Oracle HRMS Payroll Setup

Solution

Version: 1.0
Date: 20-Oct-2011

HRMS Capability
Innovate.....Create....Collaborate

Agenda
HRMS Data Migration Solution
Purpose of this presentation is to provide step by
step overview and solution for Payroll Setup in
HRMS space. This presentation would act as a guide
to HRMS and non HRMS technical/ Functional
consultant through DM concerning oracle HRMS.
This presentation would also act as reference for
PMs.
Presales team can also consider it as
reference point for future bids. Intended Audience
for this presentation is Technical/ Functional
Why
Is it Needed
consultant,
PM and Presales team.
Few Modules in Oracle HRMS need niche skills and
lack of that creates a GAP. This document aims at
bridging that GAP. This document also aims at
bringing all that is required under one umbrella.

Click

Note: To enable the hyperlinks, please view the power point in the
presentation mode.

Oracle HRMS Payroll Setup

PreRequisites
for payroll
Payroll
Setup

Pre-Requisites for Payroll Run

User
Functions
Menus
Responsibilities
Business Group
Packages with all required functions for
fast formulas

Payroll Setup Sequence

Sequence

Step

Consolidation Set

Payment Methods

Payroll Description

Element Description

Element Input Value

Salary Basis

Element Link

Global Value

Formula Function

10

Balances

11

Fast formula

12

Formula Results

13

Assignment Set

14

Element Set

Methodology

Consolidation Set
The consolidation set is used for consolidating the result of
various payrolls and post payroll processes.
Navigation: HRMS ManagerPayrollConsolidation Set
Enter a relevant name, Save the data and close the form

Payment Method
Enter a name for the Payment method, and select its type.
Navigation: HRMS ManagerPayrollPayment method

Payroll Description
Navigation: HRMS ManagerPayrollDescription

Note: For detailed explanation refer next three

slides

Payroll Setup
Enter the name of the Payroll and select a Period Type i.e. Calendar
month, Week, Year etc.
Enter the date offset:
The Check Date, sometimes called Pay Date, is the date of
constructive receipt of pay, on which paychecks become
negotiable.
The Scheduled Run Date is the date scheduled for the Regular
run of this payroll each period.
The Cut Off date, included for your reference, is the final date
for entering or changing payroll information before a run.
A pay slip offset, reckoned from the completion date for your
payroll processes is always a positive number to enable you to
prevent employees from viewing pay slips before

the official payment date

In the Costing region, you can enter information about the
ledger and suspense account holding costing information for
this payroll

Payroll Setup Cont..

Check the Negative Payment Allowed check box if you want the PrePayments process to include negative payments. If you leave the box
unchecked, the Pre-Payments process ignores negative payments.
Choose the Period Dates button to view the calendar generated for
your payroll.
In the Period Dates window:
You can view the default offset dates for every period, and you
can manually override any of these dates in any record.
You can change the payroll's default Open status in any period to
Closed to prevent further element entries.
You can also reopen the period if necessary
Choose the Valid Payment Methods button to add valid payment
methods for this payroll

Payroll Setup Valid Payment Method

Enter the valid payment methods corresponding to the particular
Payroll

Element Description
Navigation: HRMS ManagerTotal CompensationBasic
Element Description

Note: For detailed explanation refer next two

Element Setup

Enter a unique name and reporting name

Optionally enter a description for the element
Select a primary classification
Select the processing type

Recurring, if an entry of this element applies in

every period until the entry is ended
Non-recurring, if an entry applies in one pay period
only

Select a termination rule to determine how entries of the

element are processed after termination of the
employee

Select the currency in the Input field if you want to

make element entries in a currency other than the
base currency of the Business Group.

Element Setup Cont

Select:
Multiple entries allowed, if you want to give an employee more
than one entry of the element at the same time.
Additional entries allowed, if you want to make an occasional onetime entry of a recurring element.
Closed for entry, if you want to prevent any new entries being
made for the element.
Process in Run, if you want the element to process in payroll runs.
Indirect results, if you want the element to accept entries from
indirect formula results.
Adjustment only, if you want to use the
element only for creating balance adjustments.
Third party payments, if you want to use
the element only for creating third party payments.

