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Oracle Applications R12
Payroll
2/24/2012
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Contributed by: Muhammad Abdul Majid & Zafar Iqbal (Pakistan)
Reviewed & edited by: Sikandar Hayat (Owner & Admin of ERPstuff)
WARNING: This document is property of ERPstuff and copy right material so sharing in any
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Oracle Applications Payroll
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
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Oracle Applications Payroll
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 in
the 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.
Lets 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.
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Oracle Applications Payroll
Click on the Input Values button to add the input values as shown. Add M_Basic_Pay and
check 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 set
eligibility criteria for a employee and check Standard check box for Recurring Type elements
to attached automatically with employees as per criteria.
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Oracle Applications Payroll
Now Query the Employees record and go to the assignment screen
Click on the Entries Button to attach the element.
Attach the Monthly Basic Pay Element from 01-Jan-2000. If effective date is current date
then track the date to 01-Jan-2000
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Oracle Applications Payroll
Then Click on the Entry Values Button to enter the Salary the Employee
Enter the Salary 20000 and save
Now go to the Fast Formula and write the Fast formula as below. Type will be Payroll Run
Proration
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Oracle Applications Payroll
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Oracle Applications Payroll
Complete Fast Formula for Proration
DEFAULT
DEFAULT
(DATE)
DEFAULT
DEFAULT
DEFAULT
FOR MONTHLY_BASIC_PAY_M_BASIC_PAY_ENTRY_VALUE is 0
FOR PAY_PROC_PERIOD_START_DATE IS '1900/01/01 00:00:00'
FOR PAY_PROC_PERIOD_END_DATE IS '4712/12/31 00:00:00' (DATE)
FOR PRORATE_START IS '1900/01/01 00:00:00' (DATE)
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 ARE
prorate_start(date),
prorate_end(date)
No_of_days = 0
amount = 0
RATE_PER_DAY = 0
WORKING_DAYS = 0
No_of_days = to_number(to_char(last_day(PERIOD_END),'dd'))
WORKING_DAYS = DAYS_BETWEEN(PRORATE_END,PRORATE_START)+1
Rate_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
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Oracle Applications Payroll
Add the Formula results as below screen and save
Now Query the Seeded Event Group and check the tables and columns. We can create our
own event group if required
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Oracle Applications Payroll
Now Query the Element and move to the Proration Tab and set the Proration Group (Event
Group Name) and Formula and save.
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Oracle Applications Payroll
2.
Proration Testing
Query the Employee and change the date to 15-Jan-2000
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Oracle Applications Payroll
Update the Salary value from 20000 to 30000 and save. A window will appear Click on Update
Save
Record is saved with new value which means employees salary from 01-Jan-2000 to 14-Jan2000 was 20000 and 30000 from 15-Jan-2000 onwards.
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Oracle Applications Payroll
Now Run the Quick Pay (Change the date to the last of the Month i,e 31-Jan-2000
Query employees record, go to assignments screen and click on Others button to run quick
pay.
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Oracle Applications Payroll
Select Standard as Run Type
Save and the click on Start Run Button
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Oracle Applications Payroll
Status will be completed. Now Click on View Results Button
Select the Run Results
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Oracle Applications Payroll
You can see the change. Element attached twice and calculated. 9032 amount is calculated
against 20000 for 14 days and 16452 is calculated against 30000 for 16 days.
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Oracle Applications Payroll
3.
Accrual Plan Setup
Accrual plans permit eligible employees to accrue / accumulate / gain PTO (paid time off) each
year 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) and
its own rules.
First we create two lookup values (ABSENCE_CATEGORY and ABSENCE_REASON)
See the Navigation
Define Absence Reason
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Oracle Applications Payroll
Now go to the Element Description screen and Define new element as Annual Leave
Add input values as Day and Check the Database Item Box
Save
Create Element Link to make sure that element is available (We can set Eligibility Criteria to
restrict the element for organization , job , grade , people group , position etc ) and we can
make element as Standard to be attached automatically with employees as per criteria
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Oracle Applications Payroll
Now Define the Absence Types
In Which
We 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 Plan
We use the seeded formulas for accrual and we can set Accrual Start as Hire Date when
employee joins the organization.
Enter Annual Leave in absence information (we created above).
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Oracle Applications Payroll
See the Navigation
See the screen to select Hire Date
See the screen to select formulas
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Oracle Applications Payroll
Formula for Carry Over
Click on the Accrual Band button and enter
Year of Service
Annual Rate
Maximum Carryover
= Total Service (up to the retirement or can break in rows)
= Annual leaves employee can avail in a year
= Employee can carry remaining leaves in next year if not availed
(if value is less than annual rate and
not availed then leaves will be lost)
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Oracle Applications Payroll
Ceiling
= The maximum amount of unused paid time off an employee
can have in an accrual plan. When an employee reaches this maximum, he or she must
use some accrued time before any more time will accrue.
Save
When we save the Accrual Plan then automatically five elements are created with the starting
name of our element
Elements created
- Annual Leave Plan
- Annual Leave Plan Carried Over
- Annual Leave Plan Residual
- Annual Leave Plan Tagging
- Annual Leave Plan Payroll Balance
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Oracle Applications Payroll
Second Element Created
It holds unused accrual/leaves to be carried over to next year/payroll year.
Third Element Created
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Oracle Applications Payroll
It holds unused accrual/leaves that cannot be carried over to next year/payroll year due to
accrual rules/bands.
Fourth Element Created
The payroll run uses a tagging element to keep track of retrospective entries of absences (and
other elements included in the net accrual calculation). When the payroll run encounters a
retrospective entry, it will recalculate gross accruals to take account of this entry. It then
creates a tagging element entry so that the same retrospective absence does not trigger it to
recalculate gross accruals in the next payroll run.
