resources cloud oracle global human · 2019-11-01 · • geing started with your oracle global...

Oracle Global HumanResources Cloud

Implementing Payroll for Global

19D

Oracle Global Human Resources CloudImplementing Payroll for Global

19DPart Number F22125-02Copyright © 2011, 2019, Oracle and/or its aliates. All rights reserved.

Author: Toni Kunz

Contributors: Tim Bisset, Juliee Fleming, Carla Fabrizio, Angela Brown, Janet McCandless

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Contents

Preface i

1 About This Guide 1Guide Overview .............................................................................................................................................................................. 1

2 Geing Started 3Overview of Implementing Global Human Resources Cloud Payroll ................................................................................. 3

HCM Data Roles ............................................................................................................................................................................ 3

Security Proles ............................................................................................................................................................................. 7

FAQ for Payroll Data Roles ......................................................................................................................................................... 9

Overview of Loading Objects with HCM Data Loader ........................................................................................................ 10

3 Understanding Payroll Concepts 13Enterprise Structures .................................................................................................................................................................. 13

Payroll Employment Model ...................................................................................................................................................... 26

FAQ for Payroll Employment Model ....................................................................................................................................... 27

Payroll Relationships .................................................................................................................................................................. 28

FAQ for Payroll Relationships .................................................................................................................................................. 30

Earnings and Deductions .......................................................................................................................................................... 30

Object Groups .............................................................................................................................................................................. 41

4 Loading Payroll Objects 43Overview ....................................................................................................................................................................................... 43

Payroll Transformation Formula for HCM Data Loader .................................................................................................... 44

Payroll Transformation Formula for HCM Spreadsheet Data Loader ............................................................................. 56

Overview ....................................................................................................................................................................................... 56

Sample Payroll Transformation Formula for HCM Spreadsheet Data Loader .............................................................. 58


5 Understanding Geographies, Address Styles, and Country Extensions 61Implementing Global Payroll ..................................................................................................................................................... 61

Geography Structures ................................................................................................................................................................. 61

Geography Validations .............................................................................................................................................................. 62

Changing Address Style and Address Validation Seings ................................................................................................ 74

Country Extensions .................................................................................................................................................................... 76

6 Understanding Prerequisite Payroll Setup Tasks 81Prerequisite Tasks for Payroll Setup ....................................................................................................................................... 81

Payroll Setup Tasks for Financials .......................................................................................................................................... 82

Payroll Cost Allocation Key Flexeld Setup .......................................................................................................................... 84

Seing Up Reconciliation for Payments ................................................................................................................................ 88

7 Seing Up Payroll Fundamentals 91Payroll Business Denitions ...................................................................................................................................................... 91

Prole Options ............................................................................................................................................................................. 92

Pay Frequency ............................................................................................................................................................................. 94

FAQ for Pay Frequency ............................................................................................................................................................. 95

Consolidation Groups ................................................................................................................................................................ 95

Payroll Denitions ....................................................................................................................................................................... 97

Time Denitions ........................................................................................................................................................................ 103

Run Types ................................................................................................................................................................................... 104

User Dened Tables ................................................................................................................................................................. 105

8 Seing Up Fast Formulas 111Using Formulas ........................................................................................................................................................................... 111

Formula Errors ............................................................................................................................................................................ 114

FAQs for Fast Formulas ............................................................................................................................................................ 117

9 Seing Up Balances 119Balance Denitions .................................................................................................................................................................... 119

Balance Groups and Usages ................................................................................................................................................... 122

Balance Exceptions ................................................................................................................................................................... 128

Balance Exception Report ........................................................................................................................................................ 132

FAQs for Balances ..................................................................................................................................................................... 138


10 Seing Up Pay Calculation Components 141Calculation Information ............................................................................................................................................................ 141

Calculation Cards ....................................................................................................................................................................... 147

Calculation Value Denitions ................................................................................................................................................. 149

Wage Basis Rules ...................................................................................................................................................................... 156

Component Group Rules ......................................................................................................................................................... 158

Calculation Factors ................................................................................................................................................................... 164

Rate Denitions ......................................................................................................................................................................... 168

FAQ for Rate Denitions ......................................................................................................................................................... 188

Values Dened by Criteria ...................................................................................................................................................... 189

FAQ for Values Dened by Criteria ........................................................................................................................................ 211

Payroll Event Groups ................................................................................................................................................................ 212

Element Proration ...................................................................................................................................................................... 213

Periodicity .................................................................................................................................................................................... 217

Retroactive Pay .......................................................................................................................................................................... 221

FAQs for Pay Calculation Components ............................................................................................................................... 227

11 Seing Up Elements 229Payroll Elements ....................................................................................................................................................................... 229

Element Classications ............................................................................................................................................................ 230

Element Employment Level .................................................................................................................................................... 232

Element Types ........................................................................................................................................................................... 233

Element Input Values .............................................................................................................................................................. 245

Element Entries ......................................................................................................................................................................... 252

Element Eligibility ..................................................................................................................................................................... 258

Voluntary Deductions ............................................................................................................................................................... 261

Involuntary Deductions ........................................................................................................................................................... 266

Net-to-Gross Earnings ............................................................................................................................................................. 273

Import File Formating .............................................................................................................................................................. 278

Seing Up Payroll Processing Rules .................................................................................................................................... 286

FAQs for Elements ................................................................................................................................................................... 290


12 Seing Up Payment Methods 293Organization Payment Methods ........................................................................................................................................... 293

Personal Payment Methods ................................................................................................................................................... 303

Third-Party Payment Methods ............................................................................................................................................. 309

Reprocessing Rejected EFT Payments ................................................................................................................................. 315

Conguring Payslips and Checks ......................................................................................................................................... 320

FAQ for Payment Methods ..................................................................................................................................................... 325

13 Seing Up Payroll Process Conguration 327Payroll Process Conguration Groups ................................................................................................................................. 327

Parameters ................................................................................................................................................................................. 327

FAQ for Payroll Process Conguration ................................................................................................................................ 338

14 Seing Up Auditing and Data Validation 339Auditing Business Objects ...................................................................................................................................................... 339

Data Validation .......................................................................................................................................................................... 342


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Chapter 1About This Guide

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1 About This Guide

Guide OverviewThis guide is designed to help you with the Oracle Global Payroll setup tasks

ObjectivesUse this guide to understand these concepts and associated requisite setup tasks:

• Payroll concepts

• Geographies and Addresses

• Payroll objects

• Elements

• Fast Formulas

• Balances

• Payroll calculation components

• Banking setup and payment methods

• Security prole

• Auditing

• Data validation

For more in-depth information about related tasks, you can use the resources mentioned in the Other Documentssection below.

AudienceThis provides practical end-to-end guidance for Oracle Global Payroll implementation teams. When implementing, it'sassumed that you have working knowledge of the basic principles of payroll and you're familiar with the customarypayroll terminology. It's also assumed that you have consulted these two guides:

• Geing Started with Your Oracle Global Human Resources Cloud Implementation guide to complete your initialsetup

• Implementing Global Human Resources guide to complete the related prerequisite tasks required for payrollimplementation

• Oracle Applications Cloud Using Functional Setup Manager guide to have a detailed understanding of theimplementation tasks associated with the Functional Setup Manager (FSM), an integrated, end-to-end processto manage the implementation and maintenance of the application

Before you start implementing Global Payroll, it's imperative that:

• You have the Payroll license

• You have completed the initial setup of the Oracle Fusion application


Chapter 1About This Guide

2

• You have completed implementing Global Human Resources and the HR tasks required for payrollimplementation and processing. For example, seing up requisite jurisdictions for tax reporting.

While this guide is primarily intended for the implementation team, you will nd it helpful if you run payroll processesafter implementation.

Organization and FormatStep-by-step information to help you understand payroll concepts, implementation task order, and setup tasksnecessary for you to implement Oracle Global Payroll. Specic information regarding the requisite tasks can be foundin relevant sections of this document. At the end of each topic are links to related topics to help you nd additionalinformation.

Other DocumentsFor more information about generic and related tasks, refer to the guides at docs.oracle.com/cloud/latest/globalcs_gs/docs.htm.


Chapter 2Geing Started

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2 Geing Started

Overview of Implementing Global Human ResourcesCloud PayrollUse the Application Implementation Consultant role(ORA_PAY_APPLICATION_IMPLEMENTATION_CONSULTANT_JOB) to access the Workforce Deployment oerings inthe Setup and Maintenance work area and start an implementation of Global Human Resources Cloud Payroll.

Refer to the Oracle Applications Cloud Using Functional Setup Manager guide to manage the opt-in and setup of youroerings.

Workforce Deployment OeringYou use this oering to set up enterprise structures, legal entities, and organizations to create and maintain informationrelated to people, employment, and work structures. This oering also has tasks for you to dene payroll businessobjects required for processing and costing payroll, processing payments, and generating statutory reports.

This table outlines the primary functional areas of this oering. For the full list of functional areas and features in thisoering, use the Associated Features report. Review the report when you plan the implementation of your oering. Thesetup steps required for payroll vary depending on your business requirements.

Functional Area Description

Legal Structures

Manage legal entities, legal reporting units, tax reporting units, payroll statutory units, legalauthorities, legal registrations and jurisdictions, and legal authorities.

Organization Structures

Manage organization structures, business units, and organization models that best suit yourbusiness process.

Workforce Structures

Manage locations, divisions, departments, jobs, positions, and grades.

Elements and Formulas

Congure elements and formulas to record earnings and deductions for processing payrolland reporting.

Payroll

Dene payroll objects and payment methods required for payroll calculations and reporting,and processing and making payments.

Related Topics

• Plan Your Implementation

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HCM Data Roles

Role Provisioning and DeprovisioningYou must provision roles to users. Otherwise, they have no access to data or functions and can't perform applicationtasks. This topic explains how role mappings control role provisioning and deprovisioning. Use the Manage RoleProvisioning Rules or Manage HCM Role Provisioning Rules task to create role mappings.

Role Provisioning MethodsYou can provision roles to users:

• Automatically

• Manually

◦ Users such as line managers can provision roles manually to other users.

◦ Users can request roles for themselves.

For both automatic and manual role provisioning, you create a role mapping to specify when a user becomes eligible fora role.

Role TypesYou can provision data roles, abstract roles, and job roles to users. However, for Oracle HCM Cloud users, you typicallyinclude job roles in HCM data roles and provision those data roles.

Automatic Role ProvisioningUsers acquire a role automatically when at least one of their assignments satises the conditions in the relevant rolemapping. Provisioning occurs when you create or update worker assignments. For example, when you promote aworker to a management position, the worker acquires the line manager role automatically if an appropriate rolemapping exists. All changes to assignments cause review and update of a worker's automatically provisioned roles.

Role DeprovisioningUsers lose automatically provisioned roles when they no longer satisfy the role-mapping conditions. For example, a linemanager loses an automatically provisioned line manager role when he or she stops being a line manager. You can alsomanually deprovision automatically provisioned roles at any time.

Users lose manually provisioned roles automatically only when all of their work relationships are terminated. Otherwise,users keep manually provisioned roles until you deprovision them manually.

Roles at TerminationWhen you terminate a work relationship, the user automatically loses all automatically provisioned roles for which heor she no longer qualies. The user loses manually provisioned roles only if he or she has no other work relationships.Otherwise, the user keeps manually provisioned roles until you remove them manually.

The user who's terminating a work relationship species when the user loses roles. Deprovisioning can occur:

• On the termination date



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• On the day after the termination date

If you enter a future termination date, then role deprovisioning doesn't occur until that date or the day after. The RoleRequests in the Last 30 Days section on the Manage User Account page is updated only when the deprovisioningrequest is created. Entries remain in that section until they're processed.

Role mappings can provision roles to users automatically at termination. For example, a terminated worker couldacquire the custom role Retiree at termination based on assignment status and person type values.

Reversal of TerminationReversing a termination removes any roles that the user acquired automatically at termination. It also provisions rolesto the user as follows:

• Any manually provisioned roles that were lost automatically at termination are reinstated.

• As the autoprovisioning process runs automatically when a termination is reversed, roles are provisionedautomatically as specied by current role-provisioning rules.

You must reinstate manually any roles that you removed manually, if appropriate.

Date-Eective Changes to AssignmentsAutomatic role provisioning and deprovisioning are based on current data. For a future-dated transaction, such as afuture promotion, role provisioning occurs on the day the changes take eect. The Send Pending LDAP Requestsprocess identies future-dated transactions and manages role provisioning and deprovisioning at the appropriate time.These role-provisioning changes take eect on the system date. Therefore, a delay of up to 24 hours may occur beforeusers in other time zones acquire their roles.

Create HCM Data Roles for Global Payroll Implementation UsersIf you have licensed the Oracle Fusion Global Payroll Cloud Service, then you create the following HCM data roles:

• PayrollAdmin_ViewAll

• PayrollMgr_ViewAll

This topic explains how to create these roles using the Assign Security Proles to Role task.

Create the PayrollAdmin_ViewAll Data RoleIf you're already on the Manage Data Roles and Security Proles page, then follow this procedure from step 2.Otherwise, sign in as the TechAdmin user and follow these steps:

1. In the Setup and Maintenance work area, go to the following:

◦ Functional Area: Users and Security

◦ Task: Assign Security Proles to Role

2. In the Search Results section of the Manage Data Roles and Security Proles page, click Create.3. Complete the elds on the Create Data Role: Select Role page as shown in the following table.

Field Value

Data Role Name PayrollAdmin_ ViewAll



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Field Value

Job Role

Payroll Administrator

4. Click Next.5. In the sections of the Create Data Role: Security Criteria page, select the predened security proles shown in

this table.

Section Security Prole

Organization

View All Organizations

Position

View All Positions

Legislative Data Group

View All Legislative Data Groups

Person

View All People

Document Type

View All Document Types

Payroll

View All Payrolls

Payroll Flow

View All Flows

6. Click Review.7. On the Create Data Role: Review page, click Submit.8. On the Manage Data Roles and Security Proles page, search for the PayrollAdmin_ViewAll data role to conrm

that it exists.

Create the PayrollMgr_ViewAll Data RoleFollow these steps:

1. In the Search Results section of the Manage Data Roles and Security Proles page, click Create.2. Complete the elds on the Create Data Role: Select Role page as shown in the following table.

Field Value

Data Role Name

PayrollMgr_ ViewAll

Job Role

Payroll Manager



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3. Click Next.4. In the sections of the Create Data Role: Security Criteria page, select the predened security proles shown in

this table.

Section Security Prole

Organization

View All Organizations

Position

View All Positions


View All Legislative Data Groups

Person

View All People

Document Type

View All Document Types

Payroll

View All Payrolls

Payroll Flow

View All Flows

5. Click Review.6. On the Create Data Role: Review page, click Submit.7. On the Manage Data Roles and Security Proles page, search for the PayrollMgr_ViewAll data role to conrm

that it exists.

Related Topics

• Overview of HCM Data Roles for Implementation Users

Security Proles

HCM Security ProlesSecurity proles identify instances of Human Capital Management (HCM) objects. For example, a person security proleidenties one or more Person objects, and a payroll security prole identies one or more Payroll objects. This topicdescribes how to create and use security proles and identies the HCM objects that need them. To manage securityproles, you must have the IT Security Manager job role.

Use of HCM Security ProlesYou include security proles in HCM data roles to identify the data that users with those roles can access. You can alsoassign security proles directly to abstract roles, such as employee. However, you're unlikely to assign them directlyto job roles, because users with same job role usually access dierent sets of data. You're recommended not to assignsecurity proles directly to job roles.

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HCM Object TypesYou can create security proles for the following HCM object types:

• Country

• Document Type

• Job Requisition

• Legislative Data Group (LDG)

• Organization

• Payroll

• Payroll Flow

• Person

◦ Managed Person

◦ Public Person

• Position

• Transaction

Two uses exist for the person security prole because many users access two distinct sets of people.

• The Managed Person security prole identies people you can perform actions against.

• The Public Person security prole identies people you can search for in the worker directory.

This type of security prole also secures some lists of values. For example, the Change Manager and Hire pagesinclude a person list of values that the public person security prole secures. The person who's selecting themanager for a worker may not have view access to that manager through a managed person security prole.

Predened security proles provide view-all access to secured objects. For example, the View All Positions securityprole provides access to all positions in the enterprise.

Security Criteria in HCM Security ProlesIn a security prole, you specify the criteria that identify data instances of the relevant type. For example, in anorganization security prole, you can identify organizations by organization hierarchy, classication, or name. All criteriain a security prole apply. For example, if you identify organizations by both organization hierarchy and classication,then only organizations that satisfy both criteria belong to the data instance set.

Access to Future-Dated ObjectsBy default, users can't access future-dated organization, position, or person objects.

Enable access to future-dated objects as follows:

• For organizations, select the Include future organizations option in the organization security prole

• For positions, select the Include future positions option in the position security prole

• For person records, select the Include future people option in the person security prole

Tip: The predened View All Workers security prole doesn't provide access to future-dated person records.The predened View All People security prole, which provides access to all person records, including those ofcontacts, does provide access to future-dated records.



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Security Prole CreationYou can create security proles either individually or while creating an HCM data role. For standard requirements, it'smore ecient to create the security proles individually and include them in appropriate HCM data roles.

To create security proles individually, use the relevant security prole task. For example, to create a position securityprole, use the Manage Position Security Prole task in the Setup and Maintenance or Workforce Structures workarea.

Reuse of Security ProlesRegardless of how you create them, all security proles are reusable.

You can include security proles in other security proles. For example, you can include an organization security prolein a position security prole to secure positions by department or business unit. One security prole inherits the datainstance set dened by another.

Related Topics

• Predened HCM Security Proles

• Best Practices for HCM Data Roles and Security Proles

Create Payroll Security ProlesYou can used these dierent methods to provide access to payrolls for members of the Payroll department. Organizeyour payroll denitions into appropriate payroll security proles using the Manage Payroll Security Proles task. Thenyou use the Assign Security Proles to Role task to select the security proles included in an HCM data role that youprovision to a user.

Payroll Period TypeIt is common to use the payroll security prole to organize payroll denitions by payroll period type. You simply createone security prole for each payroll type, such as monthly payrolls, another for semimonthly payrolls, and so on.

Regional AssignmentsYou can use payroll security proles to group payrolls by the regions of the employees' work areas. For example, youcan create one for Canadian facilities and another for European facilities.

Individual ContributorsIf your payroll managers can access only the payroll denitions that they manage, use create payroll security proles toinclude only those payrolls.

FAQ for Payroll Data Roles

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How do I provision HCM data roles to users?On the Create Role Mapping page, create a role mapping for the role.

Select the Autoprovision option to provision the role automatically to any user whose assignment matches themapping aributes.

Select the Requestable option if any user whose assignment matches the mapping aributes can provision the rolemanually to other users.

Select the Self-Requestable option if any user whose assignment matches the mapping aributes can request the role.

Overview of Loading Objects with HCM Data LoaderUse HCM Data Loader for bulk-loading and maintaining payroll data.

You can use HCM Data Loader to load these payroll objects.

• Payroll Relationship

• Object Groups

• Payroll Consolidation Groups

• Payroll Denitions and Time Periods

• Time Denitions

• Payroll Element Run Usage

• User-Dened Tables

• Wage Basis Rules

• Payroll Elements

• Element Entries

• Balance Denitions

• Organization Payment Method

• Personal Payment Method

• Payroll Costing

For more information on how to load these business objects, refer to the Integrating with HCM guide.

Payroll Transformation Formula for HCM Data LoaderYour existing data or the data that you upload might not be in the format recognized by HCM Data Loader. In suchcases, use the Payroll Transformation formula for HCM Data Loader to transform your data into a format that'ssupported by HCM Data Loader.



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Payroll Transformation Formula for HCM Spreadsheet DataLoaderYou can use HCM Spreadsheet Data Loader to load all payroll objects that HCM Data Loader supports. As the rst step,you create a spreadsheet template for the required object from the Data Exchange Work area and further download thetemplate in CSV format. The Payroll Transformation Formula for HCM Spreadsheet Data Loader transforms the rawdelimited le to a format that suits the template.

Related Topics

• Overview of Loading Payroll Details

• Example of Loading Payroll Balance Aribute Denitions

• Overview of Loading Payroll Costing

• Example of Loading Organization Payment Methods

• Overview of Loading User-Dened Tables

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Chapter 3Understanding Payroll Concepts

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3 Understanding Payroll Concepts

Enterprise Structures

OverviewOracle Fusion Applications have been designed to ensure your enterprise can be modeled to meet legal andmanagement objectives. The decisions about your implementation of Oracle Fusion Applications are aected by your:

• Industry

• Business unit requirements for autonomy

• Business and accounting policies

• Business functions performed by business units and optionally, centralized in shared service centers

• Locations of facilities

Every enterprise has three fundamental structures that describe its operations and provide a basis for reporting.

• Legal

• Managerial

• Functional

In Oracle Fusion, these structures are implemented using the chart of accounts and organization hierarchies. Manyalternative hierarchies can be implemented and used for reporting. You are likely to have one primary structure thatorganizes your business into:

• Divisions

• Business Units

• Departments

Align these structures with your strategic objectives.



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This gure illustrates a grid with Business Axis, representing the enterprise division, Legal Axis representing thecompanies, and the Functional Axis representing the business functions.

Public Holding CompanySales TeamsManufacturing TeamsService TeamsR & D TeamsSelling Support TeamsFinance TeamHR TeamIT TeamManagement

A1 A2 A3 A.. B1 B2 B3 B.. C1 C2 C3 C..France Company two SA

France Company one SAUK Company Two Ltd

UK Company One LtdUSA Company Two IncUSA Company One Inc

Business Axis

Lega

l Axi

s

Func

tiona

l Axi

s

Business Divisions

AA1 A2 A3 A..

BB1 B2 B3 B..

CC1 C2 C3 C..

Legal StructureThe gure illustrates a typical group of legal entities, operating various business and functional organizations. Yourability to buy and sell, own, and employ comes from your charter in the legal system. A corporation is:

• A distinct legal entity from its owners and managers.

• Owned by its shareholders, who may be individuals or other corporations.



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Many other kinds of legal entities exist, such as sole proprietorships, partnerships, and government agencies.

A legally recognized entity can own and trade assets and employ people in the jurisdiction in which the entity isregistered. When granted these privileges, legal entities are also assigned responsibilities to:

• Account for themselves to the public through statutory and external reporting.

• Comply with legislation and regulations.

• Pay income and transaction taxes.

• Process value added tax (VAT) collection on behalf of the taxing authority.

Many large enterprises isolate risk and optimize taxes by incorporating subsidiaries. They create legal entities tofacilitate legal compliance, segregate operations, optimize taxes, complete contractual relationships, and isolate risk.Enterprises use legal entities to establish their enterprise's identity within the laws of each country in which theirenterprise operates.

The gure illustrates:

• A separate card represents a series of registered companies.

• Each company, including the public holding company, InFusion America, must be registered in the countrieswhere they do business.

• Each company contributes to various divisions created for purposes of management reporting. These areshown as vertical columns on each card.

For example, a group might have a separate company for each business in the United States (US), but have its UnitedKingdom (UK) legal entity represent all businesses in that country.

The divisions are linked across the cards so that a business can appear on some or all of the cards. For example, theair quality monitoring systems business might be operated by the US, UK, and France companies. The list of businessdivisions is on the Business Axis.

Each company's card is also horizontally striped by functional groups, such as the sales team and the nance team.This functional list is called the Functional Axis. The overall image suggests that information might, at a minimum, betracked by company, business, division, and function in a group environment. In Oracle Fusion Applications, the legalstructure is implemented using legal entities.

Management StructureSuccessfully managing multiple businesses requires that you segregate them by their strategic objectives, and measuretheir results. Although related to your legal structure, the business organizational hierarchies don't have to be reecteddirectly in the legal structure of the enterprise. The management structure can include divisions, subdivisions, lines ofbusiness, strategic business units, prot, and cost centers. In the gure, the management structure is shown on theBusiness Axis. In Oracle Fusion Applications, the management structure is implemented using divisions and businessunits as well as being reected in the chart of accounts.

Functional StructureStraddling the legal and business organizations is a functional organization structured around people and theircompetencies. For example, sales, manufacturing, and service teams are functional organizations. This functionalstructure is represented by the Functional Axis in the gure. You reect the eorts and expenses of your functionalorganizations directly on the income statement. Organizations must manage and report revenues, cost of sales, andfunctional expenses such as research and development and selling, general, and administrative expenses. In OracleFusion Applications, the functional structure is implemented using departments and organizations, including sales,marketing, project, cost, and inventory organizations.



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Legal EntitiesA legal entity is a recognized party with rights and responsibilities given by legislation.

Legal entities have the following rights and responsibilities to:

• Own property

• Trade

• Repay debt

• Account for themselves to regulators, taxation authorities, and owners according to rules specied in therelevant legislation

Their rights and responsibilities may be enforced through the judicial system. Dene a legal entity for each registeredcompany or other entity recognized in law for which you want to record assets, liabilities, expenses and income, paytransaction taxes, or perform intercompany trading.

A legal entity has responsibility for elements of your enterprise for the following reasons:

• Facilitating local compliance

• Minimizing the enterprise's tax liability

• Preparing for acquisitions or disposals of parts of the enterprise

• Isolating one area of the business from risks in another area. For example, your enterprise develops propertyand also leases properties. You could operate the property development business as a separate legal entity tolimit risk to your leasing business.

The Role of Your Legal EntitiesIn conguring your enterprise structure in Oracle Fusion Applications, the contracting party on any transaction is alwaysthe legal entity. Individual legal entities:

• Own the assets of the enterprise

• Record sales and pay taxes on those sales

• Make purchases and incur expenses

• Perform other transactions

Legal entities must comply with the regulations of jurisdictions, in which they register. Europe now allows for companiesto register in one member country and do business in all member countries, and the US allows for companies to registerin one state and do business in all states. To support local reporting requirements, legal reporting units are created andregistered.

You are required to publish specic and periodic disclosures of your legal entities' operations based on dierentjurisdictions' requirements. Certain annual or more frequent accounting reports are referred to as statutory or externalreporting. These reports must be led with specied national and regulatory authorities. For example, in the UnitedStates (US), your publicly owned entities (corporations) are required to le quarterly and annual reports, as well as otherperiodic reports, with the Securities and Exchange Commission (SEC), which enforces statutory reporting requirementsfor public corporations.

Individual entities privately held or held by public companies don't have to le separately. In other countries, yourindividual entities do have to le in their own name, as well as at the public group level. Disclosure requirements arediverse. For example, your local entities may have to le locally to comply with local regulations in a local currency, aswell as being included in your enterprise's reporting requirements in dierent currency.



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A legal entity can represent all or part of your enterprise's management framework. For example, if you operate in alarge country such as the United Kingdom or Germany, you might incorporate each division in the country as a separatelegal entity. In a smaller country, for example Austria, you might use a single legal entity to host all of your businessoperations across divisions.

What's a legal employer?A legal employer is a legal entity that employs workers. You dene a legal entity as a legal employer in the Oracle FusionLegal Entity Congurator.

The legal employer is captured at the work relationship level, and all assignments within that relationship areautomatically with that legal employer. Legal employer information for worker assignments is also used for reportingpurposes.

Legislative Data GroupsLegislative data groups are a means of partitioning payroll and related data. At least one legislative data group isrequired for each country where the enterprise operates. Each legislative data group is associated with one or morepayroll statutory units. Each payroll statutory unit can belong to only one legislative data group.

Payroll-related information, such as elements, is organized by legislative data group. Each legislative data group:

• Marks a legislation in which payroll is processed.

• Is associated with a legislative code, currency, and its own cost allocation key exeld structure.

• Is a boundary that can share the same set up and still comply with the local laws.

• Can span many jurisdictions as long as they're within one country.

• Can contain many legal entities that act as payroll statutory units.

Payroll Statutory UnitsPayroll statutory units are legal entities that are responsible for paying workers, including the payment of payroll taxand social insurance. A payroll statutory unit can pay and report on payroll tax and social insurance on behalf of oneor many legal entities, depending on the structure of your enterprise. For example, if you're a multinational, multiplecompany enterprise, then you register a payroll statutory unit in each country where you employ and pay people.You can optionally register a consolidated payroll statutory unit to pay and report on workers across multiple legalemployers within the same country. You associate a legislative data group with a payroll statutory unit to provide thecorrect payroll information for workers.

Plan Legal Reporting UnitsEach of your legal entities has at least one legal reporting unit. Some legal reporting units can also be referred to asestablishments. You can dene either domestic or foreign establishments. Dene legal reporting units by physicallocation, such as sales oces. For example, set up legal reporting units to represent your company and its oces for taxreporting.



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Planning Legal Reporting UnitsPlan and dene your legal reporting units at both the local and national levels if you operate within the administrativeboundaries of a jurisdiction that's more granular than country. For example, your legal entity establishes operations ina country that requires reporting of employment and sales taxes locally as well as nationally. Therefore, you need morethan one legally registered location to meet this legal entity's reporting requirements in each area. Additionally, legalentities in Europe operate across national boundaries, and require you to set up legal reporting units for the purposesof local registration in each country. There can be multiple registrations associated with a legal reporting unit. However,only one identifying registration can be dened by the legal authority used for the legal entity or legal reporting unit andassociated with the legal reporting unit.

What's a tax reporting unit?Use a tax reporting unit to group workers for the purpose of tax and social insurance reporting. A tax reporting unit isthe Oracle Fusion Human Capital Management (HCM) version of the legal reporting unit in Oracle Fusion Applications.

To create a tax reporting unit, you use the Oracle Fusion Legal Entity Congurator to dene a legal entity as a payrollstatutory unit. When you identify a legal entity as a payroll statutory unit, the application transfers the legal reportingunits that are associated with that legal entity to Oracle Fusion HCM as tax reporting units. You can then access the taxreporting unit using the Manage Legal Reporting Unit HCM Information task.

If you identify a legal entity as a legal employer, and not as a payroll statutory unit, you must enter a parent payrollstatutory unit. The resulting legal reporting units are transferred to Oracle Fusion HCM as tax reporting units, but aschildren of the parent payroll statutory unit that you entered, and not the legal entity that you identied as a legalemployer.

How Legal Employers Work with Payroll Statutory Units and TaxReporting UnitsYou can designate legal entities as legal employers and payroll statutory units, which makes them available for use inOracle Fusion Human Capital Management (HCM). You can have only one legal entity that's also a payroll statutory unitand legal employer, or multiple legal entities, payroll statutory units and legal employers.

Payroll statutory units and tax reporting units share a parent child relationship with the payroll statutory unit being aparent of a tax reporting unit.

Legal Employers and Payroll Statutory UnitsYou can designate payroll statutory units to group legal employers to do statutory calculations at a higher level. Forexample, you can use payroll statutory units for court orders, or to calculate the United Kingdom (UK) statutory sick pay.A legal employer can exist independently under an enterprise or be a part of a payroll statutory unit. There can be manylegal employers under a payroll statutory unit, but a legal employer can belong only to one payroll statutory unit.

Legal Employers and Tax Reporting UnitsTax reporting units are indirectly associated with a legal employer through the payroll statutory unit. One or moretax reporting units can be used by a single legal employer, and a tax reporting unit can be used by one or more legalemployers.



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For example, if a single tax reporting unit is linked to a payroll statutory unit and two legal employers are associatedwith this payroll statutory unit, then both legal employers are associated with the tax reporting unit. Use the ManageLegal Reporting Unit HCM Information task to designate an existing legal reporting unit as a tax reporting unit. Youneed to select a parent payroll statutory unit when you create a legal reporting unit belonging to a legal employer (thatisn't a payroll statutory unit as well). Next, you need to designate the legal reporting unit as a tax reporting unit andselect the legal employer.

Related Topics

• Examples of HCM Organization Models

Examples of HCM Organization Models for PayrollUse these examples to understand dierent models for human capital management (HCM) organizations that include alegislative data group (LDG). These examples include LDGs, which aren't an organization classication, to show how topartition payroll data by associating them with a payroll statutory unit.

Simple CongurationThis example illustrates a simple conguration that doesn't include any tax reporting unit.

Note the following:

• The legal employer and payroll statutory units are the same, sharing the same boundaries.

• Reporting can only be done at a single level. Countries such as Saudi Arabia and the United Arab Emirates(UAE) might use this type of model, as these countries report at the legal entity level.

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This gure illustrates a simple conguration where the enterprise has only one legal entity, which is both a payrollstatutory unit and a legal employer.

Division


Legal Employer

PSU

Legal Entity

InFusion Corporation Enterprise

Multiple Legal Employers and Tax Reporting UnitsThis example illustrates a more complex conguration. In this enterprise, you dene one legal entity, InFusion US, asa payroll statutory unit with two separate legal entities, which are also legal employers. This model shows multiplelegal employers that are associated with a single payroll statutory unit. Tax reporting units are always associated with aspecic legal employer (or employers) through the payroll statutory unit.

The implication is that payroll statutory reporting boundaries vary from human resources (HR) management, and youcan categorize the balances separately by one of the following:

• Payroll statutory unit

• Legal employer

• Tax reporting unit

This conguration is based on tax ling requirements, as some tax-related payments and reports are associated with ahigher level than employers. An example of a country that might use this model is the US.



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This gure illustrates an enterprise that has one payroll statutory unit and multiple legal employers and tax reportingunits.

US Division

US Legislative Data Group

InFusion Corp US Tax Reporting

Unit

PSU

InFusion US Legal Entity


Legal Employer Legal

Employer

Tax Reporting Unit

InFusion Inc 1 Legal Entity

InFusion Holding Tax Reporting

Unit

InFusion Inc 2 Legal Entity

One Payroll Statutory Unit and Two Tax Reporting UnitsThis model makes no distinction between a legal employer and a payroll statutory unit. You dene tax reporting units assubsidiaries to the legal entity.

In this enterprise, legal entity is the highest level of aggregation for payroll calculations and reporting. Statutoryreporting boundaries are the same for both payroll and HR management. An example of a country that might use thismodel is France.



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This gure illustrates an example of an organization with one legal entity. The legal entity is both a legal employer and apayroll statutory unit and has two tax reporting units.

Division

France Legislative Data Group

Legal Employer

PSU

InFusion France Legal Entity


InFusion Lyon Tax Reporting Unit

InFusion Colombes Tax Reporting Unit

One Payroll Statutory Unit with Several Tax Reporting UnitsIn this model, the enterprise has one legal entity. Legal employers and tax reporting units are independent from eachother within a payroll statutory unit, because there is no relationship from a legal perspective. Therefore, you can runreporting on both entities independently.

Using this model, you wouldn't typically:

• Report on tax reporting unit balances within a legal employer

• Categorize balances by either or both organizations, as required

An example of a country that might use this model is India.



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This gure illustrates an enterprise with one legal entity that's a payroll statutory unit and a legal employer. The taxreporting units are independent from the legal employer.

InFusion CorporationEnterprise

IndiaLegislative Data

Group

InFusion Bangalore

Tax Reporting Unit

PT1Tax

Reporting Unit

PT2Tax

Reporting Unit

PF1Tax

Reporting Unit

ESI1Tax

Reporting Unit

ESI2Tax

Reporting Unit

IT1Tax

Reporting Unit

InFusion Hyderabad

Tax Reporting Unit

PF2Tax

Reporting Unit

IT2Tax

Reporting Unit

InFusion India Pvt. LtdLegal Entity

PSU

Legal Employer

India Division

Multiple Payroll Statutory Units with Several Tax Reporting UnitsIn this model, the enterprise has two legal entities. The legal employers and tax reporting units are independent fromeach other within a payroll statutory unit, because there is no relationship from a legal perspective. Therefore, you canrun reporting on both entities independently.

Using this model, you wouldn't typically:

• Report on tax reporting unit balances within a legal employer

• Categorize balances by either or both organizations, as required



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An example of a country that might use this model is the United Kingdom (UK).

This gure illustrates an enterprise with two legal entities, and legal employers and tax reporting units are independentfrom each other.

InFusion CorporationEnterprise

Division

Legal Entity

PSU

Legal Employer

Tax Reporting

Unit

Legal Entity

PSU


Tax Reporting

Unit

Legal Entity

Legal Employer

Payroll Employment Hierarchy Prole OptionsYou can use prole options to specify the values that you want to display for each payroll employment hierarchy level.The hierarchy appears in the View Person Process Results pages. You can specify up to three values at each level to help



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identify the record. For example, you might select legal employer name and job name to identify assignment records,and assignment name and number to identify assignment records.

Depending on the employment model used in your enterprise, you can use these levels to set up your payrollemployment hierarchy:

• Payroll relationship

• Assignments

To dene prole option seings and values, select the Manage Payroll Employment Hierarchy Prole Option Valuestask.

Prole Options for the Payroll Relationship LevelThis table lists the prole option codes and available prole values at the site level for the payroll relationship level ofthe payroll employment hierarchy.

Prole Option Codes Prole Values

PAY_ EMP_ HIERARCHY_REL_DESC_1 PAY_ EMP_ HIERARCHY_REL_DESC_2 PAY_ EMP_ HIERARCHY_REL_DESC_3

Payroll Relationship Number Payroll Statutory Unit Name Payroll Relationship Type

Prole Options for the Assignment LevelThis table lists the prole option codes and available prole values at the site level for the assignment level of the payrollemployment hierarchy.

Prole Option Codes Prole Values

PAY_ EMP_ HIERARCHY_ASG_DESC_1 PAY_ EMP_ HIERARCHY_ASG_DESC_2 PAY_ EMP_ HIERARCHY_ASG_DESC_3

Assignment Name Assignment Number Employment Category Grade Name Job Name Legal Employer Name Location Name Position Name



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Override Site-level Values with User-level ValuesYou can override site-level values at the user level. For example, you might use position as the default value. Overridethe default value with job for the payroll administrator who manages records for a group of workers who aren't assignedto positions.

Payroll Employment Model

Payroll Employment ModelIn the payroll employment model, each person has a payroll relationship to a payroll statutory unit (PSU), and one ormore payroll assignments and other employment structures.

Comparing the HR and Payroll Employment ModelsThis diagram shows the human resource (HR) employment model and the payroll employment model contrast wheretwo legal employers, Manufacturing and Installation belong to one PSU, Sun Power. As you can see, David Ellis has two



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assignments where the HR model creates two work relationships and the payroll employment model creates one payrollrelationship.

Sun PowerPayroll Statutory Unit

Manufacturing InstallationLegal Employers

David Ellis David Ellis

Work Relationship Manufacturing

Work Relationship Installation

Payroll Relationship Payroll Statutory Unit

Sun Power

Assignment Project Manager

Assignment Trainer

Assignment Project Manager

Assignment Trainer

Related Topics

• Employment Level Options for Elements

FAQ for Payroll Employment Model



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How do I diagnose payroll employment model setup issues?After creating enterprise structures, run the Payroll Employment Model Setup Validation test. This test checks whetherlegal employers are associated with a legislative data group. Select Run Diagnostic Tests from the Seing and Actionsmenu in the global area. You must have access to the Diagnostic Dashboard to run this test.

Payroll Relationships

Payroll RelationshipsA payroll relationship represents the association between a person and a payroll statutory unit (PSU), which is the legalentity responsible for employee payment. Payroll relationships group a person's employment assignment recordsbased on the payroll statutory calculation and reporting requirements. Payroll relationships facilitate the capture andextraction of HR and payroll-related data sent to a third party, such as a payroll provider for payroll processing.

Payroll processing always occurs at the payroll relationship level. When you display the payroll process results for aperson, you rst select the person's payroll relationship record and then drill down to view details.

Payroll relationships aggregate balances at the payroll relationship level. Within a payroll relationship, payroll processescan aggregate balances for multiple assignment records. Balances don't span payroll relationships.

Create Payroll Relationship Records and Mapping RulesThe mapping between the system person type and the payroll relationship type must exist for certain processes. Forexample, to create a payroll relationship record automatically during the rehire process. You must use the payrollrelationship types predened in the application. You can't create your own.

This table shows the predened payroll relationship type.

Payroll Relationship Type Description

Standard

Person types mapped to this payroll relationship type are included in payroll runs.

Element Entry Only

Person types mapped to this payroll relationship type have only element entries created forthem and are excluded from payroll processing.

Relationship mapping rules, which map system person types to payroll relationship types, can vary by country orterritory. The mapping rules are predened for each legislation.

This table shows the mapping between system person types and payroll relationship types applicable for Canada whereContingent Worker type, Retiree, and Nonworker Unpaid type are excluded from payroll processing.

System Person Type Payroll Relationship Type

Contingent Worker Element Entry Only



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System Person Type Payroll Relationship Type

Employee

Standard

Nonworker Paid

Standard

Nonworker Unpaid

Element Entry Only

Retiree

Element Entry Only

A payroll relationship can't end while active employment assignments are present. When all employment assignmentsare ended, a payroll relationship could either remain active or become end dated. A payroll relationship depends on thelegislation and the payroll relationship rules applicable for the legislation. For example:

• For the US, relationships that remain active enables future rehire within the same payroll relationship and PSU.

• For the UK, for a relationship that gets terminated, a new payroll relationship is created within the same payrollrelationship and PSU, for the rehire.

Related Topics

• Element Duration Dates

• How to Set End Dates for Terminations

• Time Card Required Option

Payroll Relationship RulesThe payroll relationship rule determines what happens when you terminate the last active employment assignmentrecord for a payroll relationship. The rule also determines whether the application creates a payroll relationship whenyou add a new assignment record for an employee. This topic describes the following predened rules that localizationscan use.

Lifetime RuleWhen a work assignment is terminated, the associated payroll relationship continues to remain active. When you createan assignment, the application searches for an active payroll relationship of the same type and for the same payrollstatutory unit (PSU). If found, the new assignment is aached to the existing active payroll relationship. If not, a newpayroll relationship is generated.

Continuous Period of Service RuleWhen a work assignment is terminated, the associated payroll relationship becomes inactive and is terminated.Subsequently, when you create an assignment, the application searches for an active payroll relationship of the sametype and for the same PSU. If a payroll relationship exists, date validation occurs to determine whether to use theexisting payroll relationship or to create one. The application compares the start date of the new assignment to the laststandard earnings date of the existing payroll relationship. If the start date is before the last standard earnings date, theapplication uses the existing payroll relationship, otherwise, it creates one.

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Independent RuleWhen a work assignment is terminated, the associated payroll relationship becomes inactive and is terminated. Whenyou create an assignment, a new payroll relationship is created. Each payroll relationship is associated with one workassignment.

Related Topics

• How Terminations Aect Payroll Processing

FAQ for Payroll Relationships

When should I change payroll relationship rules?Payroll relationship rules are created during implementation and you should not need to change them. If employmentrecords already exist, it's best not to change payroll relationship rules to ensure that new and existing employmentrecords have the same rules. However, if you choose to make updates to payroll relationship rules after employmentrecords already exist, it's important to understand your updates will aect only newly created employment records.

Earnings and Deductions

Payroll Calculation InformationWhen you create an element, the application generates the rules and denitions required to calculate earnings ordeduction amount. For all types of elements, these rules and denitions include elements, formulas, and processingrules.

This topic explains the payroll calculation information rules and denitions generated for user-dened elements withone of the following categories:

• Absence

• Benet

• Involuntary Deductions

• Time card

All predened tax and social insurance elements also include payroll calculation information rules and denitions.

Note: Elements that use calculation information denitions don't capture the values required for thecalculation on element input values.

Task SummaryThe following table summarizes the purpose of each type of calculation information and the task you can use to view oredit it.

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Calculation Information Description Task

Payroll calculation information

The manage payroll calculationinformation task groups rates and rulesused by the payroll run to calculate valuesfor user-dened earnings, and deductions. Predened elements such as tax andsocial insurance rules also use the payrollcalculation feature to provide a group ofrates and rules which vary by country orterritory.

Use the Manage Payroll CalculationInformation task.

Payroll components

A payroll component is a group of ratesand rules that the payroll run usesto calculate values for earnings anddeductions. When you create elements in certainclassications and categories, such asinvoluntary deductions, the elementtemplate creates a payroll component withthe same name. You can manage payroll componentsusing predened component groups,which vary by country or territory butmay include social insurance, taxes,retirement plans, involuntary deductions,and benets.

Use the Manage Payroll CalculationInformation task to view payrollcomponents and their associated rules.

Wage basis rules

Wage basis rules determine the earningsthat contribute to a deductible amount or,for exemptions, the elements that reducethe amount subject to deduction. For example, wage basis rules mightdene which secondary classications ofstandard and supplemental earnings aresubject to a particular tax. Rules may vary based on reference criteriasuch as a worker's place of residence.

Use the Manage Component Group Rulestask to dene the rules and references. Use the Manage Calculation Cards task toenter reference values for workers.

Calculation value denitions

Calculation value denitions storecalculation rates and rules, which mayvary based on other criteria. For example you can use calculation valuedenitions to calculate regional incometax rates for employees, which vary basedon their income levels. The calculation value denition controlswhich calculation values are enterable on acalculation card.

Use the Manage Calculation ValueDenitions task to view predeneddenitions and the denitions thatelement templates create.

Note: You can edit denitions thatelement templates create, such asadding default calculation values.



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Calculation factors

Calculation factors indicate whichcalculation value denition to use whencalculating the amount. For example, a calculation factor mightidentify which set of tax rates to use basedon the tax code of the employee. If tax rates vary based on a factor such asa person's ling status, then ling status isdened as a calculation factor reference.Thus, an element may have multiplecalculation factors, one for each uniqueset of rules and references values.

Use the Manage Elements, ElementOverview task to access calculationfactors. Use the Manage Payroll CalculationInformation task to create new calculationfactors. Normally, you don't need to createnew factors, but if you do, you must alsoedit the element's payroll formula to usethe new calculation factors.

Calculation components

When an element template createsa payroll component, it also createscalculation components that you can enteron personal calculation cards to enterspecic details for the person.

Use the Manage Calculation Cards taskto enter calculation components for aperson.

Calculation types

A calculation type describes a wayof calculating a value. For example,calculating a value as a Flat Amount or byapplying a Rate to a value. There's a predened set of CalculationTypes.

Use the Manage Calculation ValueDenitions task to view calculation types.

Calculation steps A Calculation Step is a name or label that

denotes part of a payroll calculation.

For example, a time calculation canconsist of the following parts:

• Calculate hours worked• Calculate hourly rate

A regional tax calculation can consist ofthe following parts:

• Calculate Exemptions• Calculate Allowances• Calculate Tax

Each one of these is a calculation step in afast formula.


Calculation methods

Predened calculation methods are a wayof performing a payroll calculation. For example, a tax could be calculatedusing a cumulative year-to-date payrollbalance or a periodic payroll value.




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Calculation factors

Calculation factors create an associationbetween an element, calculation step, anda calculation value denition. Calculation factors indicate whichcalculation value denition to use whencalculating the amount. Calculation factors can support complexcalculations such as tax rates. Forexample, if a tax rate varies based on afactor such as a person's ling status theling status can be dened as a calculationfactor reference thus, an element mayhave multiple calculation factors, one foreach unique set of rules and referencesvalues.

Use the Manage Elements, ElementOverview task.

Related Topics

• Examples of Payroll Calculation Information at the Legislative Level


• Calculation Factors

• How You Add Involuntary Deductions to a Calculation Card

Dene Elements, Balances, and FormulasThe Dene Elements, Balances, and Formulas task list contains the tasks required for creating payroll elements forcompensation and HR management. You can use this task list if you're recording earnings, deductions, and otherpayroll data for reporting, compensation and benets calculations, or transferring data to a third-party payroll provider.

Note: If you're using Oracle Global Payroll, use the Dene Payroll task list instead. The Dene Payroll task listincludes additional tasks required to set up payroll processing.

Required TasksYour business requirements and product usage determine which required tasks you must perform. The required tasksinclude:

• Manage Elements

• Manage Payroll Denitions, which is usually required to support elements

• Manage Consolidation Groups, which is required for creating payroll denitions

If you use predened Payroll Interface extracts to transfer data to a third-party payroll provider, you may need to createelement subclassications, balances, organization payment methods, and object groups. Refer to the Global PayrollInterface documentation for more information.



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Before You BeginThe Workforce Deployment and Compensation Management oerings include the Dene Elements, Balances, andFormulas task list. Before you start the required payroll tasks, complete the tasks these oerings contain, as shown inthe following table.

Task Use To Why It's Important

Manage Legal Entities

Create payroll statutory units.

Ensures that hiring employeesautomatically creates payroll relationshiprecords.

Manage Legal Entity HCM Information

Associate a legislative data group witheach payroll statutory unit.

As above.

Manage Features by Country or Territory

Select Payroll Interface as the extensionfor any countries or territories where youextract HR data to send to a third-partypayroll provider.

Ensures that you use the appropriateelement templates to create earnings.

Congure Legislations for Human ResourcesUse this task to create and edit legislative data for a country or territory that doesn't have a predened countryextension. It guides you through conguring some payroll objects and values required for creating elements, including:

• Tax year start date

• Period of service on rehire rules

• Default currency

• Element classications

• Component groups

• Payment types

Note: Complete this task before the other tasks in this task list.

Manage ElementsUse elements to communicate payment and distribution information to payroll applications from the sourceapplications listed in the following table.

Source Application Element Purpose Requirements

Compensation

• Earnings and deduction elements,such as bonuses, overtimeearnings, and voluntary deductions.

Required for compensation plans andbase pay, no maer which HR and payrollapplications you're using.



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Source Application Element Purpose Requirements

• Information elements to loaduser-dened data to use during aworkforce compensation cycle.

Benets

• Deduction elements to recordactivity rate calculation results, suchas:

◦ Employee contributions andemployer distributions formedical options

◦ Flex credits for ex benets

• Earnings elements if you want todisburse unused credits as cash.

Required if you use element entries tocommunicate benets rate information toany payroll application.

Note: You must select PayrollRelationship as the employmentlevel.

Time and Labor

Earnings elements with input value ofHours.

Required if you pay worked time based ontime card entries.

Absence Management

Earnings elements with input value ofHours.

Required if you process absencepayments and book employer liability ofaccrual balances through Global Payroll orGlobal Payroll Interface.

Manage Payroll DenitionsEmployees' employment terms or assignments include their assigned payrolls. The payroll denition suppliesthe payroll period frequency and end dates, which some applications use for calculations. This table shows whichapplications require payroll denitions.

Application Payroll Denition Required? Usage Conditions

Global Payroll Interface

Yes

N/A

Compensation

Yes

N/A

Benets

Optional

Required to use the payroll periodfrequency to calculate communicatedrates or values passed to payroll.

Time and Labor

Optional

Required to pass time entries to payrollcalculation cards for payroll processingor for extract to a third-party payrollapplication.

Absence Management

No

N/A



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Manage Consolidation GroupsYou must have at least one consolidation group for each legislative data group where you create elements. Payrolldenitions require a consolidation group.

Other Payroll-Related Setup TasksYour implementation might require other tasks in the Dene Elements, Balances, and Formulas task list, as shown in thefollowing table.

Task Requirements

Manage Organization PaymentMethods

If you want to record personal payment methods for your employees, you must createorganization payment methods and associate them with your payroll denitions. Organizationpayment methods dene the combination of payment type and currency to use for paymentsto employees or external parties.

Manage Element Classications

Primary element classications are predened. If you run the Calculate Gross Earnings process(provided with Global Payroll Interface), you might create subclassications to feed user-dened balances.

Manage Fast Formulas You can write formulas for a number of uses, including:

• Validating user entries into element input values• Conguring compensation, benet, and accrual plan rules• Calculating periodic values for gross earnings and dening element skip rules for the

Calculate Gross Earnings process (provided with Global Payroll Interface)

Manage Balance Denitions

If you're using Global Payroll Interface, creating earnings elements creates balancesautomatically. You can edit these generated balance denitions. If you're using the Calculate Gross Earnings process, you may want to create additionalbalances for extracts or reporting.

Manage Object Groups

You can create object groups to specify subsets of elements or payroll relationships to includein a report or process, such as the Calculate Gross Earnings process.

Related Topics

• Overview of Using Formulas

• Payroll Denitions

• Payroll Balance Denitions

• Implement Payroll Interface

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How Elements Hold Payroll Information for Multiple FeaturesElements are building blocks that help determine the payment of base pay, benets, absences, and other earningsand deductions. You associate your elements with salary bases, absence plans, and the benets object hierarchy todetermine how you will use the elements.

This table provides some examples of how you can use elements.

Element Usage Examples of Elements

Base Pay Management

Annual Salary Basis Monthly Salary Basis Hourly Salary Basis

Absence Management

Absence Payment Leave Liability Discretionary Disbursement Final Disbursement

Benets

Health Care Deduction Savings Plan Deduction Employee Stock Purchase Deduction

Time and Labor

Regular Hourly Earnings Overtime Earnings Shift Earnings

Payroll

Regular Standard Earnings Bonus Earnings Tax Deduction Involuntary Deduction

Base Pay ManagementTo manage base pay, you aach an earnings element to each salary basis (hourly, monthly or annual) for each worker.When a manager or compensation specialist enters a base pay amount for a worker, the application writes the amountto an element entry. The application does this by using the element input value associated with the worker's salarybasis. Payroll processing uses the element entry to generate payment amounts.



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Absence ManagementYou can manage worker absences and corresponding entitlements. You can create absence types based on predenedabsence paerns, and associate them with absence plans. You can associate an absence element with an absence planto transfer the following information for payroll processing:

• Payments for absent time, for example, during maternity or long term sickness.

• Accrual disbursement at the end of absence plan year

• Accrual disbursement when plan enrollment ends

• Absence liability amounts

You can process the payments in Oracle Fusion Global Payroll or use HCM extracts to transfer the information to athird-party payroll application for processing.

BenetsAach elements at various levels in the benets object hierarchy to create deductions and earnings that you can processin a payroll run to calculate net pay.

Time and LaborCreate elements for use in time cards, and calculate payroll or gross earnings based on the time card entries transferredto payroll. For example, for Oracle Fusion Time and Labor, you run processes which create dependent payroll aributesand time card elds for element input values. You can automate the routine import of time card entries to payroll usingpredened ows.

PayrollFor Oracle Fusion Global Payroll, you dene earnings and deduction elements, such as bonus and overtime earningsand involuntary deductions. These elements incorporate all the components required for payroll processing, includingformulas, balances, and formula result rules.

Related Topics

• Dene Payroll Elements for an Absence Accrual Plan

• Create Earnings Elements for Payroll

• Create Elements for Time Card Entries

Overview of Dene Earning and Deduction DenitionsThe Dene Earning and Deduction Denitions task list in the Setup and Maintenance work area contains the tasksrequired to set up elements and payroll components. Your implementation may include a few predened elements,usually for legislative tax deductions. Use the Manage Elements task to create additional elements and the associatedobjects required to support their processing. The objects vary depending on the element classication and category.

Manage Element ClassicationsElements are grouped into primary classications that control their sequence of processing and the balances they feed.Secondary classications are subsets of the primary classications, which you may use to manage wage basis rules fordeductions and taxes.



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The primary classications and some secondary classications are predened. You can't remove or change predenedclassications.

What you can do:

• Create additional balances that the primary classications feed.

• Create secondary classications, if required.

• Specify costing setup options and frequency rules for element classications. The default frequency rule isalways each period.

Manage ElementsUse the Manage Elements task to review elements and to create new ones. When you create an element, your selectionof the element classication and category determines the questions on a predened template. Submiing the templategenerates an element, which you can edit, as required.

You must create at least one element eligibility record for all predened and newly created elements.

The following gure shows the tasks involved.

Create Element

Select Element Classification and

Category

Complete Predefined Template

Manual edits? Create Element Eligibility Record

Yes

Create additional input values, balance

feeds, if required

No

Note: Make sure you set the country extension to Payroll using the Manage Features by Country or Territorytask before you create elements for payroll processing. This seing ensures that you use the appropriateelement templates.

Creating certain elements also creates component groups, calculation value denitions, and other calculationinformation. For example, creating involuntary deductions and pension deductions may create these additional objects.Use the relevant tasks in the Dene Earning and Deduction Denitions task list to review the objects generated for eachelement.



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Payroll components are associated with a set of rates and rules used for calculation or reporting. These componentsconform to manage calculation value denitions

What you can do:

• Review the tables that hold the rates and other values used to calculate deduction and exemption amounts.

• Modify some value denitions. For example, you might enter a default payee for pension payments.

• Create new calculation ranges, if required

Manage the calculation information for elements that generate payroll components, such as involuntary deductions andstatutory deductions.

What you can do:

• Review the calculation information supplied for your country or territory, such as the wage basis rules andcalculation factors

• Create new calculation factors, if required.

Component groups are predened categories of calculation components managed by component group rules.

What you can do:

• View rules for component groups.

• Modify the rules, such as wage basis rules, for some deductions

After setup, you add calculation components to personal calculation cards by loading data, such as time cards, orusing the Manage Calculation Cards task in the Payroll Calculation work area. In most cases, hiring a worker creates astatutory deduction card automatically.

Add Eligibility Rules For Predened ElementsThe task list includes this task as a reminder. Use the Manage Elements task to dene at least one element eligibilityrecord for every predened and newly created element.

Note: Make sure you create an eligibility record for the statutory deduction elements like Tax, before you starthiring workers.

Element eligibility determines who can receive entries of the element. Do the following:

1. Create a name for the element eligibility record. Use a naming convention similar to the element's to easilyidentify the record, for example, when you set up costing for the element's eligibility record.

2. Restrict who can receive entries of the element by specifying eligibility criteria. For elements applicable to allworkers, create eligibility without specifying any criteria.

Manage Rate DenitionsDene any rates that are based on calculated payroll balances, such as an employee's average salary during the lastthree months. You can use rate denitions in absence plans and formulas.

You can dene rates to be:

• Monetary, such as a pay rate, or non-monetary, such as an absence accrual rate dened in days or hours

• Based on a combination of elements, or a single element

Related Topics• Elements



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• Element Eligibility

• How You Dene Voluntary and Pre-statutory Deductions

• Create Earnings Elements for Payroll

Object Groups

Overview of Object GroupsObject groups are sets of elements, persons, or deduction cards. Use object groups to dene subsets of objects forprocessing or reporting. You can manage object groups from the Payroll Calculation work area.

You can dene one of these object groups.

• Element


• Work Relationship

Element GroupsUse Element groups to limit the elements processed for payroll, reporting, or cost distribution purposes.

This table explains the usages for an element group.

Element Group What It Does

Run group

Species the elements to be processed in a payroll run.

Distribution group

Denes the elements on which the cost results are distributed

Conguration group

Restricts the elements that can be updated on the Element Entries page.

All element groups are static. You can select element classication to include in or exclude from the group. You can alsoselect specic elements to include in or exclude from the group.

Payroll Relationship GroupsUse Payroll relationship groups to limit the persons processed for payroll, data entry, and reporting.

Dening a payroll relationship group is a two-step process.

1. Specify a payroll denition. Every group is limited to the payroll relationships assigned to a single payroll thatyou select.

2. Optionally, dene the group to be either static or dynamic.

a. To dene a static group, select the payroll relationships and assignments to include in or exclude fromthe group.



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b. To dene a dynamic group, use a fast formula of type Payroll Relationship Group. The formula containsthe criteria to establish the payroll relationships and assignments included in the group. Then, you canindividually select additional payroll relationships and assignments to include in or exclude from thegroup.

Work Relationship GroupsYou can use Work relationship groups to limit the persons processed for human resources and reporting. For example,you can use work relationship groups in your user-dened extracts. You can dene the group to be either static ordynamic.

• In a static group, select the work relationships and assignments to include in or exclude from the group.

• In a dynamic group, use a fast formula of type Work Relationship Group. This formula contains the criteriato establish the work relationships and assignments included in the group. Then, you can individually selectadditional work relationships and assignments to include in or exclude from the group.

Related Topics

• Example of Writing a Fast Formula Using Expression Editor

• Restrict Payroll Processing


Chapter 4Loading Payroll Objects

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4 Loading Payroll Objects

OverviewUse HCM Data Loader for bulk-loading and maintaining payroll data.

You can use HCM Data Loader to load these payroll objects.


• Object Groups

• Payroll Consolidation Groups

• Payroll Denitions and Time Periods

• Time Denitions

• Payroll Element Run Usage

• User-Dened Tables


• Payroll Elements

• Element Entries

• Balance Denitions

• Organization Payment Method

• Personal Payment Method

• Payroll Costing

For more information on how to load these business objects, refer to the Integrating with HCM guide.

Payroll Transformation Formula for HCM Data LoaderYour existing data or the data that you upload might not be in the format recognized by HCM Data Loader. In suchcases, use the Payroll Transformation formula for HCM Data Loader to transform your data into a format that'ssupported by HCM Data Loader.

Payroll Transformation Formula for HCM Spreadsheet DataLoaderYou can use HCM Spreadsheet Data Loader to load all payroll objects that HCM Data Loader supports. As the rst step,you create a spreadsheet template for the required object from the Data Exchange Work area and further download thetemplate in CSV format. The Payroll Transformation Formula for HCM Spreadsheet Data Loader transforms the rawdelimited le to a format that suits the template.

Related Topics• Overview of Loading Payroll Details

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• Example of Loading Payroll Balance Aribute Denitions

• Overview of Loading Payroll Costing

• Example of Loading Organization Payment Methods

• Overview of Loading User-Dened Tables

Payroll Transformation Formula for HCM Data Loader

Overview of Payroll Transformation Formula For HCM DataLoaderOften times, your existing data or the payroll data that you upload might not be in the format recognized by HCMData Loader. In such cases, you can use a payroll transformation formula to transform your data into a format that'ssupported by HCM Data Loader.

Let's consider these examples.

• An inbound le contains data that needs to be loaded using dierent payroll business objects in HCM DataLoader. Here, the content of the le needs to be split across more than one HCM Data Loader le.

• You might create a transformation formula to convert an aribute value in the le to another value that youderive using value sets.

• You want to change a person number into an assignment number. In this case, you will use a more complexformula to convert the aributes.

You use the Load Data From File ow to transform your data into the HCM Data Loader le format using yourtransformation formula.

As this table shows, the two ow paerns are secured using these privileges:

Flow Paern Privileges

Submit Payroll Flow

PAY_ SUBMIT_ PAYROLL_ FLOW_PRIV

Load HCM Data

HRC_ LOAD_ HCM_DATA_PRIV

This example species the le name in the formula as PersonalPaymentMethod, the le discriminator asPersonalPaymentMethod, and the business operation as MERGE.

