PTO Examples

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Examples on PTO – Paid Time Off

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Siddesha Pujar HRMS 1/22/2016

Abstract

Examples on PTO – Paid Time Off:

Author: Siddesha Pujar Create Date : 13-Jan-2016 Other Information : This document contains only samples on PTO Accruals using different standard formulas available in Oracle HRMS.

Table of Contents:

1. Overview and Scope of Document.

2. Example Using Formulas.

3. Reference Notes.

Overview and Scope of Document:

The purpose of this document is to demonstrate the PTO Accrual Plans with examples. This

document does not deal with any specific customer requirements, using this can be elaborate and

can give directions to customer’s requirements if any.

We use below setup accrual and carryover formulas.

Accrual Formulas:

1. PTO_PAYROLL_BALANCE_CALCULATION. 2. PTO_HD_ANNIVERSARY_BALANCE. 3. PTO_SIMPLE_BALANCE_MULTIPLIER. 4. PTO_ROLLING_ACCRUAL.

Carryover Formulas:

1. PTO_PAYROLL_CARRYOVER.

2. PTO_HD_ANNIVERSARY_CARRYOVER.

3. PTO_SIMPLE_CARRYOVER.

4. PTO_ROLLING_CARRYOVER.

Ineligibility Formula:

1. PTO_INELIGIBILITY_CALCULATION.

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Note. If we are using Payroll it is recommended that to use one of the formulas with the word ‘Balance’ in it. These formulas are written with the new balance architecture and should be used for accurate balances on checks & deposit advices. (As well as faster processing time) If we are HR only they should use the formulas ‘WITHOUT’ the word balance Example Using Formulas:

1. Example 1: Let’s use the below formulas and create accrual plan and use them for employees.

Accrual Formula Name: PTO_PAYROLL_BALANCE_CALCULATION Carryover Formula Name: PTO_PAYROLL_CARRYOVER **Payroll Formula automatically populated when you’ve selected a ‘Balance Reset Date’ other than no balance when you save the record. Setup required before creating an Accrual Plan:

1. Create an Absence Element. 2. Link An Element. 3. Create An Absence Type. 4. Create An Accrual Plan. 5. Verify the Links of Accrual Plan Elements. 6. Use the Plan to employees.

1. Create an Absence Element.

Navigation Path � Total Compensation � Basic � Element Description: Effective Date for this example is: 01-Jan-2015. Element Classification: Information. Element Type: Non Recurring.

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Input Values:

2. Link An Element (Demo Annual Leave). Navigation Path � Total Compensation � Basic � Link Note: if absence element link does not created before creating an accrual plan then the accrual plan elements will not create automatically. In this example “Demo Annual Leave” is the absence element. Note: The element is linked to all payrolls:

3. Create An Absence Type.

Navigation Path � Total Compensation � Basic � Absence Types: Absence Type: Demo Annual Leave Type Category: Vacation Associated Absence Element: Demo Annual Leave Units: Days Balance: Increasing.

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Note: Allow Absence Overlaps: Set it to ‘No’, this will help to give warning when user try to apply overlap absences but it will NOT you stop to enter the overlap leaves and just gives a warning message. If you want to stop completely the entry of overlapping leaves then we may need to create the user hooks by customizing the functionality.

4. Create An Accrual Plan. Navigation Path � Total Compensation � Basic � Accrual Plans: Accrual Plan Name: Demo Annual Leave Plan Accrual Category: Vacation Accrual Start: Hire Date Accrual Units: Days Accrual Formula Name: PTO_PAYROLL_BALANCE_CALCULATION Carryover Formula Name: PTO_PAYROLL_CARRYOVER Absence Information: Demo Annual Leave. Units: Days Payroll Balance Reset Date: 1 January.

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Note: Dimension Name: _ASG_PTO_DE_YTD generated automatically. Accrual Band: Setting as below. We can set based on our requirements.

Net Calculation Rules: This is generated automatically when we create/save an accrual

plan. Additionally the adjustment elements can be added to manipulate the net entitlement values. Below form will be used to add this adjustment elements if any

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5. Verify the Links of Accrual Plan Elements: Let’s verify an accrual plan link other associated element links those get created and linked automatically at the time accrual plan creation. Navigation Path � Total Compensation � Basic � Link Note: if absence element link not created before creating an accrual plan then the below links will not create automatically. In this example “Demo Annual Leave” is the absence element.

a. Accrual Plan Element link (Demo Annual Leave Plan):

b. Carryover element link (Demo Annual Leave Plan Carried Over). If this link does not exist then we cannot carry over the leave balances to next year.

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c.

d.

e.

