Payroll Exercise With Different Cases

Username:
Responsibility :- KFSH Hrms Manager Super User
Payroll Develop
1) Creating Payment Methods
a) Cheque Method

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

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

b) Bank Payment Method

It is used to transfer the salary to bank account.


2) Creating Earning Element

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

Element Name:- KFSH Salary Element (Earning) Priority= 2500
Allowance (Earning) non-recurring Priority= 2500
Mobile Deduction ( Vol Deduction) Priority= 6500 Standard , Recurring





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




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



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

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








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




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.

8) Run Payroll Run Request




9) Run Prepayment Request




10) Submit Cheque Writer



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





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.
13) Show Payroll Results
(R) HRMS Manager (N) View > Payroll Process Results



14) Retry
Retry is used when we see a small mistake just after the payroll run. We want to fix it and move ahead with the process.
Cases: So what are the cases where we would process a Retry?
We have an issue with the Calculation method used in a FF
We found out an issue with a set of assignments, where an earning was not added at all.

i) Retry Payroll Run Request - needed when allowance need to change from 1000 to 1500

a) Change allowance from 1500 to 2700 of one employee


b) Delete all post-processes.
c) Run Retry payroll request







ii) Retry Prepayments process - Process name:- Prepayments
After 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%


15) Rollback Payroll Case
We 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


b) Rollback Prepayment Request



c) Rollback Payroll Run





16) Reversal
Reversal is chosen in cases when all the processes are already complete, and we see an issue with an assignment. This will
reverse 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 gone
to 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.


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




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



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, increments
arrears 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.

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 is
an 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 Payroll
takes 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 use
the 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-Recurring
o 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
This is similar to Retry pay by aggregate. Just that it gives us the clear picture without any abstraction. It allows us to see how
backdated changes are distributed across individual processes.

Set up:
Follow everything that's there in the "Retro Pay by Aggregate". However with the following changes on the element:
o Multiple Entries allowed flag should be checked
o It just needs one Input Value "Pay Value". No Start date or end date would be required.

Retro pay by element
This is used when we want the retro to be applied for one single element without recalculating the others. Imagine just a Post
Tax Bonus was updated wrong in Joe's record. To correct situations like that, we might need Retro Pay by Element
Set up:
Update the element entries with the desired value.
Create an assignment set
Create an Element Set of type Run Set
Process Retro Pay request

Steps

1) Enable the Trigger for the event group : PAY_ELEMENT_ENTRY_VALUES_F
Trigger Action :- UPDATE
(N) Other Definitions > Dynamic Trigger definitions

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

3) Insert the trigger: PAY_ELEMENT_ENTRIES_F
4) Delete the trigger : PAY_ELEMENT_ENTRIES_F
5) 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 payroll.
6) Create Adjust Allowance Element
7) Link Adjust Allowance Element to Payroll
8) Creating Event Group (N) Total Compensation > Event Group
9) Query your existing Allowance Element and assign the event group and adjustment element In Recalculation Tab
10) Now update allowance value in Entry Value screen.
11) Creation of Element Set
12) Creation of Assignment Set
13) 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.


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 of
reporting and validations.
To measure the balance. We have dimension and levels.
Dimension:
3 Time dimensions
i) The gross earning in this month
ii) In this Quarter
iii) 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 Assignment
ii) Monthly Salary of an Employee
iii) Monthly Salary of a Department.

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


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

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 forward
negative 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







Reconciliation Payroll
Reconciliation payroll is used to verify that employees have been properly paid, expenses are applied to the appropriate accounts and
taxes are paid and reported accurately.

Not Costed / Fixed Costed / Costed / Distributed
Costed:- to allow entry of costing information at all levels, including the assignment and element entry values.
Fixed Costed:- If you do not need to cost the element at organization and assignment level then select fixed costed.
Distributed:- 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.









Documents


AIM Phases

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

ii) Operation Analysis
Phase to define the details functions, data and operational requirements that the new application system supports.
iii) Solution Design
The objective of solution design are to produce a design that meets functional requirements within business, technical and
Financial Constraints.


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


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

vi) Production
This 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)