/*HDL Related Outputs*/ FileName = 'PersonalPaymentMethod' BusinessOperation = 'MERGE' FileDiscriminator = 'PersonalPaymentMethod'

To view details about the le name, le discriminator, and a list of supported business operations, use the ViewBusiness Objects task in the Data Exchange work area.

1. On the View Business Objects page, search for and select your business object. In this example, the businessobject is Personal Payment Method.

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2. On the Component Details page, you can nd the name of the le, and the le discriminator and a list ofsupported actions for the object.

How You Transform Data Using Payroll Transformation Formulafor HCM Data LoaderUse the Load Data From File ow to transform data in the source le into a format that's supported by HCM DataLoader. You can submit this ow independently or include it in a ow that you create for automating data loads on aperiodic basis. When you submit the ow, either manually or using a web service, you must specify a transformationformula to transform the data, as needed.

The ow contains these two tasks that help you to transform data into a HCM Data Loader format:

• Generate Data Loader File

• Initiate Data Loader Task

As this gure shows, the rst step is to submit the Load Data From File ow. This ow takes data from the at le andgenerates an equivalent le format for the data present in the input le.

DataLine1|xx|11DataLine2|yy|22DataLine3|zz|33

Zip FileHDL dat file

Start

Generate Data Loader File

Initiate Data Loader

End

UCMPayroll

Transformation Formula for HCM Data

Loader

1

2

3

4

Data File

Load Data From File Flow Pattern

Perform these steps to transform data using Payroll Transformation Formula for HCM Data Loader:

1. From the Checklist or Data Exchange work area, submit the Load Data From File ow paern.2. The ow invokes the Payroll Transformation Formula for the Content ID. Typically, you create your

transformation formula for HCM Data Loader on the Manage Fast Formulas page. The type of the formulashould be HCM Data Loader.



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3. The Generate Data Loader File task reads the data le line by line, producing an equivalent HCM Data Loaderformat for each line. Finally, it creates a compressed le of all of the transformed data les and uploads to theOracle WebCenter Content server. Also, the task records the Content ID.

4. The Initiate Data Loader task takes the Content ID for the le generated by the Generate Data Loader Filetask. And it invokes HCM Data Loader. HCM Data Loader validates the data and creates valid records in theHCM cloud.

The table shows the tasks and the privileges that they're secured with:

Task Privilege

Submit Payroll Flow


Load HCM Data

HRC_ LOAD_ HCM_DATA_PRIV

How To Create Program for AutomationYou can submit the Load Data from File ow by using a web service.

As this gure shows, your program uploads the source le to content server, and retrieves the content ID for the FlowActions Service web service. Then, the program calls the Flow Actions web service by supplying certain parameters.

Flat File

Upload File to Content Server

Invoke FlowsActionsService

Submit the Load Data from File flow

Content ID



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When calling the web service, your program supplies these parameters.

• Name of the ow paern, which is Load Data from File

• Content ID of the uploaded le

• Unique name to identify the ow instance being submied

• Process conguration group name for special processing (optional)

• Transformation formula name (mandatory)

For more information about the Flow Actions Service web service, refer to the SOAP Web Services for Oracle HCM Cloudguide. For examples of its usage for automating le uploads, refer to the aachment for HCM Data Loader User Guide(1664133.1) on My Oracle Support at hps://support.oracle.com.

Submit The Load Data From File FlowFrom the Checklist or Data Exchange work area, use the Load Data from File ow paern to transform data in yoursource le into the HDL format.

AssumptionsThis procedure has these assumptions.

• You have the Human Capital Management Integration Specialist role.

• You have the source le ready to upload to Oracle WebCenter Content.

• If you have already uploaded the source le, you have the content ID handy.

Note: To upload les to the content server, browse to the source le on your le system, check it in to thecontent server, and retrieve its Content ID. For more information, see Oracle Fusion Middleware Using OracleWebCenter Content guide.

Before You BeginBefore you submit the ow, ensure that you meet these prerequisites.

Characteristics What You Should Do

Data transformation If the data in the source le requires transformation, create and compile a transformation

formula using the HCM Data Loader Transformation formula type.

Use the Manage Fast Formulas task in the Payroll Calculation work area to do thiscompilation.

File encryption Before loading encrypted les, ensure that the encryption keys exist for the secure le transfer.

This process involves creating a service request, generating PGP key pairs, and sharing theencryption keys.

Specify the Payroll Batch Loader Encryption Type parameter value for the processconguration group you select when running the ow or the web service. Valid values arePGPSIGNED, PGPUNSIGNED, and NONE.



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Characteristics What You Should Do

In the Setup and Maintenance work area, use the Manage Payroll Process Conguration taskto specify processing parameters for your process conguration group.

• Oering: Workforce Deployment• Functional Area: Payroll• Task: Manage Payroll Process Conguration

Other processing parameters In the Setup and Maintenance work area, use Manage Payroll Process Conguration task to

add parameters for the process conguration group.

• Oering: Workforce Deployment• Functional Area: Payroll• Task: Manage Payroll Process Conguration

Examples of processing parameters include Batch Error Mode, Logging Area, LoggingCategory, and Threads.

1. Click the Submit a Payroll Flow task.2. In the Legislative Data Group option, select a legislative data group.3. Search for and select the Load Data from File ow paern.4. Click Next.5. Enter the parameters, as shown in this table.

Field Value

Payroll Flow

Descriptive name for this specic ow process.

Content Id

Enter the Content Id. The source le must already exists on the content server.

Transformation Formula Select the required transformation formula. The type of the formula should be HCM Data

Loader.

Process Conguration Group

Select your process conguration group.

6. On the Enter Parameters page, click Next.7. On the Enter Flow Interaction page, click Next.8. On the Schedule page, click Next.9. On the Review page, click Submit.

10. In the conrmation dialog box, click OK and View Checklist.11. On the Payroll Flow page, Task Details tab you should see a green check mark in the Generate Data

Loader File and Initiate Data Loader rows, Task Type column. If not, on the toolbar, click the Refresh iconintermiently until you do.

12. Close the Payroll Flow page.13. On the Overview page, search for and click your payroll ow.14. View the process results.15. Check for any errors or warnings.



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Transformation Formula Input VariablesVariables, such as FileName, FileDiscriminator and LINEREPEATNO, are available for all formulas of HCM Data LoaderTransformation formula type. Additional variables may be available depending on the selected business object.

PositionsUsing the transformation formula, you can assign aributes to the required position. Positions can range from 1 to N.Depending upon the business object, the positions can be either optional or mandatory.

Example:

This gure shows the dierent aributes for positions 2 through 8 for Balance Adjustments.

LegislativeDataGroupName

1 2 3 4 5 6 7

EffectiveDate PayrollName ConsolidationSetName

BalAdjBatchId

SourceSystemId

SourceSystemOwner

Positions 2-8

In this example, you assign aributes to positions 2 through 8.

• POSITION2: EffectiveDate

• POSITION3: PayrollName

• POSITION4: LegislativeDataGroupName

• POSITION5: ConsolidationSetName

• POSITION6: BalAdjBatchId

• POSITION7: SourceSystemId

• POSITION8: SourceSystemOwner

FileName, FileDiscriminator, and BusinessOperationFileName, FileDiscriminator, and BusinessOperation variables are required for all transformations.

Here are the details of these variables.

• FileName is the name of the le for the business object.

• FileDiscriminator is the le discriminator for the business object.

• BusinessOperation refers to the operation, such as Merge or Delete that are performed by the HCM Data Loaderprocess on the transformed le.

Here's an example of values that you can supply for the input variables: FileName, FileDiscriminator, andBusinessOperation.

FileName = 'BalanceAdjustmentHeader'



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BusinessOperation = 'MERGE'FileDiscriminator = POSITION1

LINEREPEAT And LINEREPEATNOLINEREPEAT allows a single line of input to be processed multiple times. And LINEREPEATNO indicates the number ofrepetitions.

For example, for time entry, there might be a regular time entry wage followed by a premium time entry wage.

Example: The Element Entry le contains these details.

Update|ElementEntryValue|Vision Corporation US LDG|WLM_Salary|2019/04/15|4712/12/31|E955160008191355-2|Amount|1002|2|EUpdate|ElementEntryValue|Vision Corporation US LDG|WLM_Salary|2019/04/15|4712/12/31|E955160008191355-2|Amount|1003|3|E

The input line can be processed twice. The output le contains the element entry and element entry value as shown inthis sample code snippet.

ELSE IF OPERATION='MAP' THEN ( LegislativeDataGroupName=POSITION3 ElementName=POSITION4 EffectiveStartDate=POSITION5 EffectiveEndDate=POSITION6 AssignmentNumber=POSITION7 InputValueName=POSITION8 ScreenEntryValue=POSITION9 MultipleEntryCount=POSITION10 EntryType=POSITION11IF LINEREPEATNO=1 THEN ( BusinessOperation='MERGE' BusinessObject='Element Entry' FileName = 'ElementEntry' FileDiscriminator ='ElementEntry' LINEREPEAT = 'Y' RETURN BusinessOperation,FileDiscriminator,FileName )ELSE( BusinessOperation='MERGE' BusinessObject='Element Entry Value' FileName = 'ElementEntry' FileDiscriminator = 'ElementEntry' LINEREPEAT = 'N' RETURN BusinessOperation,FileDiscriminator,FileName )

Payroll Transformation Formula OperationsThe transformation formula is invoked several times to derive dierent components that are required for processing theincoming data.

This table explains the various operations that you can do with the formula.



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Operation Type Return Value Example

FILETYPE

OUTPUTVALUE

DELIMITED

DELIMITER

OUTPUTVALUE

|

READ

OUTPUTVALUE

NONE

MAP

Business Object Aributes

NA

NUMBEROFBUSINESSOBJECTS

OUTPUTVALUE

2

METADATALINEINFORMATION

METADATAn

METADATA1

DelimiterThe default delimiter that separates values is a pipe character. If your le uses a dierent delimiter, you must set thedelimiter you want your formula.

This example species a comma character as the delimiter.

/* Calculations */IF OPERATION='FILETYPE' THEN OUTPUTVALUE='DELIMITED'ELSE IF OPERATION='DELIMITER' THEN OUTPUTVALUE=','

Note: Ensure that the delimiter you enter in the formula is a single non-ASCII character and not part of any ofthe values to upload.

MAPThe MAP operation denes the return values related to a particular object. The return values must have the samenames as the aributes specied in the application for that object.

For example, these RETURN values can be used to generate an Element Entry dat le.

RETURN BusinessOperation,FileDiscriminator,FileName,AssignmentId,AssignmentNumber,CreatorType,DateEarned,EffectiveEndDate,EffectiveStartDate,ElementEntryId,ElementName,ElementTypeId,EntryType,GUID,LegislativeDataGroupId,LegislativeDataGroupName,MultipleEntryCount,Reason,SourceSystemId,SourceSystemOwner,Subpriority

Here, the BusinessOperation is set to MERGE and the BusinessObject is set to Element Entry.

METADATALINEINFORMATIONThe application generates the le either with all dened aributes or with only specied aributes, depending onwhether you specify a value for METADATALINEINFORMATION or not.

1. If you don't specify a value for METADATALINEINFORMATION, then the application generates METADATLINE in thetransformed le with all dened aributes for the business object.

2. If you specify a value, then the transformed le will contain only the aributes that you specied.



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For the METADATALINEINFORMATION operation, you specify an array per business object being processed in the formula.The number of arrays should match the number specied in the NUMBEROFBUSINESSOBJECTS operation. The nameof the array should be METADATA with the number as sux . For example, RETURN METADATA1, METADATA2 when theNUMBEROFBUSINESSOBJECTS is 2.

Note: The rst two entries in the array are reserved to specify the FileName and FileDiscriminator of the business object.

Additionally, for METADATALINEINFORMATION, you can specify aributes with special characters for that business objects.

Notice that in this example BalAdjBatchId(SourceSystemId) has parenthesis.

If the le contains either Flexeld or SourceSystem references, then the application can't resolve the default mapping ofoutput parameter names and aributes.

Let's consider this syntax: jobEffSegment1(PER_JOBS_EIT_EFF=context). To allow this construct to be generated in theHCM Data Loader le, you dene the METADATA line in the transformation formula. For each business object that appearsin the output, you must dene the METADATA content in an array.

Example:

METADATA2[1] = 'Job' /*FileName*/ METADATA2[2] = 'JobExtraInfo' /*FileDiscriminator*/ METADATA2[3] = 'EffectiveStartDate' METADATA2[4] = 'EffectiveEndDate' METADATA2[5] = 'JobCode' METADATA2[6] = 'SetCode' METADATA2[7] = 'FLEX:PER_JOBS_EIT_EFF' METADATA2[8] = 'EFF_CATEGORY_CODE' METADATA2[9] = 'InformationType' METADATA2[10] = 'JeiInformationCategory' METADATA2[11] = 'LegislationCode' METADATA2[12]= 'SequenceNumber' METADATA2[13]= 'jobEffSegment1(PER_JOBS_EIT_EFF=job-eff-context)'

Here's how the generated HCM Data Loader le looks like.

METADATA|JobExtraInfo|EffectiveStartDate|EffectiveEndDate|JobCode|SetCode|FLEX:PER_JOBS_EIT_EFF|EFF_CATEGORY_CODE|InformationType|JeiInformationCategory|LegislationCode|SequenceNumber|jobEffSegment1(PER_JOBS_EIT_EFF=job-eff-context)

NUMBEROFBUSINESSOBJECTSThis operation indicates the number of business objects being processed in the formula.

Return Values for Payroll Transformation Formula for HCM DataLoaderThe return values for HCM Data loader formulas vary based on the business object and task action. They are the sameas the aribute names and must include BusinessOperation, FileName, and FileDiscriminator.

Here's an example of return values.

/*Return Values*/RETURN BusinessOperation,FileName,FileDiscriminator,Attribute1,Attribute2,...,Attributen/*Attributes for a particular Business Object can be found from the View Business Objects UI under the HCM Data Loader task in the Data Exchange Work Area */



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For the NUMBEROFBUSINESSOBJECTS and METADATALINEINFORMATION operations, the RETURN statement is as follows.

/*Return Values for NUMBEROFBUSINESSOBJECTS and METADATALINEINFORMATION Operation*/IF OPERATION='FILETYPE' THEN OUTPUTVALUE='DELIMITED' ELSE IF OPERATION='DELIMITER' THEN OUTPUTVALUE='|' ELSE IF OPERATION='READ' THEN OUTPUTVALUE='NONE'ELSE IF OPERATION = 'NUMBEROFBUSINESSOBJECTS' THEN( OUTPUTVALUE = '2' RETURN OUTPUTVALUE )ELSE IF OPERATION = 'METADATALINEINFORMATION' THEN ( METADATA1[1] = 'BalanceAdjustmentHeader' /*FileName*/ /*Reserved*/ METADATA1[2] = 'BalanceAdjustmentHeader' /*FileDiscriminator*/ /*Reserved*/METADATA1[3] = 'LegislativeDataGroupName' METADATA1[4] = 'BatchName' METADATA1[5] = 'SourceSystemId' METADATA1[6] = 'SourceSystemOwner' METADATA2[1] = 'BalanceAdjustmentHeader' /*FileName*/ /*Reserved*/ METADATA2[2] = 'BalanceAdjustmentGroup' /*FileDiscriminator*/ /*Reserved*/ METADATA2[3] = 'EffectiveDate' METADATA2[4] = 'PayrollName' METADATA2[5] = 'LegislativeDataGroupName' METADATA2[6] = 'ConsolidationSetName' METADATA2[7] = 'BalAdjBatchId(SourceSystemId)' METADATA2[8] = 'SourceSystemId' METADATA2[9] = 'SourceSystemOwner' RETURN METADATA1, METADATA2 /*Only two as Return value for NUMBEROFBUSINESSOBJECTS is 2*/ )

You can dene variables with special characters. For example, use this structure to return theBalAdjBatchId(SourceSystemId) Source ID.

/*Return Values for the MAP Operation*/ FileName = 'BalanceAdjustmentHeader' BusinessOperation = 'MERGE' FileDiscriminator = POSITION1 EffectiveDate = POSITION2 PayrollName = POSITION3 LegislativeDataGroupName = POSITION4 ConsolidationSetName = POSITION5 "BalAdjBatchId(SourceSystemId)"= POSITION6 SourceSystemId = POSITION7 SourceSystemOwner = POSITION8 RETURN BusinessOperation, FileDiscriminator, FileName, EffectiveDate, PayrollName, LegislativeDataGroupName, ConsolidationSetName, "BalAdjBatchId(SourceSystemId)", SourceSystemId, SourceSystemOwner

/*Note BalAdjBatchId(SourceSystemId) is enclosed by double quotes while assigning value as well as while putting it in the return values list */

Sample Payroll Transformation Formula for HCM Data LoaderIn this example, the transformation formula species the transformation mechanism for an incoming comma separateddelimited le. The formula's return values are the same as the list of aributes for the personal payment method object.

Here's the sample raw le for personal payment method, with comma as the delimiter.



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2018/04/04,1,ZHRX_VS_US_TPPI_LDG_ONE,E955160008191423,ZHRX_VS_US_TPPI_Check,PPM1,M,10

And this code snippet has the formula for this example.

/******************************************************************FORMULA NAME: Load Personal Payment MethodFORMULA TYPE: HCM Data Loader******************************************************************//* Inputs */INPUTS ARE OPERATION (text), LINENO (number), LINEREPEATNO (number),POSITION1 (text), POSITION2 (text), POSITION3 (text), POSITION4 (text), POSITION5 (text), POSITION6 (text), POSITION7 (text), POSITION8 (text)

DEFAULT FOR POSITION1 IS 'NO DATA'DEFAULT FOR POSITION2 IS 'NO DATA'DEFAULT FOR POSITION3 IS 'NO DATA'DEFAULT FOR POSITION4 IS '2'DEFAULT FOR POSITION5 IS '100'DEFAULT FOR POSITION6 IS 'NO DATA'DEFAULT FOR POSITION7 IS 'NO DATA'DEFAULT FOR POSITION8 IS 'NO DATA'DEFAULT FOR LINEREPEATNO IS 1

IF OPERATION='FILETYPE' THEN OUTPUTVALUE='DELIMITED' ELSE IF OPERATION='DELIMITER' THEN OUTPUTVALUE=',' ELSE IF OPERATION='READ' THEN OUTPUTVALUE='NONE'ELSE IF OPERATION='MAP' THEN /*HDL Related Outputs*/ ( FileName = 'PersonalPaymentMethod' BusinessOperation = 'MERGE' FileDiscriminator = 'PersonalPaymentMethod' EffectiveStartDate=POSITION1 ProcessingOrder=POSITION2 LegislativeDataGroupName=POSITION3 AssignmentNumber=POSITION4 OrganizationPaymentMethodCode=POSITION5 PersonalPaymentMethodCode=POSITION6 PaymentAmountType=POSITION7 Amount=POSITION8 RETURN BusinessOperation,FileName,FileDiscriminator,EffectiveStartDate,PersonalPaymentMethodCode,AssignmentNumber,Amount,ProcessingOrder,OrganizationPaymentMethodCode,PaymentAmountType,LegislativeDataGroupName )ELSE OUTPUTVALUE='NONE'RETURN OUTPUTVALUE/* End Formula Text */

Sample Payroll Transformation Formula for Multiple BusinessObjectsIn this example, the formula uses the user dened tables and personal payment method business objects. Itconverts the Person Number in the at le into Assignment Number and uses the METADATALINEINFORMATION andNUMBEROFBUSINESSOBJECTS operations.

Here's the sample of the raw input le.

PPM|2018/04/04|1|ZHRX_VS_US_TPPI_LDG_ONE|955160008191423|ZHRX_VS_US_TPPI_Check|PPM1|M|10



55

UDT|SM_UDT_4|Range|Number|Test UDT|USA LDG


/**********************************************************FORMULA NAME: Load User Defined Table and Personal Payment MethodFORMULA TYPE: HCM Data Loader *************************************************************//* Inputs */INPUTS ARE OPERATION (text), LINENO (number), LINEREPEATNO (number),POSITION1 (text), POSITION2 (text), POSITION3 (text), POSITION4 (text), POSITION5 (text), POSITION6 (text), POSITION7 (text), POSITION8 (text),POSITION9 (text)DEFAULT FOR POSITION1 IS 'NO DATA'DEFAULT FOR POSITION2 IS 'NO DATA'DEFAULT FOR POSITION3 IS 'NO DATA'DEFAULT FOR POSITION4 IS '2'DEFAULT FOR POSITION5 IS '100'DEFAULT FOR POSITION6 IS 'NO DATA'DEFAULT FOR POSITION7 IS 'NO DATA'DEFAULT FOR POSITION8 IS 'NO DATA'DEFAULT FOR POSITION9 IS 'NO DATA'DEFAULT FOR LINEREPEATNO IS 1IF OPERATION='FILETYPE' THEN OUTPUTVALUE='DELIMITED' ELSE IF OPERATION='DELIMITER' THEN OUTPUTVALUE='|' ELSE IF OPERATION='READ' THEN OUTPUTVALUE='NONE'ELSE IF OPERATION = 'NUMBEROFBUSINESSOBJECTS' THEN ( OUTPUTVALUE = '2' RETURN OUTPUTVALUE )ELSE IF OPERATION = 'METADATALINEINFORMATION' THEN ( METADATA1[1] = 'UserDefinedTable' /*FileName*/ METADATA1[2] = 'UserDefinedTable' /*FileDiscriminator*/ METADATA1[3] = 'UserTableCode' METADATA1[4] = 'RangeOrMatch' METADATA1[5] = 'UserKeyUnits' METADATA1[6] = 'UserRowTitle' METADATA1[7] = 'UserTableName' METADATA1[8] = 'LegislativeDataGroupName' METADATA2[1] = 'PersonalPaymentMethod' /*FileName*/ METADATA2[2] = 'PersonalPaymentMethod' /*FileDiscriminator*/ METADATA2[3] = 'EffectiveStartDate' METADATA2[4] = 'PersonalPaymentMethodCode' METADATA2[5] = 'AssignmentNumber' METADATA2[6] = 'Amount' METADATA2[7] = 'ProcessingOrder' METADATA2[8] = 'OrganizationPaymentMethodCode' METADATA2[9] = 'PaymentAmountType' METADATA2[10] = 'LegislativeDataGroupName' RETURN METADATA1, METADATA2 )ELSE IF OPERATION='MAP' THEN

IF POSITION1='UDT' THEN ( FileName = 'UserDefinedTable' BusinessOperation = 'MERGE' FileDiscriminator = 'UserDefinedTable' UserTableCode = POSITION2 IF POSITION3='Range' THEN ( RangeOrMatch = 'R'



56

) IF POSITION4='Number' THEN ( UserKeyUnits = 'N' ) UserRowTitle = POSITION5 UserTableName = POSITION2 LegislativeDataGroupName = POSITION6 RETURN BusinessOperation,FileDiscriminator,FileName,UserTableCode,RangeOrMatch,UserKeyUnits,UserRowTitle,UserTableName,LegislativeDataGroupName ) IF POSITION1='PPM' THEN ( FileName = 'PersonalPaymentMethod' BusinessOperation = 'MERGE' FileDiscriminator = 'PersonalPaymentMethod' EffectiveStartDate=POSITION2 ProcessingOrder=POSITION3 LegislativeDataGroupName=POSITION4 AssignmentNumber=GET_VALUE_SET('SAMPLE_GET_ASG_NUM','|=PERSON_NUMBER='''||POSITION5||'''') OrganizationPaymentMethodCode=POSITION6 PersonalPaymentMethodCode=POSITION7 PaymentAmountType=POSITION8 Amount=POSITION9 RETURN BusinessOperation,FileName,FileDiscriminator,EffectiveStartDate,PersonalPaymentMethodCode,AssignmentNumber,Amount,ProcessingOrder,OrganizationPaymentMethodCode,PaymentAmountType,LegislativeDataGroupName )ELSE OUTPUTVALUE='NONE'RETURN OUTPUTVALUE/* End Formula Text */

Note: To debug value sets, create a BI report with this query to return the required data.

SELECT pay_ff_functions.gvs ('SAMPLE_GET_ASG_NUM','|=PERSON_ID=100000012092216') value FROM dual;

Payroll Transformation Formula for HCM SpreadsheetData Loader

OverviewYou can use HCM Spreadsheet Data Loader to load all payroll objects that HCM Data Loader supports. As the rst step,you create a spreadsheet template for the required object from the Data Exchange Work area and further downloadthe template in CSV format. You can download CSV and XML le templates from a spreadsheet template. The PayrollTransformation Formula for HCM Spreadsheet Data Loader transforms the raw delimited le to a format that suits thetemplate.



57

This gure summarizes the process of transforming data that's uploaded using HCM Spreadsheet Data Loader.

DataLine1|xx|11DataLine2|yy|22DataLine3|zz|33

Zip FileHCM Spreadsheet Data Loader dat file

Start

Generate Data Loader

Initiate Spreadsheet Data Loader

End

UCMPayroll

Transformation Formula for

HCM Spreadsheet Data Loader

1

2

3

4

Data File

Load Spreadsheet Data From File

Here's a summary of how the transformation process works.

1. From the Checklist or Data Exchange work area, submit the Load Spreadsheet Data from File ow paern.The ow is secured using these privileges:

Flow Privilege

Submit Payroll


Load Data using HCM SpreadsheetData Loader

HRC_ LOAD_ DATA_ USING_ HSDL_PRIV

2. This ow paern invokes the transformation formula for the Content ID and has these tasks:a. Generate Data Loader Fileb. Initiate Spreadsheet Data Loader

3. The Generate Data Loader File task reads the data le line by line, producing an equivalent HCM SpreadsheetData Loader format for each line. Finally, it creates a compressed le of all of the transformed data les anduploads it to Oracle WebCenter Content server.

4. The Initiate Spreadsheet Data Loader task takes the compressed le generated by the Generate Data LoaderFile task and invokes the HCM Spreadsheet Data Loader. The HCM Spreadsheet Data Loader creates therequired data in the HCM Cloud.



58

Related Topics

• Guidelines for Using HCM Spreadsheet Data Loader

• How Data Is Uploaded Using HCM Spreadsheet Data Loader

• HCM Spreadsheet Data Loader Templates

• Create and Edit Spreadsheet Templates

• Guidelines for Designing Spreadsheet Templates

Sample Payroll Transformation Formula for HCMSpreadsheet Data LoaderIn this example, the transformation formula species the transformation mechanism for an incoming pipe separateddelimited le. The formula's return values are the same as the list of aributes in the template le for the User DenedTable business object.


/* Inputs */INPUTS ARE OPERATION (text), LINENO (number), LINEREPEATNO (number),POSITION1 (text), POSITION2 (text), POSITION3 (text), POSITION4 (text), POSITION5 (text), POSITION6 (text), POSITION7 (text), POSITION8 (text)DEFAULT FOR POSITION1 IS 'NO DATA'DEFAULT FOR POSITION2 IS 'NO DATA'DEFAULT FOR POSITION3 IS 'NO DATA'DEFAULT FOR POSITION4 IS 'NO DATA'DEFAULT FOR POSITION5 IS 'NO DATA'DEFAULT FOR LINEREPEATNO IS 1IF OPERATION='FILETYPE' THENOUTPUTVALUE='DELIMITED'ELSE IF OPERATION='DELIMITER' THENOUTPUTVALUE='|'ELSE IF OPERATION='READ' THENOUTPUTVALUE='NONE'ELSE IF OPERATION = 'NUMBEROFBUSINESSOBJECTS' THEN(OUTPUTVALUE = '1'/*Always be 1*/RETURN OUTPUTVALUE)ELSE IF OPERATION = 'METADATALINEINFORMATION' THEN(METADATA1[1] = 'SMUDT' /*TemplateName*/METADATA1[2] = 'UserDefinedTable' /*FileDiscriminator*/METADATA1[3] = 'UserDefinedTable_UserTableCode'METADATA1[4] = 'UserDefinedTable_LegislativeDataGroupName'METADATA1[5] = 'UserDefinedTable_UserTableName'METADATA1[6] = 'UserDefinedTable_RangeOrMatch'METADATA1[7] = 'UserDefinedTable_UserRowTitle'METADATA1[8]= 'UserDefinedTable_UserKeyUnits'RETURN METADATA1 /*You can return only one METADATA for the respective template*/)ELSE IF OPERATION='MAP' THEN(FileName = 'SMUDT'BusinessOperation = 'HSDL'FileDiscriminator = 'UserDefinedTable'UserDefinedTable_UserTableCode = POSITION1UserDefinedTable_LegislativeDataGroupName = POSITION2

http://www.oracle.com/pls/topic/lookup?ctx=fa19d&id=353AA39407926BA2E05362C3F00A3401


http://www.oracle.com/pls/topic/lookup?ctx=fa19d&id=34C29459CFC92502E05362C3F00A246A

http://www.oracle.com/pls/topic/lookup?ctx=fa19d&id=3529897810B539DBE05362C3F00A6101

http://www.oracle.com/pls/topic/lookup?ctx=fa19d&id=7379D675D1803C41E053A398F70A53C1



59

UserDefinedTable_UserTableName = POSITION1UserDefinedTable_RangeOrMatch = POSITION3UserDefinedTable_UserRowTitle = POSITION4UserDefinedTable_UserKeyUnits = POSITION5RETURN BusinessOperation,FileDiscriminator,FileName,UserDefinedTable_UserTableCode,UserDefinedTable_LegislativeDataGroupName,UserDefinedTable_UserTableName,UserDefinedTable_RangeOrMatch,UserDefinedTable_UserRowTitle,UserDefinedTable_UserKeyUnits)ELSEOUTPUTVALUE='NONE'RETURN OUTPUTVALUE/* End Formula Text */

Related Topics

• Guidelines for Using HCM Spreadsheet Data Loader

• How Data Is Uploaded Using HCM Spreadsheet Data Loader

• HCM Spreadsheet Data Loader Templates

• Create and Edit Spreadsheet Templates

• Guidelines for Designing Spreadsheet Templates



http://www.oracle.com/pls/topic/lookup?ctx=fa19d&id=34C29459CFC92502E05362C3F00A246A

http://www.oracle.com/pls/topic/lookup?ctx=fa19d&id=3529897810B539DBE05362C3F00A6101

http://www.oracle.com/pls/topic/lookup?ctx=fa19d&id=7379D675D1803C41E053A398F70A53C1



60


Chapter 5Understanding Geographies, Address Styles, and Country

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5 Understanding Geographies, Address Styles,and Country Extensions

Implementing Global PayrollTo implement payroll, you must rst understand payroll feature choices and concepts. You can then plan yourpayroll implementation using the Oracle Functional Setup Manager. Functional Setup Manager enables rapid andecient planning, conguration, implementation, deployment, and ongoing maintenance of the application throughadministration.

Payroll Feature ChoicesAs part of feature choices for payroll processing you:

• Select the correct country extension seing for each of your countries and territories on the Manage Featuresby Country or Territory page. The country extension seing ensures that certain payroll-related features, suchas element templates, work correctly in your implementation.

• Select the Payroll Costing Options to cost your payroll and the appropriate subledger accounting rules.

• Select the appropriate precision for the currency of each country or territory where you're processing payroll.

• Set the currency of each country or territory where you're sending payroll data to a third-party payroll provider.However, don't select that country or territory as a feature choice. Select the Payroll Interface extension on theManage Features by Country or Territory page.

Geography StructuresThis topic describes geography structures and the tasks you can perform using geography structures.

A geography structure is a hierarchical grouping of geography types for a country. The following table describes thegeography structure for the United States.

Level Geography Type

1

State

2

County

3

City

4 Postal Code



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Level Geography Type

You can use the geography structure to relate geography types for a country and dene geography types for a country.

Relate Geography Types for a CountryYou can determine how a country's geographies are hierarchically related by creating the hierarchy of the geographytypes in the geography structure. When you dene a country's structure, the geography type Country is implicitly at thehighest level of the geography structure with level as 1. The subsequent geography types that you add after country arenumbered in sequence.

You must add a geography type as a level in the country structure before you can dene a geography for thatgeography type in a country. For example, before dening the state of California, the State geography type mustbe added to the United States country structure. To quickly create country structure, you can copy a structure fromanother country and modify the geography types for the country.

Dene Geography Types for a CountryYou can use any of the master reference geography types to create your geography structure. If required, you cancreate a geography type, before adding it to the country structure. Each geography type is added at a lower level to thecurrent lowest level.

Note: You can't delete geography types that have associated geography data. You can only delete the lowestlevel geography type of the country structure.

You can use a geography type that you create within the country structure for other country structures as well.

Geography ValidationsGeography validation determines the geography mapping and validation for a country's address styles, as well as theoverall geography validation control for a country.

The No Styles Format address style format is the default address style format for a country. By dening the mappingand validation for this format you will ensure that validations can be performed for any address in the country. After theNo Styles Format is dened you can set up additional mapping for specic address styles.

For each address style format, you can dene the following:

• Map to aribute

• Enable list of values

• Tax validation

• Geography validation

• Geography validation control

Aribute MappingFor every address style format, you can map each geography type to an address aribute. For example, you canmap the State geography type to the State address aribute for the United States, or map the State geography type



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to the County address aribute for the United Kingdom. The geography types that appear are based on how thecountry structure is dened. The list of address aributes that appear are based on address formats delivered with theapplication, or your customer dened address formats.

Note: You only need to map geography types that you want to use for geography or tax validation purposes.

Enable List of ValuesOnce a geography type is mapped to an aribute, then you can specify whether the geography type will appear in alist of values during address entry in user interfaces. It is very important to review carefully if you want to enable a listof values. You should only enable a list of values if you have sucient geography data imported or created for thatgeography. If the setup for master geography data is incomplete, then the geography data is either not imported orcreated. As a result, the list of values for the address aribute doesn't list any geography data.

Once you have enabled a list of values for an address aribute, you can only select the geography data available forthe geography type. This means that if a specic geography value isn't available in the geography hierarchy, you can'tcreate an address with a dierent geography value.

Tax ValidationYou can also specify whether a geography type will be included in tax validation. For example, for the United StatesNorth America address style format you specify that County, State, and City are used for tax validation. This will meanthat when a transaction involves an address with the North America address style, the address must have the correctcounty, state, and city combination based on the geography hierarchy data, to be considered valid for tax calculation.

Geography ValidationYou must set up geography validation for those geography elements that you plan to use in your sales territories.Seing up validation also helps users ll in missing address information, and validate addresses during entry. Forexample, you can have users select states or other address elements from lists to ensure accuracy during entry, andyou can have the application ll in missing values. For example, when the user enters a Postal Code, the application canretrieve the city and state.

You can specify whether a geography type will be included in geography validation. For example, when the user entersa United States address using the North America address style format, the address must have the correct country, state,and postal code combination based on geography hierarchy data to be considered geographically valid.

If an address element is mapped to a geography type, but not selected for geography validation usage, then duringaddress entry suggested values are provided for the address element, but the address element isn't be validated.

You need to verify that the default mapping between Geography Type and Map to Aribute is valid in the GeographyMapping and Validation region and update it if required when you dene geography validation. Oracle recommendsthat you use the following valid mapping for the countries that GBG | Loqate supports:

Country Name Country Code Geography Type Map to Aribute

Andorra

AD

• Country• Parroqia• Settlement• Postal Code

• Country• State• City• Postal code

Angola AO • Country • Country



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64


• Provincia• Municipio• Comuna• Localidad

• Province• County• City• Additional address

attribute 2

Argentina

AR

• Country• Province• Department• Municipality• Postal Code

• Country• Province• County• City• Postal code

Australia

AU

• Country• State• City• Postal Code


Austria

AT

• Country• Bundensland• Bezirk• Gemeinde• Postal Code

• Country• State• County• City• Postal code

Belgium

BE

• Country• Gewest• Provincie• Gemeente• Postal Code

• Country• Additional address

attribute 1• Province• City• Postal code

Bolivia

BO

• Country• Departmento• Provincia• Canton


attribute 1• Province• City

Bosnia and Herzegovina

BA

• Country• District• Kanton• Opcine• Nasalje• Postal Code


attribute 1• Province• County• City• Postal code

Brazil

BR



Bulgaria

BG

• Country• Oblast• Obshhina


attribute 1



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65


• Settlement• Postal Code

• Province• City• Postal code

Canada

CA

• Country• Province• City• Postal Code

• Country• Province• City• Postal code

Cayman Islands

KY

• Country• Island• District• Postal Code


Chile

CL

• Country• Region• Provincia• Kommune• Postal Code


China

CN

• Country• Province• City• Postal Code


Croatia

HR

• Country• Zupanije• Grad• Postal Code


Cuba

CU

• Country• Provincia• Municipio• City• Postal Code


Cyprus

CY

• Country• Periochi• Dimos• Postal Code


Czech Republic

CZ

• Country• Kraj• Okres• Obec• Postal Code


Denmark

DK

• Country• Amt• Settlement

• Country• Province• City



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• Postal Code • Postal code

Dominican Republic

DO

• Country• Provincia• Municipio• Town• Postal Code


Ecuador

EC

• Country• Province• Canton• City• Postal Code


Estonia

EE

• Country• Maakond• Vald• Postal Code


Finland

FI

• Country• Laani• Kunta• Postal Code


France

FR

• Country• Region• Department• Commune• Postal Code


attribute 1• State• City• Postal code

Germany

DE

• Country• Bundesland• Kreis• Gemeinde• Postal Code


Great Britain

GB

• Country• County• Township• Postal Code


Greece

GR

• Country• Periferia• Nomi• Dimotika• Postal Code


Guadalupe

GP

• Country• Commune

• Country• City



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Guam

GU

• Country• State• County• Municipality• Village• Postal Code

• Country• State• County• City• Additional address

attribute 2• Postal code

Guernsey

GG

• Country• City• Parishes• Villages• Postal Code

• Country• City• Additional address

attribute 2• Additional address

attribute 3• Postal Code

Hungary

HU

• Country• Megye• Jaras• Telepules• Settlement• Postal Code



Iceland

IS

• Country• Jaras• Telepules• Settlement• Postal Code


India

IN



Indonesia

ID

• Country• Province• Regency• City• Postal Code


Ireland

IE

• Country• Province• Post County• Post Town• Locality


attribute 1• State• City• Additional address

attribute 2

Isles of Man IM • Country • Country



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• Locality• Settlement• Postal Code

• City• Additional address


Israel

IL

• Country• District• Subdistrict• City• Postal Code


Italy

IT

• Country• Regione• Provincia• Comune• Postal code


attribute 1• Province• City• Postal code

Jamaica

JM

• Country• Parish• Settlement

• Country• State• City

Japan

JP

• Country• Prefecture• City• Postal Code


Jordan

JO

• Country• Muhafazat• Liwa• Tajma• Postal Code


Kenya

KE

• Country• County• Division• Settlement

• Country• State• City• Additional address

attribute 2

Latvia

LV

• Country• Rajons• Pilseta• Postal Code


Liechtenstein

LI

• Country• Wahlkreis• Gemeinde• District• Postal Code


attribute 1• State• City



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• Postal code

Lithuania

LT

• Country• County• Municipality• Ward• Postal Code


Luxembourg

LU

• Country• District• Canton• Commune• Settlement• Postal Code


attribute 1• State• County• City• Postal code

Malaysia

MY

• Country• State• District• Subdistrict• Postal Code


Malta

MT

• Country• Region• Local Council• Postal Code


Martinique

MQ



Mexico

MX

• Country• State• Municipality• Locality• Postal Code

• Country• State• County• Additional address


Netherlands

NL

• Country• Province• Gemeente• Settlement• Postal Code


New Zealand

NZ

• Country• Region• Town




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Norway

NO

• Country• Fylke• Kommune• Postal Code


Oman

OM

• Country• Muhafazah• District• City

• Country• State• County• City

Peru

PE

• Country• Region• Provincia• Distrito• Postal Code


Poland

PL

• Country• Wojewodztwo• Powiat• Gmina• Postal Code


Portugal

PT

• Country• Distrito• Concelho• Settlement• Postal Code


Puerto Rico

PR

• Country• Commonwealth• Municipio• Barrio• Postal Code


Qatar

QA

• Country• Municipality• Zone


Reunion Island

RE



Romania

RO

• Country• Regiune• Judet• Settlement• Comuna


attribute 1• Province• County



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• Postal Code • City• Postal code

Russia

RU

• Country• Federal_District• Respublik• Kray• Oblast• Postal Code


attribute 1• State• County• City• Postal code

San Marino

SM

• Country• Comune• Postal Code

• Country• State• Postal code

Singapore

SG

• Country• Region• District• Postal Code


Slovakia

SK

• Country• Kraj• Okres• Obec• Postal Code


Slovenia

SI

• Country• Regija• Upravna Enota• Obcina• Settlement• Postal Code



South Africa

ZA

• Country• Province• District

Municipality• Local Municipality• Postal Code


South Korea

KR

• Country• Jibang• Siti• Postal Code


Spain

ES



attribute 1• Province• City



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• Postal code

Sri Lanka

LK

• Country• Province• District• Divisional

Secretariat• Postal Code


Swaziland

SZ

• Country• District• Inkhundla• Town• Postal Code


Sweden

SE

• Country• Lan• Settlement• Postal Code


Switzerland

CH

• Country• Kanton• Bezirk• Gemeinde• Postal Code


Taiwan

TW

• Country• County• Town• Postal Code


Thailand

TH

• Country• Region• Changwat• Amphoe• Postal Code


attribute 1• State• City• Postal code

Tunisia

TN

• Country• Governorate• Delegation• Postal Code


Turkey

TR

• Country• Sehir• Ilce• Kasaba• Postal Code


United Arab Emirates

AE

• Country• Emirate

• Country• State



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• City• Area

• City• Additional address

attribute 2

United States

US

• Country• State• County• City• Postal Code


Uruguay

UY

• Country• Departamento• City• Postal Code


Vatican City

VA

• Country• Municipal• Settlement• Postal Code


Vietnam

VN

• Country• Region• Tihn• Quan• Thank Pho• Postal Code



Note: For either the tax or geography validation, don't skip more than one consecutive level unless you'recertain that the selected geography types can uniquely identify geographies. For example, the United Statescountry structure is: State, County, City, and Postal Code, and you want to select just State and Postal Codefor geography or tax validation. However, for the combination of California and 94065, the city can be eitherRedwood Shores or Redwood City. In this case, you should also select at least the City geography type forgeography or tax validation.

Geography Validation ControlYou can select the geography validation level for a country. Validation will check if the entered address maps to thegeography hierarchy data available for the country, and the geography validation control determines whether you cansave an address that didn't pass validation during address entry. For example, if the validation level is Error, then anaddress can't be saved if the values don't match the geography hierarchy data.

These are the geography validation levels you can choose:

• Error - only completely valid addresses can be saved, with all mandatory address elements entered.

• No Validation - all addresses can be saved including incomplete and invalid addresses.

Regardless of the result of validation, the validation process will try to map any address aribute to a geography ofthe country, and store any mapping it could establish based on the available data. This is called Geography Name



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Referencing and it's executed as part of validation. The result of this referencing is used in several business processesin the application to map an address to a specic geography or zone.

The Geography Dimension value in territories is derived from sell-to addresses of sales accounts. To use geographydimensions in territories, you must validate the geography elements in the addresses, such as state, city, and postalcode. You can validate the address by enabling geography validation for each country using the Manage Geographiestask. Perform the following in the Manage Geographies task:

• Enable at least one level in the geography hierarchy for geography validation.

• Enable geography validation for all geography levels that you intend to use for territory denition for eachcountry.

• If needed, enable a list of values containing specic geography elements. This will help users search and selectappropriate geography values during addresses entry and eliminate all possibilities of wrong address entry.

You can set geography validation control to Error in the Manage Geography Validation page. This ensures that userscan only use valid geography elements in addresses.

Note: If you have already created addresses before seing up geography validation for a country, you mustenable geography validation and then execute the Run Maintain Geography Name Referencing task for thatcountry. This validates all your geography elements.

Changing Address Style and Address Validation SeingsUse the Manage Features by Country or Territory task to control address style and level of address validation for thecountries or territories you congure. The values you can set depend on the combination of the country or territory andthe selected country extension. For example, for Canada, you can change the address style from its default value onlywhen you set the country extension to Human Resources or None. You can't change the address style from its defaultvalue when you set the country extension to Payroll or Payroll Interface.

Address StylesThe address style you select determines which address aributes are available and maintained in the application. Thecombination of address style and address validation determines the level of validation.

Depending on the country or territory and the country extension you select, you have one or both of the followingaddress style options. Each address style provides its own validation.

Address Style What the Address Style Does

Postal Address

This address style provides the fundamental set of address aributes for a country or territory.In some cases, this style adds supplemental aributes. For instance this address style mightinclude general address aributes that aren't relevant, such as State or Postal Code.

Supplemental Taxation andReporting Address

Enforces validation to aribute changes. For example, this style may add specic validation of postal codes, such as requiring a specicnumber of characters in a specic sequence.



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Use the Manage Features by Country or Territory task to see what's delivered for your country. Each country has adefault address style and the choice of the country extension determines whether you can change the default addressstyle.

Address Validation Based on Country ExtensionAddress validation is the validation of county, city, province, and postal code combinations.

Employees must have a valid address in order for them to receive their tax card and to ensure the accuracy of their taxcalculations.

Address validation is automatically enabled for some license and product extension combinations. For example,for Canada, the default is Supplemental Taxation and Reporting Address. However, the address style and addressvalidation depends on the country extension, as shown in this table.

Extension Style Enforced Validation Enforced

Human Resources

No

No

Payroll Interface

Yes

No

Payroll

Yes

Yes

For Canada, if you have chosen to install Human Resources, the value for the Address Style can be modied toeither format. If you have chosen to install either Payroll Interface or Payroll, the value for the Address Style can't bemodied. It must be set to Supplemental Taxation and Reporting Address. Validations are implemented to enforce thatrequirement.

Change Address StylesFor most of the predened countries and territories, the application enforces the address style, preventing you frommaking changes. However, when the address style isn't enforced, such as a customer-congured legislation, changingaddress styles can aect validation rules. This might lead to address data integrity and validation issues.

For example, for Canada, if you initially implement Human Resources using the Postal Address style and then laterchange the country extension to Payroll, you must also change the address style to Supplemental Taxation andReporting Address. As a result, you must update your existing address data to resolve validation errors.

Note: The Supplemental Taxation and Reporting Address style, once selected, impacts both the Personand HCM Locations address styles. Ensure to test any changes you make to address style or validation for acountry or territory before you implement them in a production environment. If you provide data to a thirdparty, such as a payroll or benet provider, statutory recipients, or nancial institutions, you must test thechanges. Changes to validation or address styles may result in missing data or unrecognized data.

Tip: Use the Manage Address Formats task to review and congure how addresses appear in the application.



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Disable Address ValidationDisabling address validation disables any country-specic programmatic validation rules created for a specic countryor territory. You can disable address validation on the Manage Features by Country or Territory page.

A country or territory might have rules dened using the Manage Geographies task for validating address structure,format, or values. Disabling address validation doesn't have any impact on the validations you have set up on theManage Geographies page.

For some countries, the application prevents you from disabling the programmatic validation. For other countries andterritories, when you disable address validation, any existing validation rules for the selected address style, remains inplace.

Note: For Canada, when Payroll is the selected country extension, you can't disable the address validation.

For example, suppose you have chosen Human Resources with address validation enabled. During data conversion, youwant to temporarily bypass address validation rules to load a batch of worker data. You can achieve this by deselectingthe Address Validation check box before loading your data. After loading the batch, if the address validation remainsdisabled, any new address data you enter later, could be potentially invalid. Errors may occur in subsequent processesand reports. As a result, you must re-enable address validation and update your existing address data to resolvevalidation errors.

Enable Address ValidationTo manually enable or disable address validation:

1. Search for and start the Manage Features by Country or Territory task.2. Select the Address Validation box.3. Click Save and then Done.

Caution: If you don't have address validation enabled, then you must take care when switching productextensions, as any address you previously dened may be missing required values, such as county and taxdistrict. There's also the possibility of invalid address combinations, such as mismatched city and postal codecombinations.

Country Extensions

How Country Extensions are SelectedUse the he Manage Features by Country or Territory task to select the correct product for each of your legislations. Thecountry extension seing ensures that certain payroll-related features, such as element templates, work correctly inyour implementation. By default, each country's extension is set to Human Resources or None, which means no payrollproduct is selected. If you plan to use payroll or any predened payroll interface extracts for a country or territory, youmust set its country extension to the appropriate payroll seing.

The options available for selection for some countries or territories may be restricted. The full list is as follows:

• Payroll

• Payroll Interface



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• Human Resources or None

Seing the country extension to Payroll ensures that all payroll features function correctly. The other product seingsyou select control the functions of payroll-related features when you aren't using Global Payroll. The following sectionsexplain the available three options.

PayrollSeing the country extension to Payroll has the following implications:

• When creating elements, the element templates generate formulas and other associated items that are requiredfor costing or payment processing in Global Payroll.

• The new-hire process includes country-specic features, such as automatic generation of calculation cards forstatutory deductions and validation of address formats.

• Payroll denitions require associated organization payment methods. You must select payment methods thatinclude a payment source.

• Dening payment sources requires source banks in Oracle Fusion Financials.

Payroll InterfaceSeing the country extension to Payroll Interface has the following eects:

• The element templates for creating regular and supplemental earnings elements generate associated objects,such as input values, formulas, and balances. These objects are required for including employee data in theCalculate Gross Earnings process.

For all other elements, the simplied element templates create only the element and no associated objects.

• The new hire process includes country-specic validations.

• Validations on payroll objects are less restrictive to support sending employee bank information as follows:

◦ No requirement for payment sources in organization payment methods

◦ No dependency on source banks in Financials

Human Resources or NoneSeing the country extension to Human Resources or None has the following eects:

• The element templates for creating standard earnings, supplemental earnings, direct payments, and taxablebenets elements with at amount calculation rule generates the element denition and three input values,such as amount, periodicity and full time equivalent. This template for percentage calculation rule generatespercentage input value and factor input value for factor calculation rule. It doesn't generate any other objects,such as fast formulas and balances.

• The element templates for creating the other elements generates only the elements and not the associatedobjects, such as input values, formulas, or balances.

You can congure these elements to meet your specic business requirements, such as adding input valuesand formulas to a compensation element.

• Certain countries or territories have additional country-specic validation.

• Validations on payroll objects are less restrictive, as with the Payroll Interface seing.

Related Topics

• Set Up Reconciliation for Payments



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• Payroll Legislative Data

Select Country ExtensionsThis example demonstrates how to congure payroll-related features for countries and territories in an enterprise.

The Vision enterprise has employees in several countries with dierent payroll arrangements:

• In the United States and United Kingdom, the enterprise pays employees using Oracle Fusion Global Payroll.

• In France, the enterprise extracts and sends payroll-related data to third-party payroll provider using PayrollInterface extract denitions.

• In China, the enterprise stores only HR data in Oracle Fusion Applications and doesn't require any data forpayroll purposes.

The following table summarizes the key decisions to consider while deciding on the product usage for a country.

Decisions to Consider In This Example

Do your plans include processing payrolls within Oracle Fusion forany country?

Yes, using Global Payroll in the US and UK

Do your plans include extracting or transferring payroll-relateddata to a third-party provider for any country?

Yes, using Payroll Interface extracts in France

Do your plans include processing only HR details?

Yes, using Global HR in China

How to Set the Extension1. In the Setup and Maintenance work area, go to the following:

◦ Oering: Workforce Deployment

◦ Functional Area: Payroll

◦ Task: Manage Features by Country or Territory

2. Click Go to Task.3. In the Selected Extension list, select the country extension for the countries as shown in this table.

The following table lists the country names and the product usage that you can select for this scenario.

Country Extension

United States

Payroll

United Kingdom

Payroll

France

Payroll Interface

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Country Extension

China

Human Resources or None

4. Click Save, and then click Done.



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Chapter 6Understanding Prerequisite Payroll Setup Tasks

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6 Understanding Prerequisite Payroll SetupTasks

Prerequisite Tasks for Payroll SetupYou will nd most of the setup tasks required for payroll processing in the Dene Payroll task list in the Setup andMaintenance work area. There are required common application conguration tasks you may have already donebecause other HCM applications require them. You may want to revisit tasks to address payroll-specic requirements,such as creating tax reporting units, to verify..

If these prerequisite tasks haven't been completed, you can nd them within Dene Common ApplicationsConguration for Human Capital Management:

• Dene Features by Country or Territory

• Dene Geographies for HCM

• Dene Enterprise Structures for HCM

Dene Geographies for HCMVerify predened geographies, and dene any additionally required local geographies.

For further information, see these topics in the Help Center:

• Geography Structures: Explained

• Geography Validation: Explained

Dene Enterprise Structures for HCMComplete tasks in the task lists shown in this table.

Task List Action

Dene Legal Jurisdictions andAuthorities for HCM

• Create a legal jurisdiction if not already created or predened for your country orterritory.

• Create a legal authority for each government body you interact with.• Create addresses for legal entities and legal authorities.

Dene Legal Entities for HCM

• Create a legislative data group for each country or territory you operate in, to partitionyour payroll data.

• Create at least one legal entity designated as a payroll statutory unit (PSU) for eachlegislative data group.

• Associate each PSU with a legislative data group.



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Task List Action

• Create calculation cards for statutory deductions for each PSU, if supported for yourcountry or territory.

Dene Legal Reporting Units for HCM

• Create any additional legal reporting units that you need under a PSU and designatethem as tax reporting units (TRUs).

• Dene the TRUs as reporting establishments as needed.• Optionally, create calculation cards for statutory deductions for each TRU, if supported

for your country or territory.

Dene Business Units for HCM

Create business units that you can use to perform one or more business functions.

Dene Chart of Accounts forEnterprise Structures

Create business units that you can use to perform one or more business functions.

Dene Accounting Congurations forHCM

Create charts of accounts, ledgers, and accounting calendars. When you create a bank for apayment source, you must select a legal entity that's assigned to a ledger for the associatedlegislative data group. Payroll costing also requires these nancial components.

Dene Features by Country or TerritoryReview and update the selected features for your countries and territories of operation. These seings control theavailability of payroll-related features, such as element templates, and address style and address validation rules used inprocesses and reports.

Related Topics

• How Legal Employers Work with Payroll Statutory Units and Tax Reporting Units

• Legislative Data Groups

• How Country Extensions are Selected

Payroll Setup Tasks for FinancialsPayroll integrates with Oracle Fusion Financials. You must set up components in Financials, such as charts of accountsand ledgers, before you can set up banks to process payments, associate a ledger to a payroll denition, and runprocesses to distribute costing results.

Complete these setup tasks in the Setup and Maintenance work area for the chart of accounts and ledgers. Theapplication implementation consultant job role can perform these tasks.

Chart of Account Setup TasksComplete these tasks to set up your chart of accounts information. Later, you associate the chart of accounts to aledger.



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Task Action

Manage Chart of Accounts Value Sets

Create new or review existing value sets, which you will associate with a key exeld segment.

Manage Chart of Accounts Structures

Create account structures that specify the segments to include, their order, and the value setsthat will validate the data entered in the segments. Oracle Fusion General Ledger predenes the Accounting key exeld.

Manage Chart of Accounts StructureInstances

Create account structure instances, which you will use to record transactions and maintainaccount balances.

Manage Chart of Accounts Value SetValues

Create groups of values, which you will assign to a key exeld segment.

Manage Account Hierarchies

Search, create, and edit hierarchical groupings of accounts.

Manage Accounting Calendars

Set up accounting calendar period details. Determine the total number, frequency, andduration of the accounting periods.

Manage Account Combinations

1. Create account combinations if the structure instance of your chart of accounts exelddoesn't allow dynamically created account combinations

2. Create accounts for each account combination used in payroll. As a best practice, usethe same account numbers for your payroll and general ledger accounts.

3. If you reconcile payments in Oracle Fusion Cash Management, create an accountcombination for reconciliation dierences.

Ledger Setup TasksYou perform these tasks as part of the accounting conguration setup for Global Payroll.

Task Action

Manage Primary Ledgers

Create a ledger with a chart of accounts, accounting calendar, currency and subledgeraccounting method.

Note: If you're creating bank information, you must create a primary ledger.

Assign Legal Entities

Add the legal entities that use the ledger. The Manage Legal Entity HCM Information task associates the payroll statutory units for legalentities to the legislative data group.

Specify Ledger Options

1. Complete all the elds for the General Information and Accounting Calendar, andSubledger Accounting sections.

2. In the Period Close section, select the Retained Earnings Account you will use for payroll.



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Task Action

3. In the Journal Processing Intercompany subsection, select the option to launchAutoReverse after the open period.

Assign Balancing Segment Values toLegal Entities

Assign specic balancing segment values to each legal entity before assigning values to theledgers. By specifying this information, you can more easily identify legal entities during transactionprocessing and reporting

Assign Balancing Segment Values toLedger

Optionally, assign specic primary balancing segment values to the primary and secondaryledgers to represent transactions for nonlegal entities, such as adjustments.

Manage Reporting Currencies

Review and update reporting currencies. Reporting currencies maintain and record subledger and general ledger journal entries inadditional currencies.

Review and Submit AccountingConguration

Submit your conguration.

Open First Period

Open the rst period when you're ready to process transactions for the ledger. After you open the rst period, use the Manage Accounting Periods in General Ledger toopen and close periods, and to specify the target period that concludes the series of calendarperiods.

Related Topics• How Payroll Costing Components Work Together• Primary Ledgers, Secondary Ledgers, and Reporting Currencies• How to Setup Payroll Tasks for Subledger Accounting• Assign Legal Entities and Balancing Segments• Chart of Accounts Structures and Instances

Payroll Cost Allocation Key Flexeld SetupThe cost allocation key exeld creates a structure for nancial accounting of your payroll costs. The exeld capturesthe account codes you use to create accounting entries, and to report and track your labor costs. Consider all aspects ofthe exeld and its uses during your planning.

Once your exeld is created, you can generate database items to use in your formulas and extracts by submiing theGenerate Flexeld Database Items process from the Payroll Checklist or Payroll Administration work area.

Structure of the Cost Allocation Key FlexeldDecide what structure to use for the cost allocation key exeld. You use the Manage Cost Allocation Key Flexeld taskin the Setup and Maintenance work area.

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The structure of the exeld denes the segments to include, their order, and the value sets to validate the data enteredin the segments. Using the predened Cost Allocation key exeld to create the structure, you specify:

• Segment labels, the row headings that correspond to the cost hierarchy levels

• Column headings, which correspond to the segment of your account structure

Tip: As a best practice, create a structure based on the structure of the Accounting exeld used for thechart of accounts that receives the payroll costing entries. Use a similar sequence of segments and namingconventions to facilitate setup.

The structure you deploy generates a reference table on the costing setup pages. This gure illustrates how the columnheading and segment label make the company account information available for entry on the Manage Costing ofPayroll page.

Cost AllocationKey Flexfield

Segment Labels (Example:

Payroll)

Manage Costing of PayrollSegments Available for Entry

Column Headings (Example: Company)

Controls Payroll

Company

Element

Department

Cost Center

This table provides decision points to consider before you create the cost allocation key exeld structure.

Decision Description

How many cost allocation keyexeld segments does yourAccounting exeld include?

You must create a segment for each corresponding segment of the Accounting exeld.

Do you need to reserve segments forfuture use?

You can't update the exeld structure. You can create segments for later use, such as newlines of business, and display them as needed.

Do you capture context sensitiveinformation for legislative purposes?

Create additional segments to capture context sensitive costing, such as separate liabilityaccounts maintained for each state and state tax.

Do you capture information used byother applications?

Create additional segments, for example, to record the breakdown of costs of a project forreporting purposes.



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Value Sets for the SegmentsDecide whether to use existing value sets or to create new value sets.

You associate each segment to a value set created using the Manage Payroll Costing Value Sets task in the Setupand Maintenance work area. For example, you might reuse an existing value set that you dened for your accountingexeld, or create a subset of those values, which only apply to payroll.

Tip: Consider creating a single value when several accounts use the same value. For example, you might usea value set with a single value of zeros as a placeholder for account segments, such as future use segments.

This gure shows an additional segment added to the structure that doesn't have a corresponding segment in theAccounting exeld, and the value sets associated to each segment.

Key Flexfield and Value Sets

Key Flexfield Segments

Value Sets

Company Account Cost Center Product

102 00251 452 5841. ..

Delimiter

Project(extra

segment)

000.

Cost Hierarchy LevelsConsider which level of the cost hierarchy is the primary source of values for that segment and which levels shouldreceive overrides. These decisions control which cost account segments the application displays on the costing setuppages.

This table includes examples of the segment labels you might specify for costing.

Segment Example

Payroll

Select Payroll for segments that seldom change for the people assigned to the payroll, such ascompany, line of business, and future use segments.

Note: To report costing by business unit, set up payrolls for persons in a singlebusiness unit. Specify a segment at the payroll level to record the accountinformation for the business unit.

Element Eligibility

Select Element Eligibility for natural accounts. You also use this level for cost center segments needed for balance sheet accounts, such asdeduction elements which are usually created at the payroll relationship level.



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Segment Example

Department

Select Department for cost centers.

Job or Position

Select Job to compare and roll-up costs based upon job category. Select Position if you're using position management at your enterprise, to beer track the costof turnover to the enterprise. Costing at these levels requires higher maintenance to set up and manage the costing indiverse and complex organizations.

Person

Select Person to cost at the payroll relationship and assignment level, and for elements at eachof these levels. You might select Person to enable allocation of wages when costs are shared by several costcenters. You might need to override the activity or natural account segment that's usuallyenabled at the element level.

Element Entry

Select Element Entry to override all other levels, with one exception. Costing at the elemententry level is overridden by the segments dened for the Priority account for that element. You might select the segment for cost center at the element entry level to cover situationswhere a person works at another cost center for a payroll period.

