oracle payroll setup guide tamer kamal

Payroll Setup Guide V 1.1

Last update 29-Sep-2008 [email protected]

Payroll: A payroll defines a group of employees with a common frequency of payment and a common pay date, it can be Weekly, bi-weekly, semi-monthly, monthly. Before you define payroll you should setup the Consolidation Sets and the Payment Method.

Consolidation Set: A Consolidation sets are the means by which you label payroll runs for further Processing, this enables you to process the results from more than one payroll in a single action. It is also used to label assignment sets when you use these for payroll processing. The same choices apply to assignment sets as to payrolls. By default there is one consolidation set it’s name same BG name, you can use it or make another one.

To define consolidation set:

[N] Payroll > Consolidation

• Write a name to your consolidation set • Save your work.

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Payment Method: A Payment Method is the way that your enterprise will pay to employees there compensation and benefits. The most common payment method types are: • Direct Deposit • Check/Cheque • Cash

To define Payment Method:

[N] Payroll > Payment Methods

• Set your effective date to a date early enough to handle any historical information.

• Enter a name for the payment method. • Choose the type and currency. • Enter the Bank Details field to open the Bank Details window, this is Bank

Details Key FlexField it related to Legislation of BG. • Select Set of Books to indicate the set of books to use if you intend to

reconcile payments using Oracle Cash Management. • Select GL Cash Account to indicate the cash account to use for the

reconciliation of payments. • Save your work.

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Period Type: Period type explain the period of payroll and it’s frequency, this table explain pay frequency for every period type in the year:

No. Payroll Period Types Periods per Year 1 Semi-Year 2 2 Quarter 4 3 Bi-Month 6 4 Calendar Month 12 5 Lunar Month 13 6 Semi-Month 24 7 Bi-Week 26 8 Week 52

To define payroll:

[N] Payroll > Description

• Set your effective date to a date early enough to handle any historical information.

• Enter the payroll's name and select its period type from the list. • Enter the end date of the payroll's first period, and the number of years for

which the system should initially generate the payroll's calendar. You can increase this number later to generate additional years.

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• In the Date Offset region, you can change the zero default to a negative or positive number of days before or after the period end date. These offsets are the defaults for the calendar. You can manually make date changes in the calendar, for example when an offset date falls on a weekend or holiday, fields in Date Offset region is related to Legislation of BG.

• Select a default payment method for employees who have no valid personal payment method.

• Select a default consolidation set for this payroll. • In the Costing region, you can enter information about the set of books and

suspense account holding costing information for this payroll. • Save your work. • Click [B] Valid Payment Methods, it will displayed the default payment method

• Insert a new record to add another payment method.

• Save your work.

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Cost Allocation Key Flexfield: You use Cost Allocation key flexfield to allocate employee costs to cost centers, GL codes and labor distribution codes. You do this by setting up segments of the Cost Allocation key flexfield to determine the windows in which users can select cost codes. Cost Allocation key flexfield often similar to Accounting flexfield in General Ledger, you use a post-payroll run process to accumulate payroll costs by cost center, GL account code, and the labor distribution codes in use at your enterprise. For installations that also include Oracle General Ledger you can map the segments of the Cost Allocation key flexfield to the corresponding segments of the General Ledger Accounting flexfield.

Data Costed at the Element Link Level There are three types of costable type that determines whether the payroll run should collect the results of this link for costing purposes.

Costed The payroll run checks for Cost Allocation flexfield entries affecting the employee at every level - payroll, element link, organization, assignment, and element entry. the costable type Costed is likely to be best for the links of elements representing earnings.

Fixed Costed The system looks for costing information at the payroll, element link and element entry levels only, not the assignment or organization levels. The costable type Fixed Costing may be best for Deduction amounts elements.

Distributed For labor distribution analysis, you can distribute employer charges, such as employer payments for social security or employee benefits, as overhead costs to be added to employees' earnings. For each employee, Oracle Payroll distributes the run results of elements with this costable type proportionally over a set of earnings types you specify. This distribution set of earnings types could include, for example, Wages, Overtime and Shift Pay.

The Cost Allocation Entry Level You should decide how you will entry the segments of the Cost Allocation flexfield, You enable a qualifier for each segment of your Cost Allocation flexfield to control whether it appears at a given entry level. The following table explain the different levels of entry and the windows that will be appears in it:



Entry Level Windows Qualifiers Purpose of Entry Examle Payroll Payroll Payroll Identifies company or ledger to

which all costs from this payroll should go.

