Oracle HRMS Payroll Setup SolutionVersion: 1.0Date: 20-Oct-2011HRMS Capability Innovate.....Create....Collaborate

AgendaNote: To enable the hyperlinks, please view the power point in the presentation mode.*HRMS Data Migration SolutionPurpose 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 consultant, PM and Presales team. Why Is it NeededFew 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.

*Oracle HRMS Payroll Setup

*Pre-Requisites for Payroll Run

Packages with all required functions for fast formulasResponsibilitiesMenusFunctionsUserBusiness Group

Payroll Setup Sequence*

SequenceStepMethodology1Consolidation Set2Payment Methods3Payroll Description4Element Description5Element Input Value6Salary Basis7Element Link8Global Value9Formula Function10Balances11Fast formula12Formula Results13Assignment Set14Element Set

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 MethodEnter a name for the Payment method, and select its type.

Navigation: HRMS ManagerPayrollPayment method

*Payroll DescriptionNavigation: HRMS ManagerPayrollDescription

Note: For detailed explanation refer next three slides

Payroll SetupEnter 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 dateIn 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 Pre-Payments 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 MethodEnter the valid payment methods corresponding to the particular Payroll

Element DescriptionNavigation: HRMS ManagerTotal CompensationBasicElement Description

Note: For detailed explanation refer next two slides

Element SetupEnter 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 endedNon-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 employeeSelect 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 ContSelect: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 one-time 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 ValuesUncheck the User enterable for Pay ValueEnter 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 BasisSalary 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 LinkNavigation: HRMS ManagerTotal CompensationBasic Link

Define the element link and provide eligibility criteria for the element

Note: For detailed explanation refer next three slides

Element Link ContIn 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

BalancesDefine Balance for elements you need to maintain carry-over values.For example, Leave, Gratuity etc.

Navigation: HRMS ManagerTotal CompensationBasic Balance

Note: For detailed explanation refer next slide also.

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

Fast FormulaDefine 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 ContWrite the formula and verify it.

Generic Fast Formulas

Formula ResultsDefine rules for formula results.Use the Formula Result Rules window to associate one or more formula processing rules with an element.

Navigation: HRMS ManagerTotal CompensationBasic Formula ResultsNote: For detailed explanation refer next two slides

Formula Results ContSelect 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 ContIf 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 SetUse 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 ContDefining an Assignment Set by Including or Excluding Assignments

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 CriteriaDo 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 SetEnter a unique name for the set and select the type: Distribution, Run, or Customization

Navigation: HRMS ManagerPayroll Element SetNote: For detailed explanation refer next two slides

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 windowSpecify 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 balancesDistribution 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.

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