Required and Optional SegmentsDetermine which segments to make required based on whether you want to place in a suspense account a costingresult with a blank value for a segment. When you set up costing, if you don't specify a value for a cost account segmenton any level of the costing hierarchy, the resulting calculation is determined by two factors:

• Segment is required or optional

• Suspense account is dened

If you dene a segment as:

• Optional, regardless of whether you dene a suspense account, the costing result displays a blank (null) valuein the segment

• Required, and the suspense account is dened, the costing result is placed in a suspense account

• Required, and the suspense account isn't dened, the calculation displays an error, and the person's resultsaren't costed

Segments Required for the Oset AccountDecide which segments of the oset account require costing.

The oset account balances the cost account. It uses the segments of the cost account unless you specify a dierentvalue for the corresponding segment. For instance, if the only dierence between your cost and oset accounts is thenatural account segment, for the element eligibility segment label, you would select the natural account for the osetaccount.



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Number of Structure InstancesYou create structure instances of your cost allocation key exeld that you then associate to legislative data groups.Structure instances share the same set, arrangement, and properties of the cost allocation key exeld structure. Ifa legislative data group requires dierent value sets for the exeld segments, create a separate instance for thatlegislative data group.

Related Topics

• Payroll Setup Tasks for Costing Accounts

• Element Costing Options

• How Payroll Costing Components Work Together

• Cost Hierarchy

• Overview of Generating Flexeld Database Items

Seing Up Reconciliation for PaymentsOracle Fusion Global Payroll integrates with Oracle Fusion Cash Management and Oracle Fusion General Ledger. Thisintegration facilitates the setup of banks, branches, and bank accounts, and the reconciliation of bank statements withpayment transactions.

An administrator or implementor with the appropriate privileges performs the tasks shown in this table in the Setup andMaintenance work area:

Application Setup Steps Task

General Ledger

Create an account combination for thereconciliation dierences account.

• Manage Account Combinations

Cash Management

Set up transaction codes that map to thepayment method transaction codes usedin payroll.

• Manage Cash Transaction TypeMapping

• Manage Bank StatementTransaction Codes

Cash Management

Create reconciliation rules.

• Manage Bank StatementReconciliation Tolerance Rules

• Manage Bank StatementReconciliation Matching Rules

• Manage Bank StatementReconciliation Rule Sets

Payroll

Create liability, cash clearing, and cashaccounts for your payment sources. Specify the option Transfer to GeneralLedger.

• Manage Costing of PaymentSources

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Set Up Reconciliation Dierences AccountIf you reconcile payment costs before posting the costing results to Oracle Fusion General Ledger, set up areconciliation dierences account in General Ledger using the Manage Account Combinations task. The reconciliationdierences accounts in Cash Management records discrepancies between the bank statement and the transferredpayment les, such as over and under payments.

Set Up Payroll Transactions CodesIf you cost your payments, set up and map transaction codes in Cash Management for the organization paymentmethods.

Task Action

Manage Bank Statement TransactionCodes

1. Review the transaction and statement codes that your enterprise currently uses2. Create transaction codes for the transaction types that support your organization

payment methods

Manage Cash Transaction TypeMapping

1. Map transaction types to payment types used for the organization payment methodsthat support costing of payments.

2. Identify the organization payment methods for payroll accounts, such as payroll liability,cash, and cash clearing accounts.

Set Up Reconciliation RulesPayroll processes transfer your payment entries to Cash Management for manual or automatic reconciliation with bankstatements, and cost the unreconciled and reconciled payments to the appropriate account, such as the cash clearingand cash accounts.

If you reconcile transactions automatically, in Cash Management complete the tasks listed in this table.

Task Action

Manage Bank StatementReconciliation Tolerance Rules

Create tolerance rules based on date, amount, or percentage that prevent or warn you whenreconciliation exceeds a dened tolerance.

Manage Bank StatementReconciliation Matching Rules

Dene bank statement automatic reconciliation matching rules.

Manage Bank StatementReconciliation Rule Sets

Assign a group of matching rules and tolerance rules to a bank account for reconciling bankstatement lines with transactions.

Manage Bank Accounts

Specify the Reconciliation Dierences account you set up in Oracle Fusion General Ledger..



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Set Up Payroll AccountsCreate a liability and cash account. Create a cash clearing account to track payments such as checks, where a delayexists between the date the payment is issued and the date it clears. Use the Manage Costing of Payments task in theSetup and Maintenance work area or in the Accounting Distribution work area of Oracle Fusion Global Payroll.

Note: When you set up the accounts, it's best practice to enter the same account information that you use forthe cash and cash clearing account that you created in General Ledger.

Related Topics

• Considerations When You Create Accounts

• How to Setup Payroll Tasks for Subledger Accounting

• How to Reconcile Payroll Payments

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Chapter 7Seing Up Payroll Fundamentals

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7 Seing Up Payroll Fundamentals

Payroll Business Denitions

Payroll Business Denitions: ExplainedAn integral part of the payroll setup is dening payroll business denitions. Use the Dene Payroll Business Denitionstask in the Dene Payroll tasks list to create lookups, value sets, and descriptive exelds that you need to supportpayroll.

LookupsLookups are lists of values in the application that provide validations or provide a list of values for a user input eld inthe user interface. You dene a list of values as a lookup type consisting of a set of lookup codes, each code's translatedmeaning, and optionally a tag. The tags control which countries can have access to the lookup codes being dened. Endusers see the list of translated meanings as the available values for an object.

Let's look at an example of a lookup type for marital status (MAR_STATUS) that has lookup codes for users to specifythe marital status as given below in this table.

Lookup Code Meaning Tag

M

Married

Not applicable

S

Single

Not applicable

R

Registered Partner

+NL

DP

Domestic Partner

-FR, AU

As you manage lookups, consider these.

• Using lookups in applications

• Congurable levels

• Accessing lookups

• Enabling lookups

• The three kinds of lookups: standard, common, and set enabled

Descriptive FlexeldsUse descriptive exelds to add customer-dened aributes to business object entities, and dene validation for them.

All the business object entities that you can use in the application are enabled for descriptive exelds. However,conguring descriptive exelds is an optional task.



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Conguring descriptive exelds involves managing the available exelds registered with your Oracle ApplicationsCloud database and conguring their exeld-level properties, dening and managing descriptive exeld contexts,and conguring global and context-sensitive segments.

Extensible FlexeldsExtensible exelds are like descriptive exelds, with some additional features.

Unlike descriptive exelds, the columns corresponding to extensible exeld segments are part of specic tables,separate from the base application table. Unlike descriptive exeld contexts, the set of aributes in an extensibleexeld context remains constant and doesn't dier by context value.

An extensible exeld describes an application entity, with the run time ability to expand the database thatimplementation consultants can use to dene the data structure that appears in the application.

Extensible exelds support one-to-many relationships between the entity and the modied aribute rows.

To get a list of predened extensible exelds, open the Setup and Maintenance work area, and use the ManageExtensible Flexelds task.

Here are a few aspects that are important in understanding extensible exelds:

• Usages

• Categories

• Pages

• Security

• Protected Extensible Flexeld Data

Value SetsA value set is a group of valid values that you assign to a exeld segment to control the values that are stored forbusiness object aributes.

An end user enters a value for an aribute of a business object while using the application. The exeld validates thevalue against the set of valid values that you congured as a value set and assigned to the segment.

For example, you can dene a required format, such as a ve digit number, or a list of valid values, such as green, red,and blue.

Related Topics

• Validation Type Options for Value Sets

• How Flexelds and Value Sets Work Together

• Considerations for Managing Descriptive Flexelds

• Overview of Extensible Flexelds

• Overview of Lookups

Prole Options

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Prole Options: ExplainedUse prole options to manage user preferences and control the general function of applications. For example, you cancontrol user preferences involving language, date, time, currency, and other similar general seings.

You can create a prole option and also determine the level at which that prole option takes eect. You can also denethe prole values for the prole option. The prole values appear on the Manage Administrator Prole Values pagewhen you select the prole option.

Creating a Prole Option1. In the Setup and Maintenance work area, go to the Manage Prole Options task.2. On the page, click Actions > New.3. On the Create Prole Option page, ll all the elds with relevant details with specic aention to the following:

◦ Use the SQL Validation eld to provide an SQL statement that displays the permissible prole values tobe used. Using an SQL statement, you can select the values from another table and display them as a listof values.

For example, to display the values Yes and No from a lookup table, you can use the following SQLstatement:

select MEANING, LOOKUP_CODE from FND_LOOKUPS where LOOKUP_TYPE='YES_NO'

As a result, on the Manage Administrator Prole Values page, the prole values Yes and No areavailable for selection for that prole option.

◦ You can specify a date range to keep the prole option active during that period. Beyond the speciedduration, the prole option automatically becomes inactive. If you no longer require the prole option,you must manually delete it from the Manage Prole Options page.

4. Click Save and Close.5. On the Manage Prole Options page, search for the newly created prole option and from the results, select it.6. In the Prole Option Levels section, do the following:

a. In Enabled, select the levels at which you want to enable the prole option.

Note: You can enable a prole option at multiple levels, but a higher-level prole valueoverrides a lower-level value. Therefore, enable them only at the required levels.

b. In Updatable, select the prole level at which you want implementors to have update privileges. Leavethe check box deselected if you don't want the implementors to modify the prole values (they appear inread-only mode).

7. Click Save and Close.

To edit a prole option that you created, search for it and edit the necessary details.

Note: While creating and editing prole options and prole categories, you can translate the details to thepreferred languages without changing the language session of the application. To specify the translations inall the enabled language rows, use the Translation Editor option. Once the updates are made, users can viewthe translated text for the specic details.

Related Topics• Hierarchy in Prole Levels• Set Prole Option Values

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• Enter or Edit Translated Text

Pay Frequency

How Pay Frequency Components Work TogetherPay frequency components provide the exibility to implement complex time-related objects used in payroll denitions,payroll processes, and payroll tasks that use start and end dates. Pay frequency components work together to providepayroll functionality for your organization. Each component requires its own setup and implementation.

Consolidation GroupsConsolidation groups are used process the results from more than one payroll run in a single action or process theresults for one payroll in separate actions. With consolidation groups, produce one set of results per payment methodfor several payrolls, one set of reports, and one set of costing results. For example, you may submit a regular payroll runand a supplementary payroll run for the same payroll period. If the regular run and supplementary run both belong tothe same consolidation group, use a single consolidation group to process all the results for the post-run processing.Optionally, you can enter a dierent consolidation group for the supplementary payroll run and use it to process thepost-run results for the supplementary payroll separately from the regular payroll.

Payroll DenitionsPayroll denitions are essential to your payroll implementation because they indicate the payment frequency andprocessing schedule. Payroll denitions associate employees with the payroll run through payroll relationships.

Time DenitionsTime denitions can be static periods of unusual length based on a given static date, or they can create dates based ondynamic variables. Specify dynamic variables for a time span, a retrieval date, or a more complex denition type for youto use with a user-dened date. The application uses time denitions in many areas, including payroll periods, payrollemployment management, balance dimensions, retroactive and proration events, element start and end dates, andovertime periods.

Run TypesRun types control the elements and payment types you process in a payroll run. Two predened run types, Regularand Supplemental, group the other run types and determine their processing sequence. The predened Regular andSupplemental run types include the two component run types described in this table.

Run Type Component Description

Process Separately Generates a separate payroll calculation for each element entry marked to process separately.

After processing separate processes:

• Includes element run results with normal payroll run results in a single payment.• Excludes element run results in regular tax calculation on the normal run, for example,

to use supplemental tax rates.

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Run Type Component Description

Separate Payment

Creates a separate payment for each element entry marked to pay separately.

For each of the component run types, you can specify payment methods that override the default payment methods forthe payroll denition. You can also select the element classications processed by runs of this type, and exclude specicelements from these classications.

Statutory and Earning PeriodsWhen you create a payroll denition, a payroll earnings calendar is generated based on the rst period end date. Thecalendar assigns each payroll period a period name that includes the period number. In some countries, the statutorytax year doesn't coincide with the dates generated for the earnings calendar. These countries also use a statutorycalendar with statutory period numbers. The statutory calendar ensures that the payroll run uses the correct period fortaxation purposes.

Statutory frequencies are dened in months and weeks, and map to the payroll denition frequencies. For example, abiweekly calendar is based on a weekly statutory calendar. A quarterly payroll calendar is based on a monthly statutorycalendar. Typically, countries that support semimonthly payroll periods don't use statutory periods.

When you submit a payroll calculation, such as a QuickPay process, you select a payroll period. The calculation uses theprocess date for the selected payroll period to identify the statutory period. The process date is the payroll run date onthe payroll denition.

If your country uses a statutory calendar, you can view period numbers, start, and end dates on the Person ProcessResults page and statement of earnings.

FAQ for Pay Frequency

When would I close a payroll period?Closing a payroll period can prevent changes to recurring entries. Payroll periods aren't like General Ledger periods.Closing payroll periods isn't necessary.

Why can't I nd my organization payment method when creatingother payroll objects?When you update an object's organization payment method, you must make the eective start date of the organizationpayment method on or before the eective date of the change. For example, to create a payroll denition eective on4/1/2012 with a default organization payment method, the organization payment method must have an eective startdate on or before 4/1/2012. You can only select an organization payment method that has an eective start date on orbefore the date you're creating or updating the object.



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Consolidation Groups

Consolidation Groups: ExplainedDene and use a consolidation group to process the results of more than one payroll run in a single action. You canalso process the results for one payroll in separate actions. For example, you can submit a regular payroll run and asupplementary payroll run for the same payroll period. If the regular run and supplementary run both belong to thesame consolidation group, use a single consolidation group to process all the results for the post-run processing.Optionally, you can enter a dierent consolidation group for the supplementary payroll run and use it to process thepost-run results for the supplementary payroll separately from the regular payroll. You can produce one set of resultsper payment method for several payrolls, one set of reports, and one set of costing groups. These are runs you make inaddition to your regular payroll runs.

Use the Manage Consolidation Groups task in the Payroll Calculation work area to create consolidation groups.

To create a consolidation group:

1. Select the Manage Consolidation Groups task in the Payroll Calculation work area.2. On the Manage Consolidation Groups page, click Add Row.3. Enter a Name and select a Legislative Data Group. Adding the Description is optional, but it's useful to

provide.4. Click Save.

Examples of Consolidation Group UsageUse the Manage Consolidation Groups task from the Payroll Calculation work area to create consolidation groups.. Hereare some examples of how you can use consolidation groups.

Post-Run ProcessingConsolidation groups facilitate separating payroll run results for supplemental processing. For most payroll post-runprocessing, you can use the consolidation group as an input parameter. You may want the results of a supplementalpayroll run to be kept separately from those of the regular payroll process that was already performed. To use aconsolidation group to keep supplemental run results separate from the regular payroll runs:

1. Create a new consolidation group used to label the supplemental payroll run.2. Initiate the supplemental payroll run, specifying the new consolidation group as an input parameter.

Separate Costing and PaymentYou can use multiple consolidation groups to control processing. For example, you want to process and pay a particularset of employees separately within a single payroll to keep separate records of payment and costing.

To process employees separately:

1. Create a new consolidation group to specify when running the Calculate Payroll process.2. Create payroll relationship groups that restrict the employees.

You can use rules to identify them dynamically or you can specify the employees by their payroll relationshipnumbers.



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3. Run the Calculate Payroll process for each payroll relationship group separately. Specify the originalconsolidation group in the rst run and the new consolidation group in the next run.

Purposes of ReportingYou can use consolidation groups for reporting purposes. For example, you may want to run the Payroll Activity Reportfor a subset of payrolls.

To process the report for a subset of payrolls:

1. Create a consolidation group to specify the payrolls for which you want to run the report.2. Run the Payroll Activity Report, specifying the new consolidation group.

Payroll Denitions

Payroll DenitionsPayroll denitions contain calendar and oset information used to determine when you calculate and cost payments.Payroll period types, such as weekly or monthly, determine the interval at which you pay employees. Use the ManagePayroll Denitions task in the Payroll Calculation work area to specify payment frequency, processing schedule, andother parameters for a particular payroll.

Create at least one payroll denition for each payroll period type you use to pay employees. For example, to payemployees semimonthly, create a payroll denition using the semimonthly payroll period type, ensuring that taxcalculations and other calculations produce correct results for those employees.

Creating Payroll DenitionsWhen you create a payroll denition, the application generates the complete payroll schedule based on the payrollperiod type, the osets or calendar adjustments, and the number of years that you specify. Each payroll in the scheduleis assigned a unique name. Assign employees to payroll denition on the Manage Payroll Relationships page. You cancongure the payroll calendar by increments of ten or fewer years. Create a payroll denition to replace one that expiredor end-dated.

Each payroll must belong to a consolidation group, which the application requires for processing purposes and alegislative data group so make sure these exist before creating your payroll denition.

Modifying Payroll DenitionsWhen you modify a payroll denition, the application adjusts the payroll schedule based on the values you havemodied. Modify an existing payroll denition to increase the number of years and generate more payroll time periodsthat congure the payroll calendar.

Note: Payroll names in the payroll schedule are unique. You can edit the generated payroll names, but youmust ensure they're unique within the payroll denition.



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Payroll DenitionsWhen you create or modify payroll denitions, the application generates a calendar of payroll periods based on yourselections. The choices you make for these values determine the resulting schedule of payroll periods:

Eective Start DateThe eective start date is the rst date that the payroll denition is available for employee data. The start date mustbe on or before the earliest date of any historical data that you want to load. For example, for a payroll starting on 01-JAN-2013 with ve years of historical payroll data to load, you set the start date of the payroll denition to 01-JAN-2008.

The eective start date doesn't aect the generated calendar of payroll periods. The start date for the rst payroll periodis based on the rst period end date.

First Period End DateThe rst period end date is the end date of the rst payroll period that the application generates for a payroll denition.The rst period end date is typically based on the date of implementation, tax year, benets enrollments, or a particularpayment cycle. For example, if your weekly payroll work week is Saturday through Friday, and your rst payment date ison 06-JAN-2012, you could use 30-DEC-2011 as your rst period end date.

Number of YearsThe number of years you enter represents how many years of time periods to generate starting from the beginning ofthe rst payroll period, which is determined by the rst period end date. This table shows an example for a semimonthlypayroll denition.

Eective Start Date First Period End Date Number of Years Generated Time Periods

01-JAN-2014

15-JUN-2014

5

01-JUN-2014 to 31-MAY-2018

Once you save a payroll denition, you can later only increase but not reduce its number of years because a calendar oftime periods for the payroll was already generated.

Note: The application generates the calendar of payroll periods in increments of ten or fewer years. Forexample, if you want a 12-year calendar of payroll periods, you rst enter 10 years and submit your changes.Then you set the payroll denition number of years to 12.

OsetsDepending on the payroll period type, you can elect for your payroll cycle events to occur on specic dates, or to havethe application calculate dates based on osets from period start or end dates.

This table describes the predened payroll cycle events that you can oset.

Date Meaning

Cuto Date

Final date that payroll information can be entered for the payroll period.

Payslip Availability Date Date on which payees can view payslips.



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Date Meaning

Payroll Run Date

Date used by payroll calculation processes to retrieve eective values such as employeedetails. The process date, if provided when submiing a payroll process, overrides this value. This date is predened for your country or territory and is typically based on either date earnedor date paid that payroll calculation uses as the process date.

Date Earned

Date on which the application processes element entries for the payroll run. The date earned must be within the eective dates of the payroll period.

Date Paid

Date the employee is marked as paid. For check payments, this is the date that the check isvalid for cash or deposit. For electronic funds transfer (EFT) payments, it's the transfer date.

Planned Submission Date

Date to inform the payroll administrator or payroll manager on the planned date to submit thepayroll run for each payroll period.

Dynamic OsetsWhen you create a payroll denition, you can use dynamic osets for payroll cycle events. All of the predened payrolltime periods you can use support dynamically generated dates for osets. Use dynamic osets to oset each payrollcycle event by a specied number days before or after the start or end date, as shown in this table.

Oset Day Types Oset Value Base Date Values

Number of work days Number of calendar days

Before After

Period Start Date Period End Date

For example, you might want to set the cuto date three work days before the payroll end date. This osetaccommodates dierences in the number of days in the payroll period and also accounts for weekends and holidays.

Fixed-Date OsetsThe predened Monthly (Calendar) payroll time period supports both dynamic osets and xed-date osets. Use xeddate to adjust the exact date of each of the payroll cycle events for the rst payroll period. Any adjustments that youmake are reected in the payroll calendar for subsequent payroll time periods. For example, if you set the cuto date asthe 25th of the month, then all payroll periods in the calendar will have those osets.

Specic Date AdjustmentsOnce you generate the payroll time periods, you can further adjust any specic calendar dates, as needed. For example,if you know of a particular bank holiday that falls on a payment date, you might want to adjust the dates manually onthe payroll calendar's time period. Make these adjustments when you create a payroll denition or any time after then,as long as the time period is in the future. Adjust the dates of an existing time denition on the Time Periods tab on theManage Payroll Denitions page.



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Related Topics• Periodicity Conversion

Create Payroll DenitionsThis shows you how to create two payroll denitions for dierent payment frequencies that are associated with oneconsolidation group and one legislative data group.

The InFusion Company requires payroll denitions for two sets of employees. A set of permanent salaried employeespaid on a semimonthly basis and a set of temporary employees paid on a monthly basis using time card data. Costing ismanaged monthly and uses results from all payroll runs by using the consolidation group name as an input parameterin the costing run. You can see in this example how to create two payroll denitions with dierent payment periodswith the same consolidation group. Both denitions are eective starting on 1/1/11 and generate payroll time periodscovering ve years.

Prerequisites1. Ensure that the legislative data group for your payrolls exists, such as InFusion LDG.2. Ensure that organization payment methods exist for your payrolls, such as InFusion Employee Check and

InFusion Employee EFT.3. Create a consolidation group named InFusion Employee Group assigned to the InFusion LDG.

Creating the Payroll DenitionsCreate two payroll denitions:

• One to pay permanent employees a at amount by electronic funds transfer (EFT) on a semimonthly basis. Thispayroll denition includes dynamically generated oset dates.

• One to pay temporary employees by check using time card data on a monthly calendar basis.

Perform the following steps twice, rst using the semimonthly values and then using the monthly values.

1. In the Payroll Calculation work area, click Manage Payroll Denitions.2. In the Search Results section of the Manage Payroll Denitions page, click the Create icon.3. Select the InFusion LDG legislative data group from the list.4. Enter 1/1/11 as the eective start date you want the payroll to be available for use, and then click Continue.

In this example, the company hires all employees after the eective start date of this payroll denition, so thereis no issue with loading historical employee data.

5. In the Basic Details section, complete the elds as shown in this table, and then click Next.

Field Semimonthly Value Monthly Value

Name

InFusion Employee Semimonthly

InFusion Employee Monthly

Reporting Name

InFusion Semimonthly

InFusion Monthly

Consolidation Group

InFusion Employee Group

InFusion Employee Group

Period Type Semimonthly Monthly (Calendar)



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Field Semimonthly Value Monthly Value

First Period End Date

6/15/12

6/30/12

Default Payment Method

InFusion Employee EFT

InFusion Employee Check

6. On the Payroll Osets page, in the Number of Years eld, enter 5.Note: The application generates the calendar of payroll periods in increments of 10 or fewer years.For example, if you want a 12-year calendar of payroll periods, you rst enter 10 years and submityour changes. Then you edit the payroll denition, seing the number of years to 12.

7. For the semimonthly payroll, use dynamic variables to dene osets as shown in this table, and then click Next.

Field Falls Value Day Type Value Oset Value Base Date Value

Cuto Date

5

Work Days

Before

Period End Date

Planned SubmissionDate

4

Work Days

Before

Period End Date

Payroll Run Date

0

Work Days

Before

Period End Date

Payslip AvailabilityDate

0

Work Days

Before

Period End Date

Date Earned

0

Work Days

Before

Period End Date

Date Paid

0

Work Days

Before

Period End Date

8. For the monthly payroll, use xed dates to dene osets as shown in this table, and then click Next.

Field Value

Fixed Date

Yes

Cuto Date

6/25/12

Date Earned

6/28/12

Payroll Run Date

6/28/12



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Field Value

Date Paid

6/28/12

Payslip Availability Date

6/28/12

Planned Submission Date

6/26/12

9. On the Payroll Calendar page, adjust payroll days to account for a bank holiday, as shown in this table.

Column Semimonthly Value Monthly Value

Payroll Run Date

Old Value: 11/28/13 New Value: 11/27/13

Old Value: 5/27/13 New Value: 5/28/13

10. Click Next.11. Review the details of the payroll denition, and then click Submit.

Related Topics

• How Payment Methods and Payroll Denitions Work Together

Time Card Required OptionIf a worker's pay calculations depend on the worker submiing time cards, you must indicate that a time card is requiredat the appropriate employment level. Select the Time Card Required check box for each assignment level that therequirement applies. Don't select the Time Card Required check box for these scenarios:

• A salaried employee completes project time cards for billing purposes, but isn't paid based upon those timeentries.

• An hourly employee is normally paid based on a predened work schedule and only submits a time card forovertime or when absent.

Select the Time Card Required OptionYour role determines where typically you select the Time Card Required check box:

• HR specialists can select the check box on the Employment Information page of the new hire ow.

• Payroll managers and payroll administrators can select the Manage Payroll Relationship task in the PayrollCalculations or Payroll Administration work areas. The Payment Details section of the Manage Person Detailspage includes the Time Card Required check box on the Assignment sections.

This table shows which hours the payroll calculation uses for elements with a calculation rule of hours multiplied by rate.



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Time Card Required Hours Used in Calculations

Yes

Time card entries

No

Work schedule, unless you enter hours as element entries

Related Topics

• Create Elements for Time Card Entries

• Process Time Entries in Payroll

Time Denitions

Use Time Denitions for Severance PayThis example illustrates how to set up a user-dened time denition and as a payroll administrator, how you canassociate it with elements so that you can extend the latest entry date for severance payments to employees.

ScenarioThe InFusion Corporation makes severance payments, including regular salary, and car allowance. For most terminatedemployees, these payments should end on the termination date. However, you must be able to make payments foremployees who receive severance pay.

Element Duration DatesWhen you create an element, you select the latest entry date. The options are predened time denitions: last standardearnings date, last standard process date, or nal close date. Typically, standard earnings elements use the last standardearnings date. However, this option doesn't support severance payments because you can't have a last standardearnings date that's beyond the termination date.

AnalysisTo support severance payments, create a user-dened time denition based on last standard earnings date and selectsit as the latest entry date for payments after termination. On the payroll relationship record of terminated employees,the value of the user-dened time denition is the termination date by default, but payroll administrators can edit it tomake payments for certain employees.

Resulting SetupTo implement a user-dened time denition for this scenario, your implementor must complete the following setupduring implementation:

1. Using the Manage Time Denitions task, create a time denition.

This table lists eld names and their respective values for creating a user-dened time denition.

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Field Value

Type

User-dened date

Name

Last Earnings or Severance Date

Short Name

LastEarnSevDate

User-Dened Date

Last Standard Earnings Date

User-Dened Date Usages

Assigned payroll end date Element entry end date Payroll assignment end date Payroll relationship end date Payroll term end date

This creates a time denition based on the last standard earnings date.2. Using the Manage Elements task, create the Regular Salary, Car Allowance, and Alimony elements.3. In the Durations area, select Last Earnings or Severance Date as the latest entry date for the element.

To extend the payment date for a terminated employee, these are the steps you must complete:

1. Using the Manage Payroll Relationship task, search for and select the terminated employee.2. In the Payroll Details area, select the assignment.3. In the Element Duration Dates area, in the row for the Last Earnings or Severance Date time denition, change

the End Date value to the desired nal entry date for payments.

For example, add 6 months of severance pay for an employee who was terminated eective 20 November 2012.Change the End Date value of the Last Earnings or Severance Date time denition to 21 May 2013.

The employee's element entries for the Regular Salary, Car Allowance, and Alimony elements end on this date.

Related Topics

• Element Duration Dates

Run Types

Run Types: ExplainedRun types control elements and payment types you process in a payroll run. You may specify default payment methodsto override the default payment methods on the payroll denition.




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Two predened run types, Regular and Supplemental, group the other run types and determine their processingsequence.

• The Regular run type includes these run types:

◦ Regular Normal

◦ Process Separately

◦ Separate Payment

• The supplemental run type includes:

◦ Supplemental Normal

◦ Process Separately

◦ Separate Payment

A Separate Payment run type creates a separate payment for each element entry marked to pay separately.

A Process Separately run type generates a separate payroll calculation for each element entry marked to processseparately.

When the separate processes are completed, the element run results are included with the normal payroll run resultsin a single payment. You use a separate process to exclude element run results in regular tax calculation on the normalrun, for example, to use supplemental tax rates. It therefore results in a lower rate for the normal run as well as for thesupplemental earnings.

The run types are predened and you will rarely create additional run types.

User Dened Tables

Create a User-Dened Table for Matched Row ValuesUser-dened tables store a date eective list of values that you can use in a formula. Set up your own structured tablesto hold data such as wage codes or shift dierentials. In this example, you create a user-dened table to store valuesfor workers' schedules. To create a new table, use the Manage User-Dened Tables task in the Payroll Calculation workarea.

ScenarioYour organization works on a 10 hour a day, four day a week rotating schedule. The employees work for fourconsecutive days, 10 hours a day.

User-Dened Table ComponentsThese are the main components of the user-dened table.

• Basic details

• Columns

• Rows

• Values



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AnalysisAs this gure shows, the user-dened table contains the schedules available in your organization.

Monday

Tuesday

Monday - Thursday

Tuesday - Friday

Wednesday - Saturday

Thursday - Sunday

Wednesday

Thursday

Friday

Saturday

Sunday

10 0 0 0

10 10 0 0

10 10 10 0

10 10 10 10

0 10 10 10

0 0 10 10

0 0 0 10

Values(Scheduled Hours)

User-DefinedRows

(Days of Week)

User-DefinedColumns

(ScheduledWork Days)

Resulting User-Dened Table ComponentsThis table shows the resulting user-dened table components for this scenario.

Component In This Example

Basic Details

The Unit of measure is a text since the row values are Days of the Week. The row title is Days of the Week.

Rows

Contain the name of a day of the week.

Columns

These are the schedules, such as Monday - Thursday. The data type for each column isnumber because they hold a number of hours.

Values

Represent the number of hours to work each day in each schedule.



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Example to Create a User-Dened Table for a Range of RowValuesUse the Manage User-Dened Tables task in the Payroll Calculation work area to create a user-dened table to storevalues for stock option allocations.

ScenarioEach year, your organization oers stock options to its employees. The amount of options depends on years of serviceand job category of the employee receiving them.

User-Dened Table ComponentsThe main components of the user-dened table are the denition, columns, rows, and values.

• Basic details

• Columns

• Rows

• Values

AnalysisAs this image shows, the user-dened table contains stock option allocations by job category and years of service.



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Resulting User-Dened Table ComponentsThis table shows the resulting user-dened table components for this scenario.

Component In This Example

Basic Details The unit of measure is a number since the row values are years. The row title is Years of

Service.

Rows

Represent a range of years of service during which employees receive the same number ofstock options.

Columns

Represent job categories and the data type of each column is number because they hold anumber of stock options.

Values

Represent the number of stock options awarded to the specied job category during thespecied years of service.

User Table Validation Formula TypeThe User Table Validation formula type validates entries in user-dened tables. Select the formula in the Formula eldfor user-dened columns when you create or edit user-dened tables.

For example, you can use this formula type to ensure that entries are:

• Between a specied range

• Not a negative amount

ContextsThe EFFECTIVE_DATE (text) context is used for formulas of this type.

Input VariablesThere must be one input variable and it must be called ENTRY_VALUE. The data type is text.

Return ValuesThe following return values are available to formulas of this type:

Return Value Data Type Required Description

FORMULA_ MESSAGE

Text

N

Returns a text message foreither or both statuses. Themessage is displayed on theCreate User-Dened Table:User-Dened Table Valuespage.



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Return Value Data Type Required Description

FORMULA_STATUS

Text

Y

Returns the value S (success)or E (error).

Sample FormulaThis formula checks that the deduction entered in the Union A column of the Union Dues table is between 10.00 and20.00:

/* Formula Name: Union A Dues Validation *//* Formula Type: User Table Validation */INPUTS ARE entry_value (text)IF TO_NUMBER(entry_value) < 10.00 OR TO_NUMBER(entry_value) > 20.00 THEN(formula_status = 'e' formula_message = 'Error: Union A dues must be between $10.00 and $20.00.')ELSE(formula_status = 's'formula_message = ' ')RETURN formula_status, formula_message



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Chapter 8Seing Up Fast Formulas

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8 Seing Up Fast Formulas

Using Formulas

Using Formulas: ExplainedFast formulas are generic expressions of calculations or comparisons that you want to repeat with dierent inputvariables. Each formula usage summarized in this topic corresponds to one or more formula types, requiring specicformula inputs and outputs. You can use the Manage Fast Formulas task in the Setup and Maintenance work area, orwork areas relevant to the formula type, such as Payroll Calculation.

Note: Requirements for specic formula inputs and outputs are explained in separate chapters of the OracleGlobal HR Cloud: Using Fast Formula guide.

Calculate PayrollsYou can write payroll calculations and skip rules for elements to represent earnings and deductions.

With fast formulas you can:

• Associate more than one payroll formula with each element to perform dierent processing for employeeassignments with dierent statuses.

• Dene elements and formulas for earnings and deductions with highly complex calculations requiring multiplecalls to the database.

• Associate a skip rule formula with an element to dene the circumstances in which it's processed.

• Congure the predened proration formula to control how payroll runs prorate element entries when theyencounter an event, such as a mid-period change in an element entry value.

Validate Element Inputs or User-Dened TablesUse lookups or maximum and minimum values to validate user entries.

For more complex validations you can write a formula to check the entry. You can also use a formula to validate entriesin user tables.

Edit the Rules for Populating Work Relationship or Payroll Relationship GroupsYou can dene criteria to dynamically populate a payroll relationship group or work relationship group.

When you create a payroll relationship group or work relationship group formula type, you can choose to use anexpression editor or a text editor. The expression editor makes it easy to build criteria to dene the group. For morecomplex conditions, such as validations, you can select the text editor.

Example of Writing a Fast Formula Using Formula TextIn this example, you use the text editor to create a fast formula that returns two dierent ranges of scheduled hours:one range for managers, another range for other workers.



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Here are the key decisions when deciding on which formula to create:

Key Decisions In This Example

Is the formula for a specic legislative data group?

No, this is a global formula that can be used by any legislative datagroup.

What is the formula type for this formula?

Range of Scheduled Hours

Are there any contexts used in this formula?

No

Are there any database item defaults?

Yes, ASG_JOB

Are there any input value defaults?

No

What are the return values?

MIN_HOURS, MAX_HOURS, FREQUENCY

Creating a Fast Formula Using the Text Editor to Determine a Manager's ScheduledHours

1. In the Setup and Maintenance work area, select these options:Oering: Workforce DeploymentFunctional Area: PayrollTask: Manage Fast Formulas

2. Click Go to Task.3. On the Manage Fast Formula page, click the Create icon.4. On the Create Fast Formula page, complete these elds:

Fields for the Fast Formula Values for the Fast Formula

Formula Name

Manager Range of Scheduled Hours

Formula Type

Range of Scheduled Hours

Description

Manager's Range of Hours

Eective Start Date

1-Jan-2010

5. Click Continue.6. Enter these formula details in the Formula Text section:

/* DATABASE ITEM DEFAULTS BEGIN */



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DEFAULT FOR asg_job IS ' '/* DATABASE ITEM DEFAULTS END */JOB_1 = ASG_JOBIF JOB_1 = 'Manager' then(MIN_HOURS = 25MAX_HOURS = 40FREQUENCY = 'H')else(MIN_HOURS = 20MAX_HOURS = 35FREQUENCY = 'H')return MIN_HOURS, MAX_HOURS, FREQUENCY

7. Click Compile.8. Click Save.

Example of Writing a Fast Formula Using Expression EditorIn this example, you create a fast formula that groups executive workers for reporting and processing. All executiveworkers are in department EXECT_10000. After you create the formula, you need to add it to the object groupparameters, so that only the workers that belong to the EXECT_10000 department are used in processing.

Here are the key decisions when deciding on which formula to create.

Key Decisions In This Example

Is the formula for a specic legislative data group?

Yes, InVision

What is the formula type for this formula?

Payroll Relationship Group

Creating a Fast Formula Using the Expression Editor1. On the Payroll Calculation Tasks page, click the Manage Fast Formulas task.2. On the Manage Fast Formula page, click the Create icon.3. On the Create Fast Formula page, complete these elds:

Fields for Fast Formula Values for Fast Formula

Formula Name

Executive Payroll Relationship Group

Type


Description

Executive Workers


Vision LDG

Eective As-of Date

1-Jan-2010



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Fields for Fast Formula Values for Fast Formula

Type of Editor

Expression Builder

Note: For more complex conditions to create a group, you can select Text.However, after you save the formula, you can't change the type of editor.

4. Click Continue.5. In the Formula Details section, click Add After to add a row and complete these elds:

Conjunction Database Item Name Data Type Operand Literal Value

None applicable

DEPARTMENT

Character

=

'EXECT_10000'

And

SELECT_EMP

Character

=

'YES'

6. Click Compile.7. Click Save.

Formula Errors

Types of Formula Compilation ErrorsCompilation errors are displayed in the Manage Fast Formulas page after you compile the formula. The compiler stopsthe compilation process when it encounters an error. Error messages display the line number and the type of error.

Common Compilation ErrorsHere's some of the common formula compilation errors.

Formula Compilation Error Description

Syntax Error

The formula text violates the grammatical rules for the formula language. For example, if youuse IF1 instead of IF in an IF statement.

Incorrect Statement Order

ALIAS, DEFAULT, or INPUT statements come after other statements.

Misuse of ASSIGNMENT Statement Occurs when any of these conditions exist:

• An ASSIGNMENT assigns a value to a database item.• A context is assigned a value externally to a CHANGE_CONTEXTS statement.



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Formula Compilation Error Description

• The formula assigns a value to a non-context variable within a CHANGE_CONTEXTSstatement.

You can use CHANGE_CONTEXTS statements in a formula.

Misuse of ALIAS Statement

You can use an ALIAS statement only for a database item.

Missing DEFAULT Statement

A database item that species a default value must have a DEFAULT statement.

Misuse of DEFAULT Statement

You specify a DEFAULT statement for a variable other than as an input or a database item.

Uninitialized Variable

The compiler detects that a variable is uninitialized when used. The compiler can't do this inall cases. This error often occurs when the formula includes a database item that requirescontexts that the formula type doesn't support. The formula treats the database item as alocal variable. For example, balance database items require the PAYROLL_ REL_ACTION_IDPAYROLL_ ASSIGNMENT_ID and CALC_ BREAKDOWN_ ID contexts. Typically, you use thesestatements in formulas of type Oracle Payroll.

Missing Function Call

The compiler doesn't recognize a function call. The combination of return type, function name,and parameter types doesn't match any available function.

Incorrect Operator Usage

An instance of a formula operator use doesn't match the permied uses of that operator. For example, the + operator has two permied uses. The operands are both of data typeNUMBER, or both of data type TEXT.

Inconsistent Data Type Usage

The formula uses a formula variable of more than one data type. Or the formula uses adatabase item or context with the wrong data type. For example, Variable A is assigned a NUMBER value at the start of the formula, but isassigned a TEXT value later in the formula.

EXIT Statement Not Within WHILELoop

A condition that eventually becomes false or an EXIT call for exiting the loop doesn't exist.

Misuse of Context

The formula uses a variable as a context, or a context as a variable. For example, a formula assigns a value to AREA1 as an ordinary variable, but later uses AREA1as a context in a GET_CONTEXT call.

Types of Formula Execution ErrorsFast formula execution errors occur when a problem arises while a formula is running. Typically, data-related issuescause these errors either in the formula or in the application database.



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Formula Execution ErrorsHere's some of the formula execution errors.

Formula Execution Error Description

Uninitialized Variable

When the formula compiler can't fully determine if a variable or context is initialized, itgenerates a code to test if the variable is initialized. When the formula runs, the code displays an error if the variable or context isn't initialized.

Divide by Zero

Raised when a numeric value is divided by zero.

No Data Found

Raised when a non-array type database item unexpectedly fails to return any data. If thedatabase item can't return data, then it should provide a default value. You can specify a default value using a DEFAULT statement. An error in formula function codecan also cause this error message.

Too Many Rows

Raised when a non-array type database item unexpectedly returns more than a single row ofdata. The cause is an incorrect assumption made about how the data is being accessed. An error in the formula function code can also cause this error message.

NULL Data Found

Raised when a database item unexpectedly returns a NULL data value. If the database item canreturn a NULL value, then it provides a default value.

Note: Some database items can't return a NULL value. If the database items canreturn a NULL value, then you can provide a default value for that database item.

Value Exceeded Allowable Range

Raised for a number of reasons, such as exceeding the maximum allowable length of a string.

Invalid Number

Raised when a formula aempts to convert a nonnumeric string to a number.

User Dened Function Error

Raised from within a formula function. The error message text is provided as part of theformula error message.

External Function Call Error

A formula function returns an error, but doesn't provide any additional information to theformula code. The function may have sent error information to the logging destination for theexecuting code.

Function Returned NULL Value

A formula function returns a NULL value.

Too Many Iterations

A single WHILE loop, or a combination of WHILE loops has exceeded the maximum number ofpermied iterations. This error is raised to terminate loops that can never end, which indicatesa programming error within the formula.



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Formula Execution Error Description

Array Data Value Not Set

The formula tries to access an array index that has no data value. This error occurs in theformula code.

Invalid Type Parameter forWSA_EXISTS

You specify an invalid data type in the WSA_EXISTS call.

Incorrect Data Type For Stored Item

When retrieving an item using WSA_GET, the actual data type doesn't match that of the storeditem. This error occurs within the calling formula.

Called Formula Not Found

The called formula isn't found when aempting to call a formula from a formula. This errormay occur due to an issue in the calling formula, or because of installation issues.

Recursive Formula Call

An aempt was made to call a formula from itself. The call could be made directly or indirectlyfrom another called formula. Calling a formula in a recursive manner isn't permied.

Input Data Has Dierent Types inCalled and Calling Formulas

When calling a formula from a formula, the input data type within the called formula doesn'tmatch the data type specied in the calling formula.

Output Has Dierent Types In Calledand Calling Formulas

When calling a formula from a formula, the output data type within the called formula doesn'tmatch the data type specied in the calling formula.

Too Many Formula Calls

When a formula calls another formula in its text, resulting in a hierarchy. The maximum depthof the hierarchy is 10.

FAQs for Fast Formulas

When do I run the Compile Formula process?When you create or update multiple fast formulas simultaneously, run the Compile Formula process on the Submit aProcess or Report page from the Payroll Administration work area.

What's the dierence between a formula compilation error and anexecution error?Compilation errors occur on the Manage Fast Formulas page when you compile the formula. An error message explainsthe nature of the error. Common compilation errors are syntax errors resulting from typing mistakes. You can view errormessages on the dashboard or go to the messages tab directly after the process is run.Execution errors occur when a problem arises while a formula is running. Typically, data-related issues either in theformula or in the application database cause these errors.



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Chapter 9Seing Up Balances

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9 Seing Up Balances

Balance Denitions

Payroll Balance DenitionsPayroll balances show the accumulation of values over a period of time. Payroll processes, such as Calculate Payroll andCalculate Gross Earnings, update the balance values. The values can be an amount, hours, or any other numeric value.You manage balance denitions in the Payroll Calculation work area.

Most of the balances you require are predened, and depending on your country extension, additional balances areautomatically created when you create elements. You can edit the denition of these generated balances, or createadditional balances for calculations or reporting.

The main components of balance denitions include:

• Balance Categories

• Balance Dimensions

• Balance Feeds

• Balance Groups

• Units of Measure

• Generated Balances and Database Items

• Base Balances

• Remuneration

Balance CategoriesWhen you create a balance during the implementation phase, associate it to one of the predened categories. .

Units of MeasureWhen you create a balance, the predened units of measure available for selection are Day, Hour (with dierentcombinations of minutes and seconds), Integer, Money, and Number. Match the unit of measure of the balance with theunit of measure of the element input values that feed it.

Generated Balances and Database ItemsThe element template creates a primary feed to a new balance when you create:

• An earnings element in a legislative data group that uses the Payroll Interface country extension

• Any element in a legislative data group that uses the Payroll country extension

You select the type of conguration on the Manage Features by Country or Territory page.

The element template also creates a database item for each balance dimension. You can use the database items in yourformulas or HCM extracts to use the value of a balance.



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Base BalancesYou can specify a base balance when there is a dependent relationship between balances for processing and reporting.For example, Loan Repayment could be the base balance for Loan Repayment Arrears.

RemunerationOnly one balance in each legislative data group is predened as the remuneration balance. This balance generatespayments for employees. For example, the remuneration balance might be Net Pay. This calculated balance is the sumof standard earnings and supplemental earnings minus all the deductions calculated for the run.

Balance DimensionsEach payroll balance can have multiple dimensions, which dene the specic value to retrieve. Balance dimensions arepredened and typically combine these components:

• Time span, such as run, period-to-date, or scal year-to-date

• Employment relationship level, either assignmentor payroll relationship

• Context, required for some balances only, such as tax reporting unit, element, or payroll

For example, if you select the Core Assignment Tax Unit Year-to-Date dimension for the Gross Earnings balance, youcreate the dened balance GROSS_EARNINGS_ASG_TU_YTD. This dened balance accumulates gross earnings for anassignment in a specic tax reporting unit from the beginning of the calendar year-to-date.

Balance FeedsBalance feeds dene the source of the payroll calculation results that contribute to a balance. The source can beinput values of specic elements or the entire element classication. For example, the pay values of all earnings typescontribute to the Gross Pay balance. The feeds can add to (+) or subtract from (-) a balance. The sign of a feed isindependent of the sign of the result that feeds the balance. For example, deductions feed Net Pay with a negative feed.However, if an excess deduction of $100 is returned, the deduction result itself is -$100 and will eectively increase NetPay by $100.

Balance Feeds by ElementBalance feeds by element indicate one or more element input values to add or subtract from a balance. For eachbalance feed, all input values must use the same unit of measure. For example, you wouldn't mix money and hours inthe same balance feed.

Each element and input value can be the primary feed for one balance only. When you create an element, the elementtemplate creates this balance and feed automatically.

Balance Feeds by ClassicationBalance feeds dened by primary or secondary element classication or by a subclassication use the input valuethat has the special purpose of Primary Output Value. The unit of measure of this input value must match the unit ofmeasure of the balance.

If you add a primary classication as a balance feed, you can't add its children from the secondary or subclassications.For example, if you use the Supplemental Earnings primary classication as a balance feed, you can't also use any other



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children of Supplemental Earnings. Also, you can't use both secondary classications and subclassications in the samebalance feed.

Balance Feeds for Initial Balance LoadingYou can select elements in the Balance Initialization classication to feed a balance for initialization purposes only.Select one element for each level of the employment hierarchy associated with a dimension that you want to initialize.

Balances in Net-to-Gross CalculationsDetermine which deduction balances the net-to-gross process uses to calculate the gross amount from the desirednet amount for an earnings element. Use the Manage Balance Denitions task to set the default values and determinewhich of the enabled balances are included for a specic net-to-gross earnings element.

Enable Inclusion in Net-to-Gross CalculationsUse the Manage Balance Denitions task to view the dimensions that are enabled for inclusion in net-to-grosscalculations. You can also view which of the enabled dimensions are included by default for each new net-to-grossearnings element.

Exclude Balances from a Specic Net-to-Gross Earnings ElementIf a balance is enabled but not included, you can still use it in the processing of a specic net-to-gross earnings element.To do so, you add the balance using the Manage Elements task. You can also use this task to exclude balances that areincluded by default.

Related Topics

• How Net-to-Gross Earnings are Calculated

• Create a Net-to-Gross Earnings Element

Generate Run BalancesThe payroll calculation process generates run results and values for all balances. Creating or updating balancedenitions and balance feeds can impact balance calculations and stored balance values for run balance dimensions.

When stored balance dimensions are no longer accurate, the Run Balance Status column on the Manage BalanceDenitions page displays the status of the balance dimensions as invalid. Reports and processes continue to obtainaccurate values from the summed run results, but summing run results can slow performance.

To improve performance and accuracy, recalculate the invalid balance values for saved run balance dimensions bysubmiing the Generate Run Balances process from the Payroll Checklist or Payroll Calculation work areas.

This topic covers:

• Submiing the Generate Run Balances process

• Using Generating Run Balances Examples



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Submit the Generate Run Balances ProcessSubmit the Generate Run Balances process before you submit the payroll run or after you create or update these tasks:

• Balance denition using the Manage Balances task, for example to add balance feeds or new balancedimensions

• Balance feeds to an element using the Manage Elements task

When you submit the process, you specify parameters that control which balances to generate as shown in thefollowing table.

Flow Submission Parameters Purpose

Balances to Include Identies the set of balances to include when submiing the process:

• All balances• All invalid balances• Single balance

Note: If you select a single balance, you must specify both a balance and adimension name.

Balance Name

Lists balance names marked as run balances when a single balance is selected.

Dimension Name

Lists run dimensions when a single balance is selected. The list is ltered again when thebalance name is selected.

Use Generating Run Balances ExamplesHere are two dierent ways you can use generate run balances to improve performance and accuracy in your payrollapplication.

• Updating a balance feed eective date

Your enterprise stops the transportation allowance element as of January 1. This ends the balance feedsbetween the element input value and the related balances, such as gross-to-net. It also sets the status ofthe balance values for completed payroll runs to invalid. You submit the Generate Run Balance process torecalculate the balance values and set the status to valid.

• Adding a new balance feed

You receive a notication on January 31 that a non-taxable earning became taxable as of January 1. You adda balance feed to the earnings element so that the input value feeds a taxable pay balance. You submit theGenerate Run Balances process and recalculate the balance values for the taxable pay balance.

Balance Groups and Usages



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Balance Groups and UsagesBalance groups represent a collection of balance denitions, which you can use to retrieve balance values for reports,archives, and balance views. You manage balance groups in the Payroll Calculation work area.

Important aspects of balance groups and usages include:

• Balance group level

• Balance denitions

• Restrictions

• Default inclusions category

• Balance group usages

• Matrix and table formats

• Sorting

Balance Group LevelThe balance group level (employee or organization) determines the balance dimensions of the balance denitions thatyou can include in the group.

Balance DenitionsOn the Balance Denitions page of a balance group you can see the balances associated with the balance group. Theinformation includes the balance name, balance dimension, balance category, unit of measurement, and legislative datagroup. A balance category groups together similar balances. It is similar to the element classications, for each elementclassication there is a corresponding balance category. You can also use this page to search for and add balancedenitions to your own balance groups and to certain predened balance groups. If you need to add multiple balancedenitions at a time, the Select and Add Balance Denitions dialog is used to hold current selected balance denitionswhile searching for other balance denitions.

RestrictionsRestrictions control which balance denitions you can add to the balance group. Balance group restrictions are a list ofbalance categories, a list of balance dimensions, or a list of balance categories and dimensions that belong together.Restrictions limit the balances that you can add to the balance group based on a particular category or dimension or acombination of category and dimension. The Included balances restricted by category and the Included balancesrestricted by dimension check boxes are automatically updated on the Balance Group Details page as you addrestrictions on the Restrictions page. For example, the standard earnings category means that the balance group isrestricted to all balances based on the standard earnings category.

• An user can have the balance group without restrictions.

• "Included Balances Restricted by Category" and "Included Balances Restricted by Dimension" ags are drivenby Restrictions setup here.

Note: In some situations you can update a restriction if it's not used by balance denitions and defaultinclusions. The Edit buon on the Restriction page is enabled if the selected row can be updated. A balancegroup may be dened without restrictions.

Default InclusionsDefault inclusions are combinations of balance categories and dimensions. Any balance denitions you subsequentlycreate, manually or through the element template, that meet those criteria are automatically included in the group.



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Balance Group UsagesBalance group usages represent an instance of how a particular balance group is used. Balance group usages also storedetailed information about how the balance data is formaed. A balance group should have at least one usage but canalso have many balance group usages.

Matrix and Table FormatsA balance group usage can use a matrix or table format. For a matrix format, you select balance dimensions as columnsin the matrix and decide their position in the matrix using the Position. The rst Position must be 1 and any additionalPosition numbers must be sequential.

Only the balance dimensions that you select as columns for the matrix are displayed. If you don't specify the balancedimensions as matrix items, they don't display, regardless of what dimensions are contained in the dened balances inthe balance group.

SortingSorting determines the order in which balance types and dimensions display for the balance group usage.

You can select one of the sort methods listed below.

• Name - Sorts balance values by balance name.

• Value - Sorts balances by the actual balance value.

• Static Order - Sorts balance values according to the sequence that you specify in the Sort Items table.

If you select Table, all the balances in the balance group are returned one line at a time in the table format. Ifyou select the Matrix format, you can add balance dimensions and decide their position in the matrix.

Examples of Balance Group UsagesYou can add matrix items to predened balance group usages and associate them with existing balance groups for usein reports, archives, and views. While you can't modify existing usages that are predened, you can modify matrix itemsthat are user-dened.

You can include balance dimensions for multiple time periods in your balance group usage, such as the current payrollrun, month-to-date, or year-to-date.

Balance group usages are used to display balance values. You select the usage associated with the balance group.Additionally, you can sequence balances using balance group usages to display in a certain sequence, which may notnecessarily be a standard sort sequence.

Here is a list of the predened report types and the dierent kinds of balance dimensions they use.

Note: The report type is the owner of the balance group usage. A usage can have only one report type

Report Type Balance Categories

Global Archive Archive of current and year-to-date city tax code balances for areas 1, 2 and 3



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Report Type Balance Categories

Global Balance Views

Earnings default balances for the Balance Views page

Global Deduction

Balances for involuntary, pre-statutory, social insurance, and tax deductions

Global Element Results

Direct payments tax balances at the assignment and relationship levels

Global End of Year Archive

Payroll Relationship level balances

Global Payroll Activity Report

Earnings balances at the payroll relationship level for the current payroll period and year-to-date

Global Payroll Run Result Report

Balances for all earnings at the assignment and relationship levels

Global Statutory Deductions Report

All city, county, state, and school tax deduction balances for the current period and year-to-date

Global Gross to Net

Direct payment balances for a group tax unit for the current period and year-to-date

Statement of Earnings

City, county, and state pretax deductions for the current payroll period and year-to-date

Scenario

Rules for Editing Balance Groups and Their UsagesThe limitations on the changes you can make to balance groups and usages are dierent for predened and user-dened groups.

Balance Group RulesThese are the actions you can take for both predened and user-dened balance groups.

Action Predened Balance Group User-Dened Balance Group

Create balance group

No

Yes

Edit balance group

No

Yes

Delete balance group No Yes



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Action Predened Balance Group User-Dened Balance Group

Add balance denitions

No, unless the Add buon in the tablemenu is enabled

Yes

Remove balance denitions

No, unless the balance denitions areadded by the user.

Yes

Add restrictions

No

Yes

Edit restrictions

No

No

Delete restrictions

No

Yes

Edit the balance group level

No

Yes, if the group contains no balancedenitions, default inclusions ordimension restrictions.

Add default inclusions

No, unless the Add buon in the tablemenu is enabled

Yes

Edit default inclusions

No

Yes

Delete default inclusions

No

Yes

Balance Groups Usage RulesThe only change you can make to a predened balance group usage is to add matrix items.

For a user-dened usage, you can:

• Edit or delete the usage

• Edit the usage details

• Add or delete matrix items

• Create, edit, or delete sorting denitions

Caution: You can't change the format type of a usage after you save it. Additionally, you can't change the sortmethod unless you delete the existing sort items.

Create Balance Groups and UsagesThis example demonstrates how to create a balance group and balance group usage for a user-dened report ofvoluntary deductions.



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Before You BeginIf you're creating a user-dened report, create a lookup code for the report in the PAY_BALANCE_REPORT_TYPElookup.

1. In the Setup and Maintenance work area, go to the following:Oering: Workforce DeploymentFunctional Area: PayrollTask: Manage Common Lookups

2. Search for and select the PAY_BALANCE_REPORT_TYPE lookup type.3. Add the lookup code, meaning, and description for the user-dened report in the Lookup Codes section.

How to Create a Balance GroupTo create a balance group:

1. In the Payroll Calculation work area, select Manage Balance Groups.2. Click Create to open the Create Balance Group dialog box.3. Select a legislative data group and enter a name for the balance group.4. Click Continue.

The Balance Group Details page displays.5. Select Employee as the balance group level.6. Click Save.7. Select the Balance Denitions folder under the Balance Group Overview list.8. Click Select and Add.9. In the Select and Add: Balance Denitions dialog box, enter these values.

Field Value

Dimension Name

Relationship Run

Category

Voluntary Deductions

10. Click Search.11. In the Results section, select the balance denitions that you want to add and then click OK.

Tip: You can select multiple balance denitions in the Select and Add window. Hold down the Shiftkey to select a group of consecutive balance denitions. To select individual balance denitions holddown the Control key and select the balance denitions that you want to add to the balance group.Click Apply and keep the dialog window open to add the query to search the selected balancedenitions . Click OK to add the selected balance denitions and close the dialog window.

12. Click Submit.13. Click Done.

How to Create a Balance Group UsageTo create a balance group usage:

1. In the Payroll Calculation work area, select Manage Balance Group Usages.



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2. Click Create.3. In the Create Balance Group Usage dialog box, complete the elds as shown in this table.

Field Value

Legislative data group

Enter the same LDG as the balance group for which you're creating the usage.

Name

Employee voluntary deduction run balances

Balance Group

The group you created in the previous task

Format Type

Table

4. Click Continue.

You are returned to the Balance Group Usage Details page.5. Select the report type (this was the report type that you added as a lookup code to the

PAY_BALANCE_REPORT_TYPE lookup).6. Click Save.7. Select the Sorting folder under Balance Group Usage Overview list.8. From the Actions drop down list on the right, select Create.9. Enter these details.

Field Value

Name

Any

Sort Method

Name

Sort By

Balance Type

Order

Ascending

10. Click Save.11. Click Done.

Balance Exceptions



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Examples of Balance ExceptionsBalance exceptions dene the criteria that you want to use to identify overpayments, underpayments, and trends. Thisinformation helps you detect the balance adjustments needed to correct payments. Here are two examples to illustratetwo dierent types of balance exceptions that you may want to include in your balance exception reports.

You create reports using the Manage Balance Exceptions task in the Payroll Calculation work area.

Track Increases in CommissionsYour company plans to train incoming sales sta on productivity techniques. To identify exceptional sales sta in theorganization, you can run a report that lists workers whose commissions increased by 25 percent compared to theiraverages for the previous 3 months. You can set up a balance exception using the values in this table.

Field Values

Balance Exception Name

Commission Increases Over 25 Percent

Comparison Type

Average in Months

Comparison Value

3

Balance Name

Commissions

Dimension Name

Relationship Period to Date

Variance Type

Percent

Variance Operator

Greater than

Variance Value

25

Severity Level

3

Note: Enter a lower value for a high priority exception.

Track Gross EarningsBefore you certify the current payroll run, as a payroll manager, you may want to know if the current gross paymentsare in line with the previous payroll run. The previous run veried the established levels of earnings that the companywants to maintain for the remainder of the quarter. This table provides an example of the values you enter to set up abalance exception to nd out if the current gross earnings exceed the gross earnings of the previous period by morethan 10 percent:



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Field Values


Gross Earnings

Comparison Type

Previous period

Comparison Value

1

Balance Name

Gross Earnings

Dimension Name


Variance Type

Percent

Variance Operator

Greater than

Variance Value

10

Severity Level

1


Balance ExceptionsUse balance exception reports to identify potential overpayments or underpayments. Comparison types dene theperiod that's used to determine whether an exception has occurred. Variance operators enable you to specify theprecise range of variance that you want to report on.

Comparison TypesWhen you're creating balance exceptions, you must select a comparison type. For example, select Average in months asthe comparison type and enter 3 in the Comparison Value eld. In this scenario, the current month is compared to theaverage of the previous three months.

Some comparison values are preset and you can't change them:

• Current month, Current period, Current quarter, and Current year always have a comparison value of 0.

• Previous period and Previous month have a comparison value of 1.

This table lists each comparison type that you can select and explains how it operates as a basis of comparison.



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Comparison Type How it Operates as a Basis of Comparison

Average in months

Compares the current month to date with the average of previous months to date. Onlyavailable if you have the balance dimensions ASG_MONTH or _PER_MONTH.

Current month

Compares values to the total for the current month to date. Doesn't use any previous month asa basis for comparison.

Current period

Compares values to the total for the current period to date. Doesn't use any previous period asa basis for comparison.

Current quarter

Compares values to the total for the current quarter to date. Doesn't use any previous periodas a basis for comparison.

Current year

Compares values to the total for the current year to date. Doesn't use any previous period as abasis for comparison.

Previous month

Uses the previous month as a basis of comparison.

Previous period

Uses the previous period as a basis of comparison.

Variance OperatorsThe table describes the variance operators that you can use for your balance exception reports.

The Results column indicates the eect of selecting each variance operator assuming that these sample data is used:

• Comparison type is previous month

• Balance name is monthly car allowance

• Dimension name is relationship previous month to date

• Previous month amount is 500

• Variance value is 100

Variance Operator Balance Exception Report Output Results (based on sample data)

Variance, plus or minus

Note: This operator applies onlyfor comparison types of 'Previous',like Previous Months or PreviousPeriod, as well as 'Average inMonths'.

All relationships that either exceed or areless than the previous month amount bythe amount or percentage stated in thevariance value.

Returns all relationships with a value lessthan 400 and greater than 600.



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Variance Operator Balance Exception Report Output Results (based on sample data)

Less than

All relationships that are less than theprevious month amount by the amount orpercentage stated in the variance value.

Returns all relationships with a value ofless than 400.

Less than or equal

All relationships with a current value eitherequal to or less than the previous monthamount by the amount or percentagestated in the variance value.

Returns all relationships with a value of400 or less.

Equal

All values that are exactly equal to thehigher limit or the lower limit of thevariance value.

Returns all relationships with a currentvalue equal to 400 or 600.

Greater than

All relationships that are greater than theprevious month amount by the amount orpercentage stated in the variance value.

Returns all relationships with a value ofmore than 600.

