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

D60573GC10

Edition 1.0

December 2009

D66015

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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

R12.x Oracle Payroll Fundamentals: Earnings and Deductions Practices and Solutions.........................1-1 R12.x Oracle Payroll Fundamentals: Earnings and Deductions Practices and Solutions ............................1-3

Guided Demonstration - Overview of Payroll Earnings and Deductions ..................................................1-4 Practice - Defining a Balance ....................................................................................................................1-7 Solution - Defining a Balance....................................................................................................................1-8 Practice - Writing a Payroll Formula .........................................................................................................1-11 Solution - Writing a Payroll Formula ........................................................................................................1-12 Practice - Writing a Payroll Formula Using FastFormula Assistant..........................................................1-13 Solution - Writing a Payroll Formula Using FastFormula Assistant .........................................................1-14 Practice - Creating Formula Rules.............................................................................................................1-16 Solution - Creating Formula Rules ............................................................................................................1-17 Practice - Defining Frequency Rules .........................................................................................................1-19 Solution: Defining Frequency Rules..........................................................................................................1-20 Practice - Writing a Skip Rule Formula.....................................................................................................1-22 Solution: Writing a Skip Rule Formula .....................................................................................................1-23 Practice - Marking an Element for Advance Pay.......................................................................................1-25 Solution - Marking an Element for Advance Pay ......................................................................................1-26 Practice - Setting Up Enhanced RetroPay .................................................................................................1-27 Solution: Setting Up Enhanced RetroPay ..................................................................................................1-29 Practice - Setting Up Net-to-Gross Processing..........................................................................................1-36 Solution: Setting Up Net-to-Gross Processing ..........................................................................................1-39 Practice - Setting Up Proration ..................................................................................................................1-45 Solution: Setting Up Proration...................................................................................................................1-47 Practice - Working with Element Design Wizard......................................................................................1-55 Solution – Working with Element Design Wizard ....................................................................................1-56 Guided Demonstration - Setting Up a Payee Organization .......................................................................1-58 Guided Demonstration - Entering Third-Party Payment Methods.............................................................1-59

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

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 iv

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 v

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 vi

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 vii

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 viii

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Copyright © Oracle, 2009. All rights reserved.

R12.x Oracle Payroll Fundamentals: Earnings and Deductions Practices and Solutions Chapter 1 - Page 1

R12.x Oracle Payroll Fundamentals: Earnings and Deductions Practices and Solutions Chapter 1

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R12.x Oracle Payroll Fundamentals: Earnings and Deductions Practices and Solutions

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Guided Demonstration - Overview of Payroll Earnings and Deductions

Responsibility: UK Super HRMS Manager

1. Oracle HRMS provides you with all the flexibility you need to model your earnings and deductions for payroll processing.

2. This demonstration provides a high-level overview of the functionality available when you define an earnings or deductions element.

3. Navigate to the Element window:

• (N) Total Compensation > Basic > Element Description

4. You use the element window to view predefined earnings and deductions and to create your own.

5. Find the ‘Regular Earnings’ element and look at the details of the element.

The classification controls the processing order of earnings and deductions in the payroll run. You can also use the classification to control the balances that they feed.

A recurring element is processed in every payroll period until you end the element entry. A nonrecurring element is processed only in the period in which you enter it.

In the Termination region you select when element entries should end for terminated assignments. For example, you can end a recurring element on the termination date by selecting Actual Termination, or leave it for later processing by selecting Final Close.

You can select a skip rule formula to specify circumstances when an element entry should not be processed, such as when a balance reaches a certain level.

The output currency is normally the base currency for your business group. For Information type elements you can select a different currency. You can always select a different input currency as values are converted to the output currency before they are processed.

If you require Regular Earnings to be prorated when values change mid-period, you select the group of events that should trigger proration. These could include changes to rates, working hours, or the assignment itself.

6. Choose the Input Values button.

When you enter this element for an employee, you enter a rate, rate code, and number of hours worked. Elements can have up to 15 input values.

Generally, the element’s formula returns the pay value as a result of the payroll calculation.

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You can enter a default value for each input by using the Validation settings. You can limit the entries for this default to a list of values provided by a lookup. You can also validate the entries against a minimum and maximum, or by using a formula.

7. Close the Input Values window and click the Balance Feed Control button.

This window shows that Regular Earnings is classified with several secondary earnings classifications. These determine which balance it feeds.

8. Close the Balance Feed Control window and click the Balance Feeds button.

You can see, for example, that Regular Earnings feeds the Attachable balance because it is classified as Attachable Earnings. You select the classifications that feed a balance from the Balance window. Here, you can select other balances that this element feeds individually rather than as a result of its classification.