Element Input Values

Uncheck the User enterable for Pay Value
Enter the name of the input value and the unit.
Check the User enterable check box if users can enter a value for this
input.

Salary Basis
Salary basis is the duration for which the salary is quoted, for example,
hourly, monthly or annually.
Navigation: HRMS ManagerTotal CompensationBasic Salary
Basis
Enter the name of the salary basis and select basis.
Select the name of the salary element and the input value associated
with this salary basis.

Element Link
Navigation: HRMS ManagerTotal CompensationBasic
Link
Define the element link and provide eligibility criteria for the
element

Note: For detailed explanation refer next three

Element Link Cont

In the Eligibility Criteria region, select the assignment components

that constitute this eligibility rule. If you want to link to all
employees, do not enter any eligibility criteria.
You can link to all payrolls or to a specific payroll. Do one of the
following:
Leave the Payroll field blank and check the Link to all Payrolls
check box if you want employees assigned to any payroll to be
eligible. This rule excludes employees who are not assigned to a
payroll.
Select the name of a specific payroll if you want only
employees on that payroll to be eligible for the element. Do not
check the Link to all Payrolls check box.
Leave both fields blank if assignment to a payroll is irrelevant
to eligibility for the element

Element Link Cont.

Select the Cost able Type. The default is Not Costed, meaning that the
system maintains no costing information for the element.
To allow entry of costing information at all levels, including the
assignment and element entry levels, select Costed. This is the
appropriate selection for most elements representing earnings
types.
If you do not need to cost the element at organization and
assignment levels, select Fixed Costed. This is appropriate for
some deductions, which are irrelevant to labor distribution
analyses.
If you want to distribute overhead costs (such as employer
contributions to a pension plan) over other elements, select
Distributed. Then select a Distribution Set.
Check the Transfer to GL check box if the payroll run results from this
link should be transferred to the general ledger.

Element Link Setup Cont.

You can also add Qualifying Conditions.
Here you can add or change age or length of service requirements for
this particular eligibility rule.
The system checks these conditions when you make an entry of the
element.
If the employee does not meet the qualifying conditions, you receive
a warning

Formula Function

Balances
Define Balance for elements you need to maintain carry-over values.
For example, Leave, Gratuity etc.
Navigation:
Balance

HRMS

ManagerTotal

CompensationBasic

Note: For detailed explanation refer next slide

Balances Cont.
Enter the name , reporting name and provide the feeds and dimensions as
required.

Fast Formula
Define fast formula to incorporate all the calculation rules specific to
company rules.
Enter the name, type and description of the formula
Navigation: HRMS ManagerTotal CompensationBasic Write
Formula

Note: For detailed explanation refer next two

slides

Fast Formula Cont.

If you have defined your own payroll elements, you can write
formulas to calculate earnings and deductions.
Design your element and how it will be calculated.
Write any formulas required to validate input values (formula type =
Element Input Validation).
Write a formula, if required, to define the rules for skipping the
element during payroll processing (formula type = Element Skip)
Write the formula or formulas for calculating the run results (formula
type = Oracle Payroll).
Associate each Oracle Payroll type formula with the element in the
Formula Result Rules window, and specify what happens to the
formula results for this element.

Fast Formula Cont

Write the formula and verify it.