Greater than or equal

All relationships with a current valueeither equal to or greater than theprevious month amount by the amount orpercentage stated in the variance value.

Returns all relationships with a value of600 or more.

Does not equal

All relationships with a current value notequal to the previous month amount.

Returns all relationships with a value otherthan 500.

Severity LevelSeverity Level controls the order in which the exceptions are displayed in the balance exception report. Balanceexceptions with the higher severity are displayed rst (1 being the highest)

Using Formula Variance TypeYou can write a fast formula using the Balance Exception formula type to return a variance value that you can usefor identifying exceptions for a balance. To use this feature, select the Formula variance type on the Create BalanceException page and then select the formula that you created from the Formula ID eld.

Using Balance Variance TypeTo reference two balances in the balance exception equation, select the Balance variance type on the Create BalanceException page and then select the Target Balance Name and Target Dimension Name. The context values for TargetDimension Name are inherited from the Dimension Name you select on the left-hand side of the Create BalanceException page as the rst Dimension. No additional contexts are set for Target Dimension Name.

Balance Exception Report



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How to Create a Balance Exception ReportThis example demonstrates how to create and run a balance exception report. The report compares the total paymentsyou made to your employee population for the current payroll period with the payments you made in the previousperiod.

Before you create your report, you may want to determine the following:


Which balance holds the values to compare?

Net Payment

What period of time should the balances be compared to?

Previous period

How many periods do you want to compare the balances to?

1

Creating a balance exception report involves creating a balance exception, creating the report, and then running thereport.

Create a Balance ExceptionTo derive net pay amounts for the previous period:

1. Open the Payroll Calculation work area, and then click Manage Balance Exceptions task.2. Click Create.3. Select the InFusion legislative data group and click OK.4. Complete the elds as shown in this table:

Field Value


Compare Net Payment Amounts to the Previous Period

Comparison Type

Previous period

Comparison Value

1 For comparison types that begin with Previous, the application enters 1 as the default valueand makes it read only.

Balance Name

Net Payment

Dimension Name


Variance Type

Percent



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Field Value

Variance Operator

Greater than

Variance Value

10

Severity Level

1


5. Click Submit.

Create a Balance Exception Report1. In the Tasks pane, click Manage Balance Exceptions and Reports.2. Click Create.3. Select the InFusion legislative data group and click OK.4. Complete the elds as shown in this table:

Field Value

Exception Report Name


Consolidation Group

InFusion Weekly

Payroll

InFusion Weekly Payroll

5. Click Add.6. Select the Compare Net Payment Amounts to the Previous Period balance exception name and then click

OK.7. Click Submit.

Run the Balance Exception Report1. In the Tasks pane, click Submit a Process or Report.2. Select the InFusion legislative data group.3. Select the Run Balance Exception Report ow paern and then click Next.4. Complete the elds as shown in this table:

Field Value

Payroll Flow

InFusion Weekly Balance Report

Process End Date 9/7/12



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Field Value



Payroll

InFusion Weekly

5. Click Next.

When you enter information on the Submit a Process or Report - Flow Interaction page, select Current Flow asthe payroll ow and Run Balance Exception Report as the task to ensure the report uses the payroll balancesresults for the current payroll ow.

6. Click Next.7. Click Submit.8. Click OK and View Checklist.9. In the task list click Go to Task for the Run Balance Exception Report.

10. Click the View Results link associated with the process number for the report.11. When the View results page opens, click the report link. The output is in PDF format.

Balance Exception ReportUse the Balance Exception Report to identify potentially incorrect payments or amounts withheld. The report identiesvalues that vary for the same balance dimension. This variance could indicate overpayments or underpayments.

To run this report, use the Run Balance Exception Report task from the Payroll Calculation or Checklist work area.

Before you run this report:

• Use the Manage Balance Exceptions task from the Payroll Calculation work area to create a balance exception.

• Use the Manage Balance Exceptions and Reports task from the Payroll Calculation work area to create abalance exception report that groups together one or more balance exceptions.

Balance ExceptionsA balance exception determines the criteria you use to identify values that vary for the same balance dimension. Thevariance could be in terms of incorrect payments or amounts withheld. When you create a balance exception youspecify:

• A comparison type and comparison value to dene the period that’s used to determine the exception.

• A Balance Type and Balance Dimension that species the balance value that is evaluated for the exception. Youcan only select balance dimensions that are compatible with the Comparison Type you specied. For example,if the Comparison Type is Current Period, you will only be able to select balance dimensions of type ‘Period toDate’.

• The variance operator and the variance value to specify the precise range of variance that you want to reporton.



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For example, you want to determine the monthly car allowance paid to employees in excess of 600 more than theprevious month. You can create a balance exception, specifying the aributes as given in this table.

Aributes Value

Comparison Type

Previous Month

Comparison Value

1

Variance Operator

Greater Than

Variance Value

600

Balance Type

Monthly Car Allowance

Balance Dimension

Month-to-Date

Balance Exception Report Name

Create an Exception Report Name that you can use to run the Balance Exception Report. For instance, in the aboveexample, you can create an Exception Report Name of Monthly Car Allowances Paid in Excess of the Previous Month.

Report ParametersThe parameter values determine which records to include in the report. For example, you can run this report for aspecic consolidation group or payroll relationship group. Predene these groups before you can use them. Mostparameters are self-explanatory, while the following have special meaning in the context of this report.

Payroll Flow

The name of the payroll ow you use to run this report. The selected ow uniquely identies a specic instance of thereport execution.

Process Start Date

Use this eld to specify the rst eective date of the payroll process to include in the report. All processes with aneective date same or greater than the Process Start Date are reported.

Process End Date

Use this eld to specify the last eective date of the payroll process to include in the report. For Payroll Runs this is the'Payroll Run Date'. All processes with an eective date equal to or prior to the Process End Date are reported.

Note: For oset payrolls, the eective date of the payroll or QuickPay run could be after the end dateof the payroll period. In such cases, ensure that your Process End Date must be on or after the eectivedate of the process you want to include in the report.



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The name of the Balance Exception Report you use to run this report.

Payroll

Select the required payroll name.


Use this eld to run the report for a specic process conguration group, instead of the default one. A processconguration group is used to set rules for payroll processes, such as passwords or number of threads. You can select avalue only if you have a predened process conguration group.

Consolidation Group

Use this eld to run the report against a consolidation group. For example, you can use this eld to run this report for asubset of payrolls. You can select a value only if you have a predened consolidation group.

Location

Use this eld to view the balance results for employees who have at least one assignment for the selected location. Thebalance values may not necessarily correspond to the location parameter only. It is also dependent on the dimensionsand the other associated contexts.


Use this eld to run the report for persons belonging to a specic payroll relationship group. You can specify a valueonly if you have a predened payroll relationship group.

Note: Use the Manage Object Groups task to dene a process conguration group, a consolidationgroup, or a payroll relationship group, before you can use it here.

You can also provide values to run this report for a specic payroll statutory unit or tax reporting unit.

After you have entered the above details, click Next. On the Flow Interaction Page, select the payroll ow as the CurrentFlow and the Run Balance Exception Report as the task. This ensures that the report uses the payroll balances for thecurrent payroll ow.

Report ResultsThe report provides details of payroll balance results for matching persons, ltered by the dened exception criteria,specied time frame and the selected parameters. The output report includes:

• Payroll Statutory Unit

• Tax Reporting Unit

• Person Number

• Person Name

• Payroll Relationship Number



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• Employment Level

• Current Balance

• Variance Value

The report output additionally displays the Previous Balance, Dierence, and Dierence % columns when theComparison Type is Previous Period or Previous Month.

Related Topics

• Balance Exception Formula Type

Severity Level for Balance ExceptionsSeverity Level controls the order in which the exceptions are displayed in the balance exception report. While dening abalance exception, enter a severity level to specify the priority of the exception. An exception with a lower severity levelhas a higher priority than one with a higher severity level value.

When you run the Balance Exception Report, you can take an action on the exception basis the severity level dened forthe exception. For example, suppose you have the following two exceptions:

• Net Pay less than 100

• The dierence in Base Salary from previous period to current period is 1000

Ideally, you should enter a lower value for the rst exception, so that when you run the Balance Exception Report, thepayroll user can rst look into reconciling the lower Net Pay exception.

Note: The value you enter has no impact on the balance exception calculation.

FAQs for Balances

Can I calculate balances that go back 12 months?Yes. You can use certain balance dimensions to calculate balances based on a 12-month period rolling back from theeective date. The 12-month rolling balance provides a sum total for the balance dimension that you select.

If the balance dimension is used in a payroll run or report, however, it calculates a balance based on the 12-monthperiod prior to the eective date of the run.

For example, let's say you wanted to retrieve balances for an employee for 12 months. If the eective date is 31-AUG-2015, you can then use a balance dimension to summarize all run results for the period from 01-SEP-2014 to 31-AUG-2015.

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What balance dimensions can I use to calculate balances for a 12-month roll back period?You can use these balance dimensions to calculate balances for a 12-month roll back period:

This table lists the available balance dimension types and balance dimensions.

Balance Dimension Type Balance Dimension

Rolling 12 Month Balance Dimensions

• Relationship Tax Unit Rolling 12 Month• Assignment Tax Unit Rolling 12 Month

Resident City Balance Dimensions

• Term Tax Unit Resident City Month-to-Date• Term Tax Unit Resident City Quarter-to-Date• Term Tax Unit Resident City Year-to-Date• Assignment Tax Unit Resident City Month-to-Date• Assignment Tax Unit Resident City Quarter-to-Date• Assignment Tax Unit Resident City Year-to-Date

Statutory Report Code BalanceDimensions • Relationship Tax Unit Statutory Report Code Run

• Relationship Tax Unit Statutory Report Code Month-to-Date• Relationship Tax Unit Statutory Report Code Quarter-to-Date• Relationship Tax Unit Statutory Report Code Year-to-Date• Relationship Tax Unit Statutory Report Code Period-to-Date• Term Tax Unit Statutory Report Code Run• Term Tax Unit Statutory Report Code Month-to-Date• Term Tax Unit Statutory Report Code Quarter-to-Date• Term Tax Unit Statutory Report Code Year-to-Date• Term Tax Unit Statutory Report Code Period-to-Date• Assignment Tax Unit Statutory Report Code Run• Assignment Tax Unit Statutory Report Code Month- to-Date• Assignment Tax Unit Statutory Report Code Quarter-to-Date• Assignment Tax Unit Statutory Report Code Year-to-Date• Assignment Tax Unit Statutory Report Code Period-to-Date



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Chapter 10Seing Up Pay Calculation Components

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10 Seing Up Pay Calculation Components

Calculation Information

Payroll Calculation InformationWhen you create an element, the application generates the rules and denitions required to calculate earnings ordeduction amount. For all types of elements, these rules and denitions include elements, formulas, and processingrules.

This topic explains the payroll calculation information rules and denitions generated for user-dened elements withone of the following categories:

• Absence

• Benet

• Involuntary Deductions

• Time card

All predened tax and social insurance elements also include payroll calculation information rules and denitions.

Note: Elements that use calculation information denitions don't capture the values required for thecalculation on element input values.

Task SummaryThe following table summarizes the purpose of each type of calculation information and the task you can use to view oredit it.


Payroll calculation information

The manage payroll calculationinformation task groups rates and rulesused by the payroll run to calculate valuesfor user-dened earnings, and deductions. Predened elements such as tax andsocial insurance rules also use the payrollcalculation feature to provide a group ofrates and rules which vary by country orterritory.


Payroll components

A payroll component is a group of ratesand rules that the payroll run usesto calculate values for earnings anddeductions. When you create elements in certainclassications and categories, such as

Use the Manage Payroll CalculationInformation task to view payrollcomponents and their associated rules.



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involuntary deductions, the elementtemplate creates a payroll component withthe same name. You can manage payroll componentsusing predened component groups,which vary by country or territory butmay include social insurance, taxes,retirement plans, involuntary deductions,and benets.

Wage basis rules

Wage basis rules determine the earningsthat contribute to a deductible amount or,for exemptions, the elements that reducethe amount subject to deduction. For example, wage basis rules mightdene which secondary classications ofstandard and supplemental earnings aresubject to a particular tax. Rules may vary based on reference criteriasuch as a worker's place of residence.

Use the Manage Component Group Rulestask to dene the rules and references. Use the Manage Calculation Cards task toenter reference values for workers.

Calculation value denitions

Calculation value denitions storecalculation rates and rules, which mayvary based on other criteria. For example you can use calculation valuedenitions to calculate regional incometax rates for employees, which vary basedon their income levels. The calculation value denition controlswhich calculation values are enterable on acalculation card.

Use the Manage Calculation ValueDenitions task to view predeneddenitions and the denitions thatelement templates create.

Note: You can edit denitions thatelement templates create, such asadding default calculation values.

Calculation factors

Calculation factors indicate whichcalculation value denition to use whencalculating the amount. For example, a calculation factor mightidentify which set of tax rates to use basedon the tax code of the employee. If tax rates vary based on a factor such asa person's ling status, then ling status isdened as a calculation factor reference.Thus, an element may have multiplecalculation factors, one for each uniqueset of rules and references values.

Use the Manage Elements, ElementOverview task to access calculationfactors. Use the Manage Payroll CalculationInformation task to create new calculationfactors. Normally, you don't need to createnew factors, but if you do, you must alsoedit the element's payroll formula to usethe new calculation factors.

Calculation components

When an element template createsa payroll component, it also createscalculation components that you can enteron personal calculation cards to enterspecic details for the person.

Use the Manage Calculation Cards taskto enter calculation components for aperson.



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Calculation types

A calculation type describes a wayof calculating a value. For example,calculating a value as a Flat Amount or byapplying a Rate to a value. There's a predened set of CalculationTypes.

Use the Manage Calculation ValueDenitions task to view calculation types.

Calculation steps A Calculation Step is a name or label that

denotes part of a payroll calculation.

For example, a time calculation canconsist of the following parts:

• Calculate hours worked• Calculate hourly rate

A regional tax calculation can consist ofthe following parts:

• Calculate Exemptions• Calculate Allowances• Calculate Tax

Each one of these is a calculation step in afast formula.


Calculation methods

Predened calculation methods are a wayof performing a payroll calculation. For example, a tax could be calculatedusing a cumulative year-to-date payrollbalance or a periodic payroll value.


Calculation factors

Calculation factors create an associationbetween an element, calculation step, anda calculation value denition. Calculation factors indicate whichcalculation value denition to use whencalculating the amount. Calculation factors can support complexcalculations such as tax rates. Forexample, if a tax rate varies based on afactor such as a person's ling status theling status can be dened as a calculationfactor reference thus, an element mayhave multiple calculation factors, one foreach unique set of rules and referencesvalues.

Use the Manage Elements, ElementOverview task.



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Related Topics

• How You Add Involuntary Deductions to a Calculation Card

Examples of Payroll Calculation Information at the LegislativeLevelTo understand how the rules and denitions for calculating payroll components work together, let's examine twocommon examples: income tax deductions and social insurance deductions.

Each example provides sample values for the following rules and denitions:

• Component group

• References for wage basis rules

• References for calculation factors

• Wage basis rules

• Related elements

• Calculation factors for elements

• Associations for tax reporting

Individual Income Tax DeductionA particular country or territory has a statutory deduction for an individual income tax. The exemption amount for thetax varies based on the person's residential status. The earnings classications included in the wage basis for the taxvary by geographical region. Therefore, references are dened for both the wage basis rules and the calculation factors.

The calculation is a two-step process that calculates the exemption and then calculates the tax amount based on thereduced deductible amount.

• Component group: Taxes

• Component name: Individual Income Tax Deduction

• References for wage basis rules:

Reference Name Reference Value

Geographical Region

Mainland

Geographical Region

Territory

• References for calculation factors:


Residential Status Resident



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Residential Status

Nonresident

• Wage basis rules:

Geographical RegionReference Value

Primary Classication Secondary Classication Use in Wage Basis?

Mainland

Standard Earnings

All secondary classicationsselected

Y

Territory

Standard Earnings

All secondary classicationsselected

Y

Mainland

Supplemental Earnings

Commission

Y

Territory


Commission

N

Mainland


Personal Use of Company Car

Y

Territory



N

• Related element: Individual Income Tax ProcessorThe processing rule (a fast formula) associated with this element drives the income tax calculation. It accessesthe appropriate calculation factor, based on the resident status reference value and the current step in thecalculation process.

• Calculation factors for Individual Income Tax Processor element:

Resident StatusReference Value

Calculation Step Calculation Method Calculation ValueDenition

Values

Nonresident

Calculate exemptionamount

None

Tax ExemptionAmount forNonresident

4800

Resident

Calculate exemptionamount

None

Tax Exemption forResident

2000

(None)

Calculate individualincome tax

None

Individual Income TaxRate

0-50000: 3% 50000-100000: 4%



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Resident StatusReference Value


Values

Over 10000: 5%

• Tax reporting units: All tax reporting units dened for this payroll statutory unit can report this calculationcomponent. You associate calculation components with a specic tax reporting unit on the personal calculationcard.

Social Insurance DeductionThe same country has a statutory deduction for a social insurance tax. Both the employer and the employee contributeto the social insurance tax, but their contribution rates are dierent. Calculation of the deduction includes several steps:

1. Calculate the base amount for the employee's contribution.2. Calculate the base amount for the employer's contribution.3. Calculate the employee's contribution amount.4. Calculate the employer's contribution amount.

The following rules and denitions apply to this calculation at the legislative level:

• Component group: Social Insurance

• Component name: Medical Insurance Deduction

• References for wage basis rules: None

• References for calculation factors:


Contribution Level

Employee

Contribution Level

Employer

• Wage basis rules:

Primary Classication Secondary Classication Use in Wage Basis?

Standard Earnings

All secondary classications selected

Y


All secondary classications selected

Y

• Related elements: Medical Insurance Calculation element

The processing rule (fast formula) associated with this element drives the social insurance calculation. Itaccesses the appropriate calculation factor, based on the contribution level reference value and the current stepin the calculation process.



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• Calculation factors for Medical Insurance Calculation element:

Contribution LevelReference Value


Values

Employee

Calculate EmployeeBase Amount

None

Employee ContributionUpper Limit

8000

Employee

Calculate EmployerBase Amount

None

Employer ContributionUpper Limit

5000

Employer

Calculate EmployeeContribution Amount

None

Employee ContributionAmount

4%

Employer

Calculate EmployerContribution Amount

None

Employer ContributionAmount

3%

• Tax reporting units: All tax reporting units dened for this payroll statutory unit can report this calculationcomponent. You associate calculation components with a specic tax reporting unit on the personal calculationcard.

Calculation Cards

Examples of Creating Calculation Cards for Deductions at DierentLevelsYou can create and manage calculation cards at several dierent levels, from an individual person to a payroll statutoryunit. Use the cards to capture information specic to a person or organization, such as an employee's tax ling statusor an employer's tax identication number. Calculation card entries override default values dened at other levels. Thepriority of information, from highest to lowest, is as follows:

1. Personal calculation card (payroll relationship level)2. Tax reporting unit calculation card3. Payroll statutory unit calculation card4. Calculation value denitions (legislative data group level)

Note: Not all countries or territories support creating calculation cards for payroll statutory units and taxreporting units. The enterable values at each level also vary by country or territory. The basic steps to createand manage calculation cards are the same at all levels.

Use these examples to understand when you might dene calculation cards at each level.

Personal Calculation CardScenario: An employee qualies for a special reduced tax rate.

Task: Manage Calculation Cards task in the Payroll Administration work area.



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Tax Reporting Unit CardScenario: The income tax exemption amount is 2000 at the legislative data group level, but a tax reporting unit in aparticular state or province uses an exemption amount of 2500. Enter this default value for the tax reporting unit, whichcan be overridden on personal calculation cards.

Task: Manage Legal Reporting Unit Calculation Cards task in the Setup and Maintenance work area.

Payroll Statutory Unit CardScenario: During application setup, the implementation team denes default contribution rates for the payroll statutoryunit.

Task: Manage Legal Entity Calculation Cards task in the Setup and Maintenance work area.

Calculation Value DenitionScenario: You can view the predened income tax rates for your country, but you can't edit them.

Task: Manage Calculation Value Denitions task in the Payroll Calculation work area.

If an employer qualies for a special tax rate, enter these values on a calculation card at the appropriate level.

How Entries of Personal Calculation Cards Fit TogetherPersonal payroll calculation cards capture information specic to a particular payroll relationship. Payroll runs use thisinformation to calculate earnings and deductions. Actions such as hiring a person or loading data may create somecards automatically. Otherwise, you can create the card manually. You can also add components to cards and entercalculation values, which may override default values. Additionally, you can associate the card with a tax reporting unit.

To view and manage calculation cards use the Manage Calculation Cards task in the Payroll Administration or PayrollCalculation work area.

Card TypesThe types of calculation cards you can create and the type of information captured on a card vary by country orterritory. Examples include cards for:

• Statutory deductions

• Involuntary deductions

• Time card entries

• Absences

• Benets and pensions

Additional cards may be available to capture information for reporting purposes.

Card CreationIn countries where all employees are subject to the same set of statutory deductions, the application automaticallycreates one or more statutory deduction calculation cards. These cards are created when you hire a new employee. Inother countries, you must create calculation cards manually.



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For other card types, you create calculation cards as needed for each employee. If you load absence, time card, orpension data from another application, the application automatically creates the calculation cards.

Calculation Components and Component GroupsThe Calculation Card Overview pane shows a hierarchy of calculation components within component groups. Forexample, child support, education loan, and alimony are calculation components in the US involuntary deductioncomponent group.

Each component relates to an element, such as an income tax deduction. Adding a calculation component to the cardcreates an entry for the related element.

A calculation component may have one or more references that dene its context, such as the employee's place ofresidence or tax ling status.

Click a row in the Calculation Components table to see component details. Use the Component Details section to enteradditional values used to calculate the component.

Note: For some countries, the Manage Calculation Cards page doesn't include the Calculation Componentsand Component Details sections. Instead, the layout of the page is specic to the data items required for thecountry.

Enterable Calculation ValuesWhen you select a calculation component, you may see the Enterable Calculation Values on the Calculation Card tab.Here you can enter specic rates or other values for the person, which may override default values held on a calculationvalue denition. For example, if an employee qualies for a special reduced tax rate, you enter the rate as an enterablevalue on their personal calculation card.

You can't override values loaded from another application, but you may be able to add values, such as adding additionalcontributions to a pension deduction.

Tax Reporting Unit AssociationsClick the Associations node in the Calculation Card Overview pane to associate a tax reporting unit with the card.Associations determine:

• Which rates and rules held at tax reporting unit level apply to the calculation of the components

• How the calculations are aggregated for tax reporting

Rules about what you can enter here vary by country:

• Typically, all components on a calculation card are associated with the same tax reporting unit by default.

• You may be able to associate individual components with dierent tax reporting units.

• If a person has multiple assignments, you may be able to associate specic assignments with calculationcomponents.

Related Topics

• How do I associate calculation components with tax reporting units and assignments on a personal calculationcard

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Calculation Value Denitions

Calculation Value DenitionsA calculation value denition species how a value is provided or calculated. The value isn't necessarily monetary.Typically, it's a at amount or rate, but it could be a date or a text value, such as a tax code, depending on thecalculation type. Some denitions hold the values in a table, so that dierent values apply to dierent employees.

For example, a graduated tax varies depending on the employee's earnings balance. The calculation value denition forthis tax might contain two rows where you dene the tax rate for:

• Earnings under 50,000

• Earnings above 50,000

Calculation Value Denitions ProvidedEach localization provides a set of predened calculation value denitions used to calculate statutory and involuntarydeductions. You can't edit the predened calculation value denitions.

In addition, when you create the following element types, the element template creates calculation value denitionsbased on your selections:

• Pensions

• Involuntary deductions

• Absences

• Time cards

Create or Edit Calculation Value DenitionsThe element template creates calculation value denitions when you create elements with a certain category such asbenets, absences, and time card elements.

You can also create or edit calculation value denitions using the Manage Calculation Value Denitions task in thePayroll Calculation area. For example, you can create value denitions to capture additional aributes that are requiredfor your company's absence or time calculations.

You can also create value denitions to calculate a rate derived from a rate denition or values dened by criteria.

Value Denition GroupsWhen you create a calculation value denition, either select an existing group or create a new one. The groupcategorizes related calculation value denitions. The predened set of standard groups is available to all countries orterritories.

Examples of predened value denition groups include Time and Absences. You must select these when creating valuedenitions for elements with the corresponding element category.

Calculation FactorsSome elements, such as statutory deductions, require a large number of calculation value denitions. They usecalculation factors to determine when and how to apply each calculation value denition, based on a reference value.



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For example, a calculation factor may direct the payroll process to:

• Use a calculation value denition only if the person lives in Region B.

• Annualize the calculated result to produce the nal amount

Use the Manage Payroll Calculation Information task in the Payroll Calculation work area to view and managecalculation factors.

Related Topics

• Payroll Calculation Information

Calculation Value Denitions ExamplesIn these deduction examples, the calculation value depends on where the employee falls in an earnings range. TheFrom and To values of the range can be static or dynamic. Dynamic values are a fraction of the value of a database item,such as gross earnings. These examples also illustrate how to override the default calculation type for selected values inthe range.

Static ValuesThe calculation value denition for a regional income tax uses a default calculation type of Flat Rate. However, for thelowest and highest incomes, a at amount applies. For these two values, the Flat Amount calculation type overrides thedefault type, and uses a monetary value rather than a percentage. The Basis of Calculation Values eld is blank, so thevalues are static.

The following table shows sample static values for this calculation value denition.

From Value To Value Calculation Type Override Rate or Amount

0

199

Flat Amount

0

200

999

_

4 (percent)

1000

1999

_

6 (percent)

2000

999,999,999

Flat Amount

300

Dynamic ValuesThe calculation value denition for a tax exemption uses a default calculation type of Incremental Rate. The rst and lastvalues specify the Flat Amount calculation type, which overrides the default type. The Basis of Calculation Values eldspecies the Gross Earnings YTD database item. This means the From and To values represent a percentage of year-to-date gross earnings.

The following table shows sample dynamic values for this calculation value denition.



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From Value To Value Calculation Type Override Rate or Amount

0

.1

Flat Amount

300

.1

.2

_

10 (percent)

.2

.9

_

30 (percent)

.9

1

Flat Amount

0

The rst row denes a at amount of 300 that applies to the rst 10 percent of gross earnings. The second row denes a10 percent rate that applies to the next 10 percent of gross earnings. The third row denes a 30 percent rate that appliesto between 20 and 90 percent of gross earnings. The nal row denes a at amount of 0 between 90 and 100 percent.

Enterable Values on Calculation CardsSome values entered on a calculation card override values dened in a calculation value denition. For example, youmight set a default tax rate for the legislative data group, and allow the rate to be overridden by a at amount enteredon a personal calculation card.

The following table explains where you can enter override values on calculation cards. It also provides the order in whichthe Calculate Payroll process checks for values entered on calculation cards. When the process nds an entered value, itstops checking and uses the values dened at that level.

Order Type of Values Task Oering/Functional Area

1

Values for a payrollrelationship on any type ofcalculation card

Manage Calculation Cards

Payroll Calculation or PayrollAdministration

2

Values for a tax reporting unitfor certain deductions, whichvary by country or territory

Manage Legal Reporting UnitCalculation Cards

Oering: WorkforceDeployment Functional Area: Payroll Task: Manage Legal ReportingUnit Calculation Cards

3

Values for a payroll statutoryunit for certain deductions,which vary by country orterritory

Manage Legal EntityCalculation Cards

Oering: WorkforceDeployment Functional Area: Payroll Task: Manage Legal ReportingUnit Calculation Cards



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Allowing Enterable Values on Calculation CardsThe ability to enter values on calculation cards is controlled by the Enterable Calculation Values on Calculation Cardssection of the calculation value denition:

• For user dened calculation value denitions, you can specify an enterable calculation value in this section. Youprovide:

◦ The display name to appear on the calculation card.

◦ The value type, such as total amount or additional amount.

• Enterable values for statutory and involuntary deductions are predened. You can't allow new enterable valuesfor predened calculation value denitions.

Enterable Value TypesThe list of value types available for entry depends on the calculation type. For example, you can allow users to enter thepercentage value for a at rate calculation or the monetary value for a at amount calculation.

The following value types are available for all calculation types except text:

Value Type Description

Calculation value denition

Uses the calculation value denition entered on a calculation card to calculate the amount.

Total amount

Uses the amount entered on the calculation card as the total amount.

Additional amount

Adds the amount entered on the calculation card to the calculated amount.

Calculation Types in Calculation Value DenitionsThe calculation type determines which values you must provide in the Calculation Values section of the Create or EditCalculation Value Denition page. For example, if you select Flat Amount as the calculation type, then you must providea at amount value. You specify a default calculation type for the denition, which you can override on individual rowsin the Calculation Values section.

Predened Calculation TypesPredened calculation types are available for each type of calculation. These work in conjunction with the predenedpayroll formulas that contain specic rules for each calculation type, such as the CALL_CALC_VALUE formula.

This table describes the predened calculation types, and indicates whether a calculation type is available for selectionwhen you create a new value denition.



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Calculation Type Description UOM Available in Create Flow

Flat Amount

Uses the specied at amountas the total amount.

Money

Yes

Flat Amount Times Multiplier

Multiplies a at amount by amultiplier value. If you selectthis option, you must specifya database item that providesthe value of the multiplier.

Money

Yes

Rate Denition

Retrieves a value by calling arate denition.

Money

Yes

Number

Uses the number entered onthe value denition as thecalculated value.

Number

Yes

Flat Rate

Applies the speciedpercentage rate to thebalance. For example, to apply a rate of10 percent, enter 10.

Number

Yes

Incremental Rate

Applies a dierent percentagerate to portions of the balance. For example, assuming thatthe balance is 80,000, youcould apply a 1 percent rate forthe rst 20,000 of the balance.A 3 percent rate for the next30,000, and a 5 percent rateto the next 30,000. This is alsoreferred to as a blended rate.

Number

Yes

Flat Rate by Derived Base

Applies the percentage rateto a value. This value typederives the value from anothervalue denition.

Number

Yes

Identier

A new calculation type isrequired to support identiers.For example, the valuedenition could capture a jobID and the value set featurewould enable the user todisplay the name of the job onthe page.

Number

Yes

Text

Uses the specied characterstring as the calculated value.

Text

Yes



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Date

Uses the date entered as thecalculated value.

Text (YY-MM-DATE, HOURSMINS SECS)

Yes

Conditional Flat Amount

Uses the specied at amountif the condition dened in theCalculation section is met. For example, if a person'sling status is married or headof household, that personqualies for an exemption. Insuch a scenario, you specify aat amount value in the valuedenition and the conditiondatabase item returns theperson's ling status. This calculation type supportspredened calculations, suchas tax and social insurance.

Money

No

Flat Calculation Total

Supports retrieving valuedenitions for dierent rangevalue criteria, includingpredened calculations, suchas tax and social insurance.

Money or Number

No

Incremental Calculation(Graded)

Supports retrieving valuedenitions for dierent rangevalue criteria, includingpredened calculations, suchas tax and social insurance.

Money or Number

No

Standard Formula 1 Calculates the total amount

based on the followingformula:

y = Ax - Bz

Where:

• y is the deductedamount.

• x is the calculatedamount.

• A and B are speciedvalues.

• z is a factor from apredened formula.The value defaults to 1.

Money or Number

No



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Standard Formula 2 Calculates the value based on

the following formula:

y = (x - A) x B + Cz

Where:

• y is the deductedamount.

• x is the calculatedamount.

• A, B, and C are speciedvalues.

• z is a factor from apredened formula.The value defaults to 1.

Money or Number

No

Specify View ObjectsA view object is a query result set. You can specify a view object to dene the valid values that are available to theselected calculation type.

Note:• The view objects you can specify vary depending on the calculation type. For example, if the calculation type

is Conditional Flat Amount, then specify view objects for the condition and at amount values.• When you specify a view object, include the fully qualied path name, such as:

oracle.apps.hcm.locUS.payrollSetup.details.publicView.UsStatePVO

Wage Basis Rules

Wage Basis RulesWage basis rules determine the earnings that are subject to a deduction. For exemptions, wage basis rules determinethe elements that reduce the amount subject to deduction. Each wage basis rule is associated with a primary orsecondary element classication. When you dene a wage basis rule, you can associate it with up to six references thatdene the context for the rule.

Element ClassicationsWhen you create a new wage basis rule, keep the following in mind regarding element classications:

• For deduction elements, the classications identify which types of earnings are subject to the deduction.

• For exemption elements, the classications identify which types of earnings reduce the amount subject tocalculation. For example, tax exemptions as per tax laws.



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References for Wage Basis RulesA wage basis rule may be associated with up to six references that dene the context for the rule. Each reference has anumber that determines the sequence in which it's evaluated for processing relative to other references. For example, ifa wage basis rule for a regional tax deduction has references for both county and city, then the county reference shouldhave a higher number than the city so that it gets evaluated rst.

The wage basis rules and related references for statutory and involuntary deductions are predened for each country.

Note: You can't edit predened rules or references.

Creating Wage Basis RulesYou can create new wage basis rules for existing payroll components using the Manage Component Group Rules task inthe Payroll Calculation work area. The process is summarized below:

1. On the Manage Component Group Rules page, select the group to which the new rule applies.2. In the Calculation Component Group Overview section, click the group name and then click Wage Basis Rules.

If wage basis rule references have been dened, click the reference.3. In the Wage Basis Rules section, click Create.4. Select the payroll component to which the rule applies.5. Select the primary classications to be used in the wage basis.6. Provide the reference value for the rule, if applicable.

Using the Use in Wage Basis Check BoxHere are some rules on using the Use in Wage Basis check box that you should know about:

• If you're seing up rules for a non-US legislative data group, select the Use in Wage Basis check box for eachprimary classication you add as a wage basis rule.

• If you're seing up rules for a US legislative data group, there is an extra validation that prevents the insertionof a wage basis rule with no secondary classication. You can't select the Use in Wage Basis check box.

Example of Wage Basis RulesTo illustrate how wage basis rules aect a tax calculation, let's look at an example where an employee's earningsincluded in the wage basis vary, depending upon where the employee lives.

Taxable Earnings by RegionBriany is a salesperson who receives a salary of 2,000 each month. Briany also has a company car she drives. Sheis responsible for reporting her "Personal Use" of the company car in order to be taxed properly. Briany works inher company's East Coast district, and she spends 50 percent of her time in New York and 50 percent of her time inPennsylvania. The State of New York taxes Briany for her personal use of the company car; however, Pennsylvaniadoesn't. Last month, Briany reported personal use that equated to 100 (50 personal use in New York, and 50 personaluse in Pennsylvania).

For example:

• In New York, imputed earnings such as personal use of company car amounts are included in the taxablewages.



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• In Pennsylvania, imputed earnings such as personal use of company car amounts are NOT included in taxablewages.

This table shows the tax calculations that apply for each region.

Region Earnings in Salary Eligible ImputedEarnings

Taxable Amounts Deduction Amount

New York

1000

50

1050

35

Pennsylvania

1000

(50 - Exempt)

1000

30

The wage basis rules for this tax calculation are as follows:

Region (Reference Value) Primary Classication Secondary Classication Use in Wage Basis?

New York

Standard Earnings

Regular

Y

New York

Imputed Earnings


Y

Pennsylvania

Standard Earnings

Regular

Y

Pennsylvania

Imputed Earnings


N

Component Group Rules

How Cost Components, Cost Elements, and Cost ComponentGroups Work TogetherCost components are user-dened or come from external sources, and are mapped to cost elements which the costingapplication uses to track the cost of items. Use cost component groups to map cost components to cost elements, andto map source cost elements to destination cost elements when items are transferred from one inventory organizationto another.



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This gure illustrates the relationship between cost components, cost elements, cost component groups, and costproles.

Item Cost Profile

Cost Component Group

Cost Components Cost Elements

Cost ComponentsCost components are the most granular representation of item costs. Examples of cost components are purchase orderitem price, material, freight, tax, and overhead. Cost Components come from dierent sources:

• Predened costs from external sources such as Purchasing, Accounts Payable, and Inventory Management

• Landed cost charges from Oracle Fusion Landed Cost Management.

Cost ElementsA cost element is the level where the costs of an item are tracked through the inventory accounting life cycle. Costcomponents are mapped to cost elements, which enables you to calculate item costs at dierent granularity levels fordierent business needs. For example, you may want more granularity for high-value than for low-value items.

You can dene cost elements for four types of costs:

• Material cost element type for incoming material cost components.

• Overhead cost element type for costs that are calculated by the cost processor based on user-dened overheadrules.

• Prot in Inventory cost element type for tracking of internal margins when items are transferred from oneinventory organization to another, including global procurement and drop shipment ows. For cost elements ofthis type, indicate the Prot in Inventory organization that incurs the gain or loss due to the transfer of goods.

• Adjustment cost element type for separate tracking of cost adjustments, which provides a more detailed viewof item costs and prot margins.



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Cost elements are dened at the set level and thereby have the advantages of set-level denitions for sharing andsegregation. A Prot in Inventory cost element must be assigned to the Common cost element set so that it can beshared across cost organizations.

The following table gives examples of cost element denitions:

Cost Element Set Cost Element Cost Element Type Inventory Organization

Country 1

Metals Material

Material

Not Applicable

Country 1

Plastic Material

Material

Not Applicable

Country 1

Miscellaneous Material

Material

Not Applicable

Country 1


Adjustment

Not Applicable

Country 1

Plant Depreciation

Overhead

Not Applicable

Country 1

Equipment Depreciation

Overhead

Not Applicable

Country 1

Freight Charges

Overhead

Not Applicable

Common

Internal Margin

Prot in Inventory

Seale

Country 2

Dairy Material

Material

Not Applicable

Country 2


Material

Not Applicable

Country 2

Dairy Material

Adjustment

Not Applicable

Cost Component GroupsUse cost component groups to dene mappings of cost components from external sources to cost elements in thecosting application. These mappings provide exibility in the granularity level where you track costs. You can map onecost component to one cost element for a detailed cost breakdown, or several cost components to one cost element fora less granular view of costs. For cost components and cost elements that are related to landed cost charges, you canchoose to capitalize them into inventory value, or expense them. All other costs are automatically capitalized.

You can also map source cost elements to destination cost elements when transferring items from one inventoryorganization to another. This helps to maintain visibility of the item cost structure from the source application andacross the supply chain.



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You can specify a default cost component mapping to cost element to be used in cases where the source cost elementdoesn't have a matching destination cost element. The default cost component mapping is helpful when:

• The detailed mapping of a cost component to cost element isn't required, and you want to map it to a singlecost element.

• The designated mapping for a cost component is missing. If the mapping is missing, the transactionautomatically picks up the default cost component mapping.

Note: If the cost component mapping is missing, the cost processor logs a message in the processing log. Ifthe cost component mapping is missing and there is no default mapping, you can create the mapping and thetransactions will be processed in the next run. If there is a default mapping, the transaction is processed andyou can review the message log to decide if you want to take further action: you can correct the mapping forfuture transactions, and you can create a cost adjustment to reclassify the costs as needed.

Cost component groups are one of the aributes of cost proles, which the cost processor uses to determine how tocalculate item costs. Cost component groups are dened at the set level and thereby have the advantages of set-leveldenitions for sharing and segregation. Cost component groups and cost proles are both set enabled; therefore, onlythose cost component groups belonging to the same set as the cost prole are available to that cost prole.

Example 1: The following table describes mapping of one cost component to one cost element.

Mapping Group Cost Component Cost Element

MG1

PO Item Price

Material

MG1

PO Tax

Tax

MG1

Prot in Inventory

PII

MG1

Interorganization Freight

Freight Charges

MG1

Invoice Price Variance

IPV

MG1

Exchange Rate Variance

ERV

MG1

Tax Invoice Price Variance

TIPV

Example 2: The following table describes mapping of cost components to one or more cost elements.


MG2

PO Item Price PO Tax NR Tax

Material



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Invoice Price Variance Exchange Rate Variance Tax Invoice Price Variance

MG2

Interorganization Freight

Freight Charges

MG2

Prot in Inventory

PII

Example 3: The following table describes mapping of source cost elements to destination cost elements in aninterorganization transfer.

Mapping Group Source Cost ElementSet

Source Cost Element Destination CostElement Set

Destination CostElement

MG3

Country 1

Material Tax

Country 2

Material

MG3

Country 1

Freight Charges

Country 2

Freight Charges

MG3

Country 1

Other

Country 2

Other

You have exibility in how you map cost component groups to items:

• Dierent items in a cost organization and book combination can have the same or dierent cost componentgroup mappings if they use dierent cost proles.

• One item can have dierent cost component group mappings in dierent cost books.

• Several cost organizations can share the same cost component group mappings if they belong to the same set,or if they're dened the same way in dierent sets.



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The following gure illustrates dierent mappings of cost component groups to items. That is, in a cost organization,Item A maps to two cost groups, and item B and Item C maps to only one cost group.

Cost Organization

Item C

Item B

Item A

Cost Book 2Cost Profile 2

Mapping Group 2

Cost Book 1Cost Profile 1

Mapping Group1

Related Topics

• Cost Proles, Default Cost Proles, and Item Cost Proles

• Manage Cost Elements and Analysis Groups

• Can I delete, deactivate, or edit a user-dened cost component code

How Planning Cost Organizations, Planning Cost Components,and Cost Estimate Mappings Work TogetherStandard cost planning refers to the process of estimating standard costs for use in the costing of inventory ormanufacturing transactions. Planning cost organizations, planning cost components, and estimate mappings are themain elements used in the standard cost planning process.

http://www.oracle.com/pls/topic/lookup?ctx=fa19d&id=8C9EC2B3DE4CAF79E040D30A68814E1E

http://www.oracle.com/pls/topic/lookup?ctx=fa19d&id=8B74DCA5D2849BACE040D30A6881678D

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This gure illustrates the relationship between the standard cost planning elements, and how they're used to generatestandard cost estimates.

Planning Cost Organization

Items

Planning Cost Components

Cost Components Cost ElementsEstimate Mappings

Standard Cost

Estimates

Planning Cost OrganizationsEnabling a cost organization for cost planning helps to dene and maintain costs across multiple locations andproduction facilities. One of the modeling options is to perform cost planning at the business unit level, by mapping allthe inventory organizations belonging to the business unit to one cost organization.

Related Topics

• Cost Planning Process

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Calculation Factors

Calculation FactorsCalculation factors dene data-driven rules for calculating complex payroll elements, such as statutory deductions.Some elements may have a large number of calculation factors, one for each unique set of rules, ranges, and referencesvalues.

Calculation factors create an association between an element, a calculation step, and a calculation value denition.

The payroll run determines which calculation factor to use based on the reference values and calculation rules of theelement being processed.

For example, a calculation factor for a tax deduction element might dene:

• A context reference, such as a city or state

• The calculation value denition, such as a 4 percent tax rate on balances under 50,000

• Optionally a calculation method and calculation step

Navigate to the Manage Element task and select an element to view and manage calculation factors.

Note: Calculation factors are predened for statutory and involuntary deductions, and should not bechanged.

To view and manage calculation factors, follow these steps:

1. Select the Manage Payroll Calculation Information task in the Payroll Calculation work area.2. Select the calculation component.3. In the Calculation Overview section, expand the Related Elements node.4. Expand the Calculation Factors node to display a list of all calculation factors associated with the element.5. Create new calculation factors and edit existing ones that have an update status of Unlocked.

Note: You can't edit predened calculation factors or their reference values. If you create a new calculationfactor, you must edit the element's formula to use the new factor.



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Aspects of a calculation factor are shown in the following gure:

Reference Values

Calculation Factor

Calculation Value

Definition

Calculation Step

Calculation Method

Calculation Type

Calculation Values

Fast Formula

Reference ValuesA calculation factor may be associated with up to six references that dene its context. For example, the calculation of asocial insurance deduction might vary based on a person's age and employment status.

Each reference has a reference number that determines the order in which it's evaluated for processing relative to otherreferences.

Navigate to the Manage Payroll Calculation Information task and search for a payroll component to view and managecalculation factor reference information.

Calculation Value DenitionCalculation factors create an association between an element, calculation step and a calculation value denition. Thecalculation value denition denes the calculation type, such as at amount or at rate. The calculation rates and rulesmay vary based on the amount subject to calculation. Predened calculation value denitions are provided for statutoryand involuntary deductions.

Navigate to the Manage Payroll Calculation Value Denition task to view and manage value denitions.

Calculation StepA calculation step is a name or a label assigned to a calculation factor to identify its role in a complex payroll calculation.

For example, a time calculation can consist of several parts, such as:

• Calculate hourly worked

• Calculate hourly rate

And when calculating an income tax deduction, the payroll run can do the following:

• Calculate allowance

• Calculate exemptions

• Calculate tax



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This tax deduction might be dened as a single element with multiple calculation steps, each dened in a separatecalculation factor. You can assign the same calculation step to more than one calculation factor. Calculation steps areoptional.

Navigate to the Manage Payroll Calculation Information task to view and manage calculation steps.

Range ValuesRange values capture values required for the calculation. The type of information captured is controlled by thecalculation type of the value denition such as at amount, rate (percentage) or date.

Navigate to the Manage Payroll Calculation Value Denition task to view and manage range values.

Calculation MethodsA calculation method references a single fast formula. It's an optional component of a calculation factor. Calculationmethods operate at a higher level than the calculation types dened in the calculation value denition. They providea wrapper around the calculation of a deduction by retrieving values from a calculation value denition, applying aformula, and returning the nal deduction amount for the current run.

For example, if the calculation method is set to Cumulative, which references the Core Cumulative fast formula, then thecalculation process returns the total deduction amount as a cumulative year-to-date amount. Accrual calculations forpayroll balance calculations typically restart at the beginning of each calendar year. This is another type of calculationmethod. In this case the plan rule for the accrual term start date is January 1.

Navigate to the Manage Payroll Calculation Information task to view and manage calculation methods.

Related Topics

• Payroll Calculation Information

Examples of Calculation Factors for Payroll DeductionsTo illustrate how the payroll run uses calculation factors to calculate dierent types of deductions, let's look at a socialinsurance deduction and a national income tax deduction using calculation steps.

Social Insurance DeductionEmployers in many countries or territories deduct social insurance payments from employees and also makecontributions. Employee and employer rates are typically dierent. Such deductions often have wage limits.

The social insurance deduction processor element for this type of calculation might have the following calculationfactors:

Employer orEmployee Code(Reference Value)

Calculation Method Calculation Step Calculation ValueDenition

Values

Employee

None

Calculate SocialInsurance EmployeeRate

Social InsuranceEmployee Rate

4 percent at rate



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Employer orEmployee Code(Reference Value)

Calculation Method Calculation Step Calculation ValueDenition

Values

Employer

None

Calculate SocialInsurance EmployerRate

Social InsuranceEmployer Rate

2 percent at rate

Employee

None

Calculate SocialInsurance EmployeeWage Limit

Social InsuranceEmployee Wage Limit

100,000 at amount

Employer

None

Calculate SocialInsurance EmployerWage Limit

Social InsuranceEmployer Wage Limit

100,000 at amount

National Income Tax Deduction Using Calculation StepsA national income tax calculation involves multiple steps. First, it calculates the allowance, then any exemption amount,and then it applies the tax rate.

The following table shows a subset of calculation factors that might be associated with a tax processor element.

Filing Status(Reference Value)

Calculation Method Calculation Steps Calculation ValueDenition

Values

Single

None

Calculate Region AAllowance - Single

Region A Allowance -Single

10,000 at amount

Single

None

Calculate Region AExemption Amount -Single

Region A Exemption -Single

0 at amount

Single

None

Calculate Region ARegular Rate - Single

Region A Rate - Single

7 percent at rate

Married

None

Calculate Region AAllowance - Married

Region A Allowance -Married

10,000 at amount

Married

None

Calculate Region AExemption Amount -Married

Region A Exemption -Married

1,000 at amount

Married

None

Calculate Region ARegular Rate - Married

Region A Rate -Married

6 percent at rate



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Rate Denitions

Overview of Rate DenitionsYou can create rate denitions to calculate compensation rates, accrual rates, element entry values, or values denedby criteria. If the rate is based on multiple balance or element entries, or if it references other rate denitions, you canspecify multiple rate contributors.

The Global Payroll application calculates rates based on a number of criteria and conditions. And returns the rate valuefor a periodicity specied, such as 50000 annually, or 7.25 hourly. Also, it supports rates that return a value for a unit,rather than a periodicity.

Examples of rates dened by units:

• Piece work where a worker gets 1.50 for each widget made.

• Meal allowance rate or mileage rates where the rate paid varies based on the number of miles traveled and thetype of vehicle.

Use the Manage Rate Denitions task from the Payroll Calculation work area to dene and manage rate denitions.

CategoriesTo create a new rate, select a category from this table.

Category What it Does

Derived and Rate

Retrieves values from one or more payroll balances or other rate denitions, including ratesthat retrieve element entry values. Use this option to create a rate that retrieves a value fromone or more rate contributors.

Element Retrieves a value from or posts to an element input value. The element input value must have

a special purpose of either a Primary Input Value or Factor.

• Select the Primary Input Value special purpose for an amount value, such as a salarygure.

• Select the Factor special purpose for a factor value, such as a car allowance that youcalculate as 3 per cent of average earnings (factor = 0.03).

Value by Criteria

Retrieves values from a single value by criteria denition. A value by criteria denition speciesone or more evaluation conditions that determine a particular value or rate. You can specifythe conditions as a tree structure to dene the evaluation sequence.

Options to Congure Rate DenitionsTo congure rate denitions to get your desired rates, you should know how to use the various rate denition options.For rates based on a single element entry value, you can also apply override and defaulting rules.



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This table describes the elds that you can congure for the Derived Rate, Element, and Value by Criteria categorytypes.

Field Category Description

Storage Type

Element If you select the Element category to

dene a rate, you must select a storagetype of Amount or Percentage. Forexample, you can congure a ratedenition using the Salary element. Ifthe salary is held as a monetary value,select Amount. If the salary is a factor ofanother value, such as a balance, selectPercentage.

Note: This eld is hidden forall rate denition categoriesother than Element.

Element Name

Element Derived Rate

For the Element category, the eld isenabled only when you select the storagetype. If you select the Element categoryto dene a rate, you must select anelement name. This is required if you'reconguring a primary rate. This is arate that retrieves a value from a singleelement, such as salary. For the Derived Rate category, the eld isenabled when you access the page.

Employment Level

Derived Rate Value by Criteria

Select either Payroll Relationship, Term,or Assignment. This eld is mandatory forall derived rates and value by criteria ratedenitions. It controls which employmentID the rates process uses when calling arate.

If the employee has multiple assignments,the rates process uses the assignment IDto identify the correct assignment recordfor the employee.

Sometimes the contributor value is held ata dierent level to the employment leveldened on the rate. In such cases, the rateprocess uses the employment ID to locatethe correct record.

Status


Set the status of a rate to active orinactive. You can't assign an inactiverate to an employee. Employees that are



171

Field Category Description

Value by Criteria

allocated a rate while it was active aren'timpacted by a change in status to inactive.

Base Rate

Element Select this option if the rate represents

a base rate that another rate uses inits calculation. For example, you mighthave day shift employees and night shiftemployees, with dierent base pay rates.

If each set of employees receives anallowance that's a percentage of the baserate, dene one allowance rate. And thatrate is calculated based on the two ratesthat have the Base Rate option selected.

Overall Salary


If you're dening rates for use on theSalary page, use the derived rate categoryand dene an Overall Salary. To do this,you must associate a salary element to therate. Dene an Overall Salary Informationelement for this purpose.

Reporting Required

Element Derived Rate Value by Criteria

Select this option to indicate if thecalculated rate value should be stored onthe rate table for reporting purposes. If you're dening rates for use on theSalary page, you must select this option. Rate denitions with this option selectedare included when the Generate HCMRates batch process is run. Use thisfeature to report on primary rates and notderived rates. HCM extracts use this reportto send data to third parties.

Value by Criteria Name

Value by Criteria

If you select the Value by Criteria categoryto dene a rate, you must select a Valueby Criteria name. A value by criteriadenition species one or more evaluationconditions that determine a particularvalue or rate.

Returned Rate DetailsYou can specify the periodicity of the returned rate, factor rules, currency, decimal display, rounding rules, andminimum and maximum rules. If the process returns a rate that's outside the minimum and maximum range, you cando one of these actions.

• Set up an action that enforces the rule, displays a warning

• Forces the user to x the error



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Select the Return FTE Rate check box to instruct the rate denition process to return a part-time value by applying anemployee's FTE to the rate value.

PeriodicitiesYou must specify a periodicity, such as hourly or weekly, for the returned rate and each rate contributor. However, whenyou use the rate in a formula, you can override the default periodicity.

The rate calculation converts each contributor to the periodicity specied on the rate contributor. It then adds orsubtracts the rate contributors, even if the periodicities are dierent. In most cases, they will be the same. Once the ratecontributors are summed up, the rate calculation then converts them into the return periodicity and currency.

For example, for a rate with a periodicity of weekly using the Standard Rate Annualized conversion formula, the ratecalculation does these actions.

1. Calculates an annual gure from the value and periodicity of each contributing earning and deduction.2. Converts the annual gure into a weekly value.

By default, rates are converted using these predened rate conversion formulas.

• Standard Rate Annualized

• Standard Rate Daily

• Standard Working Hours Rate Annualized

• Assignment Working Hours Rate Annualized

• Periodic Work Schedule Rate Annualized

If the values in the predened conversion rules don't meet your requirements, you can dene your own.

Factor RulesYou can apply a factor or multiplier to a calculated rate, or to an individual rate contributor. To apply a factor rule, dothese steps.

• Select Value as the factor rule.

• In the Factor eld, enter the number by which you want to multiply the rate.

• Add the contributor.

You can apply a factor rule to the rate denition, rate contributors, or both. For example, you can dene ratecontributors to calculate hourly values based on salary and bonus. You can then apply a factor of 1.0 or 100 percentto the salary balance contributor and a factor of 0.5 or 50 percent to the bonus balance contributor. The factor rule isapplied to the rate before the periodicity conversion is applied.

Minimum and Maximum ValuesYou can dene minimum and maximum values for the returned rate, and for individual rate contributors.

Use the Limit Violation Action eld to display an error, warning, or enforce the application to use minimum ormaximum value that you enter. For example, you can enter 500 as the minimum value and then select Enforce Rules. Ifthe returned value comes back as 400, the application uses 500 as the value.

This table explains the options for the minimum and maximum rate values.



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Value Comments

Null

No minimum or maximum value

A specied value

Example: 2000

Based on another rate

Uses the calculated value of the rate denition that you select. Be careful that you don't create a loop. For example, Rate A has minimum value that's basedon Rate B, which has a minimum value based on Rate A. This situation would result in aruntime error.

Value by Criteria

Minimum or maximum value based on a value by criteria denition.

Override and Defaulting RulesYou can set override and default rules only if you select Element as the category when you dene rate denitions. Setup override rules for the element associated with your rate denition. If you select the Override Allowed check box, youcan enter rate values on the Salary page.

Note: You can't dene override and defaulting rules if you select the Values by Criteria category to dene arate. But you can select a formula to validate any rate that's returned and also use formulas to create defaultvalues. For example, you can use the HCM Rates Default Value formula type to dene the number of workdaysin a year for your organization.

workday = 250periodicity = YEARreturn workday, periodicity, currency

In addition, you can use a value by criteria denition as the default type. Here, the process uses the value for the rstrecord created and carries that value forward in subsequent records, unless it's manually overridden. The rate enginereevaluates the rate that the value by criteria method creates for each subsequent record. So, this rate could change.For example you could use a value by criteria denition to enable a default value of 10 percent for bonuses that aretargeted to all eligible employees.

Contributor RulesYou can specify the periodicity for the contributor total. To process contributor totals as full-time equivalency amounts,select Yes in the Process Contributor Total as FTE Amount eld. The nal rate value is converted from this status tothe Return Rate FTE status.

InformationIn this section, enter text that explains the purpose of the rate, how the rate is calculated, or provides further details forthe rate. This section isn't available for rate denitions using the Value by Criteria categories.

Related Topics

• Congure Periodicity Conversion Rules

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Rate Contributors for Derived RatesYou can add four dierent types of rate contributors to your rate denitions. These rate contributes include, Balance,Base Rate, Overall Salary, and Rate Denitions. You can add rate contributors when you dene a rate using the DerivedRate category. You can also manually add rate contributors for the Element category when the storage type is Factor.

For example, if you dene a bonus rate which is 0.1 (10 percent) of average earnings, then you do these steps.

• Enter 0.1 as the factor on the element.

• Dene a rate contributor based on your average earnings balance.

Rate Contributor TypesThis table lists the types of rate contributors, descriptions, and the additional elds that display for each type.

Type What it Contains Additional Fields

Balance Value calculated by these payroll

processes.

• An employee's average salary rateover their last three months ofsalary payments

• Taxable earnings for the last taxyear

• Commissions paid in the lastquarter

Balance Name Balance Dimension Divisional Balance

Base Rate

Value from the employee's Base Rate

Employment Level

Overall Salary

Value from the employee's Overall Salaryrate

Note: If the rate denition is anOverall Salary Rate, you can't selectOverall Salary as a ContributorType.

Employment Level

Rate Denition

Other rate denitions that contribute tothe rate denition you're creating. For example you can add regular salary,car allowance, and bonus pay ratecontributors together to create an overallsalary denition.

Rate Name



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Reference DatesYou can select a reference date, which is the date the application uses to retrieve rate contributor information for therate calculation. The reference date species the context for the balance dimension.

For example, to retrieve a rate as of the actual start of an absence, select Absence Start Date. To retrieve a rate as of aspecic time period, select a specic time period.

The Reference Date eld lists only these types of time denitions:

• Time Span - a period of time, such as three months

• Retrieval Date - a type of time denition that's based on a database item

Selecting a value for the Reference Date eld is optional.

Note: If you don't select a reference date, the application uses the eective as-of date that's used by the rateengine to calculate the rate.

Single or Multiple Rate ContributorsIf the rate denition is based on multiple values, you may need to create multiple rate contributors, as explained in thistable.

Rate Number of Rate Contributors

A single earning or deduction, suchas salary

One

A combination of earnings, such asthe sum of salary and car allowancepayments

Multiple, if salary and car allowance are stored as separate rate denitions

Note: All balances and element entries that contribute to a rate must use the same currency.

Example: Using multiple rate contributors, an hourly holiday pay rate could be based on adding together these values,which are all paid at the end of the previous year.

• Salary

• Incentive bonus

• Seniority bonus

• Other changeable components of remuneration

Congure Elements to Use Rate DenitionsIf you create rate denitions that reference element input values, you must congure them for the dierent calculationrules, such as Flat Amount and Factor. This ensures that the values calculated by the rate are consistent with the valuesprocessed through payroll.

Do these element conguration steps if you're using the rate feature.

1. Create an element of type Recurring or Assignment level.



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2. Don't select the Multiple Entries Allowed check box.3. Select a special purpose for each element input value.

a. Primary Input Value for an Amount value.b. Factor for a Factor value.c. Periodicity for a Periodicity value.

Note: When creating elements for use in rate denitions, don't select Periodically. The RateDenition process is unable to convert rates with a periodicity of periodically to dierentfrequencies such as annual, weekly, and daily.

4. If the at amount is a full-time equivalent value, you must select Yes in the Default eld for the Full-TimeEquivalent input value.

5. Create element eligibility.

Congure Elements to Create Rate Denitions for Flat Amount Calculations

1. From the Payroll Calculation work area, select the Manage Elements task.2. Click Create.3. Enter these values.

Field Value


Select your legislative data group

Primary Classication

Standard Earnings

Category

Standard

4. Click Continue.5. Enter a name, reporting name, and description.6. Enter the eective date.7. Answer the questions in the Duration and Standard Rules sections.

Note: Multiple entries aren't allowed.

8. For the question, At which employment level should this element be aached?, select Assignment Level.9. For the question, Does this element recur each payroll period, or does it require explicit entry? select Recurring.

10. Click Next.11. In the Calculation Rules section, select Flat Amount and then click Next.12. Click Submit.13. On the Element Summary page under the Input Values folder, select Full-Time Equivalent.14. Check that these values exist.

Field Value or Check Box Status

Name Full-Time Equivalent



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Special Purpose

Full-Time Equivalent

Unit of Measure

Character

Displayed

Selected

Allow User Entry

Selected

Required

Deselected

Create a Database Item

Selected

Default

No

Lookup Type

PAY_ TMPLT_YES_NO

Congure Elements to Create Rate Denitions for Factor Calculations

1. Repeat steps 1 through 9 in the rst procedure.2. In the Calculation Rules section, select Factor and then click Next.3. Click Submit.4. On the Element Summary page under the Input Values folder, select Pay Value.5. Check that these values exist.


Name

Pay Value

Special Purpose

Primary output value

Unit of Measure

Money

Displayed

Selected

Allow User Entry

Selected

Required

Deselected



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Selected

6. On the Element Summary page under the Input Values folder, select Factor.7. Check that the following elds and values exist.


Name

Factor

Special Purpose

Factor

Unit of Measure

Number

Displayed

Selected

Allow User Entry

Selected

Required

Deselected


Selected

Test Your Element CongurationYou're almost done. Now, to test your element conguration, follow these steps.

Note: These procedures are for payroll users only.

Step Page Do This Action

1

Payroll Dashboard

Find a payroll and an employee that youcan use for testing purposes.

2

Manage Elements

For the Flat Amount element, use the PayValue balance feed to enter an EligibleCompensation balance for the Percentageelement.

3

Manage Element Entries

Add the Flat Amount and Percentageelements to the employee as elemententries and enter input values.



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Step Page Do This Action

4

Submit a Process or Report

Enter a suitable period for the payroll youselected in step 1.

5


Run the payroll.

6

View Payroll Process Results

Check if the payroll results are correct.

Create Rate Denitions for LeaveIn this example, you calculate an employee's absence rate as of a particular date. The rate includes a combinationof average salary and car allowance. The employee has an annual year-to-date salary of 26,000. The employee alsoreceives an annual car allowance payment of 2,000. The absence rate is 26,000 + 2,000 = 28,000. To provide a dailyabsence rate, you convert this rate into a daily rate.

This table summarizes the key information you use in the example.


