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Implementation Steps: Compensation and Benefits

Oracle HRMS uses elements to represent all types of earnings, deductions and benefits. Elements hold the information you need to manage compensation and benefit administration.

Warning: If you intend to process an element in a payroll run you MUST plan all of your setup before you begin to define the element. This includes the element attributes, processing rules, input values, formulas, results and additional balances you need for accurate payroll processing and payment.

See: Introducing Elements.

Define Input Value Validation

Step 30 Define New QuickCode Types

You define new QuickCode Types to create additional lists of values to validate any element input value with a character datatype.

Note: Use the QuickCode Types form.

See: Defining QuickCode Types

Note: You can also use QuickCode Types to validate a flexfield segment. Use the Table Validation option for the Value Set and use the Lookups table as the source of your list.

Step 31 Define QuickCode Values

You add new QuickCodes Values at any time. You can set the Enable Flag for a value to 'No', so that value will no longer appear in any list of values.

Suggestion: Use Start and End Dates to control when values appear in a list. With DateTrack you change your effective date to view and update information at any point in time. If you set the Enable Flag to 'No` the value is never valid.

When you add or change QuickCode Values you should sign on again to use the new value.

Note: Use the QuickCodes form.

See: Adding QuickCode Values

Step 32 Define User Tables

With Oracle HRMS you can set up any number of 'User-Defined Tables'. A user-defined table is a 'matrix' of columns that hold different values for the same row.

For example, you may want to set up a single table to hold union pay rates, deductions and benefit levels for different job groups. Use the rows to hold 'Job Group' and the columns to hold the specific values for each job group.

Note: You can define exact row values or an inclusive range of values.

Note: Use the Table Structure form.

See: Setting Up User Tables

Note: Use the Table Values form.

See: Entering Table Values

Note: You can access table values from any formula used for input-value validation, payroll calculation or definition of skip-rules, assignment sets or quickpaint reports.

You can access this information using the GET_TABLE_VALUE function in any fastformula.

Step 33 Define Element Validation Formulas

When you define input values you can use a formula to validate any entry to that input value.

Attention: You must define the formula before you define the element input value. The type of formula is Element Input Validation with the following constraints:

FORMULA_STATUS =  'S'  or   'E'   


Note: Use the Formula form.

See: Using Oracle FastFormula for Validation

Define Compensation and Benefits for Information

Step 34 Define Elements and Input Values

Elements are the basic components of all compensation and benefit types. You can also use elements to represent tangible items distributed to employees, such as tools or safety equipment.

Note: Use the Element form.


Defining an Element (HR Users)

Defining an Element's Input Values

Suggestion: Before you start defining an element you should have made all of your decisions about the definition and the rules of eligibility.

For each element you can:

Note: If you set the Process In Run flag to 'Yes' a pay value will be created automatically.

You must set this flag to 'Yes' if you want to process this type of element in a payroll run.

Suggestion: If you plan to load details of employee entry history you should consider using a fixed date as a default for your initial setup, for example, 01-JAN-1901. This will simplify your data-entry.

You cannot enter an element for an employee before the start date of the element.

Step 35 Define Element Links

You can give an entry to an employee only when they are eligible for that element. Employees are eligible for an element when their assignment details match the link details.

You can link an element to any combination of organization, group, grade, job, position, payroll, location, employment category or salary basis.

Note: Use the Element Link form.

See: Defining Element Links

Note: You can date effectively end a set of element links and define a new set of links which take effect the next day. You cannot enter an element for an employee before the start date of the element link.

Suggestion: If you plan to load details of employee entry history you should consider using a fixed date as a default for your initial setup, for example, 01-JAN-1901. This will simplify your data-entry.

Salary Administration

See: Salary Administration and Performance Reviews

You can choose to administer 'Salary' as a special type of entry using the Salary Administration window to make use of your Grade Rate and other definitions.

Step 36 Define Proposal Reasons and Performance Ratings

You can associate salary administration with an employee evaluation and performance review process. You enter this information in the Salary Administration window.

Note: Use the QuickCodes form

See: Adding QuickCode Values

Step 37 Activate Salary

If you have not already done this, you should define your Salary element.

Note: Use the Element form.


Defining and Linking a Salary Element

Step 38 Define Salary Bases

A Salary Basis defines a relationship between the input value of a salary element and a grade rate. It also establishes the period for which a salary is quoted.

Note: Use the Salary Basis form.

See: Defining Salary Bases

Step 39 Define Element Links for Salary

You can use different elements to administer salary for different groups of employees, for example 'hourly-paid' and 'salaried'. You define the eligibility rules for your different salary elements to make sure the right element is always used.

You must enter the salary basis in the Assignment window for an employee before you can use the Salary window to enter the value.

Note: You cannot enter a salary for an employee who is not eligible for the salary element.

Note: Use the Element Link form.

See: Defining Element Links

Warning: Do not use the salary basis to define links for salary unless you want to end the salary entry on a change of salary basis.

Do not use the Standard checkbox for these links. It is unlikely that you will have a default salary value for all employees.

Element Sets

Step 40 Define Element Sets

In Oracle HRMS you can define a set of elements:

Note: Use the Element and Distribution Set form

See: Defining an Element or Distribution Set

You define an element set as a named list of elements such as Salary, or Salary and Bonus. You can also define an element set using the classification. For example, you can restrict access to all elements in the classification Earnings.

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