)

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Oracle Applications – Payroll

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Table of Contents

1. Proration Setup .............................................................................................................2

2. Proration Testing ......................................................................................................... 10

3. Accrual Plan Setup ...................................................................................................... 16

4. Accrual Plan Testing .................................................................................................... 27

5 - RetroPay By Element Setup .......................................................................................... 35

6 - RetroPay By Element Testing ........................................................................................ 47





1. Proration Setup

When you prorate an amount, you distribute the payment proportionally over a set period. Rent,utilities and other kinds of payments can be prorated. Suppose if Salary of an employee is changed inthe mid of the month then he should get the pay of first 15 days on the basis of old salary and should

get remaining days salary on the basis of new salary within a period.

Let’s say we have hired an employee from ’01-JAN-2000’.

Create an Element like ‘Monthly Basic Pay’Note : Element is a basic structure for the payment or deductions related to employee.





Click on the ‘Input Values’ button to add the input values as shown. Add M_Basic_Pay andcheck the Database item Then Click on Save Icon to save the record

Create Link for the Element ‘Monthly Basic Pay’ to make element available. We can seteligibility criteria for a employee and check Standard check box for Recurring Type elementsto attached automatically with employees as per criteria.





Now Query the Employees record and go to the assignment screenClick on the Entries Button to attach the element.

Attach the ‘Monthly Basic Pay’ Element from ’01-Jan-2000’. If effective date is current datethen track the date to ’01-Jan-2000’





Complete Fast Formula for Proration

DEFAULT FOR MONTHLY_BASIC_PAY_M_BASIC_PAY_ENTRY_VALUE is 0DEFAULT FOR PAY_PROC_PERIOD_START_DATE IS '1900/01/01 00:00:00'(DATE)

DEFAULT FOR PAY_PROC_PERIOD_END_DATE IS '4712/12/31 00:00:00' (DATE)DEFAULT FOR PRORATE_START IS '1900/01/01 00:00:00' (DATE)DEFAULT FOR PRORATE_END IS '4712/12/31 00:00:00' (DATE)

ALIAS MONTHLY_BASIC_PAY_M_BASIC_PAY_ENTRY_VALUE AS BASIC_PAY ALIAS PAY_PROC_PERIOD_END_DATE AS PERIOD_END ALIAS PAY_PROC_PERIOD_START_DATE AS PERIOD_START

INPUTS AREprorate_start(date),prorate_end(date)

No_of_days = 0amount = 0RATE_PER_DAY = 0WORKING_DAYS = 0

No_of_days = to_number(to_char(last_day(PERIOD_END),'dd'))WORKING_DAYS = DAYS_BETWEEN(PRORATE_END,PRORATE_START)+1Rate_per_day = WORKING_DAYS/no_of_days

Amount = ROUND(BASIC_PAY * RATE_PER_DAY,0)

Return Amount

Move to the Formula results screen and find the element ‘Monthly Basic Pay’





Add the Formula results as below screen and save

Now Query the Seeded Event Group and check the tables and columns. We can create ourown event group if required





Now Query the Element and move to the Proration Tab and set the Proration Group (EventGroup Name) and Formula and save.





2. Proration Testing

Query the Employee and change the date to ’15-Jan-2000’





Update the Salary value from 20000 to 30000 and save. A window will appear Click on UpdateSave

Record is saved with new value which means employees salary from 01-Jan-2000 to 14-Jan-2000 was 20000 and 30000 from 15-Jan-2000 onwards.





Now Run the Quick Pay (Change the date to the last of the Month i,e ’31-Jan-2000’

Query employee’s record, go to assignment’s screen and click on ‘Others’ button to run quickpay.





Select ‘Standard’ as Run Type

Save and the click on ‘Start Run Button’





Status will be completed. Now Click on View Results Button

Select the Run Results





You can see the change. Element attached twice and calculated. 9032 amount is calculatedagainst 20000 for 14 days and 16452 is calculated against 30000 for 16 days.





3. Accrual Plan Setup

Accrual plans permit eligible employees to accrue / accumulate / gain PTO (paid time off) eachyear as they work, to use for vacation or sick leave. Oracle HRMS has no restrictions on the

number of plans you can set up, each with its own units of accrued time (hours or days) andits own rules.