Generic Fast Formulas

Formula Results
Define rules for formula results.
Use the Formula Result Rules window to associate one or more formula
processing rules with an element.
Navigation: HRMS
Formula Results

ManagerTotal

CompensationBasic

Note: For detailed explanation refer next two

Formula Results Cont

Select the appropriate formula result type. There are five possible types:
Direct result: This is the element's run result (if you send the result to the
element's pay value), or a direct result updating another of the element's
input values.
Indirect result: This result passes as an element entry to another
nonrecurring element not yet processed.
Message: The formula issues messages 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." You read formula messages using
the View Run Messages window.
Order Indirect: This result updates the sub priority of the element you
select in the Element field.
Stop: This formula result uses the Date Earned of the payroll run to put an
end date on a recurring entry of this or another element (which must be
defined with multiple entries not allowed.)
Update recurring entry: This result updates recurring entries of this or
another element on the effective date of the payroll run.
The receiving element must be defined with multiple entries not allowed
unless you are passing a recurring element's entries to itself, that is updating
another entry of the same element.

Formula Results Cont

If you select Message as the formula result type, select a message

severity level. There are three choices:
Fatal: When a message with this severity results from your
formula, the run rolls back all processing for the employee
assignment.
Warning: A message with this level of severity does not affect
payroll processing but warns the user of a possible problem.
Information: A message with this level of severity simply gives
information.

Assignment Set
Use Assignment Sets to group the employees to include/exclude them
from a payroll run.
Navigation: HRMS ManagerPayroll Assignment Set

Note: For detailed explanation refer next

two slides

Assignment Set Cont

Defining an
Assignments

Assignment

Set

by

Including

or

Excluding

Click Amendment. Do one of the following:

If you want to create a small set of assignments, select
Include in the Inc/Exc field and select all the assignments for
the set.
If you want to start from the full set of assignments for the
payroll or Business Group, select Exclude in the Inc/Exc field
and select assignments to remove from the set.
Do not create a mixture of Include and Exclude rows if you have
not entered criteria and generated a formula

Assignment Set Cont.

Defining an Assignment Set Using Formula Criteria
Do one of the following:
If you are defining an assignment set for payroll processing, select a
payroll. You cannot process an assignment set drawn from more than
one payroll.
If you are defining an assignment set for other purposes, selecting a
payroll is optional. If you select a payroll, the formula generated from
your selection criteria will select assignments from this payroll only. If
you do not select a payroll, the formula will select assignments from the
whole business group.
In the Assignment Criteria window, enter one criterion in each row, and join
the criteria with AND or OR in the Condition field.
If you want to include or exclude individual assignments from the set
defined by your criteria, choose the Amendment button. Select the
assignments you want to include or exclude from the set.

Element Set
Enter a unique name for the set and select the type: Distribution, Run,
or Customization
Navigation: HRMS ManagerPayroll Element Set

Note: For detailed explanation refer next

Element Set Cont.

There are three types of set:
Customization set: You can use a Customization set to:
Restrict the elements that can be entered or viewed on a configured
version of the Element Entries window
Specify the elements to be entered for assignments using BEE in the
Batch Assignment Entry window.
Prevent users updating entry values in the Element Entries window for a
group of elements. You select the element set in the HR : Non-Updateable
Element Set user profile option.
Restrict the elements displayed in the Compensation Activity view in
SSHR. You select this element set in the Element Set Name user profile
option.
Run set: You can use a Run set to:
Specify the elements that the application must process in a payroll run.
This functionality is available only for Oracle Payroll users. If you are
creating a Run set for US payroll, and you are using the Enhanced Tax
Interface, you must include the US_TAX_VERTEX recurring element (see
step 4). If you have not enabled the Enhanced Tax Interface, you must
include the VERTEX recurring element.
Display accrual balances
Distribution set: Oracle Payroll users can use a Distribution set to define the
elements over which the costs of other elements are to be distributed.

Element Set Cont.

If you want to include all elements in a classification, choose the

Classification Rules button.
In the Classification Rules window, select one or more
classifications to include. Save the set and close this window.
The elements in the classifications you choose are now listed in
the Elements region.
If you want to exclude individual elements, place your cursor in
the element's row and choose the Exclude Element button.
If you want to include particular elements from other classifications,
choose the Include Element button.
Select the element you want to include in the Elements window, and
choose the OK button.