Payroll Setups of Oracle HRMS R12

Table of Contents1. What is Payroll?........................................................................................................... 2

2. Payroll Setup ............................................................................................................... 2

A. Define Consolidation Set ......................................................................................... 2

B. Define Payment Methods ........................................................................................ 2

C. Define Payroll ......................................................................................................... 4

I.Period Type................................................................................................... 5

D. Mapping Cost Allocation to the Accounting Flexfield ................................................. 5

E. Define Elements ..................................................................................................... 6

I.Element type ................................................................................................. 6

II.Termination.................................................................................................. 6

III.Input Value ................................................................................................. 7

F. Define Element Link................................................................................................ 8

G. Define Salary Basis ...............................................................................................10

3. Define Professional Tax & ESI Organization, Registered Company & Legal Entity ..........11

4. Assign Payroll & Elements to Employees: ....................................................................12

5. Run the Payroll...........................................................................................................13

1.What is Payroll?A payroll defines a group of employees with a common frequency of payment and acommon pay date, it can be weekly, bi-weekly, semi-monthly, and monthly.

2.Payroll SetupA. Define Consolidation Set

A Consolidation sets are the means by which we label payroll runs for furtherprocessing, this enables us to process the results from more than one payrollin a single action. It is also used to label assignment sets when we use thesefor payroll processing. The same choices apply to assignment sets as topayrolls.By default there is one consolidation set its name same BG name, we can use itor make another one.

Navigation -> HRMS Super User -> Payroll -> Consolidation

B. Define Payment MethodsPayment Method is the way that your enterprise will pay to employees therecompensation and benefits.The most common payment method types are:

Direct Deposit Check/Cheque Cash

Press Ctrl + F11 and verify the Co. name

Navigation -> HRMS Super User -> Payroll -> Payment Methods

Set the effective date to a date early enough to handle any historicalinformation.

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.

Enter bank name

Enter Bank details

Select GL Cash Account to indicate the cash account to use for thereconciliation of payments.

Save your work.

C. Define Payroll

Navigation -> HRMS Super User -> Payroll -> Discription

Enter the payroll name

Set the effective date to a date early enough to handle any historicalinformation.

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. We canincrease this number later to generate additional years.

In the Date Offset region, we can change the zero default to a negative orpositive number of days before or after the period end date. These offsets arethe defaults for the calendar. We can manually make date changes in thecalendar, for example when an offset date falls on a weekend or holiday, fieldsin Date Offset region is related to Legislation of BG.

Select a default payment method for employees who have no valid personalpayment 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 on Valid Payment Methods, it will displayed the default payment method. Save your work.

I. Period TypePeriod type explain the period of payroll and it’s frequency, this tableexplain pay frequency for every period type in the year:

Payroll Period Types Periods per YearSemi-Year 2Quarter 4Bi-Month 6Calendar Month 12Lunar Month 13Semi-Month 24Bi-Week 26Week 52

D. Mapping Cost Allocation to the Accounting FlexfieldIf our installation includes Oracle Payroll and Oracle General Ledger, we can runthe Transfer to GL process in each payroll period after we have run the Costingprocess. The Transfer to GL process transfers costing results to the GL Accountingflexfield.

Navigation -> HRMS Super User -> Payroll -> GL Flexfield Map

E. Define ElementsElements are the components in the calculation of employee pay. Each elementrepresents a compensation or benefit type, such as salary, wages, overtime andpension 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

There will be some fields that would have been already mentioned and some needsto be created.

I. Element typeElement type refer to is the element will repeat every period or just in thisperiod only, if it will be repeated element type will be Recurring but if it willnot be repeated element type will Nonrecurring.

II. TerminationTermination rule determine how entries of the element are processed aftertermination of the employee, you have three choice:

Actual TerminationIf you want recurring entries to close down on the date the employeeleaves.

Enter the Payroll name& other detail

These details would be provided by Finance Consultant

Final CloseIf you want the entries to stay open beyond the employee's leaving dateso that you can continue to pay the employee.

Last Standard ProcessThe Last Standard Process date defaults to the last day of the pay periodin which the employee is terminated, but you can set it to a later periodwhen you terminate an employee.

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

Navigation-> HRMS Super User -> Total Compensation-> Basic-> ElementDescription

F. Define Element LinkElement Link used to groups of assignments that are eligible for an element.We can’t use the element without Element Link.

Navigation -> HRMS Super User -> Total Compensation-> Basic -> Link

Set your effective date to the date you want the eligibility criteria to come intoeffect.

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.

G. Define Salary Basis

Navigation-> HRMS Super User-> Total Compensation-> Basic-> Salary Basis

3.Define Professional Tax & ESI Organization, RegisteredCompany & Legal Entity

Navigation-> HRMS Super User-> Work Structure-> Organization-> Description

4.Assign Payroll & Elements to Employees:

Navigation-> HRMS Super User-> People -> Enter & Maintain

5.Run the Payroll

Navigation: Go Menu bar and click on VIEW -> Request