Company code, ledger

Link Element Link Element, Balancing

Identifies a GL account to debit and a balancing account to credit, or for deductions, an account to credit and a balancing account to debit.

GL account codes for costing and balancing

Organization Organization Organization Identifies structures such as cost centers against which to charge the payroll costs of employees in the organization.

Cost centers

Assignment Assignment Costing

Assignment Identifies structures such as cost centers and product lines against which to regularly charge payroll costs of this assignment.

Project or product codes, or cost centers that do not map onto organizations

Element Entry

Element Entries Batch Lines

Element Entry

Identifies structures such as cost centers and product lines against which to charge payroll costs of an employee assignment for a period.

Project or product codes (for employees who submit timesheets)

Enabling qualifier to segments:

After you define Cost Allocation Key Flexfield you should link every segment to the window that will be appeared in it.

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• Click [B] Segments.

• Select the segment which you want apply flexfield qualifiers to it. • Click [B] Flexfield Qualifiers.

• Check the checkbox which you want to apply flexfield qualifiers to it. • Save your work.

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Mapping Cost Allocation to the Accounting Flexfield If your installation includes Oracle Payroll and Oracle General Ledger, you can run the Transfer to GL process in each payroll period after you have run the Costing process. The Transfer to GL process transfers costing results to the GL Accounting flexfield. Before running this process, you must map segments of the Cost Allocation flexfield to the corresponding segment of the Accounting flexfield for each payroll. To do this, use the GL Map window.

To open GL Map window:

[N] Payroll > GL Flexfield Map

• Set your effective date to the date from which this mapping should take effect. • Query the payroll for which you are performing the mapping. • Select the set of books for whose Accounting flexfield you are performing the

mapping. • Select the name of a Cost Allocation flexfield segment in the Payroll Costing

Segment field for which a corresponding segment exists in the Accounting flexfield. Select the name of the corresponding segment in the GL Chart of Accounts Segment field.

• Repeat this process for all the Cost Allocation flexfield segments for which there is a corresponding segment in the Accounting flexfield.

• Save your entries.

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Elements: Elements are the components in the calculation of employee pay. Each element represents a compensation or benefit type, such as salary, wages, overtime and pension contributions. Elements can have user-defined names, types, and values. You can use elements to: - Capture any type of information - Define eligibility based on assignment criteria - Provide online or batch entry options

Predefined Elements A different set of predefined elements is supplied for each legislation, to meet its particular legislative requirements for such areas as court orders, sick pay or vacation pay. These are automatically installed, along with formulas and balances required for processing. They simply need to be linked to employees or assignments to identify eligibility and costing requirements. In some legislations, other elements are predefined to enable rapid implementation. These elements represent common requirements in those legislations for areas such as regular salary or shift pay. However, you don’t have to use them. You can use them as templates for creating your own elements to more closely match your business requirements.

Element Templates In addition to predefined elements, in some legislations you can generate elements from templates to meet common requirements. The following diagram explain some examples of element templates:

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Classifications: Elements are grouped into primary classifications, such as Earnings and Voluntary Deductions to identify groups of elements for information and analysis purposes. In a payroll department, the classifications control processing, including the sequence in which elements are processed and the balances they feed. Classifications may be Earnings, Voluntary Deductions or just Information.

Element type: Element type refer to is the element will repeat every period or just in this period only, if it will be repeated element type will be Recurring but if it will not be repeated element type will Nonrecurring.

Termination: Termination rule determine how entries of the element are processed after termination of the employee, you have three choice:

Actual Termination If you want recurring entries to close down on the date the employee leaves.

Final Close If you want the entries to stay open beyond the employee's leaving date so that you can continue to pay the employee.

Last Standard Process The Last Standard Process date defaults to the last day of the pay period in which the employee is terminated, but you can set it to a later period when you terminate an employee.

Priority

Priority used to determine the order in which the element processes within its classification range. Lower numbers process before higher ones.

RetroPay You may need to manage back-dated or late notifications of changes to payroll processing. This could be due to retroactive promotion, salary increase, or retroactive settlement of pay negotiations.

Proration

In some localizations, Oracle Payroll can calculate proportionate earnings amounts whenever payroll-relevant data changes during a payroll period.



Qualifying Conditions Qualifying Conditions refer to the eligibility criteria of employee to merit this element (his age and his length of service in the enterprise).

Input Value The element entry of the element called input value it can contain up to 15 items of information, which you define when you create the element.

To define an element:

[N] Total Compensation > Basic > Element Description

• Set your effective date early enough to handle any historical element entries you want to make.