9. Close the Balance Feeds and Element window.

10. Navigate to the Formula window:

• (N) Total Compensation > Basic > Write Formulas

11. Find the TimeCard_Pay Formula. This is the formula that calculates the pay value for Regular Earnings.

12. Choose the Edit button to view the formula.

This formula reads in Hours from the element entry which it then multiplies by an hourly rate database item that comes from another element input value. The formula returns the result Timecard_Pay.

13. Close the Edit Formula and Formula windows.

14. Navigate to the Formula Results window:

• (N) Total Compensation > Basic > Formula Results

15. Find the Regular Earnings element.

The Standard processing rule means that Oracle Payroll uses the TimeCard_Pay formula for all employees with an active assignment. You can create other processing rules for employees with other assignment statuses such as, for example, On Sabbatical. The formula result type informs the application what to do with the values returned from the formula. In this example, the Direct result (TimeCard Pay) populates the pay value of the Regular Earnings element. Results can also populate other element entries, or end them, or change their processing priority, or return a message.

16. Close the Formula Results window.

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Before you can process an earnings type or deduction, you must link the element and make an element entry.

17. Navigate to the Element Link window:

• (N) Total Compensation > Basic > Link

You must create at least one link for each element. The link specifies who is entitled to receive the element and how it is costed.

18. Find the Regular Earnings element.

If all employees are eligible to receive an element and the same costing information applies to all, you can leave the eligibility criteria fields blank. In this example, only employees on the Timecard Monthly payroll are eligible for Regular Earnings. If the element is costed, you enter costing and balancing accounts according to your setup of the Cost Allocation key flexfield.

19. Close the Element Link window.

When you have linked the element, you are ready to enter it for your employees. You can enter the element for individual employees, or for a batch of employees. There are some circumstances where you do not have to make an element entry:

− If you checked the Standard box on the Element or Element Link window, the entry appears automatically for all eligible employees

− If the element is associated with an activity rate, the entry is made automatically when you enroll an employee in the benefit

− If the element is associated with a salary basis, the entry is made automatically when you approve a salary proposal

20. Navigate to the Element Entries window:

• (N) FastPath > Entries

You enter elements for one employee at a time in this window.

21. Find an employee, for example, Russell Rogers.

22. Add an entry for Regular Earnings.

23. Choose the Entry Values button.

You can enter the number of hours worked, a rate and a rate code, although the last two are not used by the formula we looked at. Oracle Payroll then uses this information when processing this element entry and pays the value to the employee. These are just some of the features available with Oracle Payroll that help you define an earnings or deductions element.

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Practice - Defining a Balance

Overview

Define a location allowance and a balance to accumulate the accrual of the location allowance earnings for the statutory year. Review the automatic balance feeds created for your location allowance element.

Assumptions

• Use the OU HRMS Manager or OU Super HRMS Manager responsibility. In this practice, we log in as ouhrms/welcome and use the OU HRMS Manager responsibility.

• You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.

• Set your effective date to 01-JAN-2004.

• This practice covers only the required steps for performing this task.

• Replace xx with your initials or the unique group identifier provided by your instructor.

Tasks

Define a Location Allowance

Navigate to the Element window and use the information in the following table to define your allowance element. Define a monetary input value, Ann_Allowance, which is a database item.

Name Location Allowance xx

Reporting Name Allowance xx

Classification Earnings

Type Recurring

Multiple Entries Not checked

Define a User Balance

Navigate to the Balance window and define a balance, Location Allowance xx, to accumulate the accrual of location allowance earnings for the statutory year.

Review the Automatic Balance Feeds

Navigate to the Element window and review the balance feeds for your Location Allowance element.

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Solution - Defining a Balance

Define a Location Allowance

1. Navigate to the Element window.


2. Set your effective date to 01-JAN-2004.

3. Enter the name Location Allowance xx. You can also enter a reporting name and description for the element.

4. Select a Primary Classification of Earnings.

5. Select Recurring as the processing type.

6. Ensure that the Multiple Entries Allowed box is not checked.

7. Save your work.

8. Choose the Input Values button.

9. Enter an input value called Ann_Allowance.

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10. Select Money in the Units field and ensure that you make the input value a Database Item.

11. Save your work.

Define a User Balance

12. Navigate to the Balance window:

• (N) Total Compensation > Basic > Balance


14. Enter a name for your balance, such as Location Allowance xx, and optionally a Reporting Name.

15. Select Money as the Unit of measurement.

16. Save your work.

17. Choose (B) Feeds.

18. Select your Location Allowance element in the Element Name field.

19. Select Pay Value in the Input Value Name field.

20. Select Add in the Add or Subtract field.

21. Save your work.

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22. Close the Balance Feeds window.

