Payroll Basic Setup

8/10/2019 Payroll Basic Setup

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Payroll Basic SetupUsername:

Responsibil ity :- KFSH Hrms Manager Super User

Payroll Develop

1) Creating Payment Methodsa) Cheque Method

Note:- HR: Default Check/Cheque Number Method Profile which enables you to use the automatic check / cheque numberingprocess.

(R) HRMS Manager (N) Payroll > Payment Methods


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b) Bank Payment Method

It is used to transfer the salary to bank account.


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2) Creating Earning Element

(R) HRMS Manager (N) Total Compensation > Basic > Element Description

Element Name:- KFSH Salary Element (Earning) Priority= 2500Allowance (Earning) non-recurring Priority= 2500

Mobile Deduction ( Vol Deduction) Priority= 6500 Standard , Recurring


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3) Define Salary Basis

Salary Basis means on what basis we have to pay his salary like Hourly, Monthly, Period Salary, Annual Salary.

(R) HRMS Manager (N) Total Compensation > Basic > Salary Basis


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4) Defining Payroll

Payrolls refers to the amount paid to employees for services they provided during a certain period of time.

(R) HRMS Manager (N) Payroll > Description


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5) Define Element link for KFSH Salary Element and Link to Payroll

(R) HRMS Manager (N) Total Compensation > Basic > Link


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6) Create one employee and assign salary basis to him and define personal payment methods for that employee.

(R) HRMS Manager (N) People > Enter and Maintain > Assignments > Pay Method


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7) Click on salary tab and add his salary

(R) HRMS Manager (N) People > Enter & Maintain > Assignment > Salary

And also assign attach Allowance and Mobile Deduction element and assign value to it.


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8) Run Payroll Run Request


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9) Run Prepayment Request


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11) Submit Saudi Payment Output file Request for (Magnetic Transfer)


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12) Payroll run by using Assignment Set

a) Create Assignment Set

(R) HRMS Manager (N) Payroll > Assignment Set

b) Now run payroll by passing Assignment Set and run according all requests.


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13) Show Payroll Results

(R) HRMS Manager (N) View > Payroll Process Results


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ii) Retry Prepayments process - Process name:- PrepaymentsAfter competition of Prepayment you want to change the Payment Percentage for the employee we cando it by Retry

Prepayments.FOR Ex: ABC Personal Payment Method

KKSH Cheque Method 50% change 70%KKESH Bank Payments 50% change 30%


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15) Rollback Payroll CaseWe can use this feature to un-process the payroll. Using a rollback removes the entire history of the data.

Rollback Cases

So what are the cases where we would process Rollback?

We have processed Payroll for a person with a wrong Salary We have processed Payroll for a guy who was terminated long back We have processed Payroll for a wrong assignment set

How: How to Rollback?

To rollback payroll of a set of Individuals, Go to the View -> Payroll Process window OR Go to the View -> Assignment Process.Click on the individuals we want to rollback and select Delete Record from the Edit Menu.

To rollback payroll of an entire payroll, Submit a new request: "Rollback US Payroll Process". Choose the Payroll run. And Submit.

a) Rollback Cheque Write Request


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b) Rollback Prepayment Request


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c) Rollback Payroll Run


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16) Reversal

Reversal is chosen in cases when all the processes are already complete, and we see an issue with an assignment. This willreverse all the processes this far for the particular run for the particular assignment.

Cases: So what are the cases where we would process Reversal?

An assignment was processed incorrectly like: An employee got a payment of $400 by a check, which should have goneto someone else.

How: How to Reverse?

Open the Employee's assignment screen. Others -> Reverse Run Select the Run we want Reverse. Check the Reverse check Box.


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17) Quick Pay for a single employee

(R) HRMS Manager (N) People > Enter and maintain > Assignments > Others > Quickpay

Select a single employee for who you want to run quick pay


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18) Rollback Quickpay by using request rollback request (first Quickpay prepayments, second Quickpay run)

Now by mistake I enter date_paid for abc employee is 01-jan-1951 instead of 31-jan-1951 so I rollback records for abc employee.

i) First rollback quickpay prepayments


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ii) Rollback Quickpay run

Retropay

Retro pay is usually run for back dated increments or promotions to be paid in current period. For example in a company, incrementsarrears are paid two months after the increment period, so we need to run retro pay to make this payment in current period.