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6. Use the Plan to Employees: Let’s attach or use the Accrual Plan (Demo Annual Leave Plan) to employees and view the accruals. Employee Number: 2150 Assigned a Payroll: Vision Monthly Attached Accrual Plan: Demo Accrual Plan from 01-Jan-2015(Which is employee hire date)

Let’s View Accruals for this Employee: Navigation Path � Fast Path � Accruals As on 01-Jan-2015: Accruals Shows ZERO.

As on 31-Jan-2015: Its shows 2, as accrual annual rate is 24, so per month 2 days.

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Let’s view accruals as on 30-Nov-2015: Its shows 22.

Now let’s apply a couple of days leave in Dec’15: Navigation Path � Fast Path � Absence

Let’s us view the accruals after above submission and view accruals as on 31-Dec-2015 and it reduce 2 days and show net entitlement as 22. (24-2 = 22)

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Note: Accrual term is January to December. Hence if we view next year it will reset the accrual balance to ZERO. Let’s view the accruals as on 01-Jan-2016.

Then how do we carry over the last year leave balances to the current year? Below are the Steps: a. Check leave balances suppose to carry over to next year by viewing accruals as on

31-Dec-2015. Its shows 22. We need to get these balances to 2016.

b. There is concurrent program which helps us carry over the balances.

Concurrent Program: “PTO Carry Over” Note: Let’s understand the parameter details before submit the concurrent program: If the balances need to carry over from 2015 to 2106, then the parameter combination should be as below: Calculation Date: 03-JAN-2016 Accrual Term: PREVIOUS Or Calculation Date: 31-DEC-2015 Accrual Term: CURRENT

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c. Lets submit the “PTO Carry Over” Process.

Let’s see the results.

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d. Let’s see the carry over details for the employee 2150. As on 01-Jan-2016, now its shows 22, which are carried over from 2015.

So the results are looks expected and this ends example 1. 2. Example 2:

A. Let’s see how to restrict carry over leave balances to next year? B. How to limit the accruals against a particular accrual plan? In the same above example 1 maximum carry over is set it as 40. Now we will change to 20 and the ceiling also to 22. (Ceiling means in the accrual term you cannot accrue more than ceiling value which is going to be now 22 in this case) 1. Let’s now modify the accrual band setup.

Current setup is like below:

Now changing as below:

2. Now let’s review the accruals:

Employee Number: 2152 Employee Hire and accrual plan date: 01-Jan-2016.

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Accruals as on 31-Jan-2016. It shows 2 as the annual accrual rate is 24.

Let’s view the accrual as on 30-Nov-2016. It shows 22.

Now view as on 31-Dec- 2016, it show only 22 as the ceiling is 22. It should NOT show 24.

So it’s excepted because ceiling is set to 22. We cannot accrue more than ceiling set value.

3. Let’s now see how to restrict carry over to next year to only 20 while the accrual balance as on 31-Dec-2016 is 22. Let’s run the PTO Carry Over Process program:

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Lets us check the results:

See the below results, carryover value shows only 20 and not 22.

So now we have achieved the requirement. This ends example 2.

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3. Example 3: Let’s see how to use the PTO_HD_ANNIVERSARY_BALANCE and PTO_HD_ANNIVERSARY_CARRYOVER formulas work when used in the accrual plan. Setup required before creating an Accrual Plan:

1. Create an Absence Element. 2. Link An Element. 3. Create An Absence Type. 4. Create An Accrual Plan. 5. Verify the Links of Accrual Plan Elements. 6. Use the Plan to employees. 1. Create an Absence Element. Navigation Path � Total Compensation� Basic � Element Description: Element Name: Demo HD Annual Leave Effective Date using in this example is: 01-Jan-2015. Element Classification: Information. Element Type: Non Recurring.

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2. Link An Element: Navigation Path � Total Compensation� Basic � Links

3. Create An Absence Type: Absence Type Name: Demo HD Annual Leave Type Absence Element: Demo HD Annual Leave. Navigation Path � Total Compensation � Basic � Absence Types

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4. Create An Accrual Plan: Accrual and PTO Carry Over formulas: PTO_HD_ANNIVERSARY_BALANCE and PTO_HD_ANNIVERSARY_CARRYOVER Navigation Path � Total Compensation � Basic � Accrual Plans.

Accrual Bands:

Net Calculation Rules:

5. Verify the Links of Accrual Plan Elements:

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6. Use the Plan to employees. Lets a create an employee and attach the plan and review the details. Employee Number: 2154 Hire Date: 19-Jan-2015

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Let’s review the accruals: Navigation Path � Fast Path � Accruals Note: The employee hired in mid the pay period hence, the first month there will no

accruals, if any requirements to accrue the accruals you may need to customize the accrual plan. View As on 28-Feb-2015 and it shows 2 which is correct.

Let’s review 31-Dec-2015: Its shows 20 as employee going to complete a year after 19

th Jan 2016.