23. Choose (B) Dimensions.

24. Select the dimension _ASG_STAT_YTD.

25. Save your work.

Review the Automatic Balance Feeds




28. Query Enter.

29. Enter the name Location Allowance xx.

30. Query Run, and choose (B) Balance Feeds.

31. Review the balance feeds that have been created automatically by virtue of the element’s classification.

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Practice - Writing a Payroll Formula

Overview

Using the Location Allowance element you defined in an earlier lesson, write a payroll formula to calculate the monthly pay value.

Assumptions

• You can use the OU HRMS Manager or OU Super HRMS Manager responsibility to perform this task. In this practice, we log in as ouhrms/welcome and use the OU HRMS Manager responsibility.





Task

Write the Payroll Formula

Navigate to the Formula window and create a formula, LOCATION_ALLOWANCE_xx. This formula should return a monthly allowance pay value using the input value Ann_Allowance.

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Solution - Writing a Payroll Formula





3. Enter LOCATION_ALLOWANCE_xx as the formula’s name (note that spaces are not permitted).

4. Select a formula Type of Oracle Payroll.

5. Optionally, enter a description.

6. Choose (B) Edit and write your formula as follows: Default for Ann_Allowance is 0 Inputs are Ann_Allowance Monthly_Allowance=ROUND((Ann_Allowance/12),2) Return Monthly_Allowance

7. Verify the formula by choosing (B) Verify.

8. Close the window.

9. Save your work. O

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Practice - Writing a Payroll Formula Using FastFormula Assistant

Overview

Write a payroll formula to determine the hourly wages of an employee based on the hire date and by including the EMP_HIRE_DATE database item in your formula.

Assumptions






Task


Navigate to the FastFormula Assistant page and create a formula, WAGE_xx. This formula uses the input value hours_worked to calculate and return the wage.

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Solution - Writing a Payroll Formula Using FastFormula Assistant


1. Navigate to the FastFormula Assistant page.

• (N) Total Compensation > Basic > FastFormula Assistant

2. Click Create FastFormula.

3. Enter Wage_xx for the formula name.

4. Select Oracle Payroll as the formula type.



7. Click Next to navigate to the FastFormula Assistant: Calculations page.

8. From the Action list, select Add Database Items.

9. In the Add Database Items page, select EMP_HIRE_DATE as the Database Item Name.

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10. Select EMP_HIRE_DATE and enter 0001/01/01 00:00:00 in the Default field.

11. Click Add to FastFormula. The Default statement appears in the FastFormula Text field.

12. Write the following formula in the Calculations section immediately below the Default statement:

Inputs are hours_worked IF (EMP_HIRE_DATE < '2006/01/01 00:00:00'(Date)) THEN Hourly_rate = 100 ELSE Hourly_rate = 200 wage=hours_worked * hourly_rate Return wage

13. Click Verify to check the syntax of your formula.

14. Click Next to move to the FastFormula Assistant: Verification page.

15. Click Finish to save your formula.

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Practice - Creating Formula Rules

Overview

Define a processing rule to associate your location allowance element with the location allowance formula. Define a result rule to return the formula direct result to the element pay value.

Assumptions






Tasks

Define Processing Rule

Navigate to the Formula Result Rules window, choose your Location Allowance element and select Standard processing rules. Pick in your monthly allowance formula in the formula field.

Define Result Rule

Choose your return value, Monthly_Allowance, as a direct result with a Pay Value as the input value.

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Solution - Creating Formula Rules

Define Processing Rule

1. Navigate to the Formula Result Rules window:



3. Select your Location Allowance xx element.

4. In the Processing Rules region, select Standard as the Name. Standard is the default rule used for all assignments unless there is another rule specifically for their assignment status.

5. In the Formula field select your monthly allowance formula.

6. Save your work.

Define Result Rule

7. Ensure that the Standard rule is selected and click in the Name field of the Formula Results region.

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8. Select your return value (Monthly_Allowance) in the Name field.

9. Select Direct Result in the Type field.

10. Select Pay Value in the Input Value field.

11. Save your work.

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Practice - Defining Frequency Rules

Overview

Your company will be offering a stock-purchase plan to which employees can contribute a percentage of their earnings. This deduction is to process once per month. Select a period for the deduction to process for one or more payrolls of your choice.

Assumptions






Tasks

Define Stock Purchase Plan

Navigate to the Element window and define an element, Stock Purchase Plan xx.

Use the information in the following table to define the element:

Name Stock Purchase Plan xx

Reporting Name SPP xx

Description Purchase Plan

Processing Type Recurring

Multiple Entries No

This element should have an input value called Percentage of the unit type Number.