The challenges are:-

1. Feb06 period is already closed. Hence you cannot rerun the payroll for the month of February06 again.


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2. You do not wish to capture that Element Entry in May06, as that can cause audit issues, and also can have tax implications as this isan Earning Element

3. my system will need the entire calculation to be done once again. Not only that, even my balances will need updates. Oracle Payrolltakes care of all that. Let's discuss how to achieve the same.

Types of Retro Pays

Retro pay by aggregate

We can use this, if we do not want to see the way payroll derives the amount. For example joes salary change from 450$ to 550$.Now we are in march payroll. So in this case we will never see how payroll came up with that $300 for the 3 months, if we usethe retro pay by aggregate.

Set up:

Complete the Salary level changes. First thing is to create/ update the element entries with the new value. Now, create the retro pay elements with the following details.

o Pick an appropriate classification. Should not be Information.o Type should be Non-Recurringo Should have three input values - Pay Value, Start Date, End Date

Create an Assignment set with the Impacted assignments Link the element to the assignment set Create a Retro pay set Process Retro pay request.

Retro pay by run


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2) Enable the Trigger for the event group : PAY_ELEMENT_ENTRIES_FTrigger Action :- Update

3) Insert the trigger: PAY_ELEMENT_ENTRIES_F4) Delete the trigger : PAY_ELEMENT_ENTRIES_F5) Navigate to a screen named Function Area Maintenance to ensure that the desired pre -installed triggers are visible as below.

Query an INCIDENT REGISTER in name field to decide wheather to capture the triggers by legislation, business group or payro6) Create Adjust Allowance Element7) Link Adjust Allowance Element to Payroll8) Creating Event Group (N) Total Compensation > Event Group9) Query your existing Allowance Element and assign the event group and adjustment element In Recalculation Tab10) Now update allowance value in Entry Value screen.11) Creation of Element Set12) Creation of Assignment Set13) Submit a Request Retro Notification Report (Last Payroll Month i.e FEB 2013)14) Submit a Retro pay by Element Request

( here start date is the start date of retro period means(01-jan-2013) and end date is the start of your present period (01-mar-2013)15) Now comeback to current month and submit the current month payroll run and prepayments requests.


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Balance

Balance is useful to store positive or negative accumulation of elements. This can be fed by the pay run results or by an input value.Usually a balance is created when we need to track an aggregated value associated to one or more elements, for the purpose ofreporting and validations.

To measure the balance. We have dimension and levels.

Dimension:

3 Time dimensions

i) The gross earning in this monthii) In this Quarteriii) In this year

Levels:

These are the levels on which dimensions will be applied, if we take Month as the time dimension, the levels can be

i) Monthly salary of an Assignmentii) Monthly Salary of an Employeeiii) Monthly Salary of a Department.

Balances are the way of keeping track of one or more elements with various dimensions and levels.


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How can we hold and release salary for employees ?

Solution

We can create EIT for hold salary with segments like Hold Salary date and Release Salary Date

Create element like

i)

Hold Salary Element (Deduction)ii) Release Salary Element (Earning)

Create Balance for Hold and Release Salary

Element:- Hold Salary Element (Add)

Release Salary Element (Substract)

Arrears

Arrears Is used for recovery. Suppose our deduction are increased then earnings.

Earning Deductions

Basic Salary 3000 Unpaid Leave 3000

Allowance 1000 Loan EMI 3000

==== =====

4000 6000


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So Earning Deduction = 4000-6000= -2000

In this case Company cannot paid salary in minus. So Arreas is used to adjust the amount to paid to employee and take carry forwardnegative balance to the next month deduction.

Solution:

For low priority element create one earning element

i.e Unpaid Leave having the low priority.

Create Arreas element for unpaid leave named Arreas Unpaid Leave (Deduction)

Create the balance for unpaid leave adjustment in next month

Unpaid leave Action: Add

Arreas Unpaid Leave Action:- Subtract


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AIM Phases

i) Project Definitions phase of Project Planning, Resource Planning, Phase Planning, BudgetingUnderstanding the current Business Process.

ii) Operation Analysis

Phase to define the details functions, data and operational requirements that the new application system supports.


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iii) Solution DesignThe objective of solution design are to produce a design that meets functional requirements within business, technical andFinancial Constraints.

iv) BuildThe objectives of the build phase is to develop, test and accept custom software.

v) TransitionThis phase calls for preparation of going live in terms of application, operating environments.This is the period of end-user training, user learning.

vi) ProductionThis is the phase of the newly system gone live

Balance Adjustment

Balance Adjustment Is used to correct the balance value.( so the correct value is used in further payroll processing and reporting)

Payroll Basic Setup

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