What elements do I need to createbefore I dene the rate?

• Salary (assignment level) - This element contains the salary value to be retrieved by therate denition. You must create it using the Flat Amount calculation rule.

• Car Allowance (assignment level) - This element contains the car allowance value to beretrieved by the rate denition. You must create it using the Flat Amount calculationrule.

• Absence - Use the Absence template to create the element. Enter Sickness as theclassication and Absence as the category.

Which balances hold the contributingvalues?

• Salary is fed by the Salary element.• Car Allowance is fed by the Car Allowance element.

Should I process contributor totals asfull-time equivalent amounts?

Yes

Create the Rate Denition1. In the Payroll Calculation or Setup and Maintenance work area, select the Manage Rate Denitions task.

Oering: Workforce Deployment

Functional Area: Payroll

Task: Manage Rate Denitions2. In the Search Results section, click Create.3. Enter these values.



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Field Value

Category

Derived Rate

Eective Start Date

Select a date that's after the creation date of the objects that you're referencing



4. Click OK.5. In the Basic Details section, enter these values.

Field Value

Name

Absence Rate - Salary and Car Allowance

Short Name

ABS RATE - SAL/CAR ALLOW

6. In the Returned Rate Details section, select Daily as the value for the Periodicity eld.7. Click the Contributor Rules tab and then select Yes as the value for the Process Contributor Total as FTE

Amount eld.

The balances referenced need to be populated using payroll runs for the periods covered by the balancedimension or the rate denition won't generate a meaningful value.

Create Rate Contributors1. In the Rate Contributors section, click Create.2. Select Balance as the Contributor Type and then click OK.3. On the Create Rate Contributors page, enter these values.

Field Value

Add or Subtract

Add

Balance Name

Regular Salary

Balance Dimension

Assignment Period to Date

Periodicity

Daily

4. Click Save and Continue.5. Click Create.6. Select Balance as the Contributor Type and then click OK.



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7. On the Create Rate Contributor page, enter these values.

Field Value

Add or Subtract

Add

Balance Name

Car Allowance

Balance Dimension

Assignment Period to Date

Periodicity

Daily

8. Click Save and Continue.9. Click Submit.

10. Assign an Absence element entry to the employee's assignment.Note: You will then need to pass the absence entry through to payroll using the absence interface.

Related Topics

• Integrate Absence Management with Global Payroll

Create a Rate Denition for Basic SalaryIn this example, you create a primary rate for a basic salary. After you run the rate engine, the Manage Element Entries -Manage Person Details page displays the values for eligible employees.

Before you begin, create the salary element at the assignment level. This element contains the salary information to beretrieved by the rate denition. You can create it using the at amount or factor calculation rule.

1. In the Payroll Administration work area, click the Manage Rate Denitions task.2. Click Create.3. Enter these values.

Field Value

Category

Element

Eective Start Date

Enter the current date.


Enter your legislative data group.

4. Click OK.5. Enter these values.

http://www.oracle.com/pls/topic/lookup?ctx=fa19d&id=0A861964463D6097E05362C3F00A93AD



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Fields Value

Storage Type

Amount

Element Name

Regular Salary

6. In the Returned Rate Details section, select the Base Rate and complete the elds, as shown in this table.

Field Value

Periodicity

Annual

Periodicity Conversion Formula

ANNUALIZED RATE CONVERSION

Currency

LDG Currency

7. Click Submit.

Create Rate Denitions for Overall SalaryIn this example, you create a rate denition for overall salary that includes multiple rate contributors.

You do these actions.

• Create the overall salary rate denition

• Add the regular salary rate contributor

• Add the car allowance rate contributor

This table summarizes the key decisions for your scenario.


What components of pay should beincluded in an employee's overallsalary?

• Regular Salary• Car Allowance

Should I include all pay for carallowance in the overall salary?

No. Only include 50 percent of the amount paid for car allowance.



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Note: The overall salary rate denition is a derived rate. To populate the Overall Salary check box, selecta salary element in the Element name eld. You then add the regular salary rate and car allowance ratecontributors to the rate denition. The rate contributors that you add should be elements that you select fromthe Rate Name eld on the Create Rate Contributor page.

Create the Overall Salary Rate Denition1. In the Payroll Administration work area, click the Manage Rate Denitions task.2. Click Create.3. Enter these values.

Field Value

Category

Derived Rate

Eective Start Date

Enter the current date.


Select your legislative data group.

4. Click OK.5. Enter these values.

Field Value

Name

Overall Salary

Short Name

OVERALL_SAL

Element Name

Salary

6. In the Returned Rate Details section, enter these values.

Field Value

Periodicity

Weekly

Periodicity Conversion Formula

ANNUALIZED RATE CONVERSION

Currency

LDG Currency

Add the Regular Salary Rate Contributor1. In the Calculation section, click Create.



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2. Enter Base Rate in the Contributor Type eld and then click OK.3. Enter these values.

Field Value

Add or Subtract

Add

Employment Level

Payroll Assignment

Periodicity

Weekly

4. Click Save and Continue.

Add the Car Allowance Rate Contributor1. In the Calculation section, click Create.2. Enter Rate Denition in the Contributor Type eld and then click OK.3. Enter these values.

Field Value

Add or Subtract

Add

Rate Name

Car Allowance

Periodicity

Weekly

Factor Rule

Value

Factor Value

0.5


Generate HCM RatesSubmit the Generate HCM Rates ow to calculate and store rates for reporting purposes or inclusion in payrollcalculations. Run this batch process frequently to ensure the stored rate values are accurate. After you run this process,you can report on the rates using extracts. The user entity includes the database items that you can use in reports.

Use this ow to calculate and store most types of rate denitions. The stored rate values can be used for reporting orretrieving for payroll calculation purposes

The application provides database items to support the rate batch process. These array database items return all ratesassociated with a payroll relationship record as of a specic date.



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Note: The REPORTING_RATE_VALUES and REPORTING_RATE_PERIODICITIES database items return valuesbased on the return rate details dened on the rate denition. The other periodicity database items, such asREPORTING_RATE_QUARTERLY, return a rate that's converted to the specied periodicity.

The Generate HCM Rates process supports the database items listed in this table.

Database Items Description

REPORTING_ RATE_NAMES

Name of the rate

REPORTING_ RATE_VALUES

Value of the rate

REPORTING_ RATE_ PERIODICITIES

Periodicity of the rate

REPORTING_ RATE_ FTE_FLAGS

Full-time status of the rate

REPORTING_ RATE_TERM_NUMBERS

Term number associated to the rate values

REPORTING_ RATE_ ASG_NUMBERS

Assignment number associated to the rate values

REPORTING_ RATE_WEEKLY

Weekly rate value

REPORTING_ RATE_MONTHLY

Monthly rate value

REPORTING_ RATE_ QUARTERLY

Quarterly rate value.

REPORTING_ RATE_YEARLY

Annual rate value

REPORTING_ RATE_ PT_WEEKLY

Part-time weekly rate value

REPORTING_ RATE_ PT_MONTHLY

Part-time monthly rate value

REPORTING_ RATE_ PT_QUARTERLY

Part-time quarterly rate value

REPORTING_ RATE_ PT_YEARLY

Part-time annual rate value

REPORTING_ RATE_ FT_WEEKLY

Full-time weekly rate value

REPORTING_ RATE_ FT_MONTHLY

Full-time monthly rate value

REPORTING_ RATE_ FT_QUARTERLY Full-time quarterly rate value



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Database Items Description

REPORTING_ RATE_ FT_YEARLY

Full-time annual rate value

Run the process if these conditions apply.

• Changes to the data referenced by the rate, which may include element entries, grade rates, and values denedby criteria. This process only reports the rate values. It doesn't update, delete, create, or have any impact on theunderlying objects.

• Updates to rate denitions, such as when a new rate contributor is added or removed, or the rate is madeinactive.

• Changes to employee records that impact their salary rates, such as changes to job or grade.

Note: You should run the process prior to any operation that depends on the values that are stored in thetable. For example, if you have a rate based on seniority, values could change simply by the passage of time.

Let's look at the steps to run the process.

1. In the Payroll Administration work area, select the Submit a Process or Report task.2. Select your legislative data group.3. Select the Generate HCM Rates ow paern.4. Enter these values for the Process Mode eld.

Mode Description Accuracy

Fast

Uses the start and end date specied tocalculate the rate value. If the rate valueis the same for both dates, it determinesthat the rate value is the same overthe entire period. If the start and endvalues are dierent, this method thendetermines a value in the middle andcompares it with the start and nishvalues to see where the change occurred.This process repeats until the date ofthe change is found. This is known as abinary chop algorithm.

This is the quickest but least accuratemethod to calculate rate values. It missesany changes if a rate value goes up andthen back down to the same value that'scalculated at the start and end dates.

Full

Calculates the rate for every day betweenthe start and end date.

Slowest but most accurate method.

Periodic

This method works the same as Fastexcept you can specify the numberof days the process calculates ratesbetween the start and end dates.

The accuracy of this method is half-waybetween Fast and Full.

5. Click Next.6. Select a ow submission.



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Note: If you select Using a schedule, you must also select a frequency, such as once, weeklyor daily.

7. Click Next and then Submit.

How To Use a Rate Calculation FormulaApplications and other formulas can call the rate denition formula called Rate Engine to calculate a rate using a ratedenition.

To call this formula from a formula:

• Specify the name of the rate denition as an input.

• Optionally, pass other formula inputs, such as periodicity. This periodicity overrides the return periodicityspecied on the rate denition.

The rate calculation formula returns a value and a periodicity.

Rates Used to Calculate Absences in PayrollYou can specify a rate for use in calculating an absence in an absence plan or an absence element. When processingabsence entries in a payroll run, the formula associated with the absence element uses the Rate Converter globalformula to convert rates. The formula checks for a rate in this sequence.

1. Absence plan2. Absence element3. Compensation salary element

Absence PlanIn Oracle Fusion Absence Management, you can select a rate rule on the Entries and Balances tab of the Create AbsencePlan page. The rate rule calculates the units passed to payroll when you record an absence. You can select rate rules forthe absence payment, nal disbursement, discretionary disbursement, and liability balance calculation.

For third-party absence providers, the application transfers the rate information and override rates in the XML leaached to the Load Absence Batch process.

Absence ElementIf you don't specify rates in the absence plan, you can specify a rate when you create the absence elements. The typeof absence information determines the rates you can select. For example, for plans where you transfer accrual balancesand absences, you can select dierent rates for these calculations.

• Absence payments

• Discretionary disbursement

• Final disbursement

• Liability balance rate

As best practice, specify a rate in either the plan or the element. If you specify in both, ensure the rate for the element issame as the rate you selected in the corresponding plan.



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Compensation Salary ElementIf the formula doesn't nd a rate specied in the plan or the element, it uses the compensation salary element.

When you associate a payroll element to a salary basis, you specify an input value that holds the base pay on a worker'selement entry. The monetary amount or rate recorded in the element entry is the salary value in the worker's salaryinformation held on the assignment. If you specify a rate, the formula uses this rate if it doesn't nd one dened in theabsence plan or absence element.

Related Topics

• Dene Payroll Elements to Process Absences

FAQ for Rate Denitions

How does periodicity conversion work when there are multiplecontributors with dierent periodicities?Sometimes, you may need to add a base salary, which is an annual gure, to a 13th month salary. This 13th monthsalary is a monthly gure that's calculated from the annual base salary. The base salary in this example is held as anannual amount on an element entry as 24,000. The 13th month salary is 2,000 (24000 / 12). If you add each of thesecontributors together, the sum of the contributors is 26,000 (24,000 + 2,000).

At this point you have added an annual gure to a monthly gure, but you haven't indicated what the periodicity of thetotal is. On the Create Rate Denitions page, if you select Annual in the Contributor Total Periodicity eld, the sum of thecontributors is 26,000. If you select Monthly, the application converts the contributors to 312,000 (26,000 * 12), which isnow the annual gure.

Note: When the formula is called to calculate the rate, there is an option to override the return periodicity ofthe rate.

How do I use the base rate feature to calculate a rate based onmultiple salary elements?Create a rate denition for each your salary elements. And ensure that you select the Base Rate check box in the BasicDetails section of the Create Rate Denition page. For example, if you have three salary elements, you need to createthree rate denitions and associate each rate denition to one of your salary elements. All of your salary rate denitionsmust have the Base Rate check box selected. Create an absence rate denition that has a category of Derived Rate. Inthe Rate Contributors section, click Create. On the Create Rate Contributor page, select Base Rate from the ContributorType drop-down list. This rate denition calculates a rate based on all of your salary rates. And all rate denitions areidentied as a base rate.

You can use the base rate to identify each of your company's salary rate denitions. You can then use the derivedrate to calculate a salary rate derived from all of the salary elements. You can use the base rate and the derived rate inscenarios where your company has multiple salary elements and needs to calculate an hourly absence rate based on thesalary rate of an employee.



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How do I compare rate denitions to ensure the highest rate ispaid?Create a rate denition for your salary rate. Create a rate denition for your special pay rate, and then navigate to theReturned Rate Details section. From the Minimum Rate Rule list, select Rate Denition. Then, from the MinimumValue list, select the salary rate that you created.

You can use the Minimum Rate Rule option in the Returned Rate Details section in scenarios where your companyneeds to pay an employee either the salary rate or the special pay rate, whichever is greater.

Values Dened by Criteria

Values Dened by CriteriaEach calculation value denition requires you to specify one or more evaluation conditions that determine a particularvalue or rate. In cases where you specify many conditions, each condition is dened as a separate level and placed inpriority order to produce a tree structure.

You control the criteria that you enter and the resulting tree structure. In each branch of the tree, you can have multipleevaluation conditions. If no conditions are met, the payroll process uses the value established for the default criteria thatyou set up. Each criterion and value, as well as the parent criteria denition, is stored as a calculation value denition.

Values dened by criteria comprise the components listed in this table.

Component Requirement

Criteria Denition (evaluationcondition)

At least one but you can have many.

Default Criteria Denition

Should have at least one in most cases to cover all conditions. If you have a situation that where the criteria you set up covers all conditions, then you don'tneed a default criteria denition.

Name

Refers to the name of the value denition. This eld is mandatory. This name must be uniqueacross all value denitions within a legislative data group. It's required to enable customers toidentify the parent record while you create the hierarchy through the HCM Data Loader.

Value Denition Group

Grouping that helps you manage value denitions. This eld is mandatory.

Retrieval Date

Determines whether the criteria denition uses the date earned or eective date to retrieveinformation. The default value is eective date.



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Component Requirement

Display Name

Refers to the name of the hierarchy record created within the context of the value denition.This name doesn't need to be unique and is displayed in the value by criteria hierarchy record.If you don't enter a display name, the database item description or name displays.

Value Denitions

You can have multiple values included with a value denition. Each one is identied by thevalue identier.

Database Items

One per criteria denition.

Operands

One per criteria denition.

Value Sets

Optional

Literal Values One per criteria denition.

If you use the In operand, you can enter multiple values.

Rate

Used when you're creating a calculation value. If you select Flat Rate or Incremental Rate as thecalculation type, you must enter a rate in this eld.

Criteria Denitions and Evaluation ConditionsWithin the tree structure you create the criteria denitions that hold the actual values or rates. There are many types ofvalues that can be held, such as percentage, number, cash amount, or text.

You can also dene a periodicity, which allows the value to be specied as a periodic value. Additionally, you can denea value in a currency that's dierent from the default currency specied at the legislative data group.

The supported calculation types include:

• Flat Amount

• Flat Amount Times Multiplier

• Flat Calculation

• Flat Rate

• Incremental Rate

• Number

• Rate Denition

• Standard Formula 1

• Standard Formula 2

Value DenitionsAfter creating the criteria, create value denitions to hold the values for each criterion. This is where you enter thecalculation types and rates. If you're using a calculation type that's a at amount, at amount times multiplier, ornumber, you can also specify a periodicity.



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To view or modify the calculation values you entered, click the appropriate link to access the Manage Calculation ValueDenition task. On this page you can change from and to values, override the calculation type, add new rows, changerates, and change currency. The From Value and To Value elds on this page are monetary.

You can capture multiple values for a single criterion if you specify a unique value identier for each value. The treestructure shows this identier instead of the value denition name. For example you may want to pay employeesbonuses at dierent rates based on their annual salaries. In this case, you can use value identiers to dene dierentrates for each salary range using the From Value and To Value elds.

Database ItemsEach condition refers a database item to identify where the value is used. It also determines the data type of the value,which is text, number, or date. Dene conditions using predened database items or the dynamically created databaseitems that are generated when certain data is created, such as balances and elements.

Here is a partial list of database items that you can refer in the new hire ow:

• Grade

• Job

• Job Code

• BU (Business Unit)

• Location

• Department

• Worker Category

• Assignment Category

• Employee Category

• Salary Basis

• Legal Employer

• Period of Service (Seniority)

• Number of Dependents (between the ages 3 and 18)

Note: You can only refer database items for objects that are dened in the new hire ow, which are used tocalculate salary basis. If you refer other types of database items, the process either returns zero or it uses thedefault criteria.

You can refer a wider range of database items if you dene a value by criteria for other purposes. For example,calculating a time card or payroll rate.

You can refer any static or dynamic DBI that supports these contexts:

• HR_ASSIGNMENT_ID

• HR_TERM_ID

• PAYROLL_ASSIGNMENT_ID

• PAYROLL_TERM_ID

• PAYROLL_RELATIONSHIP_ID

• PERSON_ID

• CALC_BREAKDOWN_ID

• PAYROLL_ID

• EFFECTIVE_DATE



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• DATE_EARNED

• LEGISLATIVE_DATA_GROUP_ID

OperandsYou use operands when you're creating criteria. You can specify whether the value dened by the database item shouldbe equal to, greater than, less than, greater than or equal to, or less than or equal to the literal value.

To capture multiple values for the same criteria, use the In operand. For example if you want to give employees thatwork in City 1 and City 2 the same bonus, you can create a single evaluation condition for both cities using the Inoperand.

Value SetsSpecify a value set to provide a dynamic list of values from which you can select an entry. This option is available forinput values that provide text only.

Literal ValuesIf you specify a value set, you can select an entry from a list of values, which is based on the selected value. If you leavethe Value Set eld blank, you can enter any type of information that's appropriate for the value denition that you'recreating.

Examples to Manage Values Dened by CriteriaUse the Manage Values Dened by Criteria task to calculate or retrieve values based on one or more conditions. Youcan use values dened by criteria in rate denitions. You can also use value by criteria denitions in any formula usedfor validation.

If you use a third-party payroll product and want to extract the salary rate details, use the Generate HCM Rates processto calculate rate values. The Generate HCM Rates process is primarily used to calculate derived rate values, such asthose which sum multiple salary components. However, it's also used to process primary rates, as you may dene ratedenitions which calculate values that are dierent from those stored on an element entry.

Note: The values that the Generate HCM Rates process creates are stored on a rates table. You can extractthis information using the HCM Extract tool to send to your third-party payroll providers.

Use these examples to understand how you can calculate values dened by criteria for these elements of payroll.

Annual SalariesYou can calculate annual salaries for employees based on their position. For example:

• If the employee is a Consultant, pay 45,000.

• If the employee is a Senior Consultant, pay 55,000.

• If the employee is a Principal Consultant, pay 65,000.



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Bonus PaymentsYou can chose to calculate bonus payments for employees that are weighted by their location. A more complicatedscenario would be to pay bonuses based on an employee's department, years of service, and annual salary.

• To weight a bonus payment by location, you could set up criteria as follows:

◦ For employees working in London, pay a 15 percent bonus.

◦ For employees working in Manchester, pay a 13 percent bonus.

◦ For employees working in Southampton, pay a 9 percent bonus.

◦ For all other employees, pay a 5 percent bonus.

• To pay a bonus based on department, years of service, and annual salary, you could set up criteria as follows:

◦ If an employee working in sales has less than or equal to 5 years of service and an annual salary over45,000, pay a 2,000 bonus.

◦ If an employee working in sales has less than or equal to 10 years of service and an annual salary over45,000, pay a 5,000 bonus.

◦ If an employee working in sales has greater than 10 years of service and an annual salary over 45,000,pay a 9,000 bonus.

◦ For all other employees working in sales, pay a 7 percent bonus based on their annual salary.

Pension ContributionsYour pension plan may have rules that limit contributions based on an employee's annual salary. For example, in thisscenario you could set up criteria as follows:

• Employees making less than or equal to 25,000, limit maximum contributions to 2,500.



• Employees making greater than 100,000, limit maximum contributions to 14 percent of pay.

Hourly RatesIn the United States, labor law mandates to pay a higher rate when a locality's minimum wage is greater than the stateor federal minimum wage. To fulll this requirement, use the Manage Values Dened by Criteria task to set up pay ratesthat a worker's state, county, and profession determines.

In this example, you could set up criteria for these scenarios:

• Pay carpenters working in City 1 in County 1 greater than or equal to the rate of 15 per hour.



• For all other workers, pay rate of 12 USD per hour, the prevailing state wage for laborers.



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Use Values Dened by Criteria to Pay Bonuses Based on Age andLocationThis example demonstrates how to create criteria to pay employee bonuses at dierent rates based on age andlocation. This table summarizes the key decisions for this scenario:

Decisions to Consider In this Example

What ages and rates should be used?

• Less than age 25, pay 10 percent• Less than age 35, pay 14 percent to City 1 employees• Less than age 35, pay 16 percent to City 2 employees• All other locations and ages greater than 35, pay 5 percent

What locations should be used todetermine bonus rates?

• City 1• City 2

Are there any special conditions thatshould be added?

Yes. In City 2 the general manager wants to pay a at amount of 15,000 for all employeesunder the age of 35 who make over 100,000 per year.

In this example, we would perform these actions:

• Create the bonus rate criteria denition

• Create age criteria

• Create location criteria for age group 2

• Create a calculation value denition for age group 1

• Create calculation value denitions for locations

• Create calculation value denitions for default criteria denitions

• Modify evaluation conditions

Before You BeginIn this example, HRX_US_REP_LOCATION is used as the value set for the entry of dierent locations. If you don't havean equivalent value set, you may need to create one.

Create the Bonus Rate Criteria Denition1. In the Payroll Administration work area, click the Manage Values Dened by Criteria task.

In the Setup and Maintenance work area, go to these tasks:Oering: Workforce DeploymentFunctional Area: PayrollTask: Manage Values Dened by Criteria

2. Click Create.



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3. Complete these elds as shown in this table.

Field Value

Name

Bonus Rate

Eective Start Date

1/1/15



4. Select the Create new value denition group radio buon.5. Enter Bonus in the New Value Denition Group eld.6. Enter Flat Rate in the Default Calculation Type eld.7. Click OK.

Create Age Criteria1. Select the row with the Bonus Rate criteria denition.2. Click New.3. Select Criteria and click OK.4. For each criteria denition you create, complete the elds as shown in this table.

Field Age less than 25 Age less than 35

Calculation Value Denition Name

Bonus Rate Age Group 1

Bonus Rate Age Group 2


Bonus

Bonus

Retrieval Date

Date Earned

Date Earned

Sequence

1

2

Database Item Name

PER_ PER_ PERSON_AGE

PER_ PER_ PERSON_AGE

Operand

<

<

Literal Value

25

35

5. Click OK each time you create a criteria denition.6. To create a default group for the age criteria, repeat steps 1 through 3.7. Complete the elds as shown in this table.



196

Field Value


Bonus Rate Age Group Default


Bonus

Retrieval Date

Date Earned

8. Select the Default Criteria check box and click OK.

Create the Location Criteria for Age Group 21. Select the row with the Person Age < 35 criteria denition.2. Click New.3. Select Criteria and click OK.4. For each criteria denition you create, complete the elds as shown in this table.

Field City 1 City 2


Bonus Range Age Group 2 Location 1

Bonus Range Age Group 2 Location 2


Bonus

Bonus

Retrieval Date

Date Earned

Date Earned

Sequence

1

2

Database Item Name

PER_ ASG_ LOCATION_ID

PER_ ASG_ LOCATION_ID

Display Name

Location

Location

Operand

=

=

Value Set

HRX_ US_ REP_LOCATION

HRX_ US_ REP_LOCATION

Literal Value

City 1

City 2

5. Click OK each time you create a criteria denition.6. To create a default group for the location criteria, repeat steps 1 through 3.7. Complete the elds as shown in this table.



197

Field Value


Bonus Rate Age Group 2 Location Default Rate


Bonus

Retrieval Date

Date Earned


Create a Calculation Value Denition for Age Group 11. Select the row with the Person Age < 25 criteria denition.2. Click New.3. Select Value and click OK.4. Complete the elds as shown in this table.

Field Value


Bonus Rate Age Group 1 Rate


Bonus

Retrieval Date

Date Earned

Calculation Type

Flat Rate

Rate

.10

5. Click OK.

Create Calculation Value Denitions for Locations1. Select the row with the Location = City 1 criteria denition.2. Click New.3. Select Value and click OK.4. Complete the elds as shown in this table.

Field Value


Bonus Rate Age Group 2 Location Rate 1

Value Denition Group Bonus



198

Field Value

Retrieval Date

Date Earned

Calculation Type

Flat Rate

Rate

.14

5. Click OK.6. Select the row with the Location = City 2 criteria denition.7. Click New.8. Select Value and click OK.9. Complete the elds as shown in this table.

Field Value


Bonus Rate Age Group 2 Location Rate 2


Bonus

Retrieval Date

Date Earned

Calculation Type

Flat Rate

Rate

.16

10. Click OK.

Create Value Denitions for the Default Criteria Denitions1. Under the location criteria denition, select the row with the Default Criteria denition.2. Click New.3. Select Value and click OK.4. Complete the elds as shown in this table.

Field Value


Age Group Location Default Rate


Bonus

Retrieval Date Date Earned



199

Field Value

Calculation Type

Flat Rate

Rate

.05

5. Click OK.6. To create a calculation value denition for employees that don't meet any criteria, select the row with the last

Default Criteria denition.7. Repeat the steps described in this procedure except for the Calculation Value Denition Name eld. Enter

Bonus Default Rate instead.8. Click OK.

Modify Evaluation Conditions1. To modify the evaluation conditions for the City 2 location, click the Bonus Rate Age Group 2 Location Rate 2

link.2. Scroll down to the Calculation Values section.3. Enter 100,000 in the To Value eld.4. Click Add Row.5. Enter 100,000.01 in the From Value eld and 999,999,999,999 in the To Value eld.

From and to values are monetary, unless you're using a database item.6. Select Flat Amount in the Calculation Type Override eld.7. Enter 15,000 in the Flat Amount eld.8. Click OK and Submit.

Use Values Dened by Criteria to Limit Pension ContributionsThis example demonstrates how to create criteria to limit pension contributions based on annual salary amounts. Thistable summarizes the key decisions for this scenario.

Decisions to Consider In this Example

What salaries and contribution limitsshould be used?

• Salary less than or equal to 50,000, limit pension contribution to 5,000• Salary less than or equal to 100,000, limit pension contribution to 10,000• All other salary amounts, limit pension contribution to 17 percent of annual salary

This example:

1. Creates the pension limits criteria denition2. Creates salary criteria3. Creates the value denition for salary amount 14. Creates the value denition for salary amount 25. Creates the value denition for the default criteria denition



200

Create the Pension Limits Criteria Denition1. In the Payroll Administration work area, click the Manage Values Dened by Criteria task.

Go to these areas:



Task: Compensation work

2. Click Create.3. Complete the elds, as shown in this table.

Field Value

Name

Pension Limits

Eective Start Date

1/1/15



4. Select the Use existing value denition group radio buon.5. Select Limit Rules in the Value Denition Group eld.6. Select Flat Amount in the Default Calculation Type eld.7. Click OK.

Create Salary Criteria1. Select the row with the Pension Limits criteria denition.2. Click New.3. Select Criteria and then click OK.4. For each criteria denition you create, complete the elds as shown in this table.

Field Salary less than or equal to 50,000 Salary less than or equal to 100,000


Salary less than or equal to 50,000

Salary less than or equal to 100,000


Limit Rules

Limit Rules

Retrieval Date

Date Earned

Date Earned

Sequence

1

2

Database Item Name

CMP_ ASSIGNMENT_ SALARY_AMOUNT

CMP_ ASSIGNMENT_ SALARY_AMOUNT



201

Field Salary less than or equal to 50,000 Salary less than or equal to 100,000

Operand

< =

< =

Literal Value

50,000

100,000

5. Click OK each time you create a criteria denition.6. To create a default group for the salary criteria, repeat steps 1 through 3.7. Complete the elds, as shown in this table.

Field Value


Salary Greater Than 100,000


Limit Rules

Retrieval Date

Date Earned


Create the Value Denition for Salary Amount 11. Select the row with the Salary Amount < = 50,000 criteria denition.2. Click New.3. Select Value and click OK.4. Complete the elds, as shown in this table.

Field Value


Contribution Limits 1


Limit Rules

Retrieval Date

Date Earned

Calculation Type

Flat Amount

Periodicity

Annually

Unit of Measure

Money

Currency

LDG Currency



202

Field Value

Flat Amount

5,000

5. Click OK.

Create the Value Denition for Salary Amount 21. Select the row with the Salary Amount < = 100,000 criteria denition.2. Click New.3. Select Value and click OK.4. Complete the elds, as shown in this table.

Field Value


Contribution Limits 2


Limit Rules

Retrieval Date

Date Earned

Calculation Type

Flat Amount

Periodicity

Annually

Unit of Measure

Money

Currency

LDG Currency

Flat Amount

10,000

5. Click OK.

Create the Value Denitions for the Default Criteria Denition1. Select the row with the Default Criteria denition.2. Click New.3. Select Value and click OK.4. Complete the elds, as shown in this table.

Field Value


Salary Greater Than 100,000



203

Field Value


Limit Rules

Retrieval Date

Date Earned

Calculation Type

Flat Rate

Rate

.17

5. Click OK.

Example of Calculating Location Allowance Rates Based onLocation and Hire DateLet's look at an example that shows how to calculate a location allowance based on the hire date and location of anemployee. In this example, an employee who's hired in California or Colorado before 01-JAN-19 is eligible to locationallowance payments calculated at 15% of the salary. An employee hired in these states on or after 01-JAN-19 isn'teligible to receive the location allowance.

Create the Location Allowance Values by Criteria1. In the Payroll Calculation work area, click the Manage Values Dened by Criteria task.2. Click Create.3. Complete these elds:

Field Value

Name

Location Allowance Rate

Eective Start Date

Enter a valid date



4. Select the Create new value denition group option.5. Enter Location Allowance in the New Value Denition Group eld.6. Enter Flat Rate in the Default Calculation Type eld.7. Click OK.

Create Criteria for Each Location Eligible for Payment1. Select the row with the Housing Allowance Rate criteria denition.2. Click New.



204

3. Select Criteria and then click OK.4. For each criteria denition you create, complete these elds:

Field Value


Location


Location Allowance

Retrieval Date

Enter a valid date.

Sequence

Select a sequence.

Database Item Name

Select a database item name.

Operand

=

Literal Value

California

5. Click OK each time you create a new criteria denition.6. To create a default group for each location criteria, repeat steps 1 to 3.7. Complete these elds:

Field Value


Location Allowance Default Rate


Location Allowance

Retrieval Date

Date Earned

8. Select the Default Criteria check box and then click OK.

Create Hire Date Rule Criteria for Each Location1. Select the row with the Location = California criteria denition.2. Click New.3. Select Criteria and then click OK.4. For each criteria denition you create, complete these elds:

Field Value

Calculation Value Denition Name Hire Date Rule for California



205

Field Value


Location Allowance

Retrieval Date

Enter a valid date.

Sequence

Select a sequence.

Database Item Name


Operand

<

Literal Value

01-JAN-2019

5. Click OK each time you create a new criteria denition.6. To create a default group for each location criteria, repeat steps 1 to 3.7. Complete these elds:

Field Value


Hire Date Rule for California Default Rate


Location Allowance

Retrieval Date

Date Earned


Create Value Denitions for the Hire Date Rule for Each Location1. Select the row with the Hire Date Rule for California criteria denition.2. Click New.3. Select Value and then click OK.4. Complete these elds:

Field Value


Location Allowance for California


Location Allowance

Retrieval Date Date Earned



206

Field Value

Calculation Type

Flat Rate

Rate

0.15

5. Click OK.

Create Value Denitions for the Default Criteria Denitions1. Under the job criteria denition, select the row with the Default Criteria denition.2. Click New.3. Select Value and then click OK.4. Complete these elds:

Field Value


Housing Allowance Default Rate


Housing Allowance

Retrieval Date

Date Earned

Calculation Type

Flat Rate

Rate

0.0

5. Click OK.

Create the Rate Denition for Location Allowance1. In the Payroll Calculation or Setup and Maintenance work area, select the Manage Rate Denitions task.2. In the Search Results section, click Create.3. Complete these elds.

Field Value

Category

Derived Rate

Eective Start Date






207

4. Click OK.5. In the Basic Details section on the Create Rate Denition page, complete these elds:

Field Value

Name

Enter the name for your rate denition. For example, Rate - Location Allowance.

Short Name

Enter a short name.

6. In the Returned Rate Details section, complete these elds:

Field Value

Factor Rule

Value by Criteria

Name

Select the value for the housing allowance that you created using values dened by criteria.For example, Location Allowance Rate.

Create Rate Contributors1. In the Rate Contributors section, click Create.2. Select Rate Denition as the Contributor Type and then click OK.3. On the Create Rate Contributors page, complete these elds:

Field Value

Add or Subtract

Add

Rate Name

Select your salary rate denition.


Example of Using Rate Denitions to Calculate Housing AllowanceBased on a Percentage of Salary and Limited to a Maximum ValueLet's look at an example that shows how to calculate a housing allowance rate that's limited to a maximum of $10,00 peryear. In this example, housing allowance is a percentage of the salary. The percentage value is derived based on the jobof the employee.

You can choose to calculate housing allowance rates with a job criteria with a maximum rate limit. Use the ManageValues Dened by Criteria task to dene the conditions and housing allowance values. Use the Manage Rate



208

Denitions task to associate the values dened by criteria to the housing allowance rate and apply the maximum limitrule.

In this example, you calculate housing allowance payments based on the type of the job. You rst create values bycriteria for housing allowance. Then, you dene criteria for each type of job.

You can also calculate the housing allowance payments based on a percentage of salary. You can do so by rst enteringvalues for each of the job criteria conditions. For example, if the job 'Help desk Manager' is eligible for 10% of thesalary, enter a rate value of 0.10. Specify the value for the default criteria as 0.00. This ensures that you don't pay theallowance to employees who don't meet the job criteria.

Create the Housing Allowance Values by Criteria1. In the Payroll Calculation work area, click the Manage Values Dened by Criteria task.2. Click Create.3. Complete these elds:

Field Value

Name

Housing Allowance Rate

Eective Start Date

Enter a valid date



4. Select the Create new value denition group option.5. Enter Housing Allowance in the New Value Denition Group eld.6. Enter Flat Rate in the Default Calculation Type eld.7. Click OK.

Create Criteria for Each Job Type1. Select the row with the Housing Allowance Rate criteria denition.2. Click New.3. Select Criteria and then click OK.4. For each criteria denition you create, complete these elds:

Field Value


Job


Housing Allowance

Retrieval Date

Enter a valid date.

Sequence

Select a sequence.



209

Field Value

Database Item Name


Operand

=

Literal Value

Help Desk Manager

5. Click OK each time you create a new criteria denition.6. To create a default group for the job criteria, repeat steps 1 to 3.7. Complete these elds:

Field Value




Housing Allowance

Retrieval Date

Date Earned


Create Value Denitions for Each Job Type1. Select the row with the Job = Help Desk Manager criteria denition.2. Click New.3. Select Value and then click OK.4. Complete the elds, as shown in this table.

Field Value


Help Desk Manager Rate


Housing Allowance

Retrieval Date

Date Earned

Calculation Type

Flat Rate

Rate

0.10

5. Click OK.



210

Create Value Denitions for the Default Criteria Denitions1. Under the job criteria denition, select the row with the Default Criteria denition.2. Click New.3. Select Value and then click OK.4. Complete these elds:

Field Value




Housing Allowance

Retrieval Date

Date Earned

Calculation Type

Flat Rate

Rate

0.0

5. Click OK.

Create the Rate Denition for Housing Allowance1. In the Payroll Calculation or Setup and Maintenance work area, select the Manage Rate Denitions task.2. In the Search Results section, click Create.3. Complete these elds.

Field Value

Category

Derived Rate

Eective Start Date




4. Click OK.5. In the Basic Details section on the Create Rate Denition page, complete these elds:

Field Value

Name

Enter the name for your rate denition. For example, Rate - Housing Allowance.

Short Name

Enter a short name.



211

6. In the Returned Rate Details section, complete these elds:

Field Value

Factor Rule

Value by Criteria

Name

Select the value for the housing allowance that you created using values dened by criteria.For example, Housing Allowance Rate.

Maximum Rate Rule

Value

Maximum Value

10,000

Create Rate Contributors1. In the Rate Contributors section, click Create.2. Select Rate Denition as the Contributor Type and then click OK.3. On the Create Rate Contributors page, complete these elds:

Field Value

Add or Subtract

Add

Rate Name

Select your salary rate denition.


FAQ for Values Dened by Criteria

Does the order in which I add criteria denitions maer?Yes. Each criteria denition that you add is dened as a separate level and placed in priority order. The order is used toproduce a tree structure, which aects processing and the value that's returned.

For example, if the rst criteria denition has the condition of salary greater than 0, and the next criteria denition in thesequence has the condition of salary greater than 100,000, all salaries would meet the rst condition and there wouldbe no results for the second condition. To x this situation, you would reverse the order of the criteria denitions wherethe condition greater than 100,000 is rst in the sequence.

You can change the sequence of the criteria denitions at any time to suit your business needs and x processingproblems.



212

How do I dene minimum or maximum rules for a values bycriteria rate?Create a value by criteria denition. Create a rate denition that has a category of Value by Criteria and associate therate denition to the value by criteria denition. Create a rate denition that has a category of Derived Rate. Create arate contributor with a contributor type of Rate Denition, and then select the values by criteria rate denition. You cannow dene return rate rules for your derived rate, such as a minimum or maximum values. These return rate rules willbe applied to the values by criteria rate.

Payroll Event Groups

Payroll Event GroupsA payroll event group denes the types of data changes that trigger retroactive event notications or proratedcalculation of a person's earnings or deductions.

There are two types of payroll event groups:

• Proration

• Retroactive

ProrationUsing proration, you can calculate proportionate earnings and deduction amounts whenever payroll-relevant datachanges during a payroll period.

For example, you can calculate proportionate earnings and deduction amounts if:

• A person joins or leaves an organization in the middle of a payroll period

• A person's pay rate changes during a payroll period

If you want to prorate an element, such as basic salary, assign a proration event group to the element with prorationpoints that aect a person's salary. You can use the predened event group, or create a new one. When you create anevent group, you select the events that activate proration calculation, such as changes to:

• Hourly or annual pay rates

• Working hours

• Allowances or deductions

• Assignment changes, such as grade or position

Tip: You can only select events that represent changes to element entries, calculation cards, calculation valuedenitions and assignments.



213

RetroactiveRetroactive processing ensures that your payroll run for the current period reects any backdated payments anddeductions from previous payroll periods. A retroactive event group denes the types of changes that trigger aretroactive event notication.

Within a retroactive event group, select the events that produce notications if a backdated change occurs. Specify theentity, update type, and aribute, as shown in the examples provided in the following table.

Entity Update Type Aribute

Element Entry Value

Correction

SCREEN_ ENTRY_VALUE

Element Entry

Update

EFFECTIVE_ START_DATE

Element Entry

Update

EFFECTIVE_ END_DATE

Element Entry

Logical Date Change

Element Entry

Insert

Element Entry

Delete Changes

Related Topics• How can I create an element for retroactive processing

Element Proration

Set up Element ProrationUse proration to calculate proportionate amounts for recurring elements when payroll-relevant data changes duringa payroll period. Examples of such scenarios include a person joining the enterprise or a mid-period pay increase.Proration creates two payroll run results. The rst run result is for the payroll period up to the day before the event. Thesecond one is from the date of the event to the end of the period. When you create an element, you specify its prorationevent group and the calculation method.

Use proration rate conversion rules to specify a dierent rule than that used for periodicity. For example, you proratebased on calendar days when using work units for conversion.

To set up element proration, you do these tasks:

• Review the predened proration event group to ensure that it includes changes you want to track. You canoptionally update the event group or create a new group.

• Create an element and enable proration processing for an element.



214

Review the Predened Event GroupWhen you create or update a recurring element, you can make it subject to proration.

1. In the Payroll Calculation work area, select the Manage Event Groups task.2. Search for the predened event group: Entry Changes for Proration.3. Review the types of changes that automatically trigger proration for the elements associated with this event

group.

You can edit this group or create a new event group for the element, if required. For example, you might wantto add changes to calculation cards or assignments.

Enable Proration Processing for an ElementTo enable proration, do these steps:

1. In the Payroll Calculation work area, select the Manage Elements task, and click Create.2. On the Create Element: Additional Details page, select Yes for the following question: Is this element subject to

proration?3. Select the predened event group (Entry Changes for Proration) or a new group that you created.4. Select a Proration Units and Proration Rate Conversion Rule.5. Select a Proration Conversion Rule formula.

Note: If the predened conversion rules don't meet your requirements, you can create a user-denedformula.

Related Topics

• Create and Assign a Work Schedule

Create Conversion Formulas for ProrationThe predened proration formula GLB_EARN_PRORATION controls how the payroll calculation prorates an elemententry when it encounters an event. This could happen when there's a change to an element entry value. You can copyand edit a predened proration formula to modify the calculation. Then, you can select the user-dened formula as theproration formula for your element.

Create a FormulaYou must create a modied rate conversion before you create its related proration conversion rule.

1. Select the formula type Payroll Run Proration.2. Search for and copy the predened Rate Conversion Proration formula.3. Add the sux underscore _PRORATE to the name.4. Update these formula inputs:

◦ PRORATE_START_DATE (date)

◦ PRORATE_END_DATE (date)

◦ SOURCE_PERIODICITY (text)

◦ DAYS_WORKED (number)

◦ RATE_CONV_FORMULA (text)

http://www.oracle.com/pls/topic/lookup?ctx=fa19d&id=87A5C7D18C7F729AE040D30A68813F40



215

◦ HOURS_WORKED (number)

◦ IN_AMOUNT (number)

◦ UNIT_TYPE (text)

◦ PRORATION_UNIT (text)

5. Add the formula outputs for the element input values.6. Save, submit, and compile the formula.

Some countries or territories supply predened proration formulas that you can use as the basis for your modiedversion.

How Prorated Earnings and Deductions are CalculatedYou can select from a number of dierent proration conversion rules to calculate standard or supplemental earnings.Select the proration conversion rule when you create an earnings or deduction element using the Manage Elementstask in the Payroll Calculation work area. You can also calculate prorated earnings based on calendar days or workschedules.

This topic covers:

• How deductions are calculated

• How prorated earnings are calculated

• Examples of earnings calculation based on calendar days

• Example of earnings calculation based on work schedule

How Deductions Are CalculatedTypically, you don't prorate deductions, such as deductions based on a percentage of earnings. You might prorate xedrate deductions, such as voluntary deduction for a tness center membership. In most cases, use the predened globalproration formula for deductions (GLB_DEDN_PRORATION). For this formula the proration value is the periodic valuemultiplied by the number of calendar days in the proration period. This gure is then divided by the number of calendardays in the payroll period.

How Prorated Earnings are CalculatedCreating a recurring earnings element automatically associates it with a predened proration formula(GLB_EARN_PRORATION). The proration formula determines how to prorate earnings in the proration period based onthe proration calculation method you select.

As a guideline the global formula doesn't prorate:

• Nonrecurring elements

• Earnings elements with a calculation rule of unit multiplied by rate, if rate and hours are entered in the elemententry

Note: Some predened legislations provide a dierent default proration formula and rules.

These examples show how proration calculations are performed on earnings calculations, based on:

• Calendar days

• Work schedules



216

Example: Earnings Calculation Based on Calendar DaysThe formula calculates proration results as shown in the following table.

Proration Conversion Rule andProration Units

Proration Calculation

Standard Rate Annualized rule Daily proration units

Calendar days in proration period multiplied by annual pay and divided by annual calendardays

Example:

1. You assign a person to amonthly payroll for a salarybasis of 25,000.

2. You update the salary on 10December, 2013 to 30,000.

3. You calculate the Decembermonthly payroll.

4. The proration formulacalculates 2 proration periodswith 9 calendar days in the rstproration period, and 22 in thesecond period.

(9 * 25000) / 365 + (22 / * 30000) / 365 = 616.44 + 1808.22 = 2424.66

Standard Rate Daily rule Daily proration units

Total pay divided by calendar days in the payroll period and multiplied by calendar days in theproration period.

Example:

1. You hire a person to a weeklypayroll in the middle of thepayroll period.

2. The employee works 3calendar days and receives alocation allowance of 500.

3. The proration formulacalculates the employee'slocation allowance for the 3days.

(500 / 7) * 3 = 214.29

Example: Earnings Calculation Based on Work ScheduleThe formula calculates proration results as shown in the following table. If no working hours are dened, the prorationformula checks the assignment denition for the number of working hours and frequency. If no information is found,the formula uses 40 as the number of working hours and 5 as the number of days for the work week.



217

Proration Conversion Rule andProration Units

Proration Calculation

Periodic Work Schedule RateAnnualized rule Workday proration units

Work schedule days in proration period multiplied by annual pay and divided by 260 days, thedefault number of annual working days. A day in a work schedule is a 24 hour period.

Example:

1. You hire a person to a monthlypayroll for an annual salarybasis of 25,000.

2. The employee works 5 days aweek Monday through Friday.

3. You increase the monthlysalary to 30,000 eective 10December, 2013.

4. You calculate the Decembermonthly payroll.

5. The proration formulacalculates 6 working days from1st December to 9th December,and 16 working days from 10thDecember to 31st December.

(6 * 25000) / 260 + (16 * 30000) / 260 = 576.92 + 1846.15 = 2423.07

Periodic Work Schedule RateAnnualized rule Hourly proration units

Work schedule hours in proration period multiplied by the annual pay and divided by 2080, thedefault number of annual working hours.

Example:

1. An employee assigned to aweekly payroll receives anannual salary basis of 25,000.

2. You increase the salary to30,000 eective 10 December,2013.

3. The employee works 10 hoursa day from 9 December to 12December.

4. You calculate the weeklypayroll for the week 8December to 14 December.

5. The proration formulacalculates 2 proration periods,with 10 working hours for therst period, and 30 for thesecond period.

(10 * 25000) / 2080 + (30 * 30000) / 2080 = 120.19 + 432.69 = 552.88

Periodicity



218

Periodicity ConversionRate conversion formulas convert amounts to dierent periodicities for payroll calculations. The following calculationsuse rate conversion formulas:

• Proration

• Hours multiplied by rates calculation of an element run result

• Rates based on rate denitions

Predened PeriodsUse the following predened periods when seing periodicity.

If these values don't meet your requirements, you can copy a predened rate conversion formula and edit its periodicityvalues.

Periodicity Valid for Payroll Periods Number of Periods per Year

Annually

Yes

1

Bimonthly

Yes

6

Biweekly

Yes

26

Calendar Monthly

Yes

12

Daily

No

365

Hourly

No

2920 (365 days multiplied by 8 hours)

Lunar Month

Yes

13

Periodically

No

Payroll frequency determines the numberof periods to use in the rate conversion.

Quarterly

Yes

4

Semiannually

Yes

2

Semimonthly

Yes

24

Workday

No

260

Weekly Yes 52



219

Periodicity Valid for Payroll Periods Number of Periods per Year

Work Hour

No

2080 (260 days multiplied by 8 hours)

Dening PeriodicityHere's the dierent ways in which you can dene periodicity:

Object Task Description

Elements

Manage Elements

The Periodicity input value species thefrequency of the element value. For example, salary element entries thathold annual salary values have an annualperiodicity.

Payrolls

Manage Payroll Denitions Period Type species the number of

payroll periods.

For example, the Monthly Lunar periodtype includes 13 payroll periods.

Rates

Manage Rate Denitions Rate denition can specify the following

periodicities:

• Return periodicity of the rate• Periodicity of each rate contributor• Periodicity of the calculated sum of

the rate contributors

Rate Conversion FormulasRate conversion formulas change the periodicity of an amount.

For example, the Standard Rate Annualized conversion formula can convert an annual salary amount to a weeklyamount.

The following table lists the predened rate conversion formulas to change the periodicity of an amount.

Rate Conversion Rule Description Example

Standard Rate Annualized

Calculates the annual rate using the inputperiodicity and converts the amount to anoutput periodicity and rate. This rule uses default values, such as 2080hours or 260 working days, to calculate

To convert a weekly amount to asemimonthly periodicity, the formula: 1. Multiplies the weekly amount by 52. 2. Divides the result by 24.



220

Rate Conversion Rule Description Example

the annual rate. You select the day orhourly basis during element denition.

Standard Rate Daily

Calculates the daily rate using the inputperiodicity and converts the amount to anoutput periodicity and rate. This rule uses a default value, such as 260working days a year, to calculate the dailyrate.

To convert an annual amount to dailyperiodicity, the formula: 1. Divides the annual amount by 365. 2. Multiplies the result by the number ofdays in the payroll period.

Standard Working Hours Rate Annualized

Uses the employee's standard workinghours to convert the monetary value andworking hours to an annual value beforecalculating the rate.

The employee works 40 hours a week witha monthly salary of 1000: ((1000*12)/(40. 00*52) = 5.77 an hour

Assignment Working Hours RateAnnualized

Uses the employee's working hoursto convert the monetary value andworking hours to an annual value beforecalculating the rate.

The employee works 40 hours a week,with 37.5 standard working hours a week,and a monthly salary of 1000: ((1000*12)/(37. 50*52) = 6.15 an hour

Periodic Work Schedule Rate Annualized

Uses the employee's work schedule forthe payroll period for daily and hourlyconversions.

For an employee:

• With a monthly salary of 1000• Assigned a monthly payroll

The formula checks the work scheduledetails for the month.

For a daily conversion:

1000 a month/20 days in the month = 50

Note: For compensationcalculations where theemployee isn't assigned apayroll, the rate is calculatedusing the weekly ratecalculation. The amount isconverted to an annual gureand divided by the numberof days or hours in that weekbased on the work schedule.

The impact of rate conversion rule is summarized here.:

Periodicity: The conversion rule for periodicity applies to Flat Amount, Hours * Rate, and Days * Rate calculation rules.You can override the periodicity used as the default for the element denition at the element entry level.



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Work Units: The Work Units conversion rule applies only to at amount calculation rules for standard and supplementalearnings elements. The selection of which work units to use in reports and payslips determines the conversioncalculation. The application creates the element input values using the default values of the rate conversion formulas.

For example, the following table illustrates how the payroll process determines the standard work units for any givenpay period:

Work Units Selected Example

Hours

2080/24 = 86.67

Days

260/24 = 10.83

None

No input values are created

Proration: The element template includes a new question for proration units. Proration rate conversion rules replacethe previous proration methods in the element template. You have greater exibility, for example, to base proration oncalendar days when using work units for conversion.

Note: If the conversion rules don't meet your requirements, you can copy and edit the rules using the ManageFast Formulas task in the Payroll Calculation work area.

Related Topics• Congure Periodicity Conversion Rules• Overview of Using Formulas

Retroactive Pay

How Retroactive Pay Is CalculatedRetroactive pay is the recalculation of prior payroll results due to changes that occur after the original calculation wasrun. For example, prior period adjustments backdated to a previous pay period when the payroll department makes acorrection for an error or an employee receives a performance bonus.

You run the Recalculate Payroll for Retroactive Changes process to calculate retroactive pay. This process createsretroactive element entries based on retroactive events but only elements that are set up to include a retroactive eventgroup can have retroactive element entries.

You can view automatically-created retroactive events or create them manually.

Seings That Aect Retroactive PayTo enable retroactive processing of an element:

1. On the Manage Event Groups page, review the types of changes that automatically trigger a retroactivenotication for the predened event group, called Entry Changes for Retro. You can edit this group or create anew event group for the element, if required.

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2. On the Create Element Additional Details page, select Yes for the following questions:

◦ Is this element subject to proration?

◦ Is this element subject to retroactive changes?

3. On the Create Element, select the predened event group or a new group that you have created.

This shows you the retroactive setup.

Retroactive Setup

Payroll Event Group

Proration Event Group

Retroactive Event Group

Element

Is this element subject to proration? - Yes

Is this element subject to retroactive changes? - Yes

Retro Group - Entry Changes for Retro

Retroactive Processing

Retroactive Event Group

Proration

Proration GroupProration Formula

Process Retroactive PayTo process retroactive pay:

1. Review or create retroactive events on the Manage Event Notications page in the Payroll Calculation workarea. You can download results to Excel to view retroactive events in a report format.

2. Submit the Recalculate Payroll for Retroactive Changes process with the Submit a Process or Report task, or theprocess may run automatically as part of your payroll ow. This process creates one or more retroactive entriesto receive the process results and never overwrites historical payroll data.

3. Run the Calculate Payroll process.



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Note: Always run the Recalculate Payroll for Retroactive Changes process immediately before you run apayroll. Otherwise, if you run it after the Calculate Payroll process, retroactive adjustments are held over untilthe next payroll period.

If you don't get the expected retroactive notication, here are some suggestions to review:

• The originating transaction causing the event

• Element setup

• Element eligibility for the person

• The retroactive event group entities and aributes that are set up to trigger retroactive events

• The proration event group entities and aributes setup that triggers proration

This shows you the retroactive processing for a person geing a retroactive pay increase.

Retroactive ProcessingCurrent Period

1 May, 2011 - 31 May, 2011Monthly Payroll

John Smith4% pay increase

Effective: 13 March, 2011

Review events on Manage Event Notifications

John Smith

Backdated change generates a retroactive

event

Are the results as expected?

No

Yes


Recalculate Payroll for Retroactive Changes

Excel Download of Retroactive Events

John Smith

View events in a spreadsheet?

Yes No



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Add a Retroactive Event ManuallyRetroactive Events are typically created automatically when you create retroactive adjustments, such as backdatedsalary changes. You can enter the retroactive event manually to generate the correct payslip, such as if payroll hasn'tmade the pay rate change eective last pay period for an employee being terminated eective immediately.

Create a Payroll Relationship Event1. On the Manage Event Notications page in the Payroll Calculation work area, select the Manage Event

Notications task.2. Click Create.3. Use the information in this table enter information into the Create Payroll Relationship Event window.

Field Value

Approval Status

Awaiting Processing

Payroll Relationship

The person to process

Process Date

Date when the retroactive change process is run.

Note: This date indicates when the element change was triggered.

4. Click Save and Close.

Create a Retroactive Event1. On the Manage Event Notications page, click the name of the person associated with the payroll relationship

event you created.2. On the Manage Retroactive Events page, click Create in the Entry Details section.3. Select the element you want to reprocess, the date the recalculate payroll runs, and a retroactive component.

The element from which the change will be paid to the person is the retroactive component.4. Repeat the previous step if you want to recalculate multiple elements for this payroll relationship.5. Click Submit.

Retroactive Notication ReportRetroactive pay is the recalculation of prior payroll results due to changes that occur after the original payroll calculationis run.

Here are some examples of prior period adjustments:

• An employee receives a pay award that’s backdated to a previous pay period.

• The payroll department makes a backdated correction for an error that occurred in a previous pay period.

For example, after evaluating employee performances for the previous calendar year through a three-month reviewcycle, an employer may backdate the pay awards to 01, January. When such entries are made in April, it triggers



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retroactive events for employees receiving such pay awards. These employees have already been processed by payrollfor the last three months.

A retroactive notication is generated when a retroactive payroll event is generated.

Run the Retroactive Notication Report to view retroactive notications for events that are awaiting processing,deferred, or both. Run this report before you submit the Recalculate Payroll for Retroactive Changes process.

Use the report to view:

• Unprocessed retroactive events for each employee, enabling you to identify who are included in RecalculatePayroll for Retroactive Changes process.

• Event dates that can be used to identify which payroll periods are recalculated by the retroactive process foreach employee.

• Payroll relationships that are previously deferred so that you can make some or all of them available for thenext retroactive payroll process.

The earliest date across all notications for a payroll relationship determines the reprocess date. Reprocessing is doneacross all runs starting from the reprocess date, as payroll calculations are cumulative.

For example, suppose a monthly paid employee has unprocessed retroactive events for 15, June and 20, August. Theretroactive process recalculates payroll results for the June, July and August payroll periods. You can use the report todetect payroll relationships that are previously deferred.

Submit the Run Retroactive Notication Report from the Payroll Checklist work area.

ParametersThe parameter values determine which records to include in the report. Many parameters are self-explanatory. Submitthe same values as you would provide for the retroactive pay processing.

Here’s the list of parameters that have special meaning in the context of this report.

Process Date

The process date determines which records to process and is the same date as when the retroactive change process isrun.

Payroll

Enter the same payroll ow name as the ow you use to run the retroactive process.

Retroactive Notication Status

This table lists the values you can select to determine the type of events to include in the report.

Status Description

Deferred

Includes events for payroll relationships whose retroactive pay processing is deferred.

Unprocessed

Includes events that are either awaiting processing or processing.

Both Deferred and Unprocessed

Includes events that are either awaiting processing or processing, or deferred. This is thedefault value and is a combination of the other two options.



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Status Description

Person

Enter a value to limit your report to a specic employee.


Select the process conguration group, if you have dened one. Use a process conguration group to provide sets ofprocessing parameters, primarily related to logging and performance. If you don't select a process conguration group;the parameters in the default group for the selected payroll is used.


Select the payroll relationship group name, if you have dened one. Use a payroll relationship groups to limit thepersons processed for payroll, data entry, and reporting.

Note: Use the Manage Object Groups task to dene any of the groups mentioned above before you canselect it here.

Report ResultsThis table shows the sections of the PDF output of the report.

Section Name Description

Parameters Section

The parameters section is at the beginning of the report and displays the report parametersand the sort criteria. The sort criteria is: Notication Status, Retroactive Process Date, PersonName, Payroll Relationship Number, Entity, Batch Name, Aribute, Update Type, AssignmentNumber, Element Name, Change Eective Date, Actual Change Date and Changed By.

Notication Status Summary

This section shows the total payroll relationships and total events by each type of retroactivenotication status. Each payroll relationship may have multiple payroll retroactive events suchas assignment updates, element entry updates, and so on. The counts reect the number ofsuch events that require payroll to be recalculated from a dierent process date.

Retroactive Process Date Summary

This section shows the dierent reprocessing dates for the employees and payrollrelationships, and the total count of workers and events for each reprocess date. This sectiongives a quick snapshot of how far back the retroactive reprocessing begins and for how manyworkers. These totals are also broken down for each retroactive notication status.

Event Type Summary

This section shows the details of the type and number of events that cause recalculation ofpayroll for a particular reprocess date. You can view the number of payroll relationships andemployees, and events by entity and aribute for a particular reprocess date.



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Section Name Description

Event Details by Retroactive ProcessDate

This detail section shows the dierent workers and their event details for the same type ofevent, reprocess date and notication status, as follows:

• If the entity is related to elements, the element name is shown as part of the eventdetails. The batch used to make the change, if any, is displayed in the header.

• If the event is related to assignment, the assignment number is shown.• The old value is shown for Update, Delete and Correction events while the new value is

shown for Update, Insert and Correction events.

Event Details for a Person This section sorts and lists all events by each process date and worker. Each payroll

relationship has one reprocess date based on the earliest event.

• The assignment number is shown only for those events that are specic to anassignment.

• The person number and payroll relationship number are shown along with the personname, in the header.

• Batch name, if available, and the element name is shown only when the event is relatedto an element. For all events based on aribute, both the old and new values are shown.

FAQs for Pay Calculation Components

Why can't I edit the secondary classications for a wage basis rule?You probably dened the rule for the primary classication to include all secondary classications in the wage basis. Editthe primary classication row and deselect the Select all secondary classications option. You can then edit individualsecondary classication rows, and select the Use in wage basis option only for those classications to be considered inthe wage basis.

Why can't I create payroll components on the Manage CalculationInformation page?You can view existing components on this page, but you can't create new components. Use the Manage Elements taskto create new elements. Creating some elements also creates associated calculation components. These elements caninclude involuntary deductions, pensions, and absence payment elements.

Can I delete or edit a cost component group mapping?Yes. You can delete or edit a cost component group mapping only if it is not referenced in a cost prole.



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Can I delete or edit the mapping of a cost component to ananalysis group?Yes. You can delete or edit the mapping of a cost component to an analysis group, even if the cost component or thecost component group is referenced in a cost prole.


Chapter 11Seing Up Elements

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11 Seing Up Elements

Payroll Elements

ElementsSome elements are predened. You can also create other elements to match your requirements. Each element belongsto a primary classication, according to its purpose, which determines the template you use to create it. Use thetemplate to create the elements and depending on your country extension, you create the associated items required forpayroll processing.

Use the elements to represent these components:

• Earnings, such as salary, wages, and bonuses

• Compensation, such as employee stock purchase and insurance plans

• Absences from work

• Tangible items distributed to persons, such as tools, uniforms, mobile phones, or computers

• Statutory deductions, such as taxes, voluntary deductions, contributions to charities or savings plans, andinvoluntary deductions, such as court orders and pretax deductions

• Employer taxes and other employer liabilities

Use Predened ElementsThe predened elements are specic to your country or territory. They typically include deductions for tax and wageaachments. You can't make any changes to these predened elements. However, you must create eligibility recordsfor them.

Create ElementYou can create as many earnings and deductions as you require using the Manage Elements task.

You select the element classication and category that determine the template of questions. You answer the questionsto specify the details of the element you want to create. The items that the template generates can include multipleelements, input values, formulas, balances, and other items.

Note: The template you use to create elements also depends on the conguration selected for your countryor territory on the Manage Features by Country or Territory page. For example, if the country extension isset to Payroll, you use a template that generates all the items required for payroll processing. If the countryextension is set to Human Resources or None, you use a basic template that generates the elements only.However, if you select an element classication, such as Standard Earnings, Supplemental Earnings, DirectPayments and Taxable Benets, the basis template creates input values for Amount, Periodicity, and Full-TimeEquivalent.