Define Frequency Rules

Enter frequency rules of: − 2 for a semi-monthly payroll − 4 for a weekly payroll

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Solution: Defining Frequency Rules

Define Stock Purchase Plan


• (N) Total Compensation >Basic > Element Description


3. Enter the name Stock Purchase Plan xx.

4. Enter a reporting name such as SPP.

5. Enter a description such as Stock Purchase Plan.

6. Select the classification Voluntary Deductions.

7. Select Recurring for the processing type.


9. Save your work.

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10. Choose (B) Input Values.

11. Enter an input value called Percentage with the unit type Number.

12. Save your work.

Define Frequency Rules

13. Close the Input Values window and choose (B) Frequency Rules.

14. Check a period check box for one or more payrolls, such as 2 for a semi-monthly payroll and 4 for a weekly payroll.

15. Save your work.

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Practice - Writing a Skip Rule Formula

Overview

Your company will be offering a Quarterly Bonus that pays employees’ £1500 per quarter. Define a recurring bonus element and write a skip rule formula to associate with it.

Assumptions






Tasks

Write the Skip Rule Formula

Navigate to the Write Formula window and create an element skip formula ONCE_PER_QUARTER_xx. This formula should set the skip flag to no for payroll processing periods 1,4,7 and 10.

Define the Element

Create a quarterly bonus earnings type using the information in the following table:

Name Quarterly Bonus xx

Reporting Name Quarterly Bonus xx

Description Bonus

Primary Classification Earnings

Processing Type Recurring

Select your skip rule form the list of values and enter the default amount against the pay value.

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Solution: Writing a Skip Rule Formula

Write the Skip Rule Formula

1. Navigate to the Write Formula window:



3. Enter a ONCE_PER_QUARTER_xx as the name for your formula.

4. Select a Formula Type of Element Skip.

5. Optionally enter a description.

6. Choose (B) Edit and write your formula as follows: Default for PAY_PROC_PERIOD_NUMBER is 0 skip_flag = ’y’ IF PAY_PROC_PERIOD_NUMBER=1 OR PAY_PROC_PERIOD_NUMBER=4 OR PAY_PROC_PERIOD_NUMBER=7 OR PAY_PROC_PERIOD_NUMBER=10 THEN ( skip_flag=’n’ ) RETURN skip_flag

7. Verify the formula, close the Edit window, and save your work.

Define the Element



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10. Enter Quarterly Bonus xx as the Name. Optionally enter a Reporting Name and Description.

11. Select the Primary Classification of Earnings.

12. Select Recurring as the processing type.

13. Select your Skip Rule from the list of values.

14. Save your work.


16. Enter the default amount against the Pay Value.

17. Save your work. O

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Practice - Marking an Element for Advance Pay

Overview

Define your location allowance element as an element that can be processed in advance.

Assumptions






Task

Define an Element as an Advance Element

Navigate to the Element window and find your location allowance element. On the Advance Pay tab, check the Include as an Advance Element and Process Advance Entry in Run check boxes.

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Solution - Marking an Element for Advance Pay

Define an Element as an Advance Element



2. Query Enter.

3. Enter the name Location Allowance xx.

4. Query Run.

5. In the Advanced Pay area, check the following: − Include as an Advance Element. − Process Advance Entry in Run.

6. Save your work.

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Practice - Setting Up Enhanced RetroPay

Overview

The objective of this demonstration is to set up enhanced RetroPay to enable you to make back-pay adjustments to monthly salary.

Assumptions

• You can use the OU HRMS Manager or UK Super HRMS Manager responsibility to perform this task. In this practice, we log in as hrms/welcome and use the UK Super HRMS Manager responsibility.





Tasks

Create a Payroll

Use the following information to create a payroll:

Name Retro_xx1

Period Type Calendar Month

Number of Years 10

Payment Method xx_generic

Consolidation Set xx_conset

Create Elements

Create elements with the following information:

Name Monthlysalary_xx1


Type Nonrecurring

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Name Monthlysalary_xx2


Type Nonrecurring

Name Retro_monthlysalary_xx1


Type Nonrecurring

Name Retro_monthlysalary_xx2


Type Nonrecurring

Link Elements to Payroll

Map the following elements to the Retro_xx1 payroll:

• Monthlysalary_xx1

• Monthlysalary_xx2

• Retro_monthlysalary_xx1

• Retro_monthlysalary_xx2

Create an Event Group

Define an event group xx_RetroNotification.

Enable Dynamic Triggers

You need to enable the dynamic triggers for the application to record the changes made to element entries and to ensure that the Retro-Notifications Report identifies these changes. Use the Dynamic Trigger Functional Area Grouping window.