First we create two lookup values (ABSENCE_CATEGORY and ABSENCE_REASON)See the Navigation

Define Absence Reason





Now go to the Element Description screen and Define new element as ‘ Annual Leave’ Add input values as ‘Day’ and Check the Database Item BoxSave

Create Element Link to make sure that element is available (We can set Eligibility Criteria torestrict the element for organization , job , grade , people group , position etc ) and we canmake element as Standard to be attached automatically with employees as per criteria





Now Define the Absence TypesIn WhichWe attach the Category (Lookup Values we created above)We attach the Element used for Accrual.(We create above)We attach Reasons (Lookup Values we created above)

In the next step we will define Accrual PlanWe use the seeded formulas for accrual and we can set Accrual Start as Hire Date whenemployee joins the organization.Enter Annual Leave in absence information (we created above).





See the Navigation

See the screen to select Hire Date

See the screen to select formulas





Formula for Carry Over

Click on the Accrual Band button and enter

Year of Service = Total Service (up to the retirement or can break in rows) Annual Rate = Annual leaves employee can avail in a yearMaximum Carryover = Employee can carry remaining leaves in next year if not availed

(if value is less than annual rate andnot availed then leaves will be lost)





Ceiling = The maximum amount of unused paid time off an employeecan have in an accrual plan. When an employee reaches this maximum, he or she mustuse some accrued time before any more time will accrue.

Save

When we save the Accrual Plan then automatically five elements are created with the startingname of our elementElements created- Annual Leave Plan

- Annual Leave Plan Carried Over- Annual Leave Plan Residual- Annual Leave Plan Tagging- Annual Leave Plan Payroll Balance





Second Element Created

It holds unused accrual/leaves to be carried over to next year/payroll year.

Third Element Created





It holds unused accrual/leaves that cannot be carried over to next year/payroll year due toaccrual rules/bands.Fourth Element Created

The payroll run uses a tagging element to keep track of retrospective entries of absences (andother elements included in the net accrual calculation). When the payroll run encounters aretrospective entry, it will recalculate gross accruals to take account of this entry. It thencreates a tagging element entry so that the same retrospective absence does not trigger it torecalculate gross accruals in the next payroll run.





Example: Supposing an accrual plan has a ceiling of 10 days, and two days accrual permonth. An employee has a net accrual of 10 at the end of May. The June payroll run doesnot award any new accrual to this employee because the net accrual must not exceed theceiling. However, in July the employee’s manager enters five days vacation in May,retrospectively. The July payroll run recalculates the accrual and updates the gross accrual

balance to 14. The net accrual is now nine (14 minus 5).

Fifth Element Created

Payroll Balance element contains net accrual of a Payroll Period. One can see the values in “Run Result” form after running payroll for a month.

See the element links created automatically





4. Accrual Plan Testing

Query the Employee and attach the planFirst set the date to ’01-MAR-2000’

Go to the assignment screen and attach the automatically create element ‘ Annual LeavePlan’

Save





Now Go to the Accrual screen ( FastPAth >>> Accruals ) to see the accrual results As we are on the first date of the month we can see Net Entitlement is ‘0’ becauseemployee can only be eligible for leavesat the end of the month

Now change the date to the last date of the month ’31-Mar-2000’





Again go to the Accruals form and see the Change As we have given 20 annual leaves in Accrual Plan so monthly entitlement is 1.667 if leaves not availed

Now Enter the absence in the month of April-2000





Set the date to ’10-Apr-2000’ and enter leaves from 15-Apr-2000 to 15-Apr-2000 (One Day Annual Leave)Save

After saving click on the accrual button and see the Before and After absence change





As employee’s joining date is 01-Mar-2000 and Accrual Plan starts from 01-Jan-2000 soProjected entitlement is 15.667 out of 20 annual leaves

Now go to the Accruals form and check the entitlements up to 30-Apr-2000 after changingdate.Here net entitlement is

Month Accrual Per Month ByFormula

Leaves Total Accrue -Leaves

Balance

Mar-2000 1.667 0 1.667 - 0 1.667

Apr-2000 1.667 + (Last MonthBalance(1.667))

1 3.333 - 1 2.333





Now Run the Carryover Process to see the change in carryover





Submit a single request

Find the ‘PTO Carry Over’ request, enter parameter’s and submit the request





See the entitlements from 01-Mar-2000 to 31-Dec-2000 As we are at the end of the year date i.e 31-Dec-2000 we cant see carry over leaves

Now keep in mind that we entered 5 in maximum carryover in our accrual plan so anemployee can only carry 5 leaves in next year and other not availed leaves will be lost .Change the date to ’01-Jan-2001 and see the change.