You can congure any of the generated items to match your specic business requirements. For example, you canadd input values, edit the formulas, or add a status processing rule to use a dierent formula for certain assignmentstatuses. You must also create element eligibility records for the elements.

This table explains the purpose of the items that you use when creating element.



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Items Purpose

Input Values

Denes the entry values available on each entry of this element, such as hours worked oramount.

Element Eligibility Records

Denes the eligibility criteria a worker's employment record must meet to be eligible for theelement. For example you can use grade, payroll, salary basis, or organization as eligibilitycriteria.

Status Processing Rules

Identies the formula the payroll run uses to process the element, and how to handle theformula results.

Related Formulas and RelatedElements

Identies additional elements and formulas created by the template for payroll processing.

Related Balances

Identies the balances created by the element template for this element.

How You Maintain ElementsAfter you create and use an element, you're limited on updates you can make to it. This ensures the integrity of theelement for retroactive processing and the balances of the input values. You can't remove existing input values oradd new ones if you have created entries for the element. To add an input value to an element before you create anyelement entries, set your eective date to the element's start date.

You can make these changes to an element that has been previously processed:

• Change a required input value to be optional.

• Alter the sequence in which input values appear on the Element Entries page.

• Change the input value validation rules for minimum, maximum, lookup, or formula.

• Change your specication of which input values create database items.

• Change the reporting name. However, the database items created for the element continue to use the originalname.

Element Classications

Primary Element ClassicationsPrimary element classications are dened by Oracle Fusion to meet legislative requirements, and are supplied to userswith the product.



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Primary ClassicationsElements are grouped into primary classications, such as Earnings and Voluntary Deductions. In a human resourcesdepartment, you can use the primary classications to identify groups of elements for information and analysispurposes. In a payroll department, the classications control processing, including the sequence in which elements areprocessed and the balances they feed. Oracle Fusion provides primary classications and some balances, mainly toreect tax legislation. They are designed to meet the legislative requirements of your country, so you can't change ordelete them. You can create additional balances to be fed by any of the primary classications.

For example, in a human resources department, you can use them to identify groups of elements for information andanalysis purposes.

Secondary Element ClassicationsYou can dene secondary classications to feed your own user dened balances.

Secondary classications are subsets of the primary classications. In some legislations, secondary classications arepredened. As with primary classications, you can't remove or change any predened secondary classications, andyou can't disable any of the predened balance feeds created for them.

How Element Classication Components Work TogetherWhen you create an element, you select a primary classication, such as Involuntary Deductions, and optionally asecondary classication, such as Child Support. The classications, which vary by country or territory, control theelement template questions you answer to dene the element. An element may automatically inherit subclassicationsfrom its primary classication. You can optionally select additional subclassications for an element to control thebalances it feeds.

Primary ClassicationsPrimary classications meet the legislative requirements of your country or territory, so you can't change them.

In a payroll department, the classications control processing, including the sequence in which elements are processedand the balances they feed.

Secondary ClassicationsUse secondary calculations to manage wage basis rules for deductions and taxes. You can't remove or change anypredened secondary classications. In some countries or territories, you can create your own secondary classications.

SubclassicationsSubclassications provide a way to feed balances. Elements can have only one primary and secondary classication,but multiple subclassications. You can create subclassications or use predened ones. You can specify that asubclassication automatically applies to every element in the primary classication.

Tip: Each subclassication belongs to one primary classication only. If you reuse a subclassication nameunder dierent primary classications, it's treated as a separate subclassication. And you must createseparate balance feeds for each subclassication.



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CostingEach primary classication includes these costing rules:

Rule What It Does

Allow Costing

If set to Yes, you can select any costing option for element eligibility records.

Allow Distribution

If set to Yes, you can create distribution groups with elements in this classication. Forexample, you can create a distribution group with all of the earnings elements. And prorate taxexpenses proportionately over the cost centers in which the wages were earned.

Frequency RulesIf frequency rules are enabled for a primary classication, you can use them on an element if you don't want to processit each period. For example, you can set frequency rules to process element entries on the rst and third weekly payrollperiods of each month. The default frequency rule is to process each period.

Related Topics• Payroll Balance Denitions

How Element Processing Sequence is DeterminedYou can set a predened sequence in which a payroll run processes elements. An element's primary classicationdenes a default processing priority for the element in payroll runs. Lower priority numbers process rst.

Most classications also have a priority range. You can override the default processing priority. To set the priority,edit the element on the Element Summary page. Seing a specic priority establishes the order in which the elementprocesses with respect to other elements in the classication.

Sometimes you must prioritize the processing of certain element entries for an individual person. For example, you mayneed to determine the precise order in which deductions taken for wage aachments process for a person. In this case,enter a sub priority number for element entries.

Element Employment Level

Employment Level Options for ElementsYour enterprise uses an employment model. When you create elements, you select the employment level at which toaach the element. If you select a level below payroll relationship, each assignment record can have separate elemententries.

Payroll Relationship LevelThis level is the highest level for accumulating balances. Every payroll run processes payroll relationship elements.



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Here are the typical elements to dene at payroll relationship level:

• Tax deductions

• Pension

• Child support

• Medical care

• Union dues

• Benets activity rate calculations, such as employee contributions and ex credits

Assignment LevelUse this lowest level for elements that require dierent entries for dierent assignments, or when the element appliesonly to specic assignments.

Here are the typical elements to dene at assignment level:

• Assignment salary

• Regular hours

• Overtime

• Sales bonus

• Prot-sharing bonus

Element Types

Create Earnings Elements for PayrollThis example shows how to use the element template to create a regular earnings element, such as salary. After youcreate the earnings element, you must create at least one eligibility record for it.

Creating an Earnings Element1. In the Payroll Calculation work area, click Manage Elements.2. Click Create.3. Complete the elds, as shown in this table.

Field Value


Your legislative data group


Standard Earnings

Secondary Classication

Regular

4. Click Continue.



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5. Enter a name and other basic details, then respond to the questions as shown in this table.

You can enter up to 50 characters for the element name. If you enter more than 50 characters, the taskautomatically shortens the name.

Question Answer

Should every person eligible for theelement automatically receive it?

No.

What is the earliest entry date forthis element?

First Standard Earnings Date

What is the latest entry date for thiselement?

Last Standard Earning Date

Note: If you select this date, you must enable proration so the calculation iscorrect if a person leaves prior to a pay period end date.

At which employment level shouldthis element be aached?

Assignment Level

Does the element recur each payrollperiod, or does it require explicitentry?

Recurring

Process the element only once ineach payroll period?

Yes

Can a person have more than oneentry of the element in a payrollperiod?

No

Process and pay element separatelyor with other earnings elements?

Process and pay with other earnings

6. Click Next.7. On the Additional Details page, complete the elds, as shown in this table.

Question Answer

What is the calculation rule?

Flat Amount

Is this element subject to proration?

Yes

Proration Group

Entry Changes for Proration



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Question Answer

Is this element subject to retroactivechanges?

Yes

Retro Group

Entry Change for Retro

Should this element be included inthe earnings calculation of the FLSAovertime base rate? (USA only)

Yes

Should this element be included inthe hours calculation of the FLSAovertime base rate? (USA only)

Yes

8. Click Next.9. Verify that the information is correct.

10. Click Submit.

Creating an Eligibility RecordOn the Element Summary page, update the newly created element details.

1. In the Element Overview section, select Actions, Create Element Eligibility.2. On the Element Eligibility name eld, enter REGULAR SALARY ELIG.3. In the Eligibility Criteria section, select All payrolls eligible.4. Click Submit.

Related Topics

• Create Payroll Elements

Absence Elements for Compensatory and Leave Donation PlansYou can make absence payments for compensatory absence plans based on the date that the compensatory time wasaccrued. The Absence application passes the accrued date to the Global Payroll application so that it uses the correctrate of pay for absence.

For example, an employee is hired on 1/1/17 and is paid at a rate of 10 per hour. On 8/1/17, the employee receives a payrise and is now paid at a rate of 12 per hour. The employee takes 3 days of leave from 10/5/17 to 10/7/17.

The employee accrued this leave as time o in lieu (TOIL) in July 2017 when they were earning 10 per hour. Theapplication pays the employee for the 3 days leave at a rate of 10 per hour.

Compensatory PlansWhen creating a rate denition to use for compensatory absence plans, in the Reference Date eld, select the AbsenceAccrued Date value. The rate calculator calculates the rate as of the absence accrued date that's passed from theAbsence application.

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In the Setup and Maintenance work area, use this task to create absence elements for compensatory absence plans:

• Oering: Workforce Deployment

• Functional Area: Payroll

• Task: Manage Elements

When creating such plans, in the type of absence information to transfer to payroll option, select Accrual Balances andAbsences.

Leave Donation PlansWorkers can initiate requests to donate some or all of their accrual plan balances to coworkers who need additional timeo. Administrators and managers can initiate this donation request on behalf of the worker. You can donate vacationonly from Accrual and Compensatory plan types. Also, you can only donate in day or hours.

For example, Employee A is diagnosed with a long term illness and will be absent from work for a long time. You canenroll the employee into a leave donation plan. Employee B has a vacation accrual balance of 100 hours and wants todonate 10 hours to Employee A.

Now, instead of the stipulated 100 hours, Employee B will have an accrual balance of 90 hours. Employee A will have anaccrual balance of 10 hours against the leave donation plan.

To use this balance, Employee A can do one of these actions:

• Enter a leave in the Absence application. The Global Payroll application receives an entitlement record for thenumber of hours or days that they requested.

• Take the balance as a Cash out or Payout.

Note: If Employee B earns 20 per hour and Employee A earns 10 per hour, then the application pays Employee B at 10per hour.

When creating absence elements for leave donation plans, in the type of absence information to transfer to payrolloption, select Accrual Balances and Absences.

Absence Elements for Payments after TerminationFor absence plans that support payments after termination, set the entitlement element to Final Close. When creatingabsence element template, select Yes in the enable entitlement payments after termination option. Then, set each ofthe entitlement elements to the Final Close value.

On the Manage Payroll Process Conguration page, set the Absence and Time Calculation Entries During Payrollparameter to one of these values:

Value What The Application Does

Yes Includes the absence and time calculation entries in the payroll run for those active employeesthat have these assignment statuses:

• Process When Earning• Process When One Time Entry

Further, the application includes the terminated employees in the payroll run only if they havean earning or an assignment level non-recurring element entry.



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Value What The Application Does

No Does not include the absence and time calculation entries in the payroll run for those

employees that these assignment statuses:

• Process When Earning• Process When One Time Entry

And the application includes the terminated workers in the payroll run only if they have anassignment level non-recurring element entry.

Related Topics

• How You Congure Compensatory Time

• Options to Dene Compensatory Plans

• Options to Dene Donation Plans

Dene Payroll Elements to Process AbsencesYou dene elements to calculate and process absence payments in Oracle cloud. When you dene an absence element,your responses to the element template questions determine which elements, balances, formulas, and calculationcomponents the template generates.

Dening an absence element involves these steps:

• Dene an absence element

• Complete absence detail questions

• Complete accrual liability and balance payment questions

• Complete absence payment questions

• Submit the element

• Dene element eligibility records and cost distributions

Dene an Absence ElementUse the Manage Elements task in the Payroll Calculation work area to dene an absence element, selecting a primaryclassication of Absence, and a secondary classication. Typically, the predened values include vacation, maternity,and sickness.

Complete Absence Detail QuestionsThe questions you complete in the Absence Details section determine which subsequent questions the templatedisplays. You enter these information in the Absence Details section:

1. Specify the calculation units to use when reporting the absence, for example that's shown on the payslip, andstatement of earnings. Typically, you select Days or Hours for your reports that correspond to the units for yourabsence plan. When creating an absence element, select the work calculation rule to calculate the absence rate.

2. Select the absence information to transfer to payroll based on the type of absence management plan.

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Absence Management Plan Type Absence Information to Transfer

Accrual

Accrual Balances

Accrual, Leave Donation,Compensatory

Accrual Balances and Absences

Qualication

Qualication Absences

No Entitlement

No Entitlement Absences

Complete Accrual Liability and Balance Payment QuestionsIf you transfer accrual balances, complete these questions.

Question Steps

Calculate absence liability?

1. Select Yes, if you calculate liability.2. Select a liability rate.

Usually the rate is the same as the absence payment rate. You might select a dierentrate when estimating liability for billing purposes.

Does this plan enable balancepayments when enrollment ends?

1. Select Yes to congure a nal disbursement element and to maintain balances for thedisbursement hours and payments.

2. Optionally, select a rate to use for the calculation.

Does this plan enable partial paymentof balance?

1. Select Yes to congure a discretionary disbursement element and to maintain balancesfor disbursement hours and payments.

2. Optionally, select a rate to use for the calculation.

Complete Absence Payment QuestionsComplete these questions:

1. Select a method to reduce regular earnings if employees don't complete a time card.:

◦ Reduce regular earnings by absence payment (entitlement payment balance)

◦ Select rate to determine absence deduction amount (entitlement deduction balance)You might select one of these options:

• The Reduce regular earnings option to reduce regular earnings by the absence payment. Thismeans that the employee is paid the same net amount as if they weren't absent.

• The Select rate to determine deduction amount option when the employee isn't due to be paidfor the absence at the same rate as their regular earnings. In this case, the absence deduction ratethat you select will be a rate that deducts 100% of the regular earnings. However, the absencepayment rate would be a dierent rate, for example 50%.



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2. Optionally, select a rate to calculate the absence payment.

If you have standard earnings and absence elements in the same payroll run that reduce regular earnings, thepayroll calculation reduces earnings in this sequence:

a. Using absence element entriesb. Using any standard earnings elements that reduce regular earnings

The salary balance isn't reduced beyond zero.3. You can now ensure that absence entitlement payments are made to employees after terminations. Use the

Does this plan enable entitlement payments after termination? question on the absence element templateto set the entitlement element to Final Close.

Example: Amelia is due to be paid maternity payments after her termination. Select Yes in this question to setthe latest entry date of the entitlement elements to nal close. With this, the absence entitlement payments aremade to Amelia after her termination. When Amelia is terminated, change her employment assignment statusto Process When Earning. Also, set the TERM_INCLUDE_PR_LEVEL action parameter to Y, so that payrollrelationship level entries are considered for processing.

Submit the ElementWhen you submit the element, the template automatically congures a base pay element, balances, formulas, andcalculation components.

The template also congures additional elements, depending on the options selected in the template to transferabsence information, as shown in this table.

Type of Absence Information toTransfer

Optional Balance Payments Selected Additional Elements Congured

Accrual Balances

• Discretionary Disbursements• Final Disbursements

• Accrual• Discretionary Disbursement• Final Disbursement


• Discretionary Disbursements• Final Disbursements

• Accrual• Entitlement• Discretionary Disbursement• Final Disbursement

Qualication Absences

none

Entitlement

No Entitlement Absences

none

Entitlement

Dene Element Eligibility Records and Cost DistributionsDene element eligibility records for all the elements generated by the template, for example for your accrual,entitlement, discretionary and nal disbursement elements.



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If your enterprise calculates cost distributions, specify costing for all the element eligibility records. For example, for anaccrual element, you do these steps

1. Dene element eligibility records for the accrual, accrual results, accrual retroactive, and accrual retroactiveresults elements.

2. Specify costing for the accrual results and retroactive results elements.

The costing process costs the change in the liability balance since the last payroll period, debits the expense accountand credits the liability account.

Related Topics• Element Costing Options• Importing Absence Entries to Payroll: Procedure• Rates Used to Calculate Absences in Payroll

Dene Payroll Elements for an Absence Accrual PlanThis example shows how to dene an absence element for a vacation accrual absence plan. Based on your setupdecisions, this procedure congures these additional elements.

• Accrual element to process absence liability amounts

• Entitlement element to process payments for absence during vacation

• Discretionary Disbursement element to process disbursement of partial time accruals

• Final Disbursement element to process accrual disbursement when the absence plan enrollment ends

The name of the element is prexed to each additional element.

This table summarizes key decisions for this scenario.


What type of an absence are you transferring to payroll?

Accrual balances

Who's eligible to receive this element?

All workers

What units do you want to use for reporting calculations?

Days

Do you want the element to calculate absence liability?

Yes

Which rate should the calculate absence liability use?

Liability Rate

Does your absence plan enable balance payments whenenrollment ends?

Yes

Which rate should the nal disbursement payment use?

Final Disbursement Rate

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Does your absence plan enable payment of partial accrualbalances?

Yes

Which rate should the partial disbursement payment use?

Partial Disbursement Rate

How do you want to calculate deductions for paid absences foremployees not requiring a time card?

• Reduce regular earnings by the amount of the absencepayment so that the worker doesn't get paid twice?

• Select a rate to determine the absence deduction amount?

Reduce regular earnings by absence payment

Before You BeginEnsure that you congured a rate denition to determine the monetary value of a unit of absence. And depending onyour enterprise separate rates to calculate liability, discretionary disbursement, and nal disbursement payments. Youcongure a rate denition using the Manage Rate Denitions task in the Setup and Maintenance or Payroll Calculationwork area.

Dene an Absence Element1. In the Payroll Calculation work area, select the Manage Elements task.2. Click Create.3. In the Create Element window, complete the elds as shown in this table.

Field Value

Legislative Data GroupSelect your legislative data group.

Primary ClassicationAbsences

Secondary ClassicationSelect an appropriate value for your legislation, such as Vacation.

4. Click Continue.5. On the Create Element: Basic Information page, enter Vacation Payment in the Name and Reporting Name

elds.6. In the Absence Plan Details section, complete the elds as shown in this table. Use default values for elds

unless the steps specify other values.

Field Value

What calculation units are used forreporting?

Days



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Field Value

Work Units Conversion Rule

Standard Rate Daily

What type of absence informationdo you want transferred to payroll?


7. Click Next.8. On the Create Elements: Additional Details page, in the Accrual Liability and Balance Payments section,

complete the elds as shown in this table. Use default values for elds unless the steps specify other values.

Field Value

Calculate absence liability?Yes.

Which rate should the liabilitybalance calculation use?

Liability rate.

Does this plan enable balancepayments when enrollment ends?

Yes

Which rate should the nalbalance payment calculation use?

Final disbursement rate.

How do you want Payout Amountto be taxed?

Supplemental

Does this plan enable partialpayments of absences?

Yes

Which rate should thediscretionary disbursement use?

Discretionary disbursement rate.

9. On the Create Elements: Additional Details page, in the Absence Payments section, complete the elds asshown in this table. Use default values for elds unless the steps specify other values. For the purposes of thisworked example, all elds are being entered, however, only required elds must be entered and others may beblank.

Field Value

How do you want to reduceearnings for employees notrequiring a time card?

Reduce regular earnings by absence payment.



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Field Value

Which rate should the absencepayment calculation use?

Absence payment.

10. Click Next.11. On the Create Element: Review page, review the information that you entered so far.12. Click Submit to open the Element Summary page.

The template generates all the related elements, balances, and formulas.

Dening Element Eligibility1. In the Element Overview section of the Element Summary page, click the Element Eligibility node.2. Click Create Element Eligibility from the Actions menu.3. In the Element Eligibility section, enter Vacation Payment Open in the Element Eligibility Name text box.

Leave the rest of the elds on the page blank.4. Click Submit.5. Click Done.6. On the Manage Elements page, search for the other elements prexed with your absence element name.7. Select each element in turn and repeat the steps on the Element Summary page to dene eligibility for each

element.

Create Elements for Time Card EntriesYou create nonrecurring elements to process pay based on time card entries, such as elements for regular, overtime,double-time, and shift pay. Creating a time card element generates all the related elements, balances, formulas, andcalculation components. You then transfer the elements to your time provider.

You do these tasks:

• Create earnings elements

• Create calculation components for standard-category elements

• Convert elements for use in time cards

• Set up area overrides

• Set up costing overrides

Create Earnings ElementsThe steps for creating a time card element depend on whether the time card template is available for your country. Ifthe template is available, follow the steps in this section. Otherwise, create an earnings element using the Standardcategory, and specify an hours multiplied by rate calculation rule.

Complete these steps to create an element using the time card template:

1. Create an earnings element on the Manage Elements page of the Payroll Calculation work area.2. Select a primary classication of standard or supplemental earnings.3. For Global Payroll, select the Time Card category.4. Complete the information on the Basic Details page.



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5. On the Additional Details page:

a. Select the calculation units to use in reports.

Typically, you select time units that match the time units entered on time cards for that element. If youselect dierent units, the application uses 8 hours to convert days to hours.

b. Optionally, select a default rate to calculate time.

When calculating the run result for the element entry, the formula uses the default rate unless a rate isentered on the person's time card.

6. Complete the element eligibility information for the new time element, and its associated retroactive andrelated elements, such as the result and calculation elements.

Note: If the straight time portion of overtime is reported separately from regular time, create two elements,such as overtime and overtime premium elements. If the regular and straight time portions of overtime arereported together, you might use straight time instead of regular time, and create a separate element for theovertime premium.

Create Calculation Components for Standard-Category ElementsYou can create calculation components for elements created with the Standard category rather than the Time Cardcategory. Complete these steps for each existing element:

1. Submit the Create Time Card Calculation Components process from the Payroll Checklist or PayrollAdministration work area.

These elements must have a calculation rule of hours multiplied by rate.2. Complete the element eligibility information for the element and its associated retroactive and related

elements.3. After you run the process to convert your elements, submit the Compile Formula process in the Manage

Payroll Calculations work area. Perform a bulk compile by entering wild cards in the Formula and Formula Typeparameters.

Generate Time Card Fields for Your ElementsAfter creating elements, generate time card elds for them. Complete the processes in this table using the Time andLabor functional area in the Setup and Maintenance work area, Workforce Deployment oering:

Process What It Does

Generate Data Dictionary TimeAributes

Creates dependent payroll aributes for all element input values, such as hours and rate. You must run the Generate Data Dictionary Time Aributes process after making any changesto time elements. Such changes include adding or deleting elements, editing input values, orediting element eligibility records.

Caution: Failure to run the process might negatively impact the setup of time cardelds, the validation of payroll time types, or the transfer of time to payroll.

Generate Time Card Fields

Creates time card elds using the data dictionary time aributions for the specied legislativedata group. You can use the Manage Time Card Fields task to create time card elds for single and multipleaributes.



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Process What It Does

If you're using a third-party time provider, create an HCM extract for the time card elements. The extract includes theelement's mapping ID that you specify in the XML le when you transfer the time entries to payroll.

Set Up Area OverridesSome countries or territories create time card elements with area input values for use as overrides. The overridesenable employers to tax employees based on where they work. For example, employees specify the area informationwhere they worked on temporary assignment while away from their normal work location. These area entries are thenincluded in the time card records transferred to payroll by the Load Time Card Batches process.

Set Up Costing OverridesYou can specify additional aributes in Time and Labor to enter costing segment values on time cards. The segmentsmust match the segments that you can enter on element entries. Use the Manage Element Entries task in the PayrollCalculation and search for a person's record. View the available segments on the Costing tab of the Manage PersonDetails page. Costing is dened on the element eligibility record of the results element. When you transfer time entries,the transfer process displays the costing on the calculation element.

As an example, the structure of your cost allocation key exeld might specify that the department segment is enteredat the element entry level. You could specify this additional aribute on the time card. Your employees can then specifythe department to charge for overtime hours worked while on loan to a dierent department. After you transfer thetime entries, the payroll calculation uses the department specied for the overtime hours to derive the costing results.

To view the results of the costing overrides transferred to payroll, perform these steps:

1. On the Accounting Distribution work area, select Search Person.2. On the Search Person page, search for a person.3. Click the Actions down arrow and select View Person Process Results in the Process Results option.4. Go into a person's statement of earnings.5. Select Costing Results.

Related Topics• Process Time Entries in Payroll• Time Card Required Option

Element Input Values

Element Input ValuesAn element's input values dene the entry values available on each entry of an element. Each input value has a unitof measure, such as money or date. Input values can include validations and conditions to control the data entry ofthe element entry assigned to a person. For example, an earnings element may have an input value for hours worked,which is required and has a unit of measure of number.

When you create an element, some input values are created automatically depending on your country extension andthe element classication. You can create additional input values for any element, as needed.

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Input Value OptionsFor each input value created, you can modify these aributes:

Field Value What You Do

Display Sequence

Enter a number to control the display order of the entry value on element entries.

Special Purpose

Select how the input value is to be used. For example, you can indicate that it holds apercentage value, a rate, or third-party payee details. This value assists with processing theinput value based on what type of information it holds.

Unit of Measure

Select the value that describes the type of value the entry value can hold, such as number orcharacter.

Displayed

Select to display the input value on the element entry.

Allow User Entry

Select to enter values on element entries.

Required Select to make the input value a required entry value on the element entry. If you select

Required, you must also select Displayed and Allow User Entry.


Select if you want to make the values available for formulas or HCM extract.

Rate Formula Select a rate calculation formula, for example to return a value from a user-dened table. This

option only applies to the Primary input value for elements associated with rate denitions thathave the Element method and a contributor type of Amount. If you select a formula, you mustnot select Allow User Entry.

Default

Enter a value that appears as the default value for this entry value in element entries, ifneeded.

Apply default at runtime

Select to apply the default value when you run the payroll process, rather than when youcreate the element entry. This selection ensures you use the latest value on the date of thepayroll run. You can manually override the default value on the element entry.

Minimum

Enter a minimum value, if needed.

Maximum

Enter a maximum value, if needed.

Validation Formula

Enter a formula that validates the entry value entered on element entries, if needed.

Validation Source

Use with the other input value options to select the valid validation method, such as lookups orformulas.



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Field Value What You Do

Lookup Type

Specify a lookup type to provide a list of values for an entry value. This option is available forinput values of type Character only.

Warning or Error

Use when you're validating the input value or entering a minimum or maximum value. Itspecies whether a warning or an error displays if the entry fails the validation condition ordoesn't meet the minimum or maximum value indicated.

Reference Use to associate a balance context with the run result.

For example, you can associate a context, such as jurisdiction, with an element. Create an inputvalue for jurisdiction and select the jurisdiction context in the Reference eld. Then the runresult value of the input value works as a context value when updating the balance.

If you select a reference, then the lookup type and validation source values should beautomatically set to the reference context. You must provide the Reference eld rst for thevalidation source value to be automatically populated.

Value Set

Specify a value set to provide a dynamic list of values for an entry value. This option isavailable for input values of type Character only.

Caution: Once an element is processed, you can't update certain input value aributes, such as unit ofmeasure. This restriction ensures that you can't change aributes that would invalidate prior results.

This table provides examples of the allowable formats, depending on the unit of measure (UOM) specied for the entryvalue.

Unit of Measure Sample Entry Value Display in Application

Character

C

Complete

Integer

12345

12,345

Number

12345.6789 0.123456789

12,345.6789 0.123456789

Day

123 0.123

123 0.123

Money

12345 -12345.67

12345.00 <12345.67>

Hours in decimal format, 1 place 12345 12345.0



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Unit of Measure Sample Entry Value Display in Application

Hours in decimal format, 2 places

12345

12345.00

Hours in decimal format, 3 places

12345

12345.000

Hours expressed as a numeric value

12345

12345

Hours and minutes expressed as numericvalues

12345

12345:00

Hours, minutes, and seconds expressed asnumeric values

12345

12345:00:00

Date

2016-06-21

21-Jun-2016

Time

13:05

1:05 PM

Note: Display values can be derived from the meaning aribute of the view object. For example if you enterC as a value for the Character UOM, it displays as Complete. Conversion to display formats is based on theprole option value and locale.

Related Topics• How Element Setup Aects Entries and Their Values• Create and Edit Prole Options

Use a Value Set for an Element Input ValueYou can use value sets to provide a dynamic list of values for an element input value. Use a value set for lists containingvalues that already exist in tables. For example, person name or number, legislative data group, or payroll statutoryunit. The benet of this approach is that you don't have to create and maintain a lookup type. Using value sets helpsmaintain consistency and accuracy in your data.

Note: The only type of value set supported for element input values is the table-based value set. OracleFusion Global Payroll doesn't support other value set types, such as Independent or Format Only.

In the Setup and Maintenance work area go to this task.



Task: Manage Value Sets

Create value sets using the Manage Value Sets task. You select the Table validation type to dene a value set that ltersvalues from an existing table using a SQL statement.

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This table provides the required values that you enter when you create a value set for use on the Manage Elementspage.

Field Value

Module

Global Payroll

Validation Type

Table

Value Data Type

Character

Note: To enable the Value Set eld on the Manage Elements page you must select Character as the Unit ofMeasure for the input value.

To improve the performance of your value set queries, use these contexts to lter the value set records:

• PayrollRelationshipId

• PersonId

• PayrollTermId

• PayrollAssignmentId

• LegDataGroupId

• LegCode

• SysEectiveDate

WHERE Clause example: pay_pay_relationships_dn.payroll_relationship_id = :{PARAMETER.PayrollRelationshipId}

Note: If you use these contexts in your value set SQL, make sure the WHERE clause parameter name matchesthe context name.

In this example, an element contains input values for legislative data group and element name. The list of values forelement name is dependent on the selected legislative data group. As part of setup, you can select a default legislativedata group for the element, or for a specic element eligibility record.

In summary, here are the steps:

• Create a value set to return a list of all legislative data groups

• Create a value set that returns all elements in the legislative data group

• Add the value set codes to the Manage Elements page

Create a Value Set to Return a List of all Legislative Data Groups1. From the Setup and Maintenance work area, search for and select the Manage Value Sets task.

Oering: Workforce DeploymentFunctional Area: PayrollTask: Manage Payroll Value Sets

2. Click Create.3. Complete the elds, as shown in this table.



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Field Value

Value Set Code

LDG_VS

Description

Retrieve Legislative Data Groups

Module

Global Payroll

Validation Type

Table

Value Data Type

Character

FROM Clause

PER_ LEGISLATIVE_ DATA_ GROUPS_vl

Value Column Name

NAME

Value Column Type

VARCHAR2

Value Column Length

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ID Column Name

LEGISLATIVE_ DATA_GROUP_ID

ID Column Type

NUMBER

ID Column Length

18

WHERE Clause

business_ group_id=202

Note: To avoid failure of the value set, use IDs instead of names in case thedisplay name changes in the future.

ORDER BY Clause

NAME

4. Click Save.

Create a Value Set that Returns all Elements in the Legislative Data Group1. On the Manage Value Sets page, click Create.2. Complete the elds, as shown in this table.



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Field Value

Value Set Code

ELE_VS

Description

Elements

Module

Global Payroll

Validation Type

Table

Value Data Type

Character

FROM Clause

pay_ element_ types_f

Value Column Name

base_ element_name

Value Column Type

VARCHAR2

Value Column Length

80

ID Column Name

element_ type_id

ID Column Type

NUMBER

ID Column Length

18

WHERE Clause

LEGISLATIVE_ DATA_ GROUP_ id= :{PARAMETER. LDGIP}

Note: LDG_IP is the input value name.

ORDER BY Clause

base_ element_name

3. Click Save.

Add the Value Set Codes to the Manage Elements Page1. From the Payroll Calculation Work Area, click the Manage Elements task.2. Create a new element to meet your requirements and then click Submit.3. When the Element Summary page displays, click the Input Values folder.4. Click Actions and then select Create Input Values.5. Enter the name LDG_IP and the display sequence for the input value.



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6. Select Character as the Unit of Measure.7. Enter LDG_VS in the Value Set eld.8. Go to the Default eld and select a legislative data group.9. Click Save.

10. Click Submit.11. Repeat these steps to create an element input value using the ELE_VS value set.

You can override the default values on the Element Eligibility - Input Values page for a specic eligibility record.

Element Entries

Enable Automatic, Multiple, or Additional Element Entries OptionsYou can select one of these options for an element to dene how you can update its element entries:

• Automatic entry

• Allow multiple entries in same period

• Additional entry

Automatic EntryWhen you create an element, you can select Yes for the question: Should every person eligible for the elementautomatically receive it? This seing selects the Automatic entry option by default for all eligibility records you createfor that element. However, you can override the selection for any specic eligibility record before you save it.

When you select this option, saving the eligibility record initiates a payroll ow to create element entries for all eligibleworkers. To monitor this ow, you do these tasks:

• View the progress of the process in the Automatic Entry Status eld. If the status shows that an erroroccurred, you can save the eligibility record again to resubmit the ow.

• If you have access to payroll work areas, monitor the progress of the Generate Automatic Element Entries owon the Processes and Reports tab. You can navigate to the Processes and Reports tab through these workareas: Payroll Dashboard, Payroll Checklist or Payroll Calculation.

Any updates to the employment records of eligible workers, including hires and terminations, automatically update,create, or end the element entries, as appropriate.

Tip: If you select the Automatic entry option, you can't also select Allow multiple entries in same period.

Allow Multiple Entries in Same PeriodThis option enables you to give a person more than one entry of the element in the same pay period. Let's consider thescenario when you enter overtime hours on a weekly basis for a person that's paid monthly. In this case, you might needto enter ve entries on an overtime element in each period.

If you're creating a net-to-gross element, you must select Allow multiple entries in same period.

Note: An element with the Automatic entry option selected can't allow multiple entries in the same period.



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Additional EntryThis option enables you to add an occasional one-time entry for recurring elements. This additional entry can overrideor add to the normal entry amount.

Related Topics• Element Entry Methods• Status of Flow Tasks

Options to Determine an Element's Latest Entry DateAn element's latest entry date determines how element entries process after a person is terminated or transferred toanother payroll. The options include: nal close, last standard earning date, and last standard process date. These arethe predened options. You can create others that t your business needs.

Final CloseUse this option to let the element stay open for entries beyond a person's last day worked. For example, you may wantthe element to stay open to pay a severance package.

Last Standard Earning DateUse this option to stop all element entries on the date the person leaves. You can use this option for recurring entries,such as salary.

Tip: If you select the last standard earning date option, also select proration for the element. This ensures thatthe element is processed up to this date, even if it isn't active at the end of a payroll period.

Last Standard Process DateThe application sets the value for the last standard process date to the last day of the pay period in which the person istermination. However, you can set it to a later period when you terminate the person. The application stops all elemententries on the last standard process date or on the date the assignment ends, if it's earlier.

Related Topics• How Element Setup Aects Entries and Their Values• Element Duration Dates

Default Values for Element EntriesSpecify default values for element entries using the Manage Elements task in the Payroll Calculation work area. Yourelement setup controls when the default value aects element entries. You can apply the default value only when youcreate an element entry or at runtime. Another option is to use a formula to provide default values on one or more entryvalues.

You can do these actions:

• Set a default value for an input value, or select a defaulting formula for the element.

• Override the default value or formula for a specic group of employees that an element eligibility recordidenties.

• Override the default value for specic employees on their element entries.

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Dene Default Values at Element Entry CreationWhen you create or edit input values, you can specify a default value. If you don't select the Apply default at runtimeoption, subsequent updates to the default value have no eect on existing element entries. Users can override orchange the default value at any time.

Dene Default Values at RuntimeTo use this method, enter the default value and select the Apply default at runtime option for the input value. Ifthe element entry value is left blank, the payroll process uses the current default value from the element or elementeligibility record. If you enter a value, the manual entry overrides the default value and updates to the default valuedon't aect that entry. If you want to restore the default value, clear the entry.

Use a Formula to Provide Default ValuesYou can create a formula of type element input validation to provide default values for one or more entry values. Selectthis formula in the Defaulting Formula eld for an element or element eligibility record. Here's the order of precedence:

• A formula at the element eligibility level overrides a formula at the element level.

• If you enter a default value for the input value and select a defaulting formula, the formula overrides the defaultvalue.

Related Topics

• How Element Setup Aects Entries and Their Values

Element Input Validation Formula TypeYou can use an element input validation formula to validate one or more element entry values. You can also use thisformula type to provide a default value for an element entry value, or to calculate entry values based on the user'sentries in other entry values.

You select the formula on the Element Summary page in the following elds:

Page Section Field Purpose When the Formula Runs

Element Details, or ElementEligibility

Validation Formula

To validate one or more entryvalues for the element basedon entries in other entryvalues.

When you save the elemententry.


Calculation Formula

To provide values for one ormore entry values using acalculation that takes inputfrom these or other entryvalues.

When you save the elemententry.


Defaulting Formula

To provide default values forone or more entry values.

When you create the elemententry.

Input Value

Validation Formula

To validate one entry valueindependently of others.

When you enter the value.




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Page Section Field Purpose When the Formula Runs

Note: In all cases, a formula at the element eligibility level overrides an equivalent formula at the elementlevel.

ContextsThe following contexts are available to all formulas of this type:

• LEGISLATIVE_DATA_GROUP_ID

• DATE_EARNED

• EFFECTIVE_DATE

The following contexts are available to formulas at element or element eligibility level only, not to validation formulas atthe input value level:

• PERSON_ID

• PAYROLL_RELATIONSHIP_ID

• PAYROLL_TERM_ID

• PAYROLL_ASSIGNMENT_ID

• HR_RELATIONSHIP_ID

• HR_TERM_ID

• HR_ASSIGNMENT_ID

Input VariablesThe following input variables are available to formulas of this type.

Formula Usage Input Variables Comments

Validation formula at input value level

entry_value

Passes the value to be validated. Youmust declare the input variable as theappropriate type for the element inputvalue.

Validation formula at element or elementeligibility level

Any element input value name thatcorresponds to an entry value.

Replace spaces in the input value namewith underscores in the input variablename. It doesn't maer whether you useuppercase or lowercase for the name.

Defaulting formula

None

Use database items or other logic instead.

Calculation formula

Any element input value name of an entryvalue.

Replace spaces with underscores. You don't need to provide all of theavailable entry values.



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Formula Usage Input Variables Comments

Return ValuesThe following return values are available to formulas of this type.

Formula Usage Return Values Comments

Validation formula at any level.

formula_status

Must be either 'S' (success) or 'E' (error).Required.

Validation formula at any level.

formula_ message

Text of message passed to user if thevalidation fails. Optional.

Defaulting formula


A return value overrides any default valueprovided on the input value in the elementor element eligibility record.

Calculation formula


You don't need to return all of theavailable entry values. You can return theentry values that were passed in as inputvariables, or other entry values.

Sample FormulaThis section contains the following sample formulas:

• Validation formula at input value level

• Validation formula at element or element eligibility level

• Calculation formula at element or element eligibility level

• Defaulting formula at element or element eligibility level

Validation formula at input value level:

inputs are entry_value(date)if(entry_value = '01-APR-2008' (date)) then(formula_message = 'Valid date'formula_status = 'S')else(formula_message = 'Invalid date'formula_status = 'E')return formula_message, formula_status

Validation formula at element or element eligibility level:

inputs are hours_worked, rate, earning_date(date), comment(text)if(hours_worked > 80) then(



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formula_message = 'You are within the working limit.'formula_status = 'S')else(formula_message = 'You have worked too many hours.'formula_status = 'E')return formula_message, formula_status

Calculation formula at element or element eligibility level:

inputs are hours_worked, rate, comment(text)if(hours_worked > 80) then(rate = rate * 1.2 comment = 'Your rate has been increased')return rate, comment

Defaulting formula at element or element eligibility level:

if(CATEGORY = 'S') then(rate = 20)else(rate = 30)rate_code = 'B'return rate, rate_code

Formula Result Rules for ElementsAn element's status processing rule identies the formula that the payroll run uses to process the element for workerswith a specied assignment status. For each status processing rule, formula result rules determine what happens toeach result that the formula returns.

Status Processing RulesAn element can have one status processing rule for all assignment statuses, or a dierent rule for each status. Forexample, you could have two rules for a Wages element: Standard Wages and Paid Training Leave.

Formula Result RulesFormulas return formula results, such as the amount to be paid, or a message. Results can update the current elemententry or another element entry with a lower processing priority.

This table explains the available result rules.

Results Rule What's Its Use

Direct Result

The element's run result, or a direct result updating one of the element's input values.



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Results Rule What's Its Use

Indirect Result

An entry to a nonrecurring element that has a lower processing priority. The target elementmust be at the same employment level as the source element.

Message A message issued by the formula under certain conditions. For example, a formula can check a

loan repayment balance and, if the balance is zero, issue the message Loan is repaid.

There are three severity levels for a message rule:

• Error - Causes the run to roll back all processing for the employment record.• Warning - Doesn't aect payroll processing but warns you of a possible problem.• Information - Doesn't aect payroll processing.

Order Indirect

Updates the subpriority of the element you select in the Target Element Name eld.

Stop

Uses the Date Earned of the payroll run to stop the processing of a recurring entry. A stop rulecan be based upon reaching a specied accumulator, such as a balance owed of zero. The dateupon which the total owed is reached appears on the Element Entries page as Selement Date.The entries aren't actually end dated but stopped from future processing. This rule supportsretroactive processes which impact the total owed balance. You should dene the target element with Allow Multiple Entries selected. This option enablesyou to allocate a new entry once the value of an existing entry has reached zero. For example,once an employee has repaid a loan you can add a new loan entry for the employee. If you adda new stop entry for the same element type, use balance contexts to dierentiate between theowed balances.

Note: Let's assume you don't select Allow Multiple Entries and you add a secondloan after the rst loan has been stopped by a payroll run. In this case, end date therst loan before creating the second loan.

Target Indirect

An entry to a nonrecurring element that has a lower processing priority. Here, the targetelement is dened at a dierent employment level than the element being processed. Forexample, you could use a Target Indirect rule to update the input value of an assignment-levelelement from the processing of a payroll element.

Element Eligibility

Element EligibilityElement eligibility determines which people are eligible for an element. To determine eligibility, you select the criteriathat people must receive entries of the element.

Eligibility CriteriaYou can dene element eligibility using these criteria.



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Level Available Criteria

Payroll Relationship

Payroll Statutory Unit Relationship Type

Items Assignment

Legal Employer Department in which the person works Job, for example, associate professor or secretary Grade Employment Category People Group Legal Employer Department, same as in Items Job, same as in Items Grade Employment Category People Group

Note: You set up all the people groups that are appropriate for your enterprise. Forexample, you could decide to group people by company within a multi-companyenterprise, and by union membership.

Location of person's oce Position, which is a class of job performed in a particular organization, for example, associateprofessor of chemistry, or nance department secretary. Payroll All payrolls eligible

Tip: You must dene element eligibility for every element, including predened elements. If you want theelement to be available to all workers, add an eligibility name and save the element eligibility record withno additional criteria selected. This is the usual practice for compensation and benet elements where youdetermine eligibility using eligibility proles.

Examples of Eligibility CriteriaIn these examples, you restrict who can receive an element entry:

• Your enterprise provides company cars only to people in the sales or customer support departments. Youcreate two eligibility records, and use the Department eld to specify the eligibility criteria. Select SalesDepartment for one record and Customer Support for the second record.



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• You enterprise oers a production bonus to people who work full-time in production and are on the weeklypayroll. You create one eligibility record and select Full-time regular in the Employment Category eld,Production in the Department eld, and Weekly in the Payroll eld.

Multiple Rules of EligibilityYou can dene more than one eligibility record for each element, but there must be no overlap between them.

For example, you can create one record for the combination of grade A and the job of accountant. However, you can'tcreate one record for grade A and a second for the job of accountant. These rules would imply that an accountant ongrade A is eligible for the same element twice.

If you have more than one element eligibility record, you can enter dierent default values and costing information foreach eligibility group.

Maintain Element EligibilityAfter saving an element eligibility record, you can only make certain changes. You can't update the eligibility criteria.

This table summarizes the actions you can take.

Action What's The Result

Change the input value default valuesand validation

These changes aect all new entries, and updates to existing entries. Changes to runtimedefaults aect existing entries too.

Delete the element eligibility record

The application automatically ends all existing recurring entries when you end the element'seligibility.

Note: You can't delete the element eligibility record if any nonrecurring entries existat the date you want to end the record. You must delete existing entries before youend the element's eligibility.

Add Eligibility Rules for Predened ElementsIf the country extension on the Manage Features by Country or Territory page is set to Payroll or Payroll Interface, youmust add element eligibility records for predened statutory deduction elements before you hire any workers.

Here's how you can search for the predened elements:

1. In the Setup and Maintenance work area, go to these tasks:



Task: Manage element2. Click Go to Task.



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3. Search for these predened elements:

Country or Territory Predened Element

US, Canada, Mexico

US Taxation, CA Taxation, MX Taxation

Australia, India, Singapore

Statutory Deductions

Kuwait, Saudi Arabia, United ArabEmirates

Social Insurance Gratuity

China

Aggregation Information

UK

Tax and NI Pensions Automatic Enrollment

Netherlands

Tax and Social Insurance Calculations

France

French Payroll Processing

Note: There are no predened elements that require eligibility rules for Germany, Ireland, Switzerland, orHong Kong.

Here's how you can add eligibility rules:

1. Click the element name to open the Element Summary page.2. Enter a date in the Eective As-of Date eld.

Use the start date of the element, which is 1/1/1901.3. Enter a name for the eligibility rule and click Submit. Since you haven't selected any eligibility criteria, all

employees are eligible for the element.4. Click Done.

Voluntary Deductions

How You Dene Voluntary and Pre-statutory DeductionsUse the Manage Elements task to dene voluntary and pre-statutory deductions, such as pensions. You can managepension deductions through calculation cards or element entries, depending on country-specic rules. You can alsomanage other voluntary deductions, such as gym membership, union membership, and charity donations, throughelement entries.



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Use these steps to set up deductions:

1. Dene the elements.2. Dene the third-party payees.3. Dene a third-party payment method for each third-party payee.4. Enter the deduction details for each person. Do this in the following ways, depending on the deduction type

and your setup:

◦ Congure a Benets and Pensions calculation card.

◦ Dene element entry.

◦ Load benet batches.

Dening ElementsWhen you dene a pension plan deduction, if you select the Benet category, or it's selected for you, the elementtemplate denes a calculation component. You add this component to Benets and Pensions calculation cards to assignit to your workers.

To dene other voluntary deductions:

• Select the Standard category.

This selection means you manage these deductions using the Manage Element Entries task.

• After dening the element, you must add a Payee input value and select Third-Party Payee as the specialpurpose for it.

If appropriate, enter a default value on the element or element eligibility record to populate the third-partypayee details.

Dening Third-Party PayeesTo dene third-party payees, use the Manage Third Parties page in the Payment Distribution work area.

For pensions, select the Organization payee type and select the Pension Provider party usage code.

Dening Third-Party Payment MethodsTo dene payment methods for all external payees, you can use the Manage Third-Party Payment Methods task in thePayment Distribution work area.

Entering Deduction Details for Each PersonFor pensions using the Benet category:

1. Congure a Benets and Pensions calculation card for the worker.2. Add your new pension calculation component to the card.3. Enter the payee and other details.

If you load your pension information using the Load Benet Batches process, the payroll application congures thecalculation card automatically. Before running this process, you must generate an XML le that contains the data youwant to transfer to payroll.

For other voluntary deductions, you must dene element entries. If the payee isn't defaulted from the element oreligibility record, enter the payee on the element entry.



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Related Topics• Create Third-Party Payment Methods

Create Elements for Pension DeductionsThis example shows you how to create a pension deduction element using an element template. Follow these steps inthe Payroll Calculation work area:

1. Create a pension deduction element2. Create an eligibility record for the deduction

Creating a Pension Element1. In the Payroll Calculation work area, click Elements.2. Click Create.3. Complete the elds, as shown in this table.

Field Value


Your Legislative Data Group


Voluntary Deductions or Pre-statutory Deduction

Secondary Classication

Appropriate classication for your country or territory, such as Pension Plan After Tax

4. Click Continue.5. Complete the Basic Information page. For the latest entry date:

◦ Select Last Standard Earning Date if you enable proration for the element.

◦ Otherwise, select Last Standard Process Date.

6. Click Next.7. On the Additional Details page, enter the calculation rules and limits for the deduction. This table summarizes

your choices.

Rules What You Can Enter

Calculation rule

Fixed amount or percentage

Age limits

Minimum and maximum age

Maximum contribution amount

Any numeric value

Pensionable earnings limit

Minimum and maximum amount

Additional contributions allowed Yes, or no. If yes, select calculation rule.

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Rules What You Can Enter

Employer contributions allowed

Yes, or no. If yes, select calculation rule, age limits, and amount limits

Overrides allowed

Yes, or no

Element subject to proration

Yes, or no

8. Click Next.9. Verify the information is correct.

10. Click Submit.

The template creates a recurring element at the payroll relationship level. It also creates a calculationcomponent with the same name as the element. You add this component to workers' calculation cards.

Creating an Eligibility Record for the DeductionOn the Element Summary page, you can create as many eligibility records as you require:

1. In the Element Overview section, click the Element Eligibility link.2. Select Create Element Eligibility from the Actions menu.3. Enter a name for the eligibility record.4. Select any criteria if you want to restrict who can pay this deduction.5. Click Submit.6. Click Done.

Considerations to Enter Calculation Values for PensionsCreate a Benets and Pensions calculation card for each worker who pays a pension deduction. On the card, select thecalculation component that was created automatically for your pension element, and enter the required contributionamounts and limits. If you use the Load Benet Batches process to transfer values, this process creates the calculationcards and enters the contribution amounts and limits.

Default Contribution Amounts and LimitsEnter default contribution amounts and limits when you create the pension element. These default values are storedas calculation value denitions. You can edit the default values using the Manage Calculation Value Denitions page.You can also add a default payee or a separate payee for each employee by entering the payee ID in the EnterableCalculation Values area.

Enterable Calculation Values for PensionsTo enter or override a calculation value for one worker, perform these steps:

1. Open the worker's Benets and Pension calculation card on the Manage Calculation Cards page.2. Add the calculation component for the pension, if it isn't already on the card.3. With this calculation component selected, click the Enterable Calculation Values on Calculation Cards tab.4. Click Create.



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5. Select the value you want to enter. Typically, you will enter a payee, reference number, and any additionalcontributions. You can also override any default contribution amounts or limits.

The following table lists the calculation values you can enter.

Note: If the calculation component was created by running the Load Benet Batches process, you can onlyenter or override the following values: Payee, Reference Number, and Employee Additional Contribution.

Field Required Default Provided at ElementSetup

Values

Payee

Y

N

Enter the ID of an organizationwith the usage of PensionProvider.

Reference Number

Y or N

N

Free text Depending on the localizationrules this eld may or may notbe required.

Employee Contributions

Y

Y

Percent or at amount asper element setup. Enterpercentages as decimalvalues.

Additional EmployeeContributions

N

N

Percentage or at amountas per element setup, ifadditional contributions areallowed.

Minimum Age

N

Y

Numeric age

Maximum Age

N

Y

Numeric age

Maximum ContributionAmount

N

Y

Numeric amount

Minimum PensionableEarnings

N

Y

Numeric amount

Maximum PensionableEarnings

N

Y

Numeric amount

Partial Deduction Allowed

Y

Y

Values = Y or N

If the element was set up to allow an employer contribution, you will also see these enterable values:



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Calculation Value Required Default Provided at ElementSetup

Values

Employer Contribution

Y

Y

Percentage or at amount asper element setup

Minimum Age Limit forEmployer Contribution

N

Y

Numeric entry

Maximum Age Limit forEmployer Contribution

N

Y

Numeric entry

Maximum ContributionAmount for EmployerContribution

N

Y

Numeric amount

Minimum PensionableEarnings Limit for EmployerContribution

N

Y

Numeric amount

Maximum PensionableEarnings Limit for EmployerContribution

N

Y

Numeric amount

Involuntary Deductions

How You Add Involuntary Deductions to a Calculation CardYou use element templates to create the involuntary deduction elements supported for your legislation, such asbankruptcy orders, garnishments, child support payments, tax levies, and educational loans. The templates also createcalculation components, which you can add to a personal calculation card, so the deductions are processed during apayroll run.



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This gure shows the steps involved in creating an involuntary deduction and adding it to a personal calculation card:

Create Third-Party Payees

Create Third-Party Payment Methods

Create Involuntary Deduction Element

Create Involuntary

Deduction Card

Add Involuntary Deduction

Component to Card

Enter Values for Deduction

Amounts and Fees

Create Personal Deduction Card

Process PayrollElement Entry

Created for Related Element

PrerequisitesBefore you can add an involuntary deduction to a personal calculation card, you must rst:

• Create a third party to receive the payment.

• Create a third-party payment method.

• Create an involuntary deduction element.

You can create multiple elements for the same involuntary deduction type if processing information or otherdetails vary. For example, each jurisdiction you deal with may have dierent processing rules for court orders.

Creating an Involuntary Deduction Calculation CardFollow these steps:

1. In the Payroll Administration or Payroll Calculation work area, click the Manage Calculation Cards task.2. Search for and select the payroll relationship.3. If the person doesn't already have an involuntary deduction calculation card, click Create.4. Enter a start date for the card and select the involuntary deduction card type.5. Click Continue.

Adding the Calculation Component to the Calculation CardYou can add multiple calculation components for the same or dierent involuntary deduction types. For example, youcould add two child support components and one garnishment component to the same calculation card.



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On the Manage Calculation Cards page:

1. In the Calculation Components section, click Add Row.2. Select the calculation component with the same name as the involuntary deduction element.3. Optionally, enter a number in the Subprocessing Order eld if the calculation card will include more than one

calculation component.By default, the payroll run processes these element entries in order by date received, starting with the oldestentry.

4. Enter a reference code to uniquely identify this deduction, such as a court order number, case number, or otheridentier provided by the issuing authority.

5. Complete the elds on the Calculation Component Details tab.

◦ In the Involuntary Deduction Payment Details section, select all payees for the deduction.The payee elds display all third-party person payees associated with this payroll relationship and allexternal payees dened for your legislative data group.

◦ In the Involuntary Deduction Rules section, specify the information you require, including:• The date the involuntary deduction order was received• The issuing authority (such as a court)• The frequency of the deduction such as monthly or weekly, regardless of the payroll frequency. If

you leave the Frequency eld blank, the application uses the payroll frequency.

Entering Values for the Deduction AmountsYou enter the order amount, fee, or other amounts used in the calculation on the calculation card. The values youenter replace any default values dened in calculation value denitions. The default order amount for an involuntarydeduction is typically zero.

To create overrides on the Enterable Calculation Values on the Calculation Cards tab, complete the elds as shown inthe following table. The values you enter may vary by country or territory, but typically include the items described inthe table below.

Note: For most values, you can enter either an amount or a rate. Enter a rate if you want the application tocalculate the amount as a percentage of available pay. For example, to dene a rate of 20 percent for the orderamount, create an Order Amount (Rate) value. Then enter 20 in the Rate eld.

Calculation Value Description

Order Amount

Rate or amount paid to the Order Amount Payee based on the frequency you specied. For example, if you specied a frequency of monthly in the component details, enter theamount to deduct each month, regardless of the payroll period. The application automaticallycalculates the correct amount to deduct in each payroll period. If you leave the Frequency eld blank, this amount is deducted at the payroll frequency denedat the assignment level.

Organization Fee

Rate or amount paid to the Organization Fee Payee each time the deduction is processed.

Person Fee

Rate or amount paid to the Person Fee Payee each time the deduction is processed.



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Calculation Value Description

Processing Fee

Rate or amount paid to the Processing Fee Payee each time the deduction is processed.

Initial Fee

Rate or amount paid to Processing Fee Payee the rst time this deduction is processed.

Maximum Withholding Amount andMinimum Withholding Amount

Maximum and minimum rates or amounts that can be withheld in one payroll period for thisdeduction.

Maximum Withholding Duration

The number of days after the Date Received that the order is valid. For example, a court ordermight only be valid for 90 days after the date issued.

Protected Pay Amount

Amount of the employee's pay that's exempt from this deduction. Only pay exceeding thisamount is included in the deductible amount (available for the deduction).

Exemption Percentage

Percentage of the employee's pay that's exempt from this deduction.

Related Topics

• Create Third Parties Options

• Create Third-Party Payment Methods

Fee and Proration Rules for Involuntary DeductionsCreating an involuntary deduction creates calculation value denitions that include predened fee and proration rules.These rules vary by country and territory.

The following table describes the global rules:

Rule Processing

Fee

Deduct the fee rst, before calculating and paying the deduction amount.

Proration

Use the rst come, rst serve method. If a person has multiple orders and there is insucient money to pay them all, pay thedeductions in the order in which they were received. Start with the oldest.

You can override these predened fees and proration rules. For details, see the topic Involuntary Deduction CalculationValue Override Details for the US in the Help Portal.




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Examples of Involuntary Deduction ProcessingProcessing rules may vary by the legislation or the legal authority issuing the order for an involuntary deduction.Let's look at some examples that illustrate the processing of fees, protected pay amounts, and when employees havemultiple assignments and payrolls.

Payroll processing rst calculates disposable income using the disposable income rules. Then it looks at the exemptionrules to calculate the amount exempt from withholding. Using these amounts, it can calculate the amount available todeduct.

Note: The payroll process calculates disposable income once, based on the highest processing priority cardcomponent. The exception is regional tax levies, which have a separate disposable income calculation.

You can use these examples to understand how involuntary deductions are processed in dierent scenarios:

• Involuntary deduction has initial fee and processing fee

• Deduction amount exceeds protected pay amount

• Employee has multiple assignments and payrolls

• Multiple orders exist with dierent protected pay amounts

Involuntary Deduction Has Initial Fee and Processing FeeScenario: An employee in Country 1 is issued a court order for a monthly garnishment of 500. The order is subject totwo fees. Both fees are paid to the agency responsible for administering the account. The agency then forwards thepayments to the recipients:

• A one time initial fee of 10

• A monthly processing fee of 10

On the involuntary deduction calculation card:

1. Add a calculation component for a garnishment.2. In the Calculation Component Details tab:

◦ Select the Order Amount Payee and the Processing Fee Payee. The processing fee payee is also theinitial fee payee.

◦ Select Monthly in the Frequency eld.

3. In the Enterable Calculation Values tab, enter the following values:

Field Value

Order Amount

500

Processing Fee

10

Initial Fee

10



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Payroll Run Results:

• The amount of the employee's pay subject to deduction is 1000.

• During the rst monthly payroll after the court order is received, both the initial fee amount and the processingfee are deducted. The total deduction amount is 520.

• In subsequent payroll runs, the order amount and the processing fee are deducted. The total deduction amountis 510.

Deduction Amount Exceeds Protected Pay AmountScenario: An employee in Country 2 is issued a court order for the amount of 100 per month. However, protected payrules dened for the deduction require that the employee take home at least 700, after all deductions.


1. Add a calculation component for a court order.2. In the Calculation Component Details tab:

◦ Select the Order Amount Payee and the Processing Fee Payee.


3. In the Enterable Calculation Values tab, enter the following values:

Field Value

Order Amount

100

Protected Pay

700


• The amount of the employee's pay subject to the deduction is 750.

• A deduction amount of 100 would leave only 650 for the nal pay amount. Therefore, only 50 is deducted forthe month.

• The remaining balance of 50 isn't placed in arrears, based on processing rules dened for this deduction.

Employee Has Multiple Assignments and PayrollsScenario: An employee has one payroll relationship with two assignments. They receive paychecks from two dierentpayrolls. One payroll is run on a weekly basis. The other is run on a monthly basis.

The employer receives a court order to deduct 200 per month from the employee's wages. The court order amountmust be deducted from all available money, regardless of the payroll. If the total order amount can't be deducted fromthe rst payroll run, then the following occurs. The remaining balance must be deducted from one or more subsequentruns during the month, until the full amount is paid.


1. Add a calculation component for a court order.



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2. In the Calculation Component Details tab:

◦ Select the Order Amount Payee.


3. In the Enterable Calculation Values tab, enter the following value:

Field Value

Order Amount

200


• During the rst weekly payroll run, only the amount of 50 can be deducted, leaving an amount owed of 150 forthe month.

• When the next weekly payroll is run, the deduction can't be taken due to insucient pay; the balance for themonth remains 150.

• The monthly payroll runs before the next weekly payroll is run. The remaining amount of 150 owed for thededuction is taken during the monthly payroll run.

• No money is deducted during the subsequent weekly payroll runs for this month.

Note: If a person has two assignments for dierent payroll relationships, they would typically be issued twodierent court orders, one for each employment. In this case, you would add each court order to a dierentcalculation card.

Multiple Orders Exist with Dierent Protected Pay AmountsScenario: An employee in Country 2 has three court orders. Each court order has a dierent protected pay amount.

1. On the involuntary deduction calculation card add three calculation components for child support.2. For each calculation component, select Monthly in the Frequency eld.3. Dene the protected pay and order amount values for each deduction as shown in the following table:

Involuntary Deduction Protected Pay Amount Order Amount Date Received

Child Support 1

500

1000

23 January 2012

Child Support 2

600

1100

2 February 2012

Child Support 3

1000

1200

2 February 2012


The net amount available for involuntary deductions in the payroll run is 2000 GBP. Based on the processing prioritydened for child support payments, the payroll run processes the involuntary deductions in order by date received.

Here's the result:

• Child Support 1 is paid in full, leaving 1000 available for other deductions.



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• Child Support 2 is paid an amount of 400 (1000 less protected pay of 600).

• Child Support 3 isn't paid. The total amount is placed in arrears, based on processing rules dened for thededuction.

Net-to-Gross Earnings

How Net-to-Gross Earnings are CalculatedWhen you create an earnings element, you can indicate that it pays a specied net amount. Use this feature, if you needto pay a person:

• Guaranteed take-home pay (net) per payroll period

• Bonus of a specied net amount

To create an earnings element, use the Manage Elements task in the Payroll Calculation work area.

You can create a net-to-gross (gross-up) element for any recurring or nonrecurring earnings element using theseprimary classications:

• Standard Earnings

• Supplemental Earnings

• Taxable Benets (Imputed Earnings)

Seings That Aect Net-to-Gross ProcessingDene the deductions that are used to calculate the gross amount from the specied net amount.

Answer Yes to the Use this element to calculate a gross amount from a specied net amount? prompt in theelement template to create the element as a gross-up element.

In each element entry, specify the limits of the gross-up processing as follows:

• In the Net value, enter the value you want the employee to receive.

• In the To Within value, enter the allowed dierence between the desired amount and the actual amount. Thislimit can't be 0.

Note: If these values are the same across most entries, you can enter a default value on the element eligibilityrecord.