Map Retro Components and Event Group to Elements

Use the Element window to map the retro components and event group to the elements.

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Solution: Setting Up Enhanced RetroPay

Create a Payroll

1. Navigate to the Payroll window as follows:

• (N) Payroll > Description


3. In the Name field, enter Retro_xx1.

4. Select Calendar Month as the period type.

5. Set the first period end date to 01-FEB-2007 and the number of years to 10.

6. Select xx_conset as the consolidation set and save your work.

Create Elements


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2. Set the effective date to 01-JAN-2007.

3. Enter Monthlysalary_xx1 as the element name and select Earnings as the Primary Classification.

4. Set the element type to Nonrecurring.

5. Similarly, define the remaining elements Monthlysalary_xx2, Retro_monthlysalary_xx1, and Retro_monthlysalary_xx2 with the information provided in the Tasks section previously in this document.

Link Elements To Payroll



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3. Select Monthlysalary_xx1 in the Element Name field.

4. Select the Link to All Payrolls checkbox. Similarly, link the remaining elements (Monthlysalary_xx2, Retro_monthlysalary_xx1, and Retro_monthlysalary_xx2) to the payroll.

5. Save your work.


1. Navigate to the Table Event Group window:

• (N) Total Compensation > Basic > Event Groups

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3. Enter xx_RetroNotification as the event group name.

4. Select Retro as the event group type and save your work.

Enable Dynamic Triggers

1. Navigate to the Functional Area Maintenance window:

• (N) Other Definitions > Dynamic Trigger Functional Area Grouping O

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2. In the Name field, select Incident Register.

3. In the Details region, click Business Group.

4. Select your business group and save your work.

Map Retro Components and Event Group to Elements


• (N) Total Compensation > Basic > Element Description O

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2. In the Name field, query for Monthlysalary_xx1.

3. Click Recalculation.

4. In the Recalculation Events field, select xx_RetroNotification.

5. Click Retro Components.

6. In the RetroPay Elements window, enter the following:

• Under the Basic tab

o Component: Retropay

o Reprocess Type: Reprocess

o Default Component: Yes

• Under the Time Span tab

o From: Start of Time

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o To: End of Time

o RetroPay Element: Retro_monthlysalary_xx1

7. Similarly, repeat the tasks mentioned from step 2 for the Monthlysalary_xx2 element with Retro_monthlysalary_xx2 as the RetroPay Element. Also, attach the xx_RetroNotification event group with each of these earnings elements.

8. Save your work.

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Practice - Setting Up Net-to-Gross Processing

Overview

Define a bonus to be calculated by net-to-gross processing. The bonus uses the DEFAULT_GROSSUP iterative formula and the CALC_GROSSUP_PAY_VALUE payroll formula.

Define and link the element, define the iterative processing rules, define the formula processing and result rules, and ensure that the PAYE and NI balances are included in the gross-up processing.

Give your employee a bonus to be paid as £400 net, within 10 pence. Run a QuickPay in January 2004 to check the gross amount paid to your employee.

Assumptions






Tasks

Create the Net to Gross Earnings Type Element

Navigate to the Element window and use these details to define the Net to Gross element:

Name Grossup Bonus xx

Reporting Name Grossup Bonus xx

Primary Classification Earnings

Processing Type Nonrecurring

Multiple Entries Allowed

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Enter the input values shown below.

Name Unit Type

Sequence Required User Enterable

Lookup Default

Amount Money 2 Y Y --

Low Gross Money 3 N N --

High Gross Money 4 N N --

Remainder Money 5 N N --

To Within Number 6 Y Y --

Method Character 7 Y Y ITERATIVE_METHOD Interpolation

Additional Amount

Money 8 N N

Enter the following Iterative Rules. Select each result from the DEFAULT_GROSSUP formula and specify how the payroll run should use the result, as shown in the following table:

Return Name Rule Type Input Value to Adjust

ADDITIONAL_AMOUNT Adjust Additional Amount

HIGH_GROSS Adjust High Gross

LOW_GROSS Adjust Low Gross

REMAINDER Adjust Remainder

STOPPER Stop --

In the Exclude Balances window select the Total Deductions and Superannuation Total balances to exclude from the Grossup processing.

Select the Gross Up check box and select DEFAULT_GROSSUP as the iterative formula.

Link the Grossup Element

Navigate to the Element Link window and link your Bonus Grossup element to all payrolls.

Create Formula Processing and Result Rules

Navigate to the Formula Result Rules window and find your Bonus Grossup element. Select Standard processing rules for your element.

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Enter the Bonus for an Employee

Find employee Charles Ackroyd and award him a bonus to be paid as £400 net, to within 10 pence.