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Oracle Applications Payroll
Example: Supposing an accrual plan has a ceiling of 10 days, and two days accrual per
month. An employee has a net accrual of 10 at the end of May. The June payroll run does
not award any new accrual to this employee because the net accrual must not exceed the
ceiling. However, in July the employees 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
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Oracle Applications Payroll
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Oracle Applications Payroll
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Oracle Applications Payroll
4.
Accrual Plan Testing
Query the Employee and attach the plan
First set the date to 01-MAR-2000
Go to the assignment screen and attach the automatically create element Annual Leave
Plan
Save
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Oracle Applications Payroll
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 because
employee can only be eligible for leaves
at the end of the month
Now change the date to the last date of the month 31-Mar-2000
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Oracle Applications Payroll
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
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Oracle Applications Payroll
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
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Oracle Applications Payroll
As employees joining date is 01-Mar-2000 and Accrual Plan starts from 01-Jan-2000 so
Projected 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 changing
date.
Here net entitlement is
Month
Mar-2000
Apr-2000
Accrual Per Month By
Formula
1.667
1.667 + (Last Month
Balance(1.667))
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Leaves
0
1
Total Accrue Leaves
1.667 - 0
3.333 - 1
Balance
1.667
2.333
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Oracle Applications Payroll
Now Run the Carryover Process to see the change in carryover
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Oracle Applications Payroll
Submit a single request
Find the PTO Carry Over request, enter parameters and submit the request
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Oracle Applications Payroll
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 an
employee 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.
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Oracle Applications Payroll
5 - RetroPay By Element Setup
Wages/Arrears due for past months at newly negotiated rates/increment in salary from past
months.
First we have to create two elements one for Salary and one for Adjustment (Arrears)
Elements : xxMonthly Salary
xxMonthly Salary Adj
Set effective date to your actual setups date (Normally we create all elements including
adjustment elements during initial setups)
Define the element and select Primary classification as Earnings
Select the type as Recurring and save
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Oracle Applications Payroll
Click on Input Values Button and define input values for the element, check database item and
save
Same way define another element which is our adjustment element. But make it
Nonrecurring and save.
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Oracle Applications Payroll
Define Input Values as we defined for the above created salary element.
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Oracle Applications Payroll
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
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Oracle Applications Payroll
Link for Salary Adj element.
Now define a person by setting the effective date 01-Jan-2000 (You can hire a person at a
later date)
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Oracle Applications Payroll
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 Salary
with the person. Then click on entry values
And enter 10,000 in pay value. Save
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Oracle Applications Payroll
Now Run the quick Pay
We will run quick pay for the month of Jan-2000 and Feb-2000 with only one element that is
xxMonthly Salary
Then we will run quick pay for the month of Mar-2000 with changed salary with two elements
after some more setups.
At assignment screen click Others Button and select Quick Pay from List of Values.
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Oracle Applications Payroll
Select Standard as Run Type
Save and Click on Start Run
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Oracle Applications Payroll
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.
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Oracle Applications Payroll
Now change date to 29-Feb-2000 and run second months quick pay.
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Oracle Applications Payroll
Now set the date again to 01-Jan-2000 (Setup Date) and Check / Create event Group
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Oracle Applications Payroll
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
Date Track Update
Date Track Update
Date Track Delete
Date Track End Date
Date Track Insert
Date Track Correction
Table
PAY_ELEMENT_ENTRIES_F
PAY_ELEMENT_ENTRIES_F
PAY_ELEMENT_ENTRIES_F
PAY_ELEMENT_ENTRIES_F
PAY_ELEMENT_ENTRIES_F
PAY_ELEMENT_ENTRIES_VALUES_F
Column Name
EFFECTIVE_END_DATE
EFFECTIVE_START_DATE
SCREEN_ENTRY_VALUE
Now go to the element screen again and Query xxMonthly Salary Element and Click on
Recalculation tab and add
Recalculation event and Retropay Element. Save
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Oracle Applications Payroll
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(if
salary was defined on 01-Jan-2000).
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Oracle Applications Payroll
Now create assignment set to run retropay for only our selected employee.
Now Click on Amendment Button
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Oracle Applications Payroll
Select Include and add Saleem, Mr Yaseen (Our Employee ) SAVE.
Now create element set and include our elements. Type must be Run Set
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Oracle Applications Payroll
Saving the record will enable Include Element Button.
Add xxMonthly Salary in Elements area using Include Element button and save record
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Oracle Applications Payroll
Now Run the request Click on View and select Request from drop down menu list
Select Single Request
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Oracle Applications Payroll
Find Retro-Notification Report request (running this request is an optional task. Not running
this task will not effect on Retropay process).
Give the parameters as below
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Oracle Applications Payroll
You can Click on Refresh Data button to see the updated Phase & Status of request otherwise
request Phase & Status
will be updated automatically on completion.
Request Completed successfully
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Oracle Applications Payroll
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 so
number of assignments processed is 1.
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Oracle Applications Payroll
Now Go back to Enter and maintain screen and query Mr Saleems Record
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Oracle Applications Payroll
Go to the assignments screen and click on Entries button. Here you can see the two elements
are attached as we have changed
our salary in Jan-2000 and run the process in march thats why Adj Element for jan and feb
is attached with entry value 2000 (amount increased since Jan and have to be paid in March
as arrears)
See the Change for Jan-2000
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Oracle Applications Payroll
See the Change for Feb-2000
Run Quick Pay for Mar-2000 and see the results
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Here we can see that oracle payroll has calculated the two month arrears (which are only
salary difference I,e 12000 10000 = 2000
-----------END------------
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