How Formulas Calculate the Gross AmountThe formulas for net-to-gross processing perform these actions:

1. The predened GLB_EARN_GROSSUP iterative formula takes as input the desired net amount (Net input value)and the amount by which net can dier from the desired amount (To Within input value).

2. In the rst run, the formula performs these actions:

a. Sets the lower gross limit to the desired net amount, and the higher gross limit to twice the desiredamount.

b. Runs a function to provide the rst guess of the gross.



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c. Returns three values to the element's input values: low gross, high gross, and additional amount.3. The element's payroll formula runs. The formula adds the additional amount to the desired amount for creating

the gross amount. The formula returns this value to the element's pay value for the payroll run to process.4. In the next iteration, the iterative formula compares the additional amount to the total value of the balances

that are available for gross-up for this element entry. The additional amount must not dier from this balancetotal by more than the amount you specied in the To Within eld.

◦ If the additional amount equals the balance total, the iterative processing ends.

◦ If the additional amount is higher or lower than the balance total by an acceptable margin, the processingends. The formula returns the remainder (additional amount minus balance) to the element's Remainderinput value.

◦ Otherwise, the formula runs the function to generate a beer estimate for gross, using the remainder todetermine by how much to change the guess. The formula checks the results in another iteration.

Related Topics• Overview of Using Formula Components

Create a Net-to-Gross Earnings ElementThis example demonstrates how to create a net-to-gross (gross-up) earnings element when an organization wants topay a person a specic net amount on a bonus.

Before you create your earnings element, you may want to consider these decisions:


What is the primary classication ofthis earning?


Is the element recurring ornonrecurring?

Nonrecurring

Who is the bonus recipient?

Linda Swift

How much is the bonus?

1000

What is the allowed dierencebetween the specied bonus and theactual amount paid?

.05

What is the calculation rule?

Flat amount

Create the Earnings Element1. In the Payroll Calculation work area, click Elements.2. Click Create and then in the Create Element dialog box, select the values as shown in this table.

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Field Value

Legislative Data GroupLDG1

Primary ClassicationSupplemental Earnings

Secondary ClassicationBonus

CategoryStandard

3. Click Continue.4. On the Create Element: Basic Information page, select the values as shown in this table.

Field or Question Value

NameBonus

Reporting NameBonus

Eective Date01/01/2013

Should every person eligible for theelement automatically receive it?

No


First Standard Earning Date

What is the latest entry date forthe element?

Last Standard Earning Date

At which employment level shouldthis element be aached?

Assignment Level

Does the element recur eachpayroll period, or does it requireexplicit entry?

Nonrecurring

Process the element only once ineach payroll period?

Yes

Can a person have more than oneentry of this element in a payrollperiod?

Yes



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Process and pay element separatelyor with other earnings elements?

Process separately and pay separately

Tax this earning across multiple payperiods?

No

Prorate this earning across allperiods during which it was earned,and consider it for FLSA calculations,such as for commissions,bonuses, incentives, and othernondiscretionary earnings?

No

5. Click Next.6. On the Create Element: Additional Details page select the values shown in the table.


What is the calculation rule?Flat Amount

Note: The default value is Flat Amount. Do not change this value. All gross-upearnings must have a calculation rule of Flat Amount.

What is the default periodicity of thiselement?

Periodically

Periodicity Conversion Rule

Periodic Work Schedule Rate Annualized

How do you want the work units tobe reported?

None

Is this element subject toretroactive changes?

No

Use this element to calculate agross amount from a specied netamount?

Yes

Should this element be included inthe earnings calculation of the FLSAovertime base rate?

No

Should this element be included inthe hours calculation of the FLSAovertime base rate?

No



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7. Click Next.8. Click Submit.9. In the Element Overview pane, select and review each input value, as shown in the table.

Input Value Description

Pay ValueThe gross pay value to be processed in the payroll run, entered by the iterative formula whenit completes gross-up calculations.

NetThe user-entered at amount, which provides the iterative formula with the desired net pay.

Low GrossUsed by the iterative formula to hold the lower gross pay guess, which feeds into the nextiteration of the formula.

High GrossUsed by the iterative formula to hold the higher gross pay guess, which feeds into the nextiteration of the formula.

RemainderThe amount by which the additional pay to be paid by the employer (gross minus desirednet) diers from the total of the balances that are eligible for net-to-gross processing. Thisamount is returned by the iterative formula.

To WithinThe amount by which actual net can dier from desired net after normal processing. Thisamount must not be zero but can be a nominal amount such as 0.01.

Additional AmountThe amount to add to the desired net to calculate gross pay. This amount is returned by theiterative formula.

Note: Not all input values are visible by default.

Create Eligibility Rules

1. In the Element Overview pane, click Element Eligibility.2. Select Create Element Eligibility from the Actions menu.3. In the Element Eligibility Name eld, enter Bonus.4. Click Save.

Review Iterative Processing Order

1. In the Element Overview pane, click Bonus.2. In the Advanced Rules section, review the iterative order.



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Note: The default value is 1000. If you have more than one iterative element that may be processedin the same payroll ow, it's important to adjust the iterative order to indicate which should beprocessed rst. Iterative order must be in the reverse sequence of the processing priority numbers.The element with the lowest iterative priority number is reduced rst.

Include Balances in the Net-to-Gross ProcessingPerform the following steps to include balances:

1. In the Element Overview pane, click Balance Feeds.2. Review the balances to which the bonus contributes.3. In the Element Overview pane, click Gross Balance Exclusions.4. Add any balances that have been set to exclude by default if you want to include it on this specic earnings.5. Click Submit.

Create an Element EntryIn this example, create the element entry for the bonus for Linda Swift.

1. On the Search page, search and select Swift, Linda.2. In the Name eld, enter Swift, Linda.3. In the Legislative Data Group eld, select LDG1.4. In the Eective As-of Date eld, enter 01/01/2013.5. Click Search.6. In the Search Results, select Linda Swift.7. Click Create.8. In the Eective Date eld, enter 01/01/2013.9. In the Element Name eld, select Bonus.

10. In the Assignment eld, select E1026.11. Click Continue.12. In the Net Value eld, enter 1000.00.13. In the To Within eld, enter .05.14. Click Submit.

Related Topics• Balances in Net-to-Gross Calculations

Import File Formating

File Format for Importing Absence Entries to PayrollWhen you submit the Load Absence Batches process, specify the aachment for the XML le that contains the absencedata. This topic explains the XML le format and XML tags you must use in the le.

You submit the Load Absence Batches process from the Payroll Administration work area. The process creates acalculation card or updates an existing card for each worker whose absence information is transferred.

XML File Format for Importing Absence Information to PayrollWhen you create a le to transfer absence information to payroll, use this format.



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<ABSENCE_LIST> <ABSENCE> <ABSENCE_TYPE> <ACTION> <ABSENCE_ID> <MAPPING_ID> <MAPPING_NAME> <LDG_ID> <LDG_NAME> <HR_TERM_ID> <TERM_NUMBER> <HR_ASSIGNMENT_ID> <ASSIGNMENT_NUMBER> <ABSENCE_RATE_ID> <ABSENCE_RATE_NAME> <ABSENCE_UNIT> <ABSENCE_UOM> <ADJUSTMENT_UNIT> <FACTOR> <CALCULATION_DATE> <PERIODICITY> <ABSENCE_START> <ABSENCE_END> <ABSENCE_DATE_LIST> <ABSENCE_DATE> <LEAVE_DATE> <ACCRUED_DATE> <OVERRIDING_FACTOR> <OVERRIDING_RATE_ID> <OVERRIDING_RATE_NAME> <OVERRIDING_UOM> <OVERRIDING_UNIT> <\ABSENCE_DATE> <\ABSENCE_DATE_LIST> <\ABSENCE><\ABSENCE_LIST>

XML TagsThis table describes the purpose of the tags used in the XML le.

XML Tag Purpose

ABSENCE_LIST

Outermost tag that contains a set of absences.

ABSENCE

Tag containing information about a particular absence.

ABSENCE_TYPE

Type of absence that's being transferred to payroll, such as accrual, accrual with entitlement, orentitlement.

ACTION

Type of action that would be performed, such as CREATE, REMOVE, and MODIFY.

ABSENCE_ID

Unique identier for the absence from the source application. Never use the same ID twice toidentify another absence.

MAPPING_ID Identier for the payroll component denition, which is used to create the absence in payroll.



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XML Tag Purpose

MAPPING_NAME

Name used for the mapping.

LDG_ID

ID of the legislative data group associated with the record.

LDG_NAME

Name of the legislative data group associated with the record.

HR_TERM_ID

Unique ID for the HR period. You can provide either the TERM_NUMBER or the HR_ TERM_ID. If you provide theTERM_NUMBER, you must also provide the legal employer details.

TERM_NUMBER

Number that identies the employment periods for the absence.

HR_ ASSIGNMENT_ID

This is the HR Assignments unique ID. You can provide either the ASSIGNMENT_ NUMBER or the HR_ ASSIGNMENT_ID. If youprovide the ASSIGNMENT_ NUMBER then you must also provide the legal employer details.

ASSIGNMENT_ NUMBER

Number that identies the employment assignment for the absence.

ABSENCE_ RATE_ID

Unique identier for the absence rate.

ABSENCE_ RATE_NAME

Name of the rate used to calculate the payment amount.

ABSENCE_UNIT

Unit of time in which the absence is recorded.

ABSENCE_UOM

Unit of measure being used for the absence (for example, days, hours or weeks).

ADJUSTMENT_ UNIT

Unit of time in which an adjustment is being made to the absence.

FACTOR

Factor that's used in the calculation of the absence.

CALCULATION DATE

Date used for payroll calculations, such as the payment calculation for maternity leave basedon the baby's due date.

PERIODICITY

Used with the amount or rate, the periodicity is the frequency that determines the absencerate.

ABSENCE_START

Date the absence started.



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XML Tag Purpose

ABSENCE_END

Date the absence ended.

ABSENCE_ DATE_LIST

List of dates in which the absence occurred.

ABSENCE_DATE

Date the absence is being reported.

LEAVE_DATE

Date on which the leave of absence occurred.

ACCRUED_DATE

Date on which the absence was accrued.

OVERRIDING_ FACTOR

Factor that's being used to override the calculation of the absence.

OVERRIDING_ RATE_ID

Unique identier for the rate being used to override the absence.

OVERRIDING_ RATE_NAME

Name of the overriding rate that would be used to calculate the absence.

OVERRIDING_UOM

Unit of measure being used to override the absence (for example, days, hours or weeks).

OVERRIDING_ UNIT

Unit of time in which an override is being made to the absence.

Related Topics• Importing Absence Entries to Payroll: Procedure

File Format for Importing Pension Deductions to PayrollWhen you submit the Load Benet Batches process, specify the aachment for the XML le that contains the benetdata. This topic explains the XML le format and XML tags you must use in the le. Submit the Load Benet Batchesprocess from the Payroll Checklist or Payroll Administration work areas. The process creates a calculation card orupdates an existing card for each worker whose pension information is transferred.

XML File Format for Importing Pension Deductions to PayrollWhen you create a le to transfer pension deduction information to payroll, use this format.

<BENEFIT LIST><BENEFIT>...<ACTION><BENEFIT_ID><MAPPING_ID><LDG_ID><LDG_NAME>{<HR_TERM_ID><TERM_NUMBER>

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<HR_ASSIGNMENT_ID><ASSIGNMENT_NUMBER>}<LEGAL_EMPLOYER_ID><LEGAL_EMPLOYER_NAME><BENEFIT_START><BENEFIT_END>{<BENEFIT_RATE_ID><BENEFIT_RATE_NAME> |<AMOUNT><PERIODICITY><BENEFIT_MAX_ELECTION><BENEFIT_REF_NUMBER>}</BENEFIT></BENEFIT_LIST>


XML Tag Purpose

BENEFIT_LIST

Outermost tag that contains a set of benets.

BENEFIT

Tag containing information about a particular benet.

ACTION

The type of action that would be performed, such as CREATE, REMOVE, and MODIFY.

BENEFIT_ID

Unique identier for the benet from the source application. Never use the same ID twice toidentify another benet.

MAPPING_ID

Identier for the payroll component denition, which is used to create the benet in payroll.

LDG_ID

ID of the legislative data group associated with the record.

LDG_NAME

Name of the legislative data group associated with the record.

HR_TERM_ID

Unique ID for the employment period. You can provide either the TERM_NUMBER or the HR_ TERM_ID. If you provide theTERM_NUMBER, you must also provide the legal employer details.

TERM_NUMBER

Number that identies the employment period for the pension deduction.

HR_ ASSIGNMENT_ID

Unique ID for the assignment. You can provide either the ASSIGNMENT_ NUMBER or the HR_ ASSIGNMENT_ID. If youprovide the ASSIGNMENT_ NUMBER you must also provide the legal employer details.



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XML Tag Purpose

ASSIGNMENT_ NUMBER

Number that identies the employment assignment for the pension deduction.

LEGAL_ EMPLOYER_ID

ID of the legal employer name that the assignment belongs to.

LEGAL_ EMPLOYER_NAME

Legal employer name that the assignment belongs to.

BENEFIT_START

Start date of the benet.

BENEFIT_END

End date of the benet.

BENEFIT_ RATE_ID

ID of the rate that would be used to calculate the payment amount.

BENEFIT_ RATE_NAME

Name of the rate that would be used to calculate the payment amount.

AMOUNT

Amount that's used to calculate the rate using the periodicity.

PERIODICITY

Used with the amount or rate, the periodicity is the frequency that determines the rate value.

BENEFIT_ MAX_ELECTION

Annual maximum election amount that can be processed.

BENEFIT_ REF_NUMBER

Employee's reference number with the provider of the pension (benet organization).

Related Topics

• Run the Load Benet Batches Process

File Format for Importing Time Entries to PayrollYou import time entries from a third-party provider by submiing the Load Time Card Batches process from the PayrollChecklist or Payroll Administration work areas. When you submit the process, you specify the batch XML le thatincludes your time entries. This topic explains the XML le format and XML tags you must use in the le.

You submit the Load Time Card Batches process from the Payroll Administration work area. The process creates a newcalculation card or updates an existing card for each worker with time entries included in the batch.

XML File Format for Importing Time EntriesWhen you create a le to transfer time card entries to payroll, use the following structure.

<TIME_CARD_LIST><TIME_CARD>...<ACTION><TIME_CARD_ID>

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<MAPPING_ID><MAPPING_NAME><LDG_ID><LDG_NAME><HR_TERM_ID><TERM_NUMBER><HR_ASSIGNMENT_ID><ASSIGNMENT_NUMBER><LEGAL_EMPLOYER_ID><LEGAL_EMPLOYER_NAME><TIME_CARD_START><TIME_CARD_END><TIME_ITEM_LIST>...<TIME_ITEM><TIME_TYPE>{<PAYMENT_RATE_ID><PAYMENT_RATE_NAME> |<RATE_AMOUNT><PERIODICITY><FACTOR> |<AMOUNT><PERIODICITY>}<TIME_UNIT><TIME_UOM><TIME_ITEM_START><TIME_ITEM_END><COST_SEGMENTS><SEGMENT1..30></COST_SEGMENTS><PROPERTIES_LIST>..<PROPERTY_ITEM><NAME><VALUE></PROPERTY_ITEM></PROPERTIES_LIST></TIME_ITEM></TIME_ITEM_LIST></TIME_CARD></TIME_CARD_LIST>


XML Tag Description

TIME_CARD_LIST

Parent tag that contains a set of time cards.

TIME_CARD

Object that contains the information about a specic time card.

ACTION

Action to perform, such as CREATE, REMOVE, MODIFY.

TIME_CARD_ID

Unique identier for this time card.

MAPPING_ID Identier for the payroll component denition.



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XML Tag Description

Specify the Mapping ID or the Mapping Name. If none is included, the process uses the defaultinterface type Import Time XML and aempts to nd a mapping.

MAPPING_NAME

Name used for the mapping. Specify the mapping name or the mapping ID. If none is included, the process uses the defaultinterface type Import Time XML and aempts to nd a mapping.

LDG_NAME

Name of the legislative data group (LDG) for this record. Specify the identier or name of the LDG. All the records in the XML le must belong tothe same LDG. If you don't include the LDG_ID or the LDG_NAME, the application uses thelegislative data group you entered for the Load Time Card Batches process.

LDG_ID

Identier for the LDG for this record. Specify the identier or name of the LDG. All the records in the XML le must belong to thesame LDG. If you don't include the LDG_ID or the LDG_NAME, the application uses the LDGyou entered for the Load Time Card Batches process.

TERM_NUMBER

Number that identies the employment terms for the time entry.

ASSIGNMENT_ NUMBER

Number that identies the employment assignment for the time entry.

TIME_ CARD_START

Start date of the time card.

TIME_CARD_END

End date of the time card.

TIME_ITEM_LIST

Tag that contains a set of time items.

TIME_ITEM

Object that contains information about a specic hour item.

TIME_TYPE

Name supplied by the time application that maps to the payroll element and calculationcomponent.

PAYMENT_ RATE_ID

Identier for the rate denition used to calculate the payment amount.

PAYMENT_ RATE_NAME

Name of the rate denition used to calculate the payment amount.

RATE_AMOUNT

Actual rate used to calculate the payroll amount.

AMOUNT

Flat amount used to calculate the rate based on periodicity.



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XML Tag Description

PERIODICITY

Frequency that determines the rate value, used with amount or rate amount.

FACTOR

Multiplier applied to the derived rate to calculate the payment amount.

TIME_UNIT

Number of units for the Unit of Measure specied in TIME_UOM. For example, if the UOM ishours, 8 units is 8 hours worked.

TIME_UOM

Unit of measure for specifying time unit, such as hours.

TIME_ ITEM_START

Start time for the time entry.

TIME_ITEM_END

Ending time for the time entry.

COST_SEGMENTS

List of the costing segments.

PROPERTY_LIST

Set of properties for the time item.

PROPERTY_ITEM

Additional information that’s captured. For example, a value denition for the property itemState would return State and the name of the State.

NAME

Name of a property for the time item.

VALUE

Value of a property for the time item.

Related Topics

• Prerequisite Payroll Setup for Importing Time Entries

• Import Time Card Entries to Payroll

Seing Up Payroll Processing Rules

Frequency RulesUse frequency rules to process a recurring element at a frequency other than the one you dened for the payroll.For example, you can use a frequency rule to process a monthly deduction in the third payroll period of the monthfor employees that are paid on a weekly basis. For employees that are paid on a semimonthly payroll, you can usea frequency rule to process the monthly deduction in the second period of the month only. In these cases, dene adierent frequency rule for each element.

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Column headers dynamically display on the Element Summary page based on the frequency period. For example, ifthe payroll period is weekly, the column headers are Week 1, Week 2, and so on. To control how often to process theelement, select the periods you want.

Controlling the Processing of Recurring ElementsThe Date eld on the Element Summary page provides three values. This table explains the three options you can use tocontrol the processing of recurring elements.

Field Value Description How Pay Periods are Derived

Date Earned

Date on which the application processeselement entries for the payroll run.

Uses the pay period end date of theperiod that contains the date earned todetermine the number of pay periods inthe month.

Eective Date In this context the eective date isthe date on which the payments areprocessed.

In most cases this is the date between therst day and last day of the payroll period.

Uses the pay period end date of theperiod that contains the eective date todetermine the number of pay periods inthe month.

Note: For oset payrolls, wherethe eective date isn't within thestart and end dates of the currentperiod, the end date of the periodthat contains the eective date isused.

For example, you have an oset payrollwhere the period start date is 01-February, the end date is 14-February,and the eective date for the processis 16-February. In this case the actualperiod end date is 28-February becausethe eective date (16-February) isbetween 15-February and 28-February.

Payroll Run Date

Date used by the payroll calculationprocess to retrieve eective values such asemployee details.

Uses the payroll run date to determine thenumber of pay periods in the month.

Note: While the payroll run dateis essentially the same as theeective date, the frequency rulesprocess uses a dierent methodto determine the number of theperiod in the month.



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Using the Payroll Run Date Option: ExampleLet's say you deduct pre-tax medical insurance payments twice a month for all employees on your biweekly payroll. Inthis scenario, you should select the Payroll Run Date option. Selecting this option ensures your payroll system doesn'tprocess more than two deductions for the month.

The pay period dates listed in this table are for a biweekly payroll.

Pay Period Pay Period Start Date Pay Period End Date Payroll Run Date

1

19-December-2015

1-January-2016

6-January-2016

2

2-January-2016

15-January-2016

20-January-2016

3

16-January-2016

29-January-2016

3-February-2016

This table describes how the process determines the number of deductions taken for each of the date values when youprocess your January payroll.

Field Value Date Used to Derive the Number of PayPeriods

Number of Deductions Taken forJanuary

Date Earned

Pay period end date

3

Eective Date

Pay period end date

3

Payroll Run Date

Payroll run date

2

Note: Deductions would be takenout for the rst two pay periodsonly since the payroll run date forthe third pay period is in February.

Restrict Payroll ProcessingSelect rules to control which payroll relationships and which elements to process in a payroll run. For example, askip rule or frequency rule. Specify ow parameters when you submit the calculation process to restrict the payrollrelationships and further restrict the elements that the run processes. For example, Calculate Payroll or Calculate GrossEarnings.



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Restrict the Elements Processing Based on RulesWhen you create an element, specify eligibility rules that control who's eligible to receive an element. You can alsocreate skip and frequency rules that control which recurring elements the payroll run processes.

Rules Use To Examples

Skip

Determine whether to include or excludethe element entry for the person usingrules in a formula

A once-each-period rule stops recurringelement entries from processing morethan once in a payroll period.

Frequency

Specify which payroll periods to processthe entries

A frequency rule might specify that theformula processes an element only on therst and third weeks of a month.

Restrict the Records to Process Based on Flow ParametersAs this table shows, specify ow submission parameters to restrict the number of records for the calculation process.

Parameter Use To


Restrict processing to the payroll relationships within the group, which you can dene usingstatic or dynamic rules, based on payroll relationship or assignment information.

Element Group

Restrict processing to the elements in the group, which you can dene by selecting elementclassications and including or excluding specic elements.

Run Types Determine which payroll calculations to perform and how to pay the results. The application

processes an element in all the run types, unless you set up the element in these ways:

• To process separately• As a trigger for a run type, in which case it's automatically excluded from the other run

types

This table shows the ow submission parameters for the calculation process including dates that control which recordsto process:

Date Required? Comments

Process Date

No

Usually the payroll run date of your payrolldenition.

Payroll Period

Yes

Used to derive other dates for processing.



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Date Required? Comments

Date Earned

Yes Identies these element entries

• To include in the payroll run• That belong to a proration group

and ended within the payroll period

Related Topics

• Overview of Object Groups

FAQs for Elements

What's the dierence between a recurring and nonrecurringelement?A recurring element has an entry that applies in every pay period until the entry is ended.A nonrecurring element has an entry that applies in one pay period only. It's only processed once per pay period. Thepayroll to which the person is assigned determines the dates of the pay period.

Note: A base pay element associated with a salary basis must be recurring.

What's an element's skip rule?A skip rule is an optional formula that determines the circumstances in which an element is processed. If you specify askip rule for the element, payroll runs process the element only when the conditions of the formula are met. Otherwise,it skips the element. You select skip rules on the Manage Elements page.

Related Topics

• Overview of Using Formula Components

How can I create an element for retroactive processing?When you create the element, specify it's subject to retroactive changes. Select the predened retroactive eventgroup for the element, or create your own. When an element is subject to retroactive changes, all components for theretroactive element are created automatically. This includes adding the element to the predened retroactive eventgroup and proration group. Create your own retroactive event group and proration event group and change the defaultvalues for the element in the Manage Element ow.

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When does an element get processed with a processing option ofprocess once per period?The rst payroll run of each period processes the element entries. If this option isn't available for your country orterritory, you can select a skip rule to process the element once each period.

What happens if I select the Closed for Entry option for anelement?The Closed for Entry option prevents the creation of all new element entries for the element. However, it doesn't aectany existing element entries.

Caution: When hiring, terminating, or updating assignments, this option prevents all element entry creationfor the element, including automatic entries.

Related Topics

• Element Entry Methods

What happens if I manually enter a value in an element entry valuethat has a runtime default value?Any subsequent changes to the default value on the element or element eligibility record won't aect the element entry.To clear your entry, you can to restore the default value.

How do I change the number of decimal places used in elementinput values?Monetary input values use the number of decimal places dened for the currency, such as two for USD. If yourcalculations require more decimal places, select a numeric unit of measure for the input value. The level of decimalprecision that you specify must match the precision value set on the Manage Currency page for the country. Thisensures that the payroll processes and reports used for reconciliation and legislative reporting produce the expectedresults.

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Chapter 12Seing Up Payment Methods

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12 Seing Up Payment Methods

Organization Payment Methods

Organization Payment MethodsYou must create one organization payment method for each combination of legislative data group, payment type, andcurrency that you use to disburse wages and other compensation. You can also create rules for validating or processingthe distribution of payments. Create as many organization payment methods as required for your enterprise. Use theManage Organization Payment Methods page in the Payment Distribution work area.

Payment TypesWhen creating an organization payment method, you select a payment type.

The most common payment types are:

• Electronic funds transfer (EFT)

• Check

• Cash

The exact list of payment types and their names can vary by country. Your enterprise may support a dierent range oftypes that are appropriate for your localization. For example, in the US, the payment type for EFT is Direct Deposit; inthe UK it's BACS, and in Australia it's BECS.

Tip: When selecting the EFT payment type, you can enter EFT information at the payment method level, thepayment source level, or both. Entries at the payment source level take priority over entries at the organizationpayment level. For example, if you dene details at the payment source level, then to use those details whenprocessing payments, you must enter the payment source when submiing the payment process.

Payment SourcesIf you're using Oracle Fusion Global Payroll for payroll processing, you must dene at least one payment source foreach organization payment method. Oracle recommends one organization payment method, per payment type, percurrency. Each payment source must be associated with an active bank account in Oracle Fusion Cash Management.If you dene additional details at the payment source level, then to use those details when processing payments, youmust enter the payment source name when submiing the payment process.

You can use the same bank account in dierent payment sources in more than one organization payment method, as inthis example.

Payment Method Payment Source Bank Account

Check

Bank of America Account A

Bank A - Account 7890045

EFT

Bank of America Account B

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Note: If you're costing your payments, enter cost account information on the Manage Costing of PaymentSources page in the Accounting Distribution work area.

Payment Rules and Default Payment sourcesIf you dene multiple payment sources, you can use payment rules to determine the appropriate payment source basedon tax reporting unit (TRU).

This example shows one organization payment method with three dierent payment sources for dierent TRUs.

Payment Source Tax Reporting Unit Default Payment Source

Payroll EFT Source A Bank A - Account 7890045

None

Yes

Payroll EFT Source B Bank B - Account 1238900

TRU1

No

Payroll EFT Source C Bank C - Account 8765999

TRU2

No

The rst payment source that you add is the default payment source, but you can select another payment source as thedefault, or not have a default payment source.

To understand the eect of having a default payment source, consider these examples that describe what happenswhen a TRU changes, causing a payment rule to be invalid.

Approach Example

With a default payment source, thepayment process pays employeesusing the default payment source.

This approach might suit a company with multiple independent franchises, each with its ownTRU. If a franchise holder sells the franchise, payments don't fail.

Without a default payment source,the payments process issues errornotications to ensure that you usethe appropriate payment source tofund the payment.

This approach might suit a company with strict policies about payment rule compliance.

How Payment Methods and Payroll Denitions Work TogetherOrganization payment methods are selected when you create other objects, such as payroll denitions, third-partypayment methods, and personal payment methods. Understanding the functional relationship between organizationpayment methods and the objects that use them is important.



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Functional RelationshipsThis table helps you understand the functional relationship of payment methods with other objects.

Object Function

Personal Payment Method

Associates a person to a payment method, currency, and payment source.

Third-Party Payment Method

Associates third parties, who aren't on the payroll, to payment information, such as currencyand bank. Payments to third parties might be garnishments or other involuntary deductionsand are typically processed separately from the payroll.

Payroll Denition

Associates a default payment method for payments to employees when no personal paymentmethod is dened.

Note: You can't set EFT payment methods as default payment methods becauseeach payee must have a personal payment method with account information toknow where to deposit the money.

Run-Type Payment Method

Associates a default payment method for a run-type for payments to employees with nopersonal payment method dened. This overrides the payroll default payment method. For example, your regular payroll is by EFT but you issue check bonuses once a year. Using theSeparate Payment run type, the payment method overwrites the default payment method ofthe payroll.

Related Topics

• Payroll Denitions


International Transfer Payment TypeInternational Transfer payment type supports payment methods for electronic funds transfer (EFT) payments to acountry dierent from the originating payment source. Create EFT payment methods for employees to transfer fundsto foreign banks if an organization payment method with International Transfer payment type exists for your legislativedata group.

When you create the personal payment method for an employee, select the country where the international bankaccount resides.

In order for you to use this functionality, you must be able to support payments to international bank accounts.For example, the US supports a le format called IAT NACHA, which supports making payments from the US to'international' bank accounts.




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Conguring Payment Method Preferences: ProcedureYou can congure preferences related to payment methods using a user-dened table and fast formulas. After youcreate your formulas for the conguration that you require, aach formula names as values for the correspondingpreferences in the user-dened table.

1. Use the Manage Fast Formulas task to create the formula using the Payroll User Interface Congurationformula type.

2. On the Manage User-Dened Tables page, select the legislative data group that you to manage the user-dened table. Search for and select PAYROLL_USER_INTERFACE_CONFIGURATION.

Note: The formulas aached in the user-dened table are eective at the enterprise level.The legislative data group isn't signicant. However, to make any later edits to the table, youmust select the same legislative data group.

3. Click Edit, and click Next.4. On the User-Dened Table Values page, click Add and select the row for one of the values. Click OK.

Value Purpose

Default Organization PaymentMethod

Controls which payment methods can be created using the simplied user interface.

Execute Personal Payment MethodValidation

Enables validations for personal payment methods that meet the criteria set in the formula.For example, an employee can only create one personal payment method with the Pay Cardaccount type.

Maximum Number of PersonalPayment Methods

Limits the number of personal payment methods that employees can create.

Payment Types Available to Workers

Limits personal payment methods to be based only on organization payment methods ofthe specied payment types.

Prevent Edit Personal PaymentMethod

Prevents employees from modifying any personal payment method details that meet thecriteria set in the formula, such when the account type is equal to Pay Card.

Show Percentage or Amount

Sets a restriction to display only the Percentage amount type and eld on the ManagePersonal Payment Methods page.

5. In the Value eld, enter the name of your formula. You must enter the formula name exactly as you created iton the Manage Fast Formulas page.

Note: Each preference that you congure must have its own formula.



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Payment Method RulesThese scenarios illustrate how you might use payment method rules to handle payments to dierent parties and fromdierent payment sources. Set payment method rules on the Manage Organization Payment Methods page in thePayment Distribution work area.

Pay Workers and Third Parties Using the Same Payment SourceYour organization pays all workers and third-party payees from the same source bank account. In this scenario, nospecial payment method rules are required. Ensure that the payment source is set as the default and that you leave theThird-Party Payment, Tax Reporting Unit, and Payment Criteria elds blank.

Pay Workers and Third Parties in a Specied TRU Using a Separate Payment SourceYour enterprise is based in one tax reporting unit (TRU1), but you have some workers in another tax reporting unit(TRU2). To comply with TRU1 regulations for out-of-TRU payments, you specify a payment source for the TRU2. In thisscenario, your payment source for TRU1 is already set as the default payment source, so no change is needed for TRU1.For the TRU2 employees:

1. Add a payment method rule.2. Select the TRU2.3. Select the TRU2 payment source.

Pay Workers and Third Parties in the Same TRU Using Separate Payment SourcesYou currently pay everyone in your TRU using Payment Source A. Your company recently employed a privateconsultant, Jon Moore, from a third-party auditing company. A new company requirement states that payments mustcome from a new payment source, Payment Source B. For this scenario:

1. Create John as a third-party person payee.2. In your organization payment method, add the Payment Source B payment source and a new payment method

rule.3. In the payment method rule, select the Third-Party Payment check box, Jon's name as the third-party person

to pay, and Payment Source B.

Pay Workers in a Specied Department Using a Separate Payment SourceYou want to pay employees in the Sales and Development departments using dierent payment sources. For thisscenario:

1. Create a payment method rule for each department.2. Enter the department name in the Payment Criteria eld.3. Select the TRU and payment source.

This scenario has these prerequisites:

• An information element exists named Default Payer with an input value named Payment Criteria.

• A formula exists that retrieves department names and the assignment IDs of the employees associated withthem.

• The processing rules in the Default Payer element refer to the formula. The result rules target eld is set toPayment Criteria. The returned eld is set to the value specied in the formula.



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Set Up Payment Sources in Organization Payment MethodsYou set up payment sources when creating organization payment methods (OPM) for payroll processing. Use ManageOrganization Payment Methods task.

The InFusion company pays its workers by electronic funds transfer (EFT) payments. To comply with tax reporting unit(TRU) regulations for out-of-TRU payments, payment rules are created to pay from two dierent banks based on TRU.This table helps you understand the key decisions for this scenario.


How many OPMs do you need?

One method to pay by EFT in TRU1 currency.

How many payment sources do you need?

Three. One default payment source for the TRU1, one source forpayments in TRU2, and one source for payments in TRU3.

How many bank accounts do you need?

Three. One for each payment source.

What payment method rules do you need?

Rules for bank accounts used as payment sources based on eachTRU.

PrerequisitesVerify you have completed these before you continue:

1. Primary ledger is set up in Oracle Cloud General Ledger.2. Banks, branches, and account information to use as the payment sources are set up in Oracle Cloud Cash

Management.3. Legal entity associated with the legislative data group is assigned to a general ledger.4. TRUs are set up.

Create the Basic Details1. In the Payment Distribution work area, click Manage Organization Payment Methods.2. In the Search Results section, click Create.3. Select your legislative data group. This example is InFusion LDG.4. Select the date this payment method is to be available for use.

Tip: Select a date that's on or before the eective date this payment method will be used by thepayroll denition or other objects.

5. Click Continue.6. In the Basic Details section, complete the elds as shown in this table.

Field Value

NamePayroll Direct Deposit



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Field Value

Payment TypeDirect Deposit

Note: The available payment types for OPMs can vary by legislation.

CurrencyPayment currency

7. Click Save.

Adding EFT File InformationWhen you select the EFT payment type, you can enter EFT information at these levels:

Note: EFT le information entered at the payment source level takes priority over information entered at theorganization payment method level.

1. Payment source level2. Organization payment method level3. Both levels

Set Up Payment SourcesPerform these following steps three times to create each payment source.

1. In the Payment Sources section under Payment Source Information, click Create.2. On the Create Payment Source page, complete the elds in order, as shown in this table, and then click

Continue.

Field Source 1 Source 2 Source 3

NamePayroll EFT Source 1

Payroll EFT Source 2


Bank Account NameBank A

Bank B

Bank C

Bank Reference123456789

234567890

345678901

Company Reference456789012

567890123

678901234

Tip: Keep your payment source names unique and specic as possible for each scenario. Thisnaming convention helps you manage complicated combinations of OPMs and payment rules.

Create Payment Rules1. In the Payment Method Rules section, for Payroll EFT Source US, ensure that the default seing is Yes.2. In the same section, click Create and select the values shown in this table to create two payment rules that map

a payment source to a TRU.



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Field Source 2 Source 3

DefaultNo

No

Tax Reporting UnitTRU2

TRU3

Payment SourcePayroll EFT Source 2


3. Click Submit.

Derive Payment Sources by DepartmentUse payment criteria to set up your rules to derive payment sources within a single tax reporting unit (TRU). Theprepayments process identies the source bank information using the employee's TRU and any additional paymentcriteria you dene. This example uses department, but you can use other criteria, such as business unit.

The tasks to complete this setup are Manage Organization Payment Method, Manage Elements, and Manage FastFormulas. The key steps in this example are:

1. Dene the payment rules in the organization payment method.2. Create the formula to get department names from HR.3. Create the formula that calls the department names formula to get employee department by Assignment ID.4. Create the Default Payer information element.

In this example, the enterprise wants to pay employees in the Sales and Development departments from separatepayment sources. You create an element to pass the department name as a run result value.

Dening Payment Rules1. On the Manage Organization Payment Method page, in the Payment Sources section, create the payment

sources to use in the payment rules, if they don't already exist.2. In the Payment Method Rules section, add one payment rule for each department, as shown in this table.

Field Development Department Sales Department

Tax Reporting UnitTRU 1

TRU 1

Payment CriteriaDevelopment

Sales

Payment SourcePS A

PS B



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Creating the Department FormulaUse these steps to create the formula that retrieves the database items from HR for department names.

1. On the Manage Fast Formulas page, create the formula with values as shown in this table.

Field Value

Formula NameXX_ Employee_ Department

Formula TypePayroll Access to HR

DescriptionFormula to return the department of an employee


Note: Enter the same date used to create elements during implementation.

2. In the Formula Text section, enter this content:Default for PER_ASG_ORG_DEPARTMENT_NAME is ' 'l_dept_output = PER_ASG_ORG_DEPARTMENT_NAMEReturn l_dept_output

3. Click Submit.4. Click Compile.

Creating the Payment Criteria FormulaUse these steps to create the formula that retrieves the departments for employees to use as payment criteria values.

1. On the Manage Fast Formulas page, create the formula with values as shown in this table.

Field Value

Formula NameXX_ Default_ Payer_ Payment_ Criteria

Formula TypeOracle Payroll

DescriptionFormula to use the returned Department database item as Payment Criteria input for DefaultPayer element.


Note: Enter the same date used to create elements during implementation.



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2. In the Formula Text section, enter this content:Default for ASG_HR_ASG_ID is 0SET_INPUT('HR_ASSIGNMENT_ID', ASG_HR_ASG_ID)EXECUTE('XX_Employee_Department') /* Formula to retrieve the Employee Department. */Emp_Dept = GET_OUTPUT('l_dept_output','Null')Return Emp_Dept

3. Click Submit.4. Click Compile.

Creating the Default Payer ElementPerform these steps to create the Default Payer element with the Payment Criteria input value, and automatic elementeligibility.

1. On the Manage Elements page, create an element using the Information primary classication and the valuesshown in this table, and then submit your changes.

Field Value

NameDefault Payer The name must match exactly. This name is how the application identies any existingpayment criteria.

Reporting NameDefault Payer


Note: Enter the same date used to create other elements during implementation.


First Standard Earnings Date

What is the latest entry date forthis element?

Last Standard Process Date

2. Edit the new element to create an input value named Payment Criteria:a. In the Element Overview section, click Input Values, and then select Create Input Values from the

Actions menu.b. Enter values as shown in this table.

Field Value

Name Payment Criteria

Display Sequence 10



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Field Value

Unit of Measure Character

c. Click Save.3. Edit the new element to create element eligibility that is set to automatic entry:

a. In the Element Overview section, click Element Eligibility, and then select Create Element Eligibilityfrom the Actions menu.

b. In the Element Eligibility Name eld, enter Payment Criteria Element Eligibility.c. Select Automatic entry.d. Click Save.

4. Edit the new element to create processing rules:a. In the Element Overview section, click Status Processing Rules, and then select Create Status

Processing Rules from the Actions menu.b. In the Formula Name eld, select XX_Default_Payer_Payment_Criteria.c. In the Result Rules section, add a row using the values in this table.

Field Value

Result Returned

EMP_DEPT

Result Rule

Direct Result

Target Input Value

Payment Criteria

d. Click Submit.

Personal Payment Methods

Considerations When You Create AccountsBanks, branches and accounts t together on the premise of the Bank Account model. The Bank Account modelenables you to dene and keep track of all bank accounts in one place.

The Bank Account Model can explicitly grant account access to multiple business units, functions, and users. Considerthe following when you set up bank accounts:

• Assign a unique general ledger cash account to each account, and use it to record all cash transactions for theaccount. This facilitates book to bank reconciliation.

• Grant bank account security. Bank account security consists of bank account use security, bank account accesssecurity, and user and role security.



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Account UseAccount Use refers to accounts created for:

• Oracle Fusion Payables

• Oracle Fusion Receivables

• Oracle Fusion Payroll

Select the appropriate use or uses when creating an account in one or more of these applications.

Account AccessPayables and Receivables account access is secured by business unit. Before the bank account is ready for use byPayables or Receivables, you must:

1. Select the appropriate use for the application.2. Grant access to one or more business units.

Note: You can only assign access to the business units that use the same ledger as the bank accounts owningthe legal entity,

User and Role SecurityYou can further secure the bank account so that it can only be used by certain users and roles. The default value forsecure bank account by users and roles is No. For Payables and Receivables, you must have the proper business unitassigned to access a bank account even if the secure bank account by users and roles is No. If the secure bank accountby users and roles is set to Yes, you must be named or carry a role assigned to the bank account to use it.

• You must assign the security duty role Cash Management Administration to the Cash Manager job role toprovide access for seing up banks, branches, and accounts. You must have the assigned Manage BankAccount Security privilege to modify the User and Role Security.

• If you want to restrict the access to the Security tab, you must create a customized role and remove theprivilege Manage Bank Account Security. For example, you would copy the Cash Management Administrationduty role, rename it, and remove the privilege.

How Bank, Branch, and Account Components Work TogetherBanks, branches, and accounts t together on the premise of the Bank Account model.

The model enables you to dene and keep track of all bank accounts in one place and explicitly grant account access to:

• multiple business units

• functions

• users

This eliminates the redundant duplicate bank account setup in dierent business units when these business units sharethe same bank account.

BanksCreating a bank is the rst step in the bank account creation. You can:

• Search for existing banks to view and update



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• Create a new bank from an existing party

Consider the following:

• The option to create from an existing party is implicitly implemented by the matching option.

• The option is available only after the existing party has been found with the same bank.

• If you select the matching option, the page repopulates the information from the matched party.

BranchesOnce you have created your bank, the next step is creating a branch or branches associated to the bank. The matchingoption is also available when creating branches. To create a new branch without using the matching option, manuallyenter the required information. You can also dene other branch- related aributes in the same page.

If you don't use the matching option when an existing party is found, a branch with the same party name is created.

AccountsThe four areas associated with dening an account are:

• General information

• Control of the account

• Security and access to the account

• Business unit assignment

Once the bank and branch are created, proceed to the bank account setup by doing the following:

• Select the bank branch you want to associate to your bank account.

• Assign the owner of the bank account.

Note: To create a bank account for Payables or Receivables, add the Business Unit Access rst forthe business units to use the bank account.

Consider the following:

• The Oracle Fusion Account Payables or Receivables accounts are identied by the business unit.

• The Oracle Fusion Payroll accounts are identied by the legal entity.

• The program, Inactivates Banks and Bank Branches enables you to inactivate all banks and bank branches thathave no active internal and external bank accounts.

Related Topics

• Reconciliation Matching Rules

Enter Bank Information for Personal Payment MethodsYou can enter bank, branch, and bank account information centrally as part of implementation, or you can letemployees add their own bank information. You can share this information across multiple applications for dierentpurposes.

This table summarizes several approaches to create bank information for employees.

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Approach Purpose

Manage Banks page and ManageBank Branches page

View, create, or edit banks and branches centrally for outgoing payments or receivingpayments

Manage Personal Payment Methodspage

Create or edit employee bank account details to receive payments

Data Loader

Load personal payment methods and employee bank account details using an integrated Excelworkbook

Control Who Can Manage Banks and BranchesThis table shows the roles that are typically involved in managing bank information, what actions they can take bydefault, and which pages they use.

Role Can Create Banks andBranches?

Can Create Employee BankAccount Details?

Location

Cash Manager

Yes

No

Manage Banks page andManage Bank Branches page. Oerings: WorkforceDeployment Functional Area: Payroll

Payroll Administrator Payroll Interface Coordinator Payroll Manager

Depends on duty role orprole option

Yes

Manage Personal PaymentMethods page, PaymentDistribution work area

Employee

Depends on duty role orprole option

Yes

Manage Payment Methodspage, Portrait

You can use a prole option to control access to create bank and branch data. On the Manage Cash ManagementProle Options page, set the Use Existing Banks and Branches prole option to either Yes or No.

• If you set the option to Yes, you can load bank and branch data. Administrators and employees select bankdetails from a list of values on the Create Personal Payment Method page.

• If you set the option to No (default seing), you can't load any bank details. Administrators and employeesenter their bank and branch details as free text.

Related Topics

• Payroll User Interface Conguration Formula Type

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Account Number Masking in Payroll ReportsTo prevent display of sensitive bank account information, you can use the option of masking or encrypting bankaccount information in these reports:

• Payslips

• Payment Register

• Third-Party Payment Register

Masking involves displaying only a few specic characters of the account number or IBAN number, usually charactersat the start or end of the number. The remaining characters are obfuscated and you can't see them on the reports. Forexample, a customer may want to display only the last 4 characters of the account number. In such cases, an accountnumber ABC123456 displays as XXXXX3456 in reports and UIs that support masked account numbers.

Encryption requires a secure key for decoding the encrypted account number and IBAN number through an API. Theapplication displays the truncated account or IBAN number when the encryption is turned on and the full, clear numberwhen the encryption is turned o.

Seings that Aect Account Number MaskingThe application stores the bank account number and IBAN number information in the following tables:

• Original column that stores the visible unmasked portion of the numbers.

• Masked column that stores the masked numbers. When masking isn't enabled, these columns store the fullnumbers.

• Secured column that stores the encrypted numbers and requires a secure key to retrieve the data.

The following table shows how the bank account numbers are stored in the tables depending on how you conguremasking and encryption.

Actual AccountNumber

Conguration -Masking

Conguration -Encryption

Original Column Masked Column Secured Column

ABC123456

No

No

ABC123456

ABC123456

ABC123456

ABC123456

Yes

No

ABC123456

XXXXX3456

ABC123456

ABC123456

Yes

Yes

3456

XXXXX3456

ABC123456

Note: The above table assumes that the masking setup displays only the last four characters of the bankaccount number.

• The rst row in the table shows the default seings where both masking and encryption is turned o. Theoriginal full number is stored in all the three columns.

• The second row in the table depicts a scenario where masking is turned on but encryption is turned o. In thiscase the masked column displays only the last four characters of the account number.



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• The third row depicts a scenario where both masking and encryption is turned on. In this case the originalcolumn contains the truncated four-digit account number. You need the secure key to retrieve the full accountnumber from the secured column.

When you turn on encryption, the unsecured account number and IBAN columns only shows the visible charactersas dened by masking. This means that to turn on encryption, you must turn on masking. However, you can turn onmasking without turning on encryption.

How Account Number Masking WorksUse the new Extract Unmasked Bank Information (ORA_PAY_UNMASKED_ACCOUNT_INFO) process congurationparameter to display either the masked or full numbers in the reports. This new parameter ensures:

• Consistency across the three reports

• Control how you display the numbers on the reports

The following gure shows how account number masking happens for the three reports.

Tabl

e C

olum

nsXM

L Ta

gsR

TF F

ield

s

Account Number

Clear Account Number

Masked Account Number

ORA_PAY_DECRYPTED_ACCOUNT_INFO

= N or not set

<BANK_ACCOU

NT_NUM/>

ORA_PAY_DECRYPTED_ACCOUN

T_INFO = Y

ORA_PAY_UNMASKED_ACCOU

NT_INFO = Y

ORA_PAY_UNMASKED_ACCOUNT_IN

FO = N or not set

Backward Compatibility for existing customer reports

<MASKED_ACCOUNT_NU

M/>

Account Number Account

Number

Payslip, Payment Register, TPPR

The gure shows the following:

• The rst stream layer shows the table columns that store the account number information.

• The second stream layer shows the XML tags and process conguration groups.

• The third stream layer shows the RTF elds shown on the report template.

As explained in the previous section, the application stores the account number information in three separate columns.

The new ORA_PAY_UNMASKED_ACCOUNT_INFO process conguration parameter controls the MASKED_ACCOUNT_NUM tag todisplay:

• The masked account number when the process conguration parameter is by default or set to No, or

• The clear or full account number when the process conguration parameter is set to Yes.



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For example, if you mail a copy of the Third-Party Payment Register to the payee, you may want to mask the sensitivebank account information. If the same report is shared securely within the Payroll Department to verify the bankaccount details, you may run the report with the process conguration parameter set to Yes.

All the three reports use the MASKED_ACCOUNT_NUM XML eld to display the Account Number.

You can use the BANK_ACCOUNT_NUM eld if you use an older copy of the three reports. If you do so and youhave turned on encryption, you can use the ORA_PAY_DECRYPTED_ACCOUNT_INFO parameter to switch between a clear andtruncated number.

Related Topics• Options for System Security• Enable Encryption of Sensitive Payment Information

Third-Party Payment Methods

Create Third Parties OptionsYou create third parties to process payments to external organizations and people who aren't on the payroll. Use theManage Third Parties task in the Payment Distribution work area or the Batch Loader task in the Payroll Administration,Data Exchange, or Checklist work area to create third-party organizations for payments, such as pension providersor professional bodies, or third-party organizations, such as disability organizations. During the creation, third partypersons and organizations are also dened as trading community members in the Trading Community Architecture(TCA), allowing use in other products.

This shows you the steps to create third parties.

Select Party Type

Person Payee?

Enter Name, Address, Contact

Information

Select Organization

Party Usage Code

Yes

No

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Party Usage CodesCreating third parties on the Manage Third Parties page creates corresponding records for them as trading communitymembers. For third-party persons, the application automatically assigns a party usage code of External Payee. Forthird-party organizations, you assign a party usage code.

The following table describes the party usage codes for third-party organizations.

Party Usage Code Use For Examples

External Payee

Organizations that can be associated withemployee calculation cards or elemententries. Use this party usage code fororganizations when the others don't apply.

State Disbursement Unit for child supportpayments

Payment Issuing Authority

Organizations responsible for issuinginstructions for involuntary deductions,such as a tax levy or bankruptcy paymentorder. Payment issuing authorities don'treceive payments.

Court, agency, or government ocial

Pension Provider

Organizations that provide pensionadministration for employee pensiondeductions.

Stock broker, investment company,benet administrator, labor union

Professional Body

Organizations entrusted with maintainingoversight of the legitimate practice of aprofessional occupation.

The American Society for MechanicalEngineers in the US

Bargaining Association

Organizations that represent employeesin negotiations. Bargaining associationsassociated with trade unions may receivepayments for union fees deducted froman employee's pay.

The Air Line Pilots AssociationInternational (ALPA) in Canada and the US

Disability Organization

Organizations that are authorized tomake disability assessments. Disabilityorganizations don't receive payments.

The Royal National Institute of BlindPeople in the UK

Related Topics





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Examples of Third-Party PaymentsThese scenarios show you how to pay third-party people and organizations.

Child Support to a Former SpouseWhile this example illustrates payment directly to a third-party person, most child support payments are payable to athird-party organization such as a State Disbursement Unit.

John Smith is an employee at your organization. Mary Smith receives a child-support payment each payroll periodthat's deducted from John's salary. To set up payments for Mary:

1. Create Mary as a third-party person.2. Create Mary's third-party payment method and select the payroll relationship for John.3. Add the child support order to John's involuntary deduction calculation card and select Mary's name in the

Order Amount Payee eld.

Organization Processing Fee to a County Sheri's OceThe County Sheri's oce receives an organization fee on garnishment payments. When you create the third-partyorganization, you designate it as an External Payee before you create its third-party payment method. When you addthe garnishment order to the employee's involuntary deduction calculation card, you select the County Sheri in theOrganization Fee Payee eld.

Related Topics


Third-Party Rollup PaymentsA third-party payment is a payment you make to an organization. The organization could be a court, labor union, or apension provider, or persons not on the payroll.

A union can have several of its members belonging to the same employer. An employee can have multiple deductionsmade to the same third-party payee, such as multiple child support orders.

Rather than make individual payments, you can combine the individual employee deductions and pay the unionthrough a single payment instrument. Similarly, you can roll up the multiple employee deduction payments into a singlepayment.

Use the Run Third-Party Payments Rollup process to consolidate multiple payments made to a third party and generatea single payment. This process is optional. Additionally, you can generate the third-party payments register and providethe third-party payee employee and deduction details.

Before you run the Third-Party Payments Register process to view third-party payment details, complete the followingtasks:

1. Calculate and verify prepayments2. Run the Third-Party Payments Rollup process3. Generate the payments

Submit the Run Third-Party Payment Register task from the Payroll Checklist or Payment Distribution work areas.




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Exclude Third-Party Payment MethodsSome third parties may want an individual check per payment. For example, the UK requires that deduction fromearnings orders, such as child maintenance payments, be sent as separate transactions.

Select the Exclude from Third-Party Rollup Process check box on the Manage Third-Party Payment Methods page toexclude a third-party payee from the Third-Party Rollup process. Use the Manage Third-Party Payment Methods task inthe Payment Distribution work area to access this page.

Report Third-Party Rollup PaymentsHere's what you can view in the Third-Party Payments Register:

• Individual third-party payments and the corresponding employee deduction information

• Rollup payments and deduction information of employees who share the same rollup payments

• Consolidated total of each rollup payment

• Payments made to each individual payee

• Consolidated total of multiple deduction payments of each employee

• Component name and component reference of involuntary deductions stored on the calculation cards

• Element name of voluntary deductions

Related Topics

• Calculate Payroll Payment Distribution

Generate Employee and Third-Party Check PaymentsUse the Generate Payments for Employees and Third Parties task from the Payment Distribution work area to generatecheck payments. The process selects employees and third parties who:

• Are processed in the prepayments process for a given payroll

• Have a payment method of check

Before you generate the check payments, you must consider these:

• An employer can have multiple employee deductions made to the same third-party payee, such as multiplechild support orders. Rather than make individual payments for each individual employee deduction, use theThird-Party Payments Rollup process to combine individual employee deductions and make a single payment.

• Run this process to generate your checks for employees and then run the process again to generate checks foryour third parties. Use the Payee eld while running this process to select the appropriate payee.

• You may want to exclude specic third parties from the Third-Party Rollup process because they may want anindividual check per payment. Select the Exclude from Third-Party Rollup Process check box on the ManageThird-Party Payment Methods page to exclude a third-party payee from the Third-Party Rollup process.

• A third-party payee may want the payments on a date that's dierent from the employee payment date. Forexample, you may want to make employee payroll payments on the last day of the month, whereas, makethird-party payments 5 days later. Use the Manage Time Denitions task and create a time denition todene a time span of 5 days. Select this time denition in the Time Denition eld on the Manage Third-PartyPayment Methods UI. Enter the relevant process dates, and run the prepayments process, for example, with a

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process date of 30, June. This stamps the eective employee payments date as 30, June and the third-partypayments date as 05, July. The payments process runs twice:

◦ Once for the employees with a process end date of 30, June

◦ Once for the third parties with a process end date of 05 July and an overriding payment date of 05 July

• Dierent banks can have dierent check templates. To accommodate this requirement, you must rst create areport category for each separate bank and check template. Select the created report category for the requisitebank's payment source so that the process uses the correct check template to generate the check payments.Use the Manage Organization Payment Methods task in the Payment Distribution work area to dene thepayment source for third-party payments. Aach the correct report category for that payment source. Use theReport Category for Third-Party Payee or Report Category for Worker eld in the Payee Information section ofthe Create Payment Source page.

• You may want to create a report category for each separate bank and check template by dening reportcategories for each unique bank and check template combination. The report category for third-party payeeand report category for worker are associated to the payment source in the Organization Payment Methodspage.

Related Topics


How to Generate Employee and Third-Party Check PaymentsThe Generate Payments for Employees and Third Parties task selects employees and third parties who:

• Are processed in the prepayments process for a given payroll

• Have a payment method of check

Payroll Managers and Payroll Administrators can run this process from the Payment Distribution work area.

PrerequisitesThe prerequisite tasks for the Generate Payments for Employees and Third Parties task include:

• Create the third party and the third party payment method, and associate a deduction from the employee topay the third party.

• Add an organization payment method (OPM), including a payment source (the bank details should already beset up).

• Add a payroll denition, including a default payment method of Check, and all valid payment methods.

• Aach a payroll to the employee.

• Aach element entries to the employee.

• Calculate payroll.

• Run the Prepayments process to calculate the distribution of net pay.

• Run the Payroll Archive process to archive the earnings, deductions, tax calculation details, accruals, paymentmethods, and so on.




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Generating the Employee and Third-Party PaymentsRun this process to generate checks for your employees and then run the process again to generate checks for yourthird parties. To run the process:

1. Open the Payment Distribution work area, and click Submit a Process or Report from the Tasks pane.2. Select the required legislative data group.3. Select the Generate Payments for Employees and Third Parties task, and click Next.4. Enter a unique payroll ow name.

Note: Name the ow so you can easily identify the process later. This is helpful while searching, soyou can determine what you have already run or if you must roll back any process.

5. Specify the required payroll name.6. Select the payee type for which the check payment process is run. The available options are Employee or Third

Party. You can generate the check payments for either employees or third parties.7. Enter a Process Start Date to dene the date range of this process.8. Enter a Process End Date to dene the date range of this process.9. Select the required consolidation group to view the payments for all payrolls that are included in this

consolidation group. A consolidation group denes a grouping of dierent payrolls for reporting purposes. Thisisn't a mandatory eld. If you don't select a value, the process uses the default consolidation group assigned tothe payroll.

10. Select the OPM you want to use for this process. The value you select determines the payment source to makethe payments. There could be multiple payment sources in the OPM.

11. Select the payment source to process for the above payment method. This parameter is optional. If you havedened aributes, such as a payment le limit or report category, at the payment source level, you should enterthe payment source. When you enter the payment source, the dened aributes are applied.

Note: You can have dierent payment sources (bank accounts), with dierent banks, which havedierent check templates. You must then run the check process for each payment source andeach set of payees. Select the correct payment source so that the correct stationary is used for thepayments.

To accommodate this requirement, you must rst create a report category for each separate bank and checktemplate. Aach the created report category to the appropriate bank's payment source so that the correctcheck template is used to generate the check payments.

12. Optionally, specify an Overriding Payment Date on which a payment is due to be made to the payee.13. Specify the Start Check Number in the sequence of checks used for payroll processing.14. Specify the End Check Number in the sequence of checks used for payroll processing.15. Select a Process Conguration Group if available. Use a process conguration group to set rules for payroll

processes, such as passwords or number of threads. If you don't select a process conguration group, theprocess uses the parameters in the default group.

16. Click Next.17. Click Submit.

Related Topics

• Examples of Consolidation Group Usage

• Payroll Process Conguration Groups



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Diering Employee and Third-Party Payment Dates: ExplainedA third-party payee may want the payments on a date that's dierent from the employee payment date. For example,you may want to make employee payroll payments on the last day of the month, whereas third-party payments vedays later. Create a time denition to dene the time span and select this denition while dening the payment methodfor this payee.

Use the Manage Time Denitions task to create a time denition with the values as given in the following table.

Field Value

Name

Specify a name, for example, Third Party 5 Days

Short Name

Specify a Short Name, for example, TP5Days

Type

Time Span

Period Type

Daily

Period Unit

5

Adjustment Type

Days

Time Span Usages

Third Party Payments

When you create the third-party payment method, select this time denition in the Time Denition eld on the ManageThird-Party Payment Methods page.

The payments process runs twice, once for the employees and ve days later for the third-party payees.

Related Topics• Create Third-Party Payment Methods

Reprocessing Rejected EFT Payments

Reprocessing Rejected EFT PaymentsA bank can reject an Electronic Funds Transfer (EFT) payment because of:

• Incorrect bank account details

• Employee has closed their bank account without notifying the employer




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Here's what you can do to reissue a check:

• End date the employee's personal payment method

• Inactivate the employee's bank account. You must inactivate the invalid bank account so that it's not used forfuture payments.

• Void the payment and make an external payment against the rejected EFT payment.

Use the Process Bank Corrections File ow paern from the Payroll Checklist work area to reissue check paymentsagainst rejected EFT payments.

Before you run the ow, complete these tasks.

1. Transform the information returned by the bank into the requisite Object Group HCM Data Loader le format.2. Provide a unique name in the Object Group Name eld each time you create an HCM Data Loader le.3. Load the Object Group HCM Data Loader le into the Oracle Web Center Content server.

Here's the list of payroll tasks the Process Bank Corrections File ow paern includes:

Task Name Description

1. Upload Bank Corrections File

Stores the information entered in the Object Group HCM Data Loader le into the object grouptable. The bank information is stored in the object group table, under the 'Process InformationGroup' object group type in the payroll application.

2. Update Personal Payment Methods Determines through this built-in logic whether the personal payment method needs end

dating or updating. The logic is as follows:

• If there is a value in the Replacement Bank Number, the Replacement AccountNumber, or the Replacement Account Type eld, then the process updates thePersonal Payment Method.

• If any of the above mentioned elds is blank, then the process end dates the PersonalPayment Method.

This task uses the Payment Reference number to identify the Personal Payment Method linkedto the bank account identied as incorrect. It also inactivates the incorrect bank details to stopthem being used in future payments.

Note: The ow task doesn't create a new Personal Payment Method. Youmust create one manually.

3. Void Payments

Marks the original payments as void.

4. Make External Payments

Runs the external payment process to ensure that the payments voided in the previous taskare paid externally.

5. Generate Check Payments

Runs the HCM Extract Report to retrieve the check number and other information from theexternal payment record to produce the report output. The delivered HCM Extract Report has abuilt-in logic to generate the check number, if not available.



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Steps 3-5 run only if you have to reissue an external check for a rejected EFT payment.

Note: You can use the delivered default check template or congure the template to include additionalaributes such as a company logo.

Since a payslip is already issued, this ow doesn't generate the payslip.

Object Group HCM Data Loader Files for Bank ReprocessingBefore you run the Process Bank Corrections File ow, use the HCM Data Loader to load the information returned bythe bank. The bank returns a le containing details of the payments that are rejected. Before you load the information,transform this information returned by the bank into the HCM Data Loader .dat le formats required by the ObjectGroup HCM Data Loader.

Provide a unique name in the Object Group Name eld each time you create an HCM Data Loader .dat le. You mustthen load the Object Group HCM Data Loader le into the Oracle Web Center Content server.