Lets review as on 18

th Jan 2016:

It should shows only 20 and from 19th will reset again to ZERO, as the accrual term

based on ANNIVERSARY.

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How to get the carry over to next year in the above?? Note: In the example, we may need to run the “PTO Carry Over” Process every day by scheduling the program as we may have employees who competes their anniversary at various dates and needs to carry over their leave balances.

What happens if we run the carry over on 18th Jan 2016. Is the above employee be

picked in the process? Let’s see.

See the below it did not carry over any leaves as anniversary not completed. It completes only on 19

th Jan 2016.

Let’s run the same process now with the below Parameters:

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Process carried out only 5 leaves instead of 20 because the carry over seeded sample formula hard coded carry over only 5.

This ends an example how to use the PTO_HD_ANNIVERSARY_BALANCE and PTO_HD_ANNIVERSARY_CARRYOVER formulas.

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4. Example 4: Let’s see how to use the PTO_INELIGIBILITY_CALCULATION formula to

restrict and not to avail the accrual plan balance for first 6 months. Query the Accrual Plan which is used in Example 3 and modify as below.

Employee Number: 2155 Hire date: 01-Jan-2015.

Let’s view the accrual on as 31-Jan-2015.

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Let’s view the accruals as on 30-jun-2015, which is sixth month after hire date.

Let’s view the accruals as on 31-Jul-2015, it should show accruals from this month and should calculate from the date of hire. 14 days. If you want to accumulate only from the 01-Jul-2015 then you may need to customize the formula.

The example on how to use the eligibility formula ends here.

5. Example on PTO_SIMPLE_BALANCE_MULTIPLIER and PTO_SIMPLE_CARRYOVER. This is a simple formula to provide a useful starting point for your own accrual plans. It calls another formula, called PTO_SIMPLE_PERIOD_ACCRUAL. It is designed to be used with the Carry Over formula PTO_SIMPLE_CARRYOVER. These formulas are based on the following rules: • An accrual term of one calendar year, starting 1 June. So, accrual calculations restart at the beginning of each June. • An accrual frequency of one month. • Accrual amounts and ceiling are fixed within the formula. • Carry over is always effective on 31 May of the plan year being processed.

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• Carry over expires at the end of the plan year. So carried over time with the effective date 31 May 1999 must be used before 31 May 2000. • Maximum carry over is fixed within the formula Setup required before creating an Accrual Plan:

1. Create an Absence Element. 2. Link An Element. 3. Create An Absence Type. 4. Create An Accrual Plan. 5. Verify the Links of Accrual Plan Elements. 6. Use the Plan to employees and view the Accruals.

1. Create an Absence Element. Navigation Path � Total Compensation � Basic � Element Description: Effective Date for this example is: 01-Jan-2015. Element Classification: Information. Element Type: Non Recurring

2. Link An Element. Navigation Path � Total Compensation � Basic � Links

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3. Create An Absence Type. Navigation Path � Total Compensation � Basic � Absence Types:

4. Create An Accrual Plan. Navigation Path � Total Compensation � Basic � Accrual Plans.

Accrual Bands:

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Net Calculation Rules:

5. Verify the Links of Accrual Plan Elements.

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6. Use the Plan to employees and view the Accruals. Employee Creating on: 01-Jun-2015 Employee Number: 2156

Let’s view the accruals: As on 30-Jun-2015 Navigation Path � Fast Path � Accruals

As on 31-Jan-2016: This is not resetting as accrual term is June to May.

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As on 31-May-2016: It shows only 20 instead of 24 because in the accrual formula

the ceiling is hard-coded to 20.

E = SET_NUMBER('CEILING', 20) E = SET_NUMBER('ACCRUAL_RATE', 2) Let’s us the “PTO Carry Over” Process to carry forward the balance to next year (01-

Jun-2016 to 31-May-2017).

Let’s review the results.

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Let’s verify the entry. Carry Over to next year is only 5 leave balances due to formula

has been hard-coded to 5 only. If you want to use this formula you can create a copy of this and change the formula as per your requirements. I did not change these formula because we cannot modify them.

The example ends here how to use the Simple Multiplier formulas.

6. Example may not be required for the below formulas: PTO_ROLLING_ACCRUAL and PTO_ROLLING_CARRYOVER

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This is an example formula for an accrual plan that does not have a fixed term start date. It calls the formula PTO_ROLLING_PERIOD_ACCRUAL. It is designed to be used with the Carry over formula PTO_ROLLING_CARRYOVER. These formulas are based on the following rules: • An accrual term of one calendar year, with no fixed start date. Accruals are calculated for the previous 12 months. • An accrual frequency of one month. • Accrual amounts and ceiling are fixed within the formula. • Carry over is not relevant, since the accrual term never ends, but rolls forward. Time is lost if it is not used within 12 months ==================Good Luck======================================

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