Run QuickPay

Run a QuickPay in January 2004 to check the gross amount paid to your employee.

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Solution: Setting Up Net-to-Gross Processing

Define a Grossup Element




3. Enter the name Grossup Bonus xx. You can also enter a reporting name and description for the element.

4. Select a Primary Classification of Earnings.

5. Select Nonrecurring as the processing type.


7. Choose (T) Advanced

8. Select the Gross Up check box.

9. Select DEFAULT_GROSSUP in the Iterative Formula field.

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10. Save your work.


12. Enter the input values shown below.

Note: You must save after entering each input value. Name Unit Type Sequence Required User

Enterable Lookup Default

Amount Money 2 Y Y -- Low Gross Money 3 N N -- High Gross Money 4 N N -- Remainder Money 5 N N -- To Within Number 6 Y Y -- Method Character 7 Y Y ITERATIVE_METHOD Interpolation Additional Amount

Money 8 N N

13. Close the Input Values window and choose (B) Iterative Rules.

14. Select each result from the DEFAULT_GROSSUP formula and specify how the payroll run should use the result, as shown in the following table:

Return Name Rule Type Input Value to Adjust ADDITIONAL_AMOUNT Adjust Additional Amount HIGH_GROSS Adjust High Gross LOW_GROSS Adjust Low Gross REMAINDER Adjust Remainder STOPPER Stop --

15. Save your work and close the Iterative Processing Rules window.

16. Choose (B) Exclude Balances.

17. In the Exclude Balances window, display the list of values for the Name field to see which balances will be included in the net-to-gross processing. If they appear, select the Total Deductions and Superannuation Total balances to exclude from the Grossup processing.

Link the Grossup Element



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20. Enter the name Grossup Bonus xx.

21. Check the Link to All Payrolls box.

22. Save your work.

Create Formula Processing and Result Rules



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25. Enter Grossup Bonus xx in the Name field.

26. In the Processing Rules region, select Standard in the Name field and CALC_GROSSUP_PAY_VALUE in the Formula field.

27. Save your work.

28. Ensure that your new Standard rule is selected, and click in the Name field of the Formula Results region.

29. Select PAYMENT_AMOUNT in the Name field.



32. Save your work.

Enter the Bonus For an Employee



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34. Find the person you entered in the previous practice.


36. In the Element Name field, select your Grossup Bonus element.

37. Choose Cancel in the Cost Allocation flexfield window.

38. Choose (B) Entry Values.

39. Enter 400 in the Amount field.

40. Enter 0.1 in the To Within field.

41. Ensure Interpolation is selected in the Method field.

42. Save your work.

Run a QuickPay

43. Navigate to the QuickPay window:

• (N) FastPath > QuickPay

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44. Find the person you entered in the previous practice.


46. Select Process Separate Run in the Run Type field.

47. Save your work.

48. Choose (B) Element Selection.

49. Clear the Include in Run check box for all elements except your Grossup Bonus, NI, and PAYE.

50. Save your work.

51. Close the Element Entries window.

52. Choose (B) Start Run.

53. When the Status field displays Complete, choose (B) View Results and select Run Results.

54. Select the Process Separate Run assignment action and choose OK.

55. View the run results.

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Practice - Setting Up Proration

Overview

Set up a deduction that will be prorated when there are changes to the element entry, entry values, or the assignment. Define the deduction with one input value (Annual Deduction), link it to all payrolls, and create formula processing and result rules using the seeded UK_PRORATION_DEDUCTION formula.

Enter the deduction for your employee starting 01-JAN-2004, with an annual value of £3650. End the deduction on 18-FEB-2004.

Run a QuickPay in February to check that the deduction is prorated appropriately.

NOTE: The events you require have already been set up in the Table Event Update window. The triggers you require are included in the Incident Register functional area.

Assumptions






Tasks


Navigate to the Table Event Group window and create an event group asg_or_entry_change_xx using Proration as the Event Group Type and Payroll Period as the Proration Period. Enter the following as datetracked events:

Update Type Table Column Name Datetrack Update PAY_ELEMENT_ENTRIES_F EFFECTIVE_END_DATE Datetrack Update PAY_ELEMENT_ENTRIES_F EFFECTIVE_START_DATEDatetrack Update PER_ALL_ASSIGNMENTS_F EFFECTIVE_END_DATE Datetrack Update PER_ALL_ASSIGNMENTS_F EFFECTIVE_START_DATEDatetrack Update PAY_ELEMENT_ENTRY_VALUES SCREEN_ENTRY_VALUE

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Create the Element

Navigate to the Element window and create a recurring voluntary deduction element called Prorated Deduction xx. Select asg_or_entry_change_xx in the Proration Group field and the Actual Termination process rule.