The bank information is stored in the Object Group table, under the Process Information Group Object Group Type. Usethe Object Group UI and the name given in the Object Group HCM Data Loader le to view the information loaded bythe ObjectGroup.dat and ObjectGroupStore.dat les, as part of the Process Bank Corrections Flow.

When you load the ObjectGroupStore.dat le into the Oracle Web Center Content server, a UCM ID is generated. TheProcess Bank Corrections File ow uses the UCM ID to retrieve and use the bank information necessary for the ow.

Load Process Information Group Object GroupCreate and use the following HCM Data Loader .dat les to process the bank information by the HCM Data Loader.

• ObjectGroup.dat le to create the object group

• ObjectGroupStore.dat le to load the bank information returned by the bank

ObjectGroup.dat File FormatThis table lists the aributes for loading the ObjectGroup.dat le.

HCM Data Loader Aribute Required User Interface Prompt Description

ObjectGroupName

Yes

Name

The name of the object.

ObjectGroupCode

Yes

Doesn't appear on the UI.

The code of the object group.

LegislativeDataGroup

Yes


THE NAME OF THELEGISLATIVE DATA GROUP.

ObjectGroupTypeCode

Yes

The meaning of the code isdisplayed in the Type eld.

The code of the object grouptype. The supported value forthe process information grouptype is PROCINFO.



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StartDate

Yes

Start Date

The start date of the objectgroup.

EndDate

Yes

End Date

The end date of the objectgroup.

ObjectGroupStore.dat File FormatThis table lists the aributes for loading the ObjectGroupStore.dat le.


ObjectGroupCode

Doesn't appear on the UI.

The code of the object group.

LegislativeDataGroup


THE NAME OF THELEGISLATIVE DATA GROUP.

SequenceNumber

Yes

Sequence

A unique identier for a row ofdata in the object group storele.

assignmentNumber

Assignment Number

The assignment number ofthe employee whose paymentis rejected, or whose bankinformation needs updating.

paymentDate

Payment Date

The original payment date ofthe rejected payment.

processDate

Process Date

This date overrides theprocess date entered in theow. The date entered here, isstamped against each processin the ow. It's the date thepersonal payment method isend dated and the paymentis voided. Enter a value if youwant one particular paymentto have a dierent paymentdate to that of the paymentdate entered in the ow.

paymentReference

Yes

Payment Reference

A unique identier for aspecic payment line on theoriginal NACHA le that wassent to the bank.



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Amount

Amount

The original amount of therejected payment.

checkNumber

Check Number

The check number used in theExternal manual payment taskand printed on the manualexternal payment checktemplate.

replacementBranchNumber

Replacement Branch Number

Enter a value if the branchnumber (routing transitnumber) needs updating.If a value is entered in thiscolumn, it tells the processthat the bank accountassociated to the personalpayment method (PPM) usedfor payment needs updating.

replacementAccountType

Replacement Account Type

Enter a value if the employee'saccount type needs updating.If a value is entered in thiscolumn, it tells the processthat the bank accountassociated to the PPM usedfor payment needs updating.

replacementAccountNumber

Replacement Account Number

Enter a value if the employee'saccount number needsupdating. If data is enteredin this column, it tells theprocess that the bank accountassociated to the PPM usedfor payment needs updating.

makeExternalPayment

Make External Payment

Enter 'Yes' if you want to voidthe original payment andmake a manual external checkpayment. Valid values for thisaribute are 'Yes' or 'No'.

Returnreasoncode

Return Reason Code

The reason for rejecting anEFT payment. The enteredvalue is stamped on theexternal manual pay record.

Employeename

Employee Name

Name of the employee whosepayment is rejected, or whosebank information needsupdating.



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The Update Personal Payment Methods task within the ow determines, through built in logic, whether the personalpayment method needs end dating or updating. The logic is as follows:

• If there's a value in the 'Replacement Branch Number' eld, the 'Replacement Account Number' eld or the'Replacement Account Type' eld, then the process updates the Personal Payment Method.

• If any of the above mentioned eld is null then the process end dates the Personal Payment Method.

You can delete information loaded to the process information group object group type using the HCM Data Loader. Youmust take care when deleting the records, because you can't recover the deleted records.

For more information on creating the HCM Data Loader .dat les and using the HCM Data Loader to upload data, referto the HCM Data Loader User's Guide on My Oracle Support.

Conguring Payslips and Checks

How to Add Text to Payslips and ChecksCongure your checks and payslips to display additional text. Depending on your implementation, in addition to thesesteps, you may also need a new formula.

Setup steps:

1. Create the information element, its element eligibility, and the input values you want displayed.2. If you need a formula to calculate the run results, perform the following steps:

a. On the Manage Fast Formulas page, create a formula of type Oracle Payroll to return the values that youwant to add.

b. On the Manage Elements page, edit the information element to:

• Create a status processing rule associated with your new formula.• Add formula result rules to return formula results to the element's input values.

3. On the Manage Enterprise HCM Information page, in the Organization Information EFF section, add theinformation element and input values.

Note: The Organization Information EFF conguration is at the enterprise level. Foreach LDG you want to archive payroll information, you must add a separate row for theinformation element.

4. Create employee element entries, unless you selected the Automatic Entry option for the element.5. After calculating the payroll and prepayments, run the Archive Periodic Payroll Results process.6. Modify the check template or payslip template, as appropriate. Refer to the Report Designer's Guide for Oracle

Business Intelligence Publisher for more information.

Examples of Input Values for Payslip and Check TextCreate element input values to store your information, such as congratulatory messages and detailed earningsinformation, that you want displayed on checks or payslips. These scenarios show you how to archive payrollinformation for this purpose.



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Display Earnings by Earned Weekly PeriodYou want to display earnings details on payslips, such as overtime pay per week within a semimonthly pay period.In this example, before modifying your payslip template, you create an element using the Information elementclassication. You create these input values in your element and add them to the payroll information to archive:

• Description

• Start Date

• End Date

• Hours

• Rate

• Multiple

• Amount

Display a Message on a CheckYou want to display a message on a check, such as a birthday or a congratulations message. In this example, beforemodifying your check template, you could create an element using the Information element classication with thefollowing input values:

• Message Title

• Message Description

Multilanguage Support for PayslipsThe Generate Payslips process is run once each payroll period and it generates the payslip XMLs based on the payrollarchive and prepayments data. The application creates the payslip PDFs and stores them in the Document of Recordsfor future reference and retrieval.

Print Payslip PDFsSome workers may opt for a printed payslip and you must provide individual PDF payslips to them.

The application supports producing all printed payslips in a single le for ease of printing. However, for the paysliplabels to be translated, each payslip must have its own individual PDF output le. To enable single PDFs, add theBursting conguration onto the Print Delivery option within the Payslip extract denition.

For more details on how to add the Bursting option, refer to Adding Bursting to Print Delivery Option: Procedure on theHelp Center.

Translate the PayslipYou can now generate individual payslips in the worker's correspondence language of choice. Run the GeneratePayslips process just once and generate the payslips for the various workers in a language of their choice depending onwhat's set as the worker's correspondence language.

The process translates:

• The metadata, the layout labels, and the static text on the payslip template.

• The underlying data that comes from the transactional and setup tables, and the data that the Payroll Archiveprocess archives for the payslip.



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Set the process conguration parameter, Enable Payslip Translation, to Y, before running the Payroll Archive process.You must set this only once. If you have run the Payroll Archive before seing this parameter, you must roll back theprocess, set the Enable Payslip Translation parameter to Y, and rerun the Payroll Archive process.

Install the Correspondence LanguageAlthough the worker's correspondence language may be set to one of several languages, only those languages that areinstalled are supported for translation. To determine the number of languages you must install, consider how diversethe worker population is in terms of their preferred correspondence language.

If the correspondence language isn't one of the installed languages, the Payslip is produced in the base language.

To enable translation of the payslip labels, set the Locale property of both Document of Records and Print Deliveryoptions within the Payslip Extract Denition to Correspondence Language. If you don't want the payslip labels to betranslated, leave the Locale property blank or set it to the base language, for example, en-us, for US English.

For the payslip data that's not delivered by Oracle, the translated values of the data must be available in the application.Enter translated values for the base language and each of the installed languages that needs payslip translationsupport. For example, if you have created additional element names and its associated balances, you must also entertheir translated values in the application. Otherwise, the translated values aren't reected in the payslip PDFs.

Related Topics• Overview of Translating Modied Text

Add Bursting to Print Delivery OptionWhen you enable payslip translation, both the transactional data and the labels on the payslip are translated. As onlyone language can be applied to all the labels on a payslip, payslips for dierent languages must be in their own PDF.Add the Bursting conguration on the Print Delivery option within the Payslip Extract Denition so that payslips fordierent languages are in their own PDF.

How to Add the Bursting CongurationComplete the following steps to add Bursting to the Print Delivery option for the payslip:

1. Select the Manage Extract Denitions task in the Data Exchange work area..2. In the Search window, enter Payslip in the Name eld.3. Select Archive Retrieval in the Type eld.4. Select a legislative data group and click Search.5. Click Payslip in the Search Results region.6. Click the Deliver tab in the Manage HCM Extract Denitions: Payslip page.7. Select the Printed Payslip Delivery Option Name row in the Extract Delivery Options section.8. Complete the following in the Additional Details section.

a. Select Default in the Value column of Bursting.b. Remove content in the Value column of Locale.c. Select Search in the Aribute column of Locale.d. In the Search and Select: Aribute window, enter these details.

Field Value

Parent Data Group Global Archive Payroll Calculation Breakdown

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Field Value

Aribute

Correspondence Language

Record

Global Calculation Breakdown ID Information

9. Click Search, and then OK.10. Click Save and then Submit.

Related Topics

• Overview of Translating Modied Text

Rate Precision in PayslipsUse the Payslip Rate Precision process conguration parameter to set a xed, positive integer value as the precisionvalue for rates displayed on the payslip. The default value is two decimal places. Set this parameter before you run thePeriodic Payroll Archive process.

A xed rate precision value ensures ease of implementation, user control, and consistency across dierent rates andelement entries. Seing the rate precision value doesn't impact the calculation of payroll or the accuracy or precision ofpayments. You are only dening the number of decimal places for the rates shown on the payslip.

The precision value you set for the number of decimal places for the rates displayed on the payslip, is dependent onthese two factors:

• Currency: Some currencies require a rate precision value higher than the default value of two.

• Multiplying factor for the rate: The precision value you set for the element rates displayed on the payslip isdependent on how high you expect the quantity to be. For example, if you expect the quantity, say hours to behigh, set a precision value higher than the default value of two.

Here are some factors you must consider while seing the precision value.

• The precision value you set on the Archive process applies for the calculation results and appears by default onall reports that use the archived data. However, you can congure your report template to display a value that'slower than the value on the Archive process.

• Any precision value you set on the report template overrides the value you set on the Archive process. For ratesneeding a lower precision value, you must dene it in the report template. You can't set a value that's higherthan that on the Archive process.

For example, suppose you want your hourly employees to see four decimal places for rates and the salaried employeesto see only two decimal places on their payslips. Set the Payslip Rate Precision process conguration parameter tofour decimal places. Then, modify the report template to display the rates with two decimal places only for salariedemployees.

Related Topics

• Report Days and Units in Payroll Reports

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Payslip Reprinting ReportUse the Payslip Reprinting Report to generate a report to include payslips for an employee or a specic group ofemployees spanning across multiple pay periods.

For example, generate the report for:

• Employees who generally view their payslips online and are on long-term leave of absence, for instance onmaternity leave, and hence can’t view their payslips online.

• Employees who are terminated and can no longer view their payslips online and are paid severance paymentsafter they have left the organization.

• Your legal department, who has requested for an employee’s payslips for a specic nancial year.

You can run this report for:

• Multiple employees

• Multiple pay periods

• Any date range

• Any number of times

To run this report, use the Payslip Reprinting Report task from the Payroll Calculation or Checklist work area.

Before You Begin

Run this report after successful completion of the Generate Payslips process. The report retrieves the payslips that arealready generated by the Generate Payslips task and stored in the Document of Records. Run the Generate Payslips taskfor the pay periods, employees, and date range for which you want to run this report.

Report ParametersThe report parameter values determine which records to include in the report. Most parameters are self-explanatory,while the following have special meaning in the context of this report.

Process Start Date

The report excludes pay slips with a payment date that’s earlier than the date specied.

Process End Date

The report excludes pay slips with a payment date that’s later than the date specied.

Payroll

The name of the payroll you use to run this report.

Consolidation Group

Use this eld to run the report for a consolidation group. For example, you can use this eld to run this report for asubset of payrolls. You can select a value only if you have a predened consolidation group.

Location



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Use this eld to print the payslips for employees who have at least one assignment for the selected location.


Use this eld to run the report for persons belonging to a specic payroll relationship group. You can specify a valueonly if you have a predened payroll relationship group.

Person

Use this eld to print the payslips for a specic employee.


Use this eld to run the report for a specic process conguration group, instead of the default one. A processconguration group is used to set rules for payroll processes, such as passwords or number of threads. You can select avalue only if you have a predened process conguration group.

Note: Use the Manage Object Groups task to dene any of the groups mentioned, before you can use ithere.

Delivery Preference

Use this eld to select any of the following options:

• Online

• Paper

• Both online and paper

You can also run this report for a specic payroll statutory unit or tax reporting unit.

Report ResultsThe report provides a single output le and also includes employees who haven’t opted for a printed payslip.

FAQ for Payment Methods

How can I display employee work location and department ontheir payslip or check?Dene a check or payslip template to include the archived payroll information, including the employee's work locationand department details. Use this template in the BI Publisher Report and add the report to the Generate CheckPayments or Generate Payslips ow. When you submit the ow, the ow output is automatically generated based on thetemplate included in the BI Publisher Report.

Related Topics

• Add a BI Publisher Report to a Flow

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Chapter 13Seing Up Payroll Process Conguration

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13 Seing Up Payroll Process Conguration

Payroll Process Conguration GroupsPayroll process conguration groups provide sets of processing parameters, primarily related to logging andperformance. Select a process conguration group when you run a process, such as a new-hire ow or termination ow,or an extract process or report.

If you don't select a process conguration group, the application uses the parameters in the default group. You mustspecify the default group in the Process Conguration Group ACTION_PARAMETER_GROUPS prole option.

Here's the list of tasks you can use to set up prole options and default process conguration groups.

Action Task and Page

Edit predened process congurationgroups

Default Group tab of the Manage Payroll Process Conguration page

Create additional processconguration groups

Group Overrides tab on the Manage Process Conguration Group page

Select a process conguration groupas the default at the site or user level

Manage Administrator Prole Values task

To open this page, use the Manage Payroll Process Conguration task from Quick Actions on the Home page.

Create a group with the logging parameters turned on to troubleshoot processes. You can also specify dierentperformance parameter values, such as chunk size and buer size, for running dierent processes.

Parameters

Payroll Process Conguration ParametersPayroll processing parameters are system-level parameters that control aspects of payroll-related processes, such asows and reports. Values for each parameter are predened with the application, but you can override these valuesas part of your initial implementation and for performance tuning. Use the Manage Payroll Process Conguration taskfrom the Quick Actions menu.

Processing ParametersThe eects of seing values for specic parameters may be system-wide. When you submit a process that uses ows,such as a batch upload, new hire, or report process, it reads values from the PAY_ACTION_PARAMETERS table.



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Note: You should understand the concept of array processing and how this aects performance beforeseing some parameters.

The application doesn’t allow a blank value for any parameter and you must delete the parameter row if the parameterisn’t required.

The following table describes processing parameters and lists values and predened default values. These parametersapply to HR applications including payroll and payroll interface.

Parameter Description Values

Assignment ID to End Logging

Assignment ID upon which logging ends.

Default: All assignments

Assignment ID to Start Logging

Assignment ID upon which logging starts.

Default: All assignments

Balance Buer Size

Buer size for array inserts and updatesof latest balances, based on one row perbalance.

Note: If your trace les showdierences between execute andretrieve timings, look at the buersizes you're using. Try seing eachof these to 100.

Maximum: 1000 Minimum: 1 Default: 500

Batch Error Mode

Determines error notications for payrollbatch loader uploads.

ALL = all rows ANY = any rows NONE = no errors Default: ANY

Chunk Size

Number of payroll relationship actionsthat process together. See also the ParallelProcessing Parameters topic.


Disable Locking Code in Check ProcessPost-Populate Method

Disables the locking code added to thepost-populate method to improve checkprocess performance. This parameter isn't available by default.To add the parameter, search for thelookup type PAY_ ACTION_ PARAMETER_TYPE on the Manage Common Lookupspage and add the lookup code ORA_DISABLE_ POST_POP_FIX.

Yes, No Default: No Don't change this value unless advised byOracle Support.

Element Entry Buer Size

Buer size that payroll runs use in theinitial array selects of element entries,

Maximum: 1000



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element entry values, run results, and runresult values per assignment.

Minimum: 1 Default: 500

Formula Execution Logging

Sets the logging level to investigateformula code problems. See also theLogging Processing Parameters topic.

Delete the parameter row if the parameterisn’t required.

Historic Payment

Removes the validation to look forbanks active as of the process date. Thisvalidation is usually enforced by thepayments process. This parameter isn't available by default.You can add it in test environmentsonly. To add the parameter, searchfor the lookup type PAY_ ACTION_PARAMETER_TYPE on the ManageCommon Lookups page and add thelookup code HISTORIC_ PAYMENT.

Yes, No Default: No

Logging Area

Area where code logging is performed.See also the Logging ProcessingParameters topic.

The values correspond to C-code entriesin the form PY_ENTRY, that includes thefunctional area that has logging enabled.

Logging Category

Helps investigate problems with largevolumes of detailed data. See also theLogging Processing Parameters topic.

You can set any number of categoriesby specifying multiple values. Forexample, enter GMPE, for generallogging information, routing information,performance information, and elemententry information. Refer to the Logging ProcessingParameters topic in the Related Linkssection for applicable values. Delete the parameter row if the parameterisn’t required.

Manual Task Processing

Enables processing of manual tasks whenSOA server is unavailable.

Y, N Default: Y

Maximum Errors Allowed

Number of payroll relationship actionsthat you can roll back, when rolling back aprocess.

Minimum: 0 Default: CHUNK_SIZE or 20

Maximum File Size for View Report Output

Maximum size in bytes of the report le toshow in the output window. This parameter isn't available by default.To add the parameter, search for thelookup type PAY_ ACTION_ PARAMETER_TYPE on the Manage Common Lookups

Must be a positive number. Default: 10000000



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page and add the lookup code BI_OUTPUT_SIZE.

Maximum Iterations Allowed per RunAction

Maximum number of iterations allowedper run action within net-to-grosscalculations within the payroll run.


Maximum Number of Payroll RelationshipActions to Roll Back

Number of payroll relationship actionsthat you can roll back, when rolling back aprocess.


Multithreaded XML Generation forExtracts

Generates XML for extracts using multiplethreads.

Y, N Default: N

New Hire Flow Paern

Name of the customer-dened ow that’striggered as part of the new hire process.

Delete the parameter row if the parameterisn’t required.

Notications Expiration Oset

Number of days before a payroll ownotication is automatically deleted.


Payroll Batch Loader Encryption Type

The type of encryption applied to sourceles loaded using the payroll batch loader.

PGPSIGNED, PGPUNSIGNED,PGPX509SIGNED, PGPX509UNSIGNED Delete the parameter row if the parameterisn’t required.

Payroll Criteria for Element Eligibility

Enables eligibility by payroll forassignment-level elements.

Yes, No Default: No

Process Timeout

Number of minutes before the RunBalance Generation process times out.

Minimum: 0 Default: No timeouts limit enforced. Deletethe parameter if no value is specied.

Remove Report Assignment Actions

Removes report processing actions aftergenerating reports.

Yes, No Default: Yes

Run Result Buer Size

Buer size for array inserts and updates,based on 1 row for each payroll run result.


Shue Chunk Processing

Random processing of order chunks forassignment actions.

Yes, No



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Default: No

Suppress Empty XML Tags in ExtractReports

Reduces the size of extract output forreports by excluding tags with blankvalues in XML output les.

Y, N Default: Y

Termination Flow Paern

Name of the customer-dened owthat’s triggered as part of the terminationprocess.

Delete the parameter row if the parameterisn’t required (No predened Terminationow paern).

Threads

Total number of subprocesses thatyou can run from the Oracle EnterpriseScheduler Service. See also the ParallelProcessing Parameters topic.


Trace

Enables the database trace facility forapplication processes wrien in C only.

Yes, No Default: No

Trace Level

Sets the trace level of the trace event. Togenerate the nest level of detail, enterthe highest value.

1, 4, 8, 12 Default: None

User Messaging

Enables detailed logging of user-readableinformation to the PAY_ MESSAGE_LINEStable.

Yes, No Default: No

XML_ DATA_SOURCE

For document records delivery optionsperformance purposes, determines if XMLis derived from the database.

Y, N Default: Y

Payroll-Specic Processing ParametersThe following table lists the processing parameters that are applicable only for Oracle Fusion Global Payroll.


Accounting Date for Transfer to GeneralLedger

The date to transfer and post journalentries for costing results to Oracle FusionGeneral Ledger.

E = Date Earned P = Process Date EVE = For the Partial Period AccrualReversal process, date earned is used. Ifthe date earned isn't dened for the timeperiods on the Payroll Denition page, thepayroll period end date is used.



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For the payroll run that includes the actualcosts, the process date of the payroll run isused. Default: P

Cost Buer Size

Buer size for array insert and selectstatements when calculating the costingof the payroll run results.


Date to Retrieve Assignment Status

Date earned or date paid, used todetermine the eective date for checkingassignment status in payroll calculations.

E = Date earned P = Date paid Default: P

Earliest Retroactive Processing Date

The earliest date that retroactiveprocesses are calculated. Updates madebefore this date aren’t recalculated.

Date value in YYYY/MM/DD format

Extract Data Group for Payroll Register

Limits the records to include in the outputle based on the specied data groupname.

Default: No data group

Limit Payroll Register Output by DataGroup

Enables processing a subset of recordsto include in the output le when anextract data group parameter value is alsospecied.

Y, N Default: N

Override Location for Tax Libraries

Directory location for Quantum taxlibraries.

There are no set values. Values must bedirectory structures where the tax librariesare stored. Delete the parameter row if the parameterisn’t required. Default: $VERTEX_ TOP/lib

Reversal and Balance AdjustmentAccounting Date

Accounting date based on one of thefollowing dates:

• The process date of reversal orbalance adjustment

• The process end date of theTransfer to Subledger Accountingtask. You can use this task totransfer journal entries for costingresults to Oracle Fusion GeneralLedger.

T = Transfer using end date of theTransfer to Subledger Accounting task asthe accounting date P = Use process date of the reversal orbalance adjustment as the accountingdate Default: P



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Wage Basis Rules Buer Size

Used in array selects from the PAY_TAXABILITY_ RULES table within thePayroll Calculation process.


Logging Processing ParametersUse logging parameters to investigate problems that aren't easily identied in other ways. In a normal operation, disablelogging because it can impact the performance of the process you're logging.

Note: Prepare log les before contacting Oracle Support for assistance. Dene the logging area, category, andrange of assignments before resubmiing the problem.

Logging ParametersTypically, you use this feature during your initial implementation and testing before you go live. In a normal operationyou should disable detailed logging.

The three processing parameters for logging are:

• Logging Area

• Logging Category

• Formula Execution Logging

Logging Area

The Logging Area parameter works with the Logging Category parameter to limit the code area for logging. Even if youset the logging category, you must also set the logging area if you want to limit logging to a particular code area.

The values correspond to C-code entries in the form PY_ENTRY, which includes the functional area that will havelogging enabled.

Logging Category

Logging categories dene the type of information included in the log. You can set any number of categories byspecifying multiple values to focus on specic areas that you think may be causing a problem. The application doesn’tallow a blank value and you must delete the parameter row if logging isn’t required.

This table explains each logging category. It provides the log output information to investigate the problemsencountered.

Parameter Value Logging Category Description

B

Balance Information

Provides output information that showsthe creation and maintenance of balancesused during payroll processing.

C

C cache structures information

Provides output information that showsdetails of the payroll cache structures



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and changes to the entries within thestructure. While working on a servicerequest, Oracle may ask you to usethis parameter to gather additionalinformation.

E

Element entry information

Provides output information that showsthe state of the element entries in theprocess memory after retrieving entriesfrom the database. The information isprovided whenever data for an entry ischanged during processing.

F

Formula information

Provides output information that showsdetails of formula execution, includingformula contexts, inputs, and outputs.

G

General logging information

Provides general information, ratherthan a specic information type. Thisparameter doesn't provide sorted output.In general, it's recommended that youchoose parameters that provide specictypes of information.

I

Balance output information

Provides output information that showsdetails of values wrien to the databasefrom the balance buers.

L

Balance fetching information

Provides output information that showsthe balances retrieved from the databaseand whether or not the process will usethose balances. (If balances such as YearTo Date totals have expired because theyear has changed, the process resets themand uses the new balance.)

M

Entry or exit routing information

Provides output information to showwhen any function is entered and exited. This information is indented to showthe call level, and can be used to tracethe path taken through the code at thefunction call level. Often, this informationis useful when aempting to track down aproblem such as a core dump.

P

Performance information

Provides output information to show thenumber of times certain operations takeplace at the assignment and run levelsand why the operation took place. Thisparameter is often used to balance thebuer array write operation.



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Q

C cache query information

Provides output information that showsthe queries being performed on thepayroll cache structures. While workingon a service request, Oracle may ask youto use this parameter to gather additionalinformation.

R

Run results information

Provides output details of run results andrun result values from the Run Resultsbuer or the Values buer before writingthem to the database. This enablesverication that the buer contents werecorrect.

S

C cache ending status information

Provides output information that showsthe state of the payroll cache before theprocess exits, whether that process endswith success or an error. While workingon a service request, Oracle may ask youto use this parameter to gather additionalinformation.

T and Z

PL/SQL detail and PL/SQL output

To obtain detailed information aboutthe PL/SQL calls made by the Payrollapplication, use the combination of the Tparameter and the Z parameter. This combination is typically useful forobtaining information about payrollprocesses that use a large amount ofPL/SQL code, such as prepayments andarchive. Using this parameter, the process buersoutput while it's running and places itthe end of the log le after processing iscomplete. Each payroll process instancehas its own log le, located under the logsubdirectory for the particular process ID.

V (USA and Canada only)

Vertex tax calculation information

Provides output information that showsthe values passed in and out of a third-party Vertex tax engine. This parameteralso provides a separate le in the Outdirectory that shows the internal seingsof the Vertex engine. This logging optionis available to customers in the USA andCanada only.

Formula Execution Logging

Formula execution logging is the code area where logging is performed. This processing parameter mechanism is onlyavailable for formula logging in the payroll run. Specify parameter values as a character or combination of characters



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to determine the area for logging. For example, the string di (the combination of d and i) corresponds to the logging ofdatabase item cache access and formula input and output values. The default value is no logging.

Caution: Use the dump logging options in rare circumstances only. The T trace option, which generatesvery large amounts of data, would signicantly slow down processing.

The following table lists formula execution logging parameter values and its details.

Parameter Value Meaning

c

Change contexts

d

Database item cache access

D

Database item cache dump

f

Formula cache access

F

Formula cache dump

I

Formula input/output values

m

Miscellaneous

n

Nested calls

s

SQL execution (database item and PL/SQL formula function calls)

T

Trace (very large level that provides the inputs and outputs of every call made when executinga formula)

w

Working storage area access

W

Working storage area dump

1

Level 1 (combination of c. f, i, and m)

2

Level 2 (combination of 1, c, d, n, and w)

3

Level 3 (combination of 2, D, s, and W)

4 Level 4 (combination of 3 and F)



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Parameter Value Meaning

5

Level 5 (combination of 4 and T)

Parallel Processing ParametersPayroll processes are designed to take advantage of multiprocessor computers. You can improve performance of yourbatch processes, such as Calculate Payroll or Calculate Gross Earnings, by spliing the processing into a number ofthreads, or subprocesses, which run in parallel.

To improve performance you can also set the number of payroll relationship actions that process together and the sizeof each commit unit for the batch process.

Here’s a list of parameters that you can use for parallel processing.

Parallel Processing ParametersThreads

When you submit a batch process, the Threads parameter determines the total number of subprocesses that runconcurrently. The number of subprocesses equals the Threads value minus 1.

Set this parameter to the value that provides optimal performance on your computer:

• The default value of 1 is set for a single-processor computer.

• Benchmark tests on multiprocessor computers show that the optimal value is approximately 2 processes perprocessor.

For example, if the server has six processors, set the initial value to 12 and test the impact on performance ofvariations on this value.

Chunk Size

The Chunk Size parameter:

• Indicates the size of each commit unit for the batch process.

• Determines the number of assignment actions that are inserted during the initial phase of processing.

• Sets the number of assignment actions that are processed at one time during the main processing phase.

This parameter doesn't apply to all processes, such as Generate Check Payments and Retroactive Pay.

To set the value of the Chunk Size parameter, consider the following points:

• Parameter values range from 1 to 16,000.

• The default value is 20, which was set as a result of benchmark tests.

• Each thread processes one chunk at a time.

• Large chunk size values aren't desirable.



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FAQ for Payroll Process Conguration

How can I improve performance and troubleshoot ows?Add parameters to a payroll process conguration group to optimize performance and troubleshoot your payrollprocesses. To process large volumes of records, use the Threads and Chunk Size parameters. To troubleshootprocesses, add the Logging Category or Formula Execution Logging parameters to a conguration group and rerun theprocess using that conguration group. Using these parameters enables you to investigate formula code problems.


Chapter 14Seing Up Auditing and Data Validation

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14 Seing Up Auditing and Data Validation

Auditing Business Objects

Audit Payroll Business ObjectsSet up auditing policies to maintain a history of changes to your important data: what changed, who changed it, andwhen. The audit tracks changes to aributes of payroll business objects made using the application pages, web services,or payroll processes, which use Oracle Enterprise Scheduler.

You can view the audit history to determine how a business object obtained its current value and to compare oldand new values. To view the history or to create an audit report from the Audit History work area, you requireappropriate duty roles and privileges. Enterprises typically assign the following two audit duty roles to the applicationimplementation consultant and master data management application roles:

• Audit trail management, which determines the objects audited

• Audit trail report viewing to view the audit history

Payroll Business ObjectsWhen you set up auditing for payroll, you congure Oracle Fusion Applications business objects on the Manage AuditPolicies page in the Setup and Maintenance work area:

1. Select the HCM Payroll application on the Congure Business Object Aributes page.2. Specify the aributes to audit for the objects.

For example, you might audit the start and end date aributes for the calculation card component details.

The following table lists the payroll business objects you can set up for auditing payroll. You track changes to aributesspecied for these objects.

Payroll Business Object Description

Assigned Payroll

Holds date-eective aributes about payrolls assigned to a worker.

Assigned Payroll More Details

Holds details that aren't date-eective about the payroll assigned to a worker.

Calculation Card

Holds values required for calculating payroll components.

Calculation Card Component

Holds the denition of a component that represents one or more logically related payrollcomponents.

Calculation Card Component Detail

Holds the input values of a person's calculation card.



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Payroll Business Object Description

Calculation Reporting Card

Denes the tax reporting units that report the calculation.

Calculation Reporting Card Usage

Aaches a reporting card to a person record.

Element Entry

Holds earning and deductions details for a person.

Element Entry Value

Holds the values of the compensation and benets granted to a person.

Payroll Calculation Range Value

Denes the values or sets of values used in the calculation of a value denition.

Payroll Calculation Value Denition

Denes how a value is calculated in payroll processing.

Personal Payment Method

Holds the payment method details for a person.

Audit PoliciesAuditing is used to monitor user activity and all conguration, security, and data changes that have been made to anapplication. Auditing involves recording and retrieving information pertaining to the creation, modication, and removalof business objects. All actions performed on the business objects and the modied values are also recorded. The auditinformation is stored without any intervention of the user or any explicit user action.

Use audit policies to select specic business objects and aributes to be audited. The decision to create policies usuallydepends on the type of information to be audited and to the level of detail required for reporting.

Enabling Audit FunctionalityFor Oracle Applications Cloud, you must congure the business objects and select the aributes before enabling audit.If you enable audit without conguring the business objects, auditing remains inactive. By default, auditing is disabledfor all applications. To enable and manage audit, ensure that you have a role with the assigned privilege Manage AuditPolicies (FND_MANAGE_AUDIT_POLICIES_PRIV). For appropriate assignment of roles and privileges, check with yoursecurity administrator.

To enable auditing for Oracle Fusion Middleware products, select one of the levels at which auditing is required for thatproduct. The audit levels are predened and contain the metadata and events to be audited. For more information,see Audit Events for Oracle Applications Cloud Middleware (Doc ID 2114143.1) on My Oracle Support at hps://support.oracle.com.

If you don't want an application to be audited, you can stop the audit process by seing the Audit Level option to None.

Related Topics

• Overview of Audit Conguration

• Audit Events for Oracle Applications Cloud Middleware

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Audit Conguration for Business Object AributesAudit enables tracking the change history of particular aributes of a business object. However, those objects and theiraributes must be selected for audit and auditing must be enabled for that application. Your conguration seingsdetermine which aributes to audit for a given object, and when the audit starts and ends. Auditing takes into accountall the operations performed on an object and its aributes, such as create, update, and delete. To congure auditbusiness object aributes, use the Manage Audit Policies task in the Setup and Maintenance work area.

Selecting an ApplicationTo set up auditing, you must select a web application that contains the required business objects that can be audited.From the list of business objects, select those business objects that you want to audit. Selecting a business object alsodisplays its aributes that are enabled for auditing.

Selecting AributesFor each selected business object to be audited, select the corresponding aributes to include in the audit. All aributesthat belong to that object are by default selected for audit and appear on the user interface. However, you can add orremove aributes from the list. When you remove an aribute from the list, you stop auditing it even when the parentobject is selected for audit. So, if you want an aribute to be audited, you must add it to the list. If the object selected inan audit hierarchy is also a part of several other audit hierarchies, the aribute conguration for that object is applicableto all the hierarchies in that application.

Tip: For business objects based on exelds, select the Flexelds (Additional Aributes) check box to viewand add or remove exeld aributes, to include or exclude them from the audit.

Starting and Stopping AuditThe business object is ready for audit after you select its aributes and save the conguration changes. However, tostart auditing, the audit level for Oracle Applications Cloud must be set to Auditing on the Manage Audit Policies page.

To stop auditing an object, you can deselect the entire object and save the conguration. As a result, all its selectedaributes are automatically deselected and aren't audited. To continue to audit the business object with selectaributes, deselect those aributes that aren't to be audited. When users view the audit history for an application, theycan specify the period for which they want the results. Therefore, make a note of when you start and stop auditing anapplication.

For example, users intend to view the audit history of an object for the previous week, but auditing for that object wasstopped last month. They wouldn't get any audit results for that week, because during the entire month that objectwasn't audited. Even if you enable audit for that object today, users can't get the wanted results because audit data untiltoday isn't available.

Audit HistoryYou can use audit history to view changes to the application data, such as the business objects thatwere created, updated, and deleted. You must have a role with the assigned privilege View Audit History(FND_VIEW_AUDIT_HISTORY_PRIV) to view the history or to create a report. For appropriate assignment of roles andprivileges, check with your security administrator.

To open the Audit History work area, click Navigator > > Audit Reports.



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The default search displays a summary of the audit history in the search results table. It includes key data such as date,user, product, event type, business object type, and description. For a detailed report, search again with modied searchcriteria. You can export the report summary to Microsoft Excel.

This table lists the search parameters used and the outcome of their selection in the detailed report.

Search Parameter Result of Selection

Business Object Type

Note: This parameter isapplicable only for thebusiness objects that belong toOracle Applications Cloud.

• Narrows the search results to that specic business object within the selected product.• Enables the Show Aribute Details check box.

Include Child Objects

Displays all the child objects that were listed for that business object when audit was set up. Forexample, a sales order object that contains several items as child objects.

Note: Displays the objects at the immediate parent-child level only. You can viewthe children at subsequent levels, by selecting the child object as the businessobject type and search again.

Show Impersonator

Displays the details of the impersonator who modied the objects during an impersonationsession.

Show Aribute Details

Enables the aribute list so that users can select either all aributes or a specic aribute toview the changes. Based on the selection, the search results indicate whether the aribute iscreated, updated or deleted, and the corresponding old and replaced values.

Show Additional Object IdentierColumns

Displays the instances (contexts) in which the business object was used. The context valuesidentify the objects and the transactions in which they were used. Each context is unique andassigns a unique description to the business object.

Note: The default report displays a standard set of columns that contain prominent details of the audithistory. To view additional details, you can change the display of columns.

Related Topics

• Types of Audit Events

Data Validation

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Overview of Payroll Data Validation ReportBefore you run payroll or any other statutory processes or reports, the required HR and payroll data setup must becomplete for all your workers. Missing or noncompliant data can impact legal processes or reports.

The Payroll Data Validation Report provides details of missing or statutorily noncompliant data at the worker andorganization level. Prior to running the payroll process or any other report, run the Payroll Data Validation Report. Youcan then take corrective action as necessary to complete the data setup and correct noncompliant data.

Run this report from the Payroll Calculations or the Payroll Checklist work area.

During the implementation phase, add the business rules and validation messages at the enterprise or legislative datagroup level. These validations are in addition to the country-specic validations that are predened in the application.

Validation LevelsThe data group you select when adding validation rules to the Data Validation Report determines the level of validation.For example, you might have a validation rule at the tax reporting unit level or at the person details level. When adding avalidation, you must ensure a database item exists for the aribute for which you're adding the validation.

Set Up Validation RulesUse the delivered formula 'Global Aribute Mandatory Check' to set up validations to identify missing data. You addthe validations to the Data Validation Report extract denition. Here's the summary of the required steps to set up thevalidation rules:

1. Identify a suitable short name for the aribute for which you want to add the validation, for example,ASG_JOB_CODE. Prex it with CST to mean user-dened. Therefore, the short name should be CST_ASG_JOB_CODE.

2. Set up a lookup code to control the validation. For mandatory validations, that you set up using the deliveredformula, set up the lookup code as a short name suxed by >MC. For example, CST_ASG_JOB_CODE>MC.

3. Based on the level at which you need the validation, you must create the records and data elements in theappropriate data group. Identify the relevant data group to add the validation and create a record in the group.For example, add assignment level validations to the Assignment Data Group.

Note: A database item must exist for the aribute for which you're adding the validation.

4. Add the validation and create the extract denition aributes.5. Generate and compile the formula at the report record.6. Run the appropriate Payroll Data Validation Report to include the validations.

Control the ValidationsUse the delivered ORA_HRX_GLB_VALIDATION_OBJECTS lookup type to set up a lookup code that you can use to control thevalidation. For example, you can use this lookup code to add multiple country tags to a validation. Alternately, if thevalidation is no more valid for the country, remove the previously added country tag from the lookup code.

Note: If you don't add a country tag, the application doesn't trigger any validation.

Validation TypesThe validations can be simple or complex.

The application triggers simple validations if you haven't provided a value for an aribute required for a report ora process. For example, the Tax Reporting Registration Number is missing at the organization level or the National



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Identier value is missing for a worker. You can create a simple validation by using the delivered formula 'GlobalAribute Mandatory Check' and the appropriate database item group.

The application triggers complex validations when there's more than one aribute included in the validation. Forexample, a value is missing for a National Identier Type pertaining to a worker.

For coding complex validations, Oracle recommends that you use data elements of type Rule with a user-dened RuleFormula to perform the validation. You must deliver these data elements in a record of type Formula.

User-Dened Rule FormulaFor coding complex validations, Oracle recommends that you use extract aributes of type Rule with a user-denedRule Formula to perform the validation. Consider the following for coding user-dened Rule Formula:

• Check if the formula is of type Extract Rule.

• Check that the lookup code exists for the short code of the data element, and is enabled for the legislationcode, for which the report is run.

• Check if the formula is associated with the correct data element. Since this is a user-dened formula, check andrun only if short code matches.

• Perform the validation to return validation message text or return a NULL value. The message text should befewer than 240 characters or the application considers only the rst 240 characters of the message.

Data SecurityBy default the report is submied through an elevated user that has full data access and is secured through the list ofvalues on the report parameters. However, you can congure the Data Validation Report to run based on the proleof the user who submits the report. For example, if a user has access to only employees within a specic payroll ordepartment, you can congure the report to check data only for those employees.

Validation Rules for Data Validation ReportYou can add validation rules to the Data Validation Report to identify missing data required to run a process or report.You can run the report and make relevant corrections to complete the employer or payroll-related data.

Use the Manage Extract Denitions task in the Data Exchange work area to add a validation rule to the Data ValidationReport extract denition.

Rule FormulaUse the delivered formula 'Global Aribute Mandatory Check' to set up validations to identify missing data. You add thevalidations to the Data Validation Report extract denition.

This formula includes certain important enhancements such as supporting translated messages. It also oers the abilityto control the validations without you deleting the validation already congured by you or delivered by Oracle. It's notmandatory for you to migrate your existing validations from the 'Global Null Check Rule' formula to the new one. Oraclerecommends to migrate to the new formula to make use of the benets.



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Validation LevelsThis table describes the validation rules at the various levels.

Validation Level Description

Employee

Add simple validations for a missing aribute at the worker level. For example, if the NationalIdentier value is missing for a worker.

Organization

Add simple validations for a missing aribute at the organization level. For example, a missingTax Reporting Registration Number.

Repeating Child Entity of a Worker

Add validations at the repeating child entity of a worker. For example, you may add avalidation for a missing IBAN number for one of the multiple payment methods that a workerhas. You can add a validation to specify the details of the aribute value (IBAN Number). Thisaribute value is missing for the Entity Type (Personal Payment Method) and for the EntityName (Personal Payment Method Name).

Repeating Child Entity of theOrganization

Add validations at the repeating child entity of an organization. For example, add a validationfor a missing SWIFT Code for one of the multiple organization payment methods that's validfor a payroll statutory unit. You can add a validation to specify the details of the aributevalue (SWIFT Code). This aribute value is missing for the Entity Type (Organization PaymentMethod) and for the Entity Name (Organization Payment Method Name).

Data GroupsThe data group you select when adding validation rules to the Data Validation Report determines the level of validation.For example, you might have a validation rule at the tax reporting unit level or at the worker details level.

The processes associated with the Data Validation Report extract denition are:

• Run Payroll Data Validation Report

• Run Worker Data Validation Report

• Data Validation Report for Payroll Interface

The following reports use dierent data groups to report data validation. You must select a data group for anyvalidation rules you add based on the type of data and the level you want validation to occur.

Payroll Data Validation ReportAdd validation rules to these data groups to report payroll-related data validation:

• Payroll Statutory Units

• Tax Reporting Units

• Payroll Relationships

• Payroll Assignments

Worker Data Validation ReportAdd validation rules to these data groups to report worker-related data validation:

• Payroll Statutory Units



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• Legal Employers

• Reporting Establishments

• Work Relationships

• Person Details

• Assignments

Data Validation Report for Payroll InterfaceAdd validation rules to these data groups to report worker-related and payroll-related data validation for Global PayrollInterface:

• Payroll Group

• Payroll Relationship Group

• Work Relationships

• Assignments

• Payroll Relationships

• Payroll Assignments

Usage of TagsThe report output has dierent sections for legal employer, reporting establishment, person, and so on. The validationsreported in the dierent sections is based on the tag that's added for rule data element. Consider the following whileusing tags for adding validation rules for Data Validation Report.

• For reporting validations at organization level, add the validations to Organization Data Groups and the relatedtags, as given in the table below.

Validation Level Data Group Tag

Legal Employer

Legal Employers

LEMP_RULE_TEXT

Establishment

Reporting Establishments

REP_ EST_RULE_TEXT

Payroll Statutory Unit

Payroll Statutory Units

PSU_RULE_TEXT

Tax Reporting Unit

Tax Reporting Units

TRU_RULE_TEXT

• For reporting validations at worker level, add the validations to the corresponding data group and thepredened tags as given in the table below.


Employee or payroll relationship levelvalidations

Identify appropriate data groups(Example: Assignment).

RULE_TEXT



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• For reporting organization validations or the validations of other entities in a separate table, add the validationsto the corresponding data group and the predened tags as given below.


All levels other than employee ororganization

Identify appropriate data groups(Example: Assignment).

OTHERS_ RULE_TEXT

Set Up a Lookup Code to Control the Rules for Data ValidationReportsUse the delivered 'ORA_HRX_GLB_VALIDATION_OBJECTS' lookup type to set up a lookup code that you can use tocontrol a validation for the Data Validation Report. You can then use this lookup code to add multiple country tags toa validation. Alternately, you can remove a previously added country tag from the lookup code, if the validation is nomore valid for the country.

Note: If you don't tag a country, the application doesn't trigger any validation.

To create a lookup code:

1. In the Setup and Maintenance work area, select the Manage HCM Extract Lookups task.2. Search for and select Manage HCM Extract Lookups.3. Click Create.4. Enter these lookup code details.

Field Description

Lookup Code

Enter a lookup code suitable for the aribute or entity to be validated. If you want to use theOracle delivered formula for mandatory aribute validation, enter sux as >MC n the lookupcode, for example CST_ PERSON_ ADDRESS_LINE 1>MC.

Display Sequence

Enter a unique value for the lookup code. It is recommended to use a sequence number,between 201 to 500, for the user-dened lookup codes.

Start Date

Enter 01/01/0001.

End Date

Enter 12/31/4712.

Meaning

Enter a suitable meaning for the lookup code, for example, Person Address Line 1 Check.

Description

Enter a suitable description, for example, Person Address Line 1 check.



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Field Description

Tag

Tag an appropriate country or countries, for which the validation is to be performed. Forexample, +FR.

Note: If no Tag is setup, the application doesn't perform the validation for anycountry.

5. Click Save.

Adding Rules to Data Validation ReportsThis example demonstrates how you can add a validation rule to the Data Validation Report extract denition. Beforemaking changes to the extract, select a legislative data group. When you submit your changes for a new rule, thatvalidation is available for that legislative data group. Depending on the validation rule and the legislative data group youadd it to, the validation is included when you submit any or all of the following processes:

• Payroll Data Validation Report for identifying missing payroll data needed for processes

• Worker Validation Report for identifying missing HR data needed for processes

• Data Validation Report for Payroll Interface for identifying missing HR or payroll data of persons associatedwith a given object group or payroll. The primary goal of the report in this case is to validate the data before it'sexported by the Global Payroll Interface process to a third-party payroll provider.

Before you add the validation rule, ensure that a database item exists to retrieve the value to be validated. The contextsrequired by the database item are provided by the block level to which you add the validation. For example, supposeyou're adding the new validation to the Person Details data group. You are adding a rule to check whether each person'sPerson Address Line 1 aribute has a value. If there is no value, the report displays an error message. A database itemmust exist for the person address line 1 aribute. Create the records and data elements in the appropriate data groupbased on the level at which you need the validation.

How to Create the ValidationTo create a validation:

1. In the Name eld, enter Data Validation Report.2. In the Data Exchange work area, select Manage Extract Denitions.3. Search for and select the extract denition to edit as follows:

a. In the Type list, select Full Prole.b. Select a legislative data group.c. Click Search.d. In the search results, click Data Validation Report.

4. On the Manage Extract Denitions page, click Switch Layout.5. In the Session Eective Date eld, enter 01/01/0001.6. Add a new record to the Data Group to which you want to add validations as follows:

a. Select Person Details under the Data Group node.b. In the Records section, click Create.

Ensure that the Session Eective Date is 01/01/0001.



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c. Enter these details in the Create Extract Record section.

Field Value

Sequence

Enter a unique value for the records within the Data Group. It is recommended to use asequence number between 200 and 600.

Note: Two records in the same Data Group can't use the same sequencenumber.

Name

Person Address Details

Type

Detail record

Process Type

Fast Formula

d. Click Save.7. Add the database item aribute as follows.

a. In the Extract Aributes section, click Createb. Complete the elds as shown in this table. This table lists the elds and the respective values for the

extract aributes.

Field Description

Name

Enter a suitable name, for example, Person Address Line 1 Aribute. This name is usedin the validation message.

Tag Name

Person_ Address_Line 1_Aribute

Short Code

Enter a suitable name to match the lookup code and remove the sux, '>MC', forexample, CST_ PERSON_ ADDRESS_ LINE_1.

Start Date

01/01/0001

End Date

12/31/4712

Data Type

Enter a value appropriate to the data that you want to check. For example, Text foraddress details.

Type

Database item group

Database Item Group

Person Address Line 1



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Field Description

Output Label

Person Address Line 1

Output Column

6

Note: If you don't nd the Database Item Group that fetches the aribute value you want tovalidate, it could be that:

• The Extract Aribute is added at an incorrect level (Data Group), or• The Database Item Group is unavailable. Verify the availability of the Database Item

Groups by trying to add the extract aribute to other levels (Data Group). If the requiredDatabase Item Group is unavailable, you can contact Oracle Support.

For more information, see Database Items for Extracts and Formulas in Oracle Fusion HCM guide on MyOracle Support (1565118.1).

c. Click Save and Close.8. Create another aribute for the validation rule as follows:

a. In the Extract Aributes section, click Createb. Complete the elds as shown in this table. This table lists the elds and the respective values for the

validation rule.

Field Value

Name

Person Address Line 1 Rule

Tag Name

RULE_TEXT

Note: Enter this value exactly.

Short Code

CST_ PERSON_ ADDRESS_ LINE_1>MC

Note: The short code must include the short code of the database itemaribute you created followed by a space and the sux: >MC. The shortcode is case-sensitive.

Start Date

01/01/0001

End Date

12/31/4712

Data Type

Text

Type Always set as Rule.



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Field Value

Rule

Global Aribute Mandatory Check

Output Label

Enter a value same as the Short Code, for example, CST_ PERSON_ ADDRESS_ LINE_1-RULE.

Output Column

Enter a unique value within the record, 26.

Results Display Option

Summary and detail

c. Click Save and Close.9. In the Actions menu, select Generate Formula.

10. In the Actions menu, select Compile Formula.11. Click the Extract Execution Tree node and verify that all formulas are compiled.12. Click Submit.

Payroll Data Validation ReportRun the Payroll Data Validation Report to generate a list of workers with missing or noncompliant payroll data. Use thisreport to verify if the required data setup for all workers for the payroll run or process is complete.

Payroll managers can run this report from the Payroll Calculations or the Payroll Checklist work area. Run this reportprior to running the payroll process.

ParametersMost parameters are self-explanatory, while the following have special meaning in the context of this report.

Payroll Flow

Select the required payroll ow name for the process that’s being run. Enter a value each time the process is run.

Eective As-of Date

Use this eld to specify the rst eective date of the payroll process to include in the report. The data status is veriedas of the selected eective date.

Payroll Statutory Unit

Select the Payroll Statutory Unit for which the report is to be run.



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Report ResultsThe report provides details of missing or noncompliant statutory data for the selected payroll statutory unit as of theselected eective as-of date. The details are at the worker or organization level.

You can view the PDF output of the report or the Excel output, as required.

Data Security in Payroll Data Validation ReportsCongure the Data Validation Report to run based on the prole of the user who submits the report. For example, ifa user has access to only employees within a specic payroll or department, as dened by the data security proleaached to the user's role, you can congure the report to report data only for those employees.

Here are the tasks required to congure and run the report based on the prole of the user submiing the report:

1. Sign in as IT Security Manager and dene HCM data roles and setup data security. Assign the data roles to theapplication user as per the requirement of your enterprise.

2. Sign in as Payroll Manager and secure the 'Payroll Data Validation Report' at the Legislative Data Group level.3. Sign in as application user to whom the privileges are assigned and run the report.

Dene Data Roles and Assign Data Roles to the Application UserNo predened HCM data roles exist. While creating an HCM data role, include a job role. The secured HCM object typesthat the job role accesses are identied automatically, and sections for the appropriate security proles appear. Select orcreate security proles for those object types in the HCM data role.

For each object type, you can include only one security prole in an HCM data role, which is known as Security Prole.Consider the following to complete the setup.

• You must have the IT Security Manager Job role to perform this task.

• To create an HCM data role, use the Assign Security Proles to Role task in the Setup and Maintenance workarea.

• For more information on seing up the data security as per the requirement of the enterprise, see OracleHuman Capital Management Cloud Securing HCM.

Here are the steps required to congure the report based on the prole of the user submiing the report.

1. Navigate to the Checklist work area under Payroll.2. Select the Manage Payroll Flow Paerns task.3. Search for the Run Payroll Data Validation Report ow paern.4. Select the required Legislative Data Group.5. Click Edit.6. Click Go to Task and click Edit.7. Select the row and click the Edit on the tool bar for the row.8. Select the Secure Process or Report check box and click Save.9. Alternately, you can click on Remove all Updates.

Repeat these steps for each Legislative Data Group, where the seing must apply. This conguration, although done onthe delivered ow paern, is preserved during patching and upgrades.



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Submit ReportWhen you submit the report, consider the following:

• Select the Payroll Statutory Unit (PSU) from a secured list of values. If the user's data security is restricted bythe PSU, then the user can only run the report for that PSU they have access to, even if the report is run as theelevated user by default.

• If the user's data access is restricted based on other aributes like department or payroll, congure the reportbased on the user prole. This is only if you must restrict the report to the prole of the user submiing thereport and only data for the department or payroll is reported.



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Glossary

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Glossary

absence plan

A benefit that entitles workers to accrue time for the purpose of taking leave and receiving payments during absenceperiods.

absence type

A grouping of absences, such as illness or personal business that is used for reporting, accrual, and compensationcalculations.

abstract role

A description of a person's function in the enterprise that's unrelated to the person's job (position), such as employee,contingent worker, or line manager.

assignment

A set of information, including job, position, pay, compensation, managers, working hours, and work location, thatdefines a worker's or nonworker's role in a legal employer.

assignment level

See sourcing assignment level.

assignment statement

A statement that formulas use to set a value for a local variable.

balance dimension

The scope of a balance value, such as the period of time over which it accumulates, and whether it relates to anassignment or a payroll relationship.

benefits object hierarchy

A structure that enables efficient management of benefits that share similar attributes. The four object types used tostructure benefits offerings are programs, plan types, plans, and options.

Calculation Card

Captures values required for payroll calculations for some earnings and deductions, such as absence payments andinvoluntary deductions. You can also create various types of cards to hold default values for tax reporting units orpayroll statutory units for some countries.


Glossary

356

calculation component

An individual calculation captured on a calculation card, which is typically associated with an element.

calculation factor

A data-driven rule for calculating a deduction or exemption.

calculation method

An optional component of a calculation factor that supports complex calculations. It specifies a formula to return thefinal value, such as a cumulative year-to-date amount.

calculation type

Amount or percent that pricing uses to calculate a pricing guideline. For example, Percent of, Percent off, Marginpercent, Amount off, Absolute value, and so on.

calculation value definition

The rates, amounts, or rules that payroll runs use to calculate the components listed on a calculation card.

consolidation group

A grouping of payroll runs within the same period for the same payroll, for which you can run reporting, costing, andpost-run processing. You can specify a default consolidation group for each payroll definition.

context

A grouping of flexfield segments to store related information.

context-sensitive segment

A flexfield segment that may or may not appear depending upon a context. Context-sensitive segments are attributesthat apply to certain entity rows based on the value of the context segment.

cost profile

Defines the cost accounting policies for items, such as the cost method and valuation structure.

data instance set

The set of HCM data, such as one or more persons, organizations, or payrolls, identified by an HCM security profile.

database item

An item of information with special programming attached, which formulas and HCM extracts use to locate and retrievethe data.


Glossary

357

dimension

See

element

Component in the calculation of a person's pay. An element may represent a compensation or benefit type, such assalary, wages, stock purchase plans, pension contributions, and medical insurance.

element classification

Provides various element controls, such as the processing order, balances feeds, costing, and taxation. Primary elementclassifications and some secondary classifications are already defined. You can create other secondary classifications.

element eligibility

The association of an element to one or more components of a person's employment record. It establishes a person'seligibility for that element. Persons are eligible for the element if their assignment components match the componentsof the element eligibility.

element entry

The record controlling an employee's receipt of an element, including the period of time for which the employeereceives the element and its value.

element group

Group of one or more elements, which you define for running various payroll processes, reports, or for cost distributionpurposes. Use element groups to limit the elements processed by a payroll batch process.

element template

Predefined questions that you answer to create elements and associated items. Templates vary depending on theelement classification, country, and products you are using.

eligibility profile

A user-defined set of criteria used to determine whether a person qualifies for a benefits offering, variable rate orcoverage, compensation plan, checklist task, or other object for which eligibility must be established.

extensible flexfield

Expandable fields that you can use to capture multiple sets of information in a context or in multiple contexts. Someextensible flexfields let you group contexts into categories.

fast formula

A simple way to write formulas using English words and basic mathematical functions. Formulas are genericexpressions of calculations or comparisons that repeat with different input values.

final close date

The last date on which a payroll run can process element entries. Typically, the last effective date of the payroll record.


Glossary

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flexfield

A flexible data field that you can configure such that it contains one or more segments or stores additional information.Each segment has a value and a meaning.

flexfield segment

An extensible data field that represents an attribute and captures a value corresponding to a predefined, singleextension column in the database. A segment appears globally or based on a context of other captured information.

formula

Combination of operators, functions, dimension and member names, and numeric constants used to calculate databasemembers.

HCM data role

A job role, such as benefits administrator, associated with instances of HCM data, such as all employees in adepartment.

input value

Field defined for an element that holds information about an element entry that's needed for calculation. For example,hours worked, an alternate payment rate, or the amount of a bonus or deduction.

job role

A role, such as an accounts payable manager or application implementation consultant, that usually identifies andaggregates the duties or responsibilities that make up the job.

key flexfield

Configurable flexfield comprising multiple parts or segments, each of which has a meaning either individually or incombination with other segments. Examples of key flexfields are part numbers, asset category, and accounts in thechart of accounts.

key flexfield structure instance

An occurrence of a key flexfield structure that shares the same order of segments as other instances of the key flexfieldstructure. However, each instance uses different value sets to validate the segments.

last standard earnings date

Date on which standard earnings stop accumulating, typically the date of the termination or payroll transfer.

last standard process date

Last date on which element entries are considered for normal processing in a payroll run. Typically, the last day of thepayroll period in which a termination or payroll transfer occurs.


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359

legal employer

A legal entity that employs people.

legal entity

An entity identified and given rights and responsibilities by commercial law through the registration with country'sappropriate authority.

legal reporting unit

The lowest level component of a legal structure that requires registrations. Used to group workers for the purpose of taxand social insurance reporting or represent a part of your enterprise with a specific statutory or tax reporting obligation.

legislation

The base definition that governs certain rules so that Oracle Global Human Resources can perform differently fordifferent countries and territories in order to meet statutory requirements. Can be predefined by Oracle or definedduring implementation using the Manage Legislations for Human Resources task.

legislative data group

A means of partitioning payroll and related data. At least one legislative data group is required for each country wherethe enterprise operates. Each legislative data group is associated with one or more payroll statutory units.

lookup code

An option available within a lookup type, such as the lookup code BLUE within the lookup type COLORS.

lookup type

The label for a static list that has lookup codes as its values.

object group

User-defined set of elements or people that restrict the items you want to include in various processes and reports.

offering

A comprehensive grouping of business functions, such as Sales or Product Management, that is delivered as a unit tosupport one or more business processes.

payment source

Bank account or other source of funds associated with organization payment methods.

payroll employment group

Group of people that payroll runs use for processing, data entry, and reporting.

payroll processing parameters

System-level information that controls settings for flow processes, such as logging, chunk size, and other options thataffect process performance.


Glossary

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payroll relationship

Defines an association between a person and a payroll statutory unit based on payroll calculation and reportingrequirements.

payroll statutory unit

A legal entity registered to report payroll tax and social insurance. A legal employer can also be a payroll statutory unit,but a payroll statutory unit can represent multiple legal employers.

person type

A subcategory of a system person type, which the enterprise can define. Person type is specified for a person at theassignment level.

personal payment method

Method of payment to a person for a particular payroll. When an administrator assigns a person to a new payroll,payments are made using the default organization payment method for the new payroll until a personal paymentmethod exists.

profile option level

The category or layer that defines a profile option. Site, Product, and User are the predefined levels.

profile option value

The setting mapped to the level of a profile option. A profile option may have multiple values set at different levels, suchas Site or User.

reduced deductible amount

The final deductible amount after all exemptions are subtracted.

registration

The record of a party's identity related details with the appropriate government or legal authorities for the purpose ofclaiming and ensuring legal and or commercial rights and responsibilities.

retroactive process

A process that recalculates the amount to pay a person in the current period to account for retrospective changes thatoccurred in previous payroll periods.

role

Controls access to application functions and data.

role mapping

A relationship between one or more roles and one or more assignment conditions. Users with at least one assignmentthat matches the conditions qualify for the associated roles.


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salary basis

Defines validation and payroll details for worker base pay. It identifies the currency and period of the quoted basepay and the factor used to annualize base pay. It optionally identifies components or rates used to itemize salaryadjustments and the grade rate used to validate salary.

security profile

A set of criteria that identifies HCM objects of a single type for the purposes of securing access to those objects. Therelevant HCM objects are persons, organizations, positions, countries, LDGs, document types, payrolls, and payrollflows.

set-level definition

Enables you to segment and share your reference data. Entities that are defined at the set level can be shared by all costorganizations belonging to that set. You can also use the Common set to share the same reference data across all costorganizations.

standard cost

An inventory valuation method in which inventory is valued at a predetermined standard value. You track variances forthe difference between the standard cost and the actual transaction cost, and you periodically update the standard costto bring it in line with actual costs.

tax reporting unit

A legal entity that groups workers for the purpose of tax and social insurance reporting.

unit of measure

A division of quantity that is adopted as a standard of measurement.

user-defined table

Structure of rows and columns that maintains date effective lists of values. Tables store values as cells for specific rowand column combinations.

value set

A predefined set to validate the values that a user enters in the application. The set may be hierarchical.

wage basis rule

Determines the classifications of earnings that are subject to a deduction. Also referred to as a taxability rule.

work relationship

An association between a person and a legal employer, where the worker type determines whether the relationship is anonworker, contingent worker, or employee work relationship.

work relationship group

Group of people that you can define for reporting, for example in HCM extracts.


Glossary

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