Payroll Setups of Oracle HRMS R12 Table of Contents 1. What is Payroll?........................................................................................................... 2 2. Payroll Setup ............................................................................................................... 2 A.
Define Consolidation Set ......................................................................................... 2
B.
Define Payment Methods ........................................................................................ 2
C.
Define Payroll ......................................................................................................... 4 I.Period Type................................................................................................... 5
D.
Mapping Cost Allocation to the Accounting Flexfield ................................................. 5
E.
Define Elements ..................................................................................................... 6 I.Element type ................................................................................................. 6 II.Termination.................................................................................................. 6 III.Input Value ................................................................................................. 7
F.
Define Element Link................................................................................................ 8
G.
Define Salary Basis ...............................................................................................10
3. Define Professional Tax & ESI Organization, Registered Company & Legal Entity ..........11 4. Assign Payroll & Elements to Employees: ....................................................................12 5. Run the Payroll...........................................................................................................13
1. What is Payroll? A payroll defines a group of employees with a common frequency of payment and a common pay date, it can be weekly, bi-weekly, semi-monthly, and monthly.
2. Payroll Setup A. Define Consolidation Set A Consolidation sets are the means by which we label payroll runs for further processing, this enables us to process the results from more than one payroll in a single action. It is also used to label assignment sets when we use these for payroll processing. The same choices apply to assignment sets as to payrolls. By default there is one consolidation set its name same BG name, we can use it or make another one. Navigation -> HRMS Super User -> Payroll -> Consolidation
Press Ctrl + F11 and verify the Co. name
B. Define Payment Methods Payment Method is the way that your enterprise will pay to employees there compensation and benefits. The most common payment method types are: Direct Deposit Check/Cheque Cash
Navigation -> HRMS Super User -> Payroll -> Payment Methods
Enter bank name
Enter Bank details
Set the effective date to a date early enough to handle any historical information. Enter a name for the payment method. Choose the type and currency. Enter the Bank Details field to open the Bank Details window, this is Bank Details Key FlexField it related to Legislation of BG. Select Set of Books to indicate the set of books to use if you intend to reconcile payments using Oracle Cash Management.
Select GL Cash Account to indicate the cash account to use for the reconciliation of payments. Save your work.
C. Define Payroll Navigation -> HRMS Super User -> Payroll -> Discription
Enter the payroll name
Set the effective date to a date early enough to handle any historical information. Enter the payroll's name and select its period type from the list. Enter the end date of the payroll's first period, and the number of years for which the system should initially generate the payroll's calendar. We can increase this number later to generate additional years. In the Date Offset region, we can change the zero default to a negative or positive number of days before or after the period end date. These offsets are the defaults for the calendar. We can manually make date changes in the calendar, for example when an offset date falls on a weekend or holiday, fields in Date Offset region is related to Legislation of BG. Select a default payment method for employees who have no valid personal payment method. Select a default consolidation set for this payroll. In the Costing region, you can enter information about the set of books and suspense account holding costing information for this payroll. Save your work. Click on Valid Payment Methods, it will displayed the default payment method. Save your work.
I.
Period Type Period type explain the period of payroll and it’s frequency, this table explain pay frequency for every period type in the year: Payroll Period Types Semi-Year Quarter Bi-Month Calendar Month Lunar Month Semi-Month Bi-Week Week
Periods per Year 2 4 6 12 13 24 26 52
D. Mapping Cost Allocation to the Accounting Flexfield If our installation includes Oracle Payroll and Oracle General Ledger, we can run the Transfer to GL process in each payroll period after we have run the Costing process. The Transfer to GL process transfers costing results to the GL Accounting flexfield.
Navigation -> HRMS Super User -> Payroll -> GL Flexfield Map
Enter the Payroll name & other detail
These details would be provided by Finance Consultant
E. Define Elements Elements are the components in the calculation of employee pay. Each element represents a compensation or benefit type, such as salary, wages, overtime and pension contributions. Elements can have user-defined names, types, and values. You can use elements to: Capture any type of information Define eligibility based on assignment criteria Provide online or batch entry options There will be some fields that would have been already mentioned and some needs to be created. I.
Element type Element type refer to is the element will repeat every period or just in this period only, if it will be repeated element type will be Recurring but if it will not be repeated element type will Nonrecurring.
II.
Termination Termination rule determine how entries of the element are processed after termination of the employee, you have three choice:
Actual Termination If you want recurring entries to close down on the date the employee leaves.
III.
Final Close If you want the entries to stay open beyond the employee's leaving date so that you can continue to pay the employee. Last Standard Process The Last Standard Process date defaults to the last day of the pay period in which the employee is terminated, but you can set it to a later period when you terminate an employee.
Input Value The element entry of the element called input value it can contain up to 15 items of information, which you define when you create the element.
Navigation-> HRMS Super User -> Total Compensation-> Basic-> Element Description
F. Define Element Link Element Link used to groups of assignments that are eligible for an element. We can’t use the element without Element Link. Navigation -> HRMS Super User -> Total Compensation-> Basic -> Link
Set your effective date to the date you want the eligibility criteria to come into effect. In the Element Name field, select the Element for which you are defining a link. Check the Standard check box if you want all employees who are made eligible by the link to receive the element automatically. In the Eligibility Criteria region, select the assignment components that constitute this eligibility rule. Select the Costable Type to allow entry of costing information at all levels, including the assignment and element entry levels, select Costed. Check the Transfer to GL check box if the payroll run results from this link should be transferred to the general ledger. Use the Costing field to select a GL account code and, if present, account, then use the Balancing field to select the GL account that balances this one.
G. Define Salary Basis Navigation-> HRMS Super User-> Total Compensation-> Basic-> Salary Basis
3. Define Professional Tax & ESI Organization, Registered Company & Legal Entity Navigation-> HRMS Super User-> Work Structure-> Organization-> Description
4. Assign Payroll & Elements to Employees: Navigation-> HRMS Super User-> People -> Enter & Maintain
5. Run the Payroll Navigation: Go Menu bar and click on VIEW -> Request