• Enter a unique Name and Reporting name • Select a Primary Classification. • Select the processing type Recurring or Nonrecurring. • Select a termination rule to determine how entries of the element are

processed after termination of the employee. • Select the Multiple Entries Allowed check box if you want to give an employee

more than one entry of the element at the same time. • Select the Additional Entries Allowed check box if you want to make

occasional one-time entries of a recurring element.

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• Select the Closed for Entry check box if you want to prevent any new entries being made for the element, either temporarily or permanently. This does not affect any existing entries of the element.

• Select the Process in Run check box if you want the element to process in payroll runs.

• Select the Indirect Results check box if you want the element only to accept entries from indirect formula results.

• Select the Adjustment Only check box if you want to use the element only for creating balance adjustments.

• Overwrite the default priority number in the Priority field if you want to determine the order in which the element processes within its classification range.

• Save your work. • If you want to add a new Input Value click [B] Input Values.

• Insert a new record to add new input values. • Remember that Pay Value hold run results, it must be named Pay Value. • Select the unit type of your input value (money, hours, character, date,

number, or time). • You can enter numbers in the Sequence field to change the order in which

the input values appear in the Entry Values window. • Check the Required check box if all entries of the element must have a value

for this input. • Check the Database Item check box if you want the value to be available to

formulas or QuickPaint inquiries. • To enter validation for an input value you can enter maximum and minimum

values for the input or select a Lookup Type to act as a lookup supplying a list of valid values or select a formula to validate entries for this input value.

• Select Warning or Error to determine whether the system warns users that an entry is invalid or prevents them from saving an invalid entry.

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Element Link Element Link used to groups of assignments that are eligible for an element. You can’t use the element with out Element Link.

To define an Element Link:

[N] Total Compensation > Basic > Link

• Set your effective date to the date you want the eligibility criteria to come into

effect. • In the Element Name field, select the Element for which you are defining a

link. • Check the Standard check box if you want all employees who are made

eligible by the link to receive the element automatically. • In the Eligibility Criteria region, select the assignment components that

constitute this eligibility rule. • Select the Costable Type to allow entry of costing information at all levels,

including the assignment and element entry levels, select Costed. • Check the Transfer to GL check box if the payroll run results from this link

should be transferred to the general ledger. • Use the Costing field to select a GL account code and, if present, account,

then use the Balancing field to select the GL account that balances this one.

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Payroll Balances Balances show the positive or negative accumulation of particular values over periods of time. They are fed either by the direct run results (that is, Pay Values) of elements processed in the payroll run, or by input values.

Balance Dimensions A balance dimension defines how the value of a specific balance should be calculated and you can add your own using the Create Balance Dimension Process then you can associate your dimension with any balance on the system.

The next table show most popular dimension name and it’s usage:

Dimension Name Description Usage _ASG_ITD Assignment Inception To Date For accumulated values _ASG_RUN Assignment Default Run For every period run _ASG_QTD Assignment Quarter to Date For accumulated a quarter values _ASG_YTD Assignment Year to Date For accumulated a year values

To define a Balance:

[N] Total Compensation > Basic > Balance

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• Enter a unique name and a reporting name for the new balance. • Optionally, select a balance category in the Category field. • Optionally, select a Base Balance. • Enter the unit of measure for the balance, If you select money as the unit you

must also select a currency. • Save your work. • Click [B] Feeds. • Select one or more elements to feed the balance. Only those elements whose

input values have the same unit of measure as the balance are listed.

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• When you select an element, its classification is displayed. • Select the input value that is to feed the balance. • Select Add or Subtract for the balance feed. • Repeat last steps to add another element. • Save your work. • Close this window and return to Balance window. • Click [B] Dimensions.

• Select the dimensions you require. • Optionally, select the Grossup Balance check box for one of the dimensions,

to make the balance eligible for grossup. • Save your work.

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Global Values Global values used to store information that does not change often, but you refer to frequently, as for example Company Name, value of the tax or percentages used in the calculation of certain bonuses. You can use global values as variables in formulas by simply referring to the global value by name.

To define a global value:

[N] Total Compensation > Basic > Global Values

• Set your effective date to the date when you want to begin using the global

value. • Enter a name, data type (number, text, or date), and value. You can also

enter a description. • Save the data. Registering a Function

In most cases you may need some data which not shipped by oracle with the system, so you will need to write a PL/SQL functions then you will register it in the application.