Click on Input Values Button and define input values for the element, check database item andsave

Same way define another element which is our adjustment element. But make it

Nonrecurring and save.





Define Input Values as we defined for the above created salary element.





Now we can define the salary basis but its an optional step.Select the values from list of values like element name and input value name and basis.

Now create links for the elements (We should have a payroll defined). Save the link





Link for Salary Adj element.

Now define a person by setting the effective date ’01-Jan-2000’ (You can hire a person at alater date)





Now attach Payroll and Salary Basis with person at assignment screen. save

Now Click on the Entries Button on Assignment screen and attach element xxMonthly Salarywith the person. Then click on entry values

And enter 10,000 in pay value. Save





Now Run the quick PayWe will run quick pay for the month of Jan-2000 and Feb-2000 with only one element that isxxMonthly SalaryThen we will run quick pay for the month of Mar-2000 with changed salary with two elementsafter some more setups.

At assignment screen click Others Button and select Quick Pay from List of Values.





Select Standard as Run Type

Save and Click on Start Run





Process is Completed. Click on View results and select Run results.

Here we can see our element is processed and have results in Pay value.





Now change date to 29-Feb-2000 and run second months quick pay.





Now set the date again to 01-Jan-2000 (Setup Date) and Check / Create event Group





Create new event group and add the following datetracked events as below.Note: One can use predefined event group for Retropay.

These are the events to add to our newly created event group.Update Type Table Column Name

Date Track Update PAY_ELEMENT_ENTRIES_F EFFECTIVE_END_DATE

Date Track Update PAY_ELEMENT_ENTRIES_F EFFECTIVE_START_DATE

Date Track Delete PAY_ELEMENT_ENTRIES_F

Date Track End Date PAY_ELEMENT_ENTRIES_F

Date Track Insert PAY_ELEMENT_ENTRIES_F

Date Track Correction PAY_ELEMENT_ENTRIES_VALUES_F SCREEN_ENTRY_VALUE

Now go to the element screen again and Query xxMonthly Salary Element and Click onRecalculation tab and add

Recalculation event and Retropay Element . Save





6 - RetroPay By Element Testing

Now query Employee record for which we are testing our scenarios.

Update the salary from 10,000 to 12,000 on 01-Jan-2000 and select correction when save(ifsalary was defined on 01-Jan-2000).





Now create assignment set to run retropay for only our selected employee.

Now Click on Amendment Button





Select Include and add Saleem, Mr Yaseen (Our Employee ) SAVE.

Now create element set and include our elements. Type must be Run Set





Saving the record will enable “Include Element” Button.

Add xxMonthly Salary in Elements area using “Include Element” button and save record





Now Run the request Click on View and select Request from drop down menu list

Select Single Request





Find Retro-Notification Report request (running this request is an optional task. Not runningthis task will not effect on Retropay process).

Give the parameters as below





You can Click on Refresh Data button to see the updated Phase & Status of request otherwiserequest Phase & Statuswill be updated automatically on completion.

Request Completed successfully





Now run the RetroPay By Element Process. Give the parameters as below

Check the request as we did before.

Click on View Log to see the assignments processed

See the Assignments processed, as we have just one employee in our assignment set sonumber of assignments processed is 1.





Now Go back to Enter and maintain screen and query Mr Saleem’s Record





Go to the assignment’s screen and click on Entries button. Here you can see the two elementsare attached as we have changedour salary in Jan-2000 and run the process in march that’s why Adj Element for jan and feb is attached with entry value 2000 (amount increased since Jan and have to be paid in Marchas arrears)

See the Change for Jan-2000





See the Change for Feb-2000

Run Quick Pay for Mar-2000 and see the results




Here we can see that oracle payroll has calculated the two month arrears (which are onlysalary difference I,e 12000 – 10000 = 2000

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Oracle Applications R12 - Payroll Setups v1.2

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