Create an input value of Annual Deduction, selecting Money as the unit. This value will be a database item.

Link the Element

Set your effective date to 01-JAN-2004 and navigate to the Element Link window. Link the Prorated Deduction xx element to all payrolls.

Review the Formula and Enter Formula Processing and Result Rules

Set your effective date to 01-JAN-2000 and navigate to the Formula Results Rules window. Enter Prorated Deduction xx as the name and in the Processing Rules region, enter Standard in the Name field and UK_PRORATION_DEDUCTION in the Formula field.

Save your work and click in the Name field of the Formula Results region and enter the following details:

Name Type Input Value Message Severity

L_AMOUNT Direct Result Pay Value

MESSAGE Message Information

Enter the Deduction for an Employee

Set your effective date to 01-JAN-2004 and navigate to the Element Entries window. Find the employee Charles Ackroyd and using your prorated deduction element, enter 3650 as the annual deduction. End date the deduction on 18-FEB-2004.

Run QuickPay

Navigate to the QuickPay window and run a QuickPay in February 2004 for Charles Ackroyd to check that the deduction is prorated appropriately. Only include the prorated deduction in the QuickPay.

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Solution: Setting Up Proration


1. Navigate to the Table Event Group window:

• (N) Total Compensation > Basic > Event Groups

2. Enter asg_or_entry_change_xx in the Event Group Name field.

3. Select Proration in the Event Group Type field.

4. Select Payroll Period in the Proration Period field, and save your work.

5. Enter the following Datetracked Events:

Update Type Table Column Name Datetrack Update PAY_ELEMENT_ENTRIES_F EFFECTIVE_END_DATE Datetrack Update PAY_ELEMENT_ENTRIES_F EFFECTIVE_START_DATEDatetrack Update PER_ALL_ASSIGNMENTS_F EFFECTIVE_END_DATE Datetrack Update PER_ALL_ASSIGNMENTS_F EFFECTIVE_START_DATEDatetrack Update PAY_ELEMENT_ENTRY_VALUES SCREEN_ENTRY_VALUE

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6. Save your work.

Create the Element




9. Enter Prorated Deduction xx in the Name field.

10. Select Voluntary Deductions in the Primary Classification field.

11. Select asg_or_entry_change_xx in the Proration Group field.

12. Select Recurring as the Processing Type.

13. Select Actual Termination in the Termination region.

14. Save your work.


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16. Enter Annual Deduction in the name field, select Money in the Units field, and check the Database Item box.

17. Save your work.

Link the Element




20. Enter the name Prorated Deduction xx.

21. Check the Link to All Payrolls box.

22. Save your work.

Review the Formula and Enter Formula Processing and Result Rules



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24. Choose (M) View > Query by Example > Enter.

25. Enter UK_PRORATION_DEDUCTION in the Name field.

26. Choose (M) View > Query by Example > Run.

27. Choose (B) Edit and read the comments in the formula to understand what it does.

This is a seeded formula provided as an example only. It takes a value from the annual deduction input value. If there have been no events that require proration, the formula returns the annual deduction divided by 12. If there have been proration events in the payroll period, then the formula calculates the appropriate deduction amount, assuming 365 days in the year.

28. Close the Edit Formula window.

29. Close the Formula window.



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31. Select Prorated Deduction xx in the Name field.

32. In the Processing Rules region, select Standard as the Name.

33. In the Formula field select UK_PRORATION_DEDUCTION.

34. Save your work.

35. Ensure that the Standard rule is selected and click in the Name field of the Formula Results region.

36. Select L_AMOUNT in the Name field.



39. Select Message in the Name field.

40. Select Message in the Type field.

41. Select Information in the Message Severity field.

42. Save your work.

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Enter the Deduction For an Employee



44. Find the employee Charles Ackroyd.


46. In the Element Name field, select your deduction element.

47. Choose Cancel in the Cost Allocation flexfield window.

48. Choose (B) Entry Values.

49. Enter 3650 in the Annual Deduction field.

50. Save your work.

51. Close the Entry Values window.

52. Change your effective date to 18-FEB-2005.

53. Requery the Element Entries: (M) View > Query by Example > Run.

54. Click on your deduction element (Prorated Deduction xx).

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55. Choose Delete from the Edit menu, choose Yes in the Decision box, and choose End Date in the DateTrack Choose an Option box.

56. Save your work.

57. Requery the Element Entries: (M) View > Query by Example > Run. Now you can see your entry with an end date of 18 Feb 2005.