To register a function:

[N] Other Definitions > Formula Functions

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• Enter a unique name for the new function. • Select date, number or text as its data type. • Select external as the class of the function. • Enter an alias for the function name if you require an alternative name for it.

You can also enter a description to explain what the function is for. • Enter the definition of the function. Use the format:

<package name>.<function name>. • Save your data. • If the function has a context Usages or parameter add them. • Save your data. Setting Up User Tables

If you have some business rules arranged in a table and you need to save it in Oracle Payroll to retrieve the values to calculate some benefits or deductions, you can use the user tables to store this data. Every table has a match type, (Match or Range). Match if each row is for one item, such as one job or one code but Range if each row is for a range of numeric values, such as an age range or a pay range. The following table explains the values of business per-diem allowance depend on the grade:

Grade Internal Business Per-diem External Business Per-diem 1 150 300 2 200 350 3 225 400 4 250 450 5 275 500

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To define a user table:

[N] Other Definitions > Table Structure

• Set your effective date to the date from which you want the table's row labels

to take effect. • Enter the table name. • For the table's match type, select Match or Range. • Use Unite of Measure (Text, Number, Date). • Enter the row label as the Row Title. • Save your work, and click [B] Columns to go to the Columns window.

• Enter labels for the table columns in the Name field. • If you are using formula validation for a column's entries, select the name of

the validation formula for the column. • Save your work and close the window. • Click [B] Rows.

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• In the Sequence fields, you can optionally enter a number for each row to

determine the order in which it appears on a list in the Table Values window. • If the match type of the table is Match, enter the label for each table row

under the heading Exact but If the match type of the table is Range, enter numbers representing the lower and upper boundary of each row's range.

• Save your work. To enter the values to the user table:

[N] Other Definitions > Table Values

• Query the table name.

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• With the cursor in the Column Name field, use the up and down arrows to locate the name of the column in which you want to make entries.

• In the Values region, select each row for which you want to make an entry. You select rows in the Exact field or the Lower Bound field, depending on the match type of the table.

• For each row, make the appropriate entry in the Value field. • Save your work.

Writing Formula

In payroll run you may be needed to wire a formula to calculate values depend on some business rules for each element such as job, location, hiring date or any condition related to the element. Formulas are generic expressions of calculations or comparisons you want to repeat with different input values and then they return different values or messages.

Oracle FastFormula

Oracle FastFormula is a simple way to write formulas using English words and basic mathematical functions. You can use information from your database in formulas without learning the database structure or a programming language.

To write a formula:

[N] Total Compensation > Basic > Write Formulas

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• Set your effective date to the date when you want to begin using the formula. • Enter the formula's name and select a type. • Choose the Edit button to open a blank Edit Formula window where you can

write a new formula. • If you want to select database items, click [B] Show Items to display the

Database Items window and run a query. Copy and paste items from this window to the edit formula window or use double click to paste it to the formula window.

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• When you finish writing choose the Verify button to compile it. • When the formula is verified successfully, save it.

Formula Result Rule Use the Formula Result Rules to associate one or more formula processing rules with an element. At minimum, an element needs one standard processing rule. This identifies the formula the payroll run uses to process the element for employees with an Active assignment status (and a Payroll system status of Process). Also use this window to define how each formula result is used by the payroll run.

To associate a formula Result Rules:

[N] Total Compensation > Basic > Formula Results

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• Set your effective date to the start date for the processing rule. • Select the element for which you are entering rules. • Click [B] Find button to display any existing processing rules for this element. • In the Processing Rules region, select Standard and the regular formula • Save your entries. • In the Formula Results region select a formula result name from the list of

results specified when the formula was written. • Select the appropriate formula result type. There are five possible types:

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Formula Result Type Description Direct result This is the element's run result Indirect result Passes as an element entry to another nonrecurring

element not yet processed Message The formula issues messages under certain conditions Order Indirect This result updates the subpriority of the element you

select in the Element field Update recurring entry

This result updates recurring entries of this or another element on the effective date of the payroll run

Stop This formula result uses the Date Earned of the payroll run to put an end date on a recurring entry of this or another element

• If it needed, Select the name of the element to which you want to pass the

formula result. • For the formula result types Direct Result, Indirect Result, and Update

Recurring Entry, select the input value to update. • If you select Message as the formula result type, select a message severity

level. (Fatal, Warning or Information) • Save your entries.

oracle payroll setup guide tamer kamal

Documents

payroll setup

labor distribution

cost allocation

apply flexfield

total compensation

date offset

formula result

default payment