Run a QuickPay

58. Navigate to the QuickPay window:

• (N) FastPath > QuickPay

59. Find the employee Charles Ackroyd.

60. Set your effective date to 01-FEB-2005.

61. Choose New from the File menu.

62. Select Regular in the Run Type field.

63. Save your work.

64. Choose (B) Element Selection.

65. Clear the Include in Run check box for all elements except your Prorated Deduction.

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66. Save your work.

67. Close the Element Entries window.

68. Choose (B) Start Run.

69. When the Status field displays Complete, choose (B) View Results and select Run Results.

70. Select the Standard Run assignment action and choose OK.

71. View the run result, noting that the Pay Value is 180 (3650/365 * 18 days).

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Practice - Working with Element Design Wizard

Overview

Create an Earnings element using the Element Design Wizard.

Assumptions






Task

Create an Earnings Element

Navigate to the Element Design Wizard page and create a salary element, MonthlySalary_xx. This element of the Earnings type must have a Recurring processing type and a termination rule of Actual Termination to ensure that you can process this element in payroll runs.

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Solution – Working with Element Design Wizard

Create an Earnings Element

1. Navigate to the Completed Elements page.

• (N) Total Compensation > Basic > Element Design Wizard

2. Click Create.

3. In the Create Element page, enter MonthlySalary_xx as the element name.

4. Enter Salary as the reporting name.

5. Select Earnings as the classification.



8. Set the ‘Should employees automatically receive this element (Standard Link) ?’ option to Yes.

9. Select Employment Termination Date (Actual Termination).

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10. Under Secondary Classifications, select Subject to Social Insurance : Earnings.

11. Click Next to move to the Processing Rules page.

12. Select Hourly Salary Template as the calculation rule.

13. Click Submit to move to the Summary page. Review the element information, such as balances and input values that the application created on this page.

14. Click Return to Completed Elements to return to the home page.

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Guided Demonstration - Setting Up a Payee Organization

Setting Up a Payee Organization

Responsibility: US Super HRMS Manager

1. Navigate to the Location window.

• (N) Work Structures > Location

2. Enter xx Child Support Division in the Name field.

3. Enter a description of the location in the Description field.

4. Click in the address field to open its key flexfield. Enter your organization’s address in the Location Address key flexfield.

5. In the Address Line 1 field, enter 2400 Pennsylvania Avenue.

6. In the City field, choose Washington.

7. In the State field, choose DC.

8. In the Zip Code field, choose 20011.

9. In the Country field, choose the Dist of Columbia.

10. Click OK to close the Location Address window.

11. Save your work.

12. Navigate to the Organization window.

• (N) Work Structures > Organization > Description > New (B)

13. Enter your organization in the Name field: xx Child Support Division.

14. Select the Type: Third Party.

15. Choose 01-JAN-2000 in the From Date field.

16. Select your location you previously set up from the list of values.

17. Select the Organization Type: External, and save your work.

18. Select the Classification: Payee Organization from the list of values in the Organization Classifications field.

19. Check the Enabled box, and save your work.

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Guided Demonstration - Entering Third-Party Payment Methods

Entering a Third-Party Payment

Responsibility: US Super HRMS Manager

Defining a Third-Party Payment Method

1. Navigate to the Organizational Payment Method windows.

• (N) Payroll > Payment Methods

2. Date Track to 01-JAN-2000

3. In the Name field, enter xx Third-Party.

4. In the Type field, choose Check.

5. In the Currency field, choose USD.

6. Check the Third Party Payment checkbox.

7. Click on the Bank Details field to open the Bank Details window.

8. In the Account Name field, enter Checking Account.

9. In the Account Type field, choose Checking Account.

10. In the Account Number field, enter xx12345.

11. In the Transit Code field, enter xx909.

12. In the Bank Name field, enter B of A.

13. In the Branch Name field, enter xx Downtown.

14. Choose OK.

15. Save your work.

Assigning a Third-Party Payment Method to a Payroll

16. Navigate to the Payroll Window:


18. Query the Payroll US Education Monthly.

19. Choose the Valid Payment Methods button.

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20. In a new row, in the Name field, choose xx Third Party.

21. Save your work.

22. Entering Third-Party Payment Methods

23. Navigate to the People window.

• (N) People > Enter and Maintain > Find Person


25. Choose Aurora, Malcolm xx.

• Assignment (B) > Others (B) > Pay Method

26. Select a Name: third-party.

27. Select the Type: Check.

28. The Priority automatically defaults to 1.

29. In the Payee Type field, choose Organization.

30. In the Name field, select xx Child Support Division.

31. Save your work.

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Documents

R12.x Oracle Payroll Fundamentals: Earnings and …dbmanagement.info/Books/MIX/D60573GC10_agOracle_Payroll.pdf · R12.x Oracle Payroll Fundamentals ... Oracle HRMS provides you with