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5 Distribute Payroll Payments

This chapter contains the following:

Distribute Payroll Payments: Overview

Viewing and Editing Archive Results: Explained

Viewing Payments: Points to Consider

Corrective Actions for Payments: Critical Choices

Correcting Payments: Examples

View Reports

FAQs for Distribute Payroll Payments

Distribute Payroll Payments: Overview

The Distribute Payroll Payments activity comprises several tasks related to making payments. You typically make payroll payments as part of your normal payroll cycle flow. You can also generate payments as part of a QuickPay flow or as a standalone process.

This figure shows the sequence of payment distribution tasks for a sample payroll cycle flow. Your payroll cycle may include additional tasks. For example, some localizations support cash payments.

Distribute payroll payments tasks in sequence

Generating Check Payments

The Generate Check Payment process generates check payments, in a predefined format, for all payees (including third-party payees) with a method of payment of check and a net pay greater than zero. The format of printed checks and the information printed on the checks and check stubs vary based on your organization's needs and statutory requirements. Typically, you generate checks as part of the normal payroll cycle flow, but you can also run this as a standalone process in the Payment Distribution work area.

When you submit the check payment process, you select the payroll, process end date, organization payment method, and starting check number. Optionally, you can specify additional parameters to limit the scope of the process, such as the process start date, payment source, overriding payment date, ending check number, and consolidation group. Before you begin printing checks, ensure that the starting check number in the system matches the printed check. If your preprinted checks come in batches, use the ending check number parameter to specify the last number of the check number range.

You can view the results of the check payment process on the Payment Results section of the View Person Process Results page.

Making EFT Payments

The Make EFT Payment process generates electronic funds transfer (EFT) payments, also referred to as direct deposit payments, for all payees (including third-party payees) with a method of payment of EFT. Typically, you make EFT payments as part of the normal payroll cycle flow, but you can also run this as a standalone process in the Payment Distribution work area.

When you submit this process, you select the payroll, process start and end date, and organization payment method. Optionally, you can specify additional parameters to limit the scope of the process, such as a payment source, overriding payment date, and consolidation group. You can view the results of the EFT payment process on the Payment Results section of the View Person Process Results page.

Making External Payments

You can make external payments as necessary to address special situations where you do not want to use the normal payment process. For example, you may want to make an external payment to replace a lost check that you have voided or create a final payroll check for a terminated employee. Or, you may want to pay using a different payment type or payment source than specified in the payment process. The Make External Payment task is part of the QuickPay flow and can be run as a standalone process. You can also select an external payment action from the View Person Process Results page for payments with a status of Void or Unpaid. External payment actions are:

  • Make payment from same bank account

  • Make payment from different bank account

  • Make other form of payment

For each action, you can specify a reason and a check or payment number. For payments to a different bank account, you must specify the payment source. For other forms of payment, you must specify the payment type and payment source.

Archiving Periodic Payroll Results

Archiving periodic payroll results makes them available for reports, such as the payroll register and payslips. The archive process is an automatic task within the normal payroll cycle flow, occurring after payments are generated. (Some localizations use a check payment process that uses archived payroll data. For these localizations, the periodic payroll archive must be run before generating check payments.) You can also run this task as a standalone process in the Payment Distribution work area.

When you submit this process, you specify the payroll and the process start and end date. Optionally, you can specify additional parameters to limit the scope of the process, such as consolidation group. You can view the results of the archive process on the View Person Process Results page.

Running the Payroll Register

The Payroll Register is both a verification tool and an audit trail. This report has a summary and detail version. The summary report shows totals for hours, earnings, and deductions by payroll statutory unit and tax reporting unit; the detail report shows complete payroll run details for each employee. The Run Payroll Register task is an automatic task within the normal payroll cycle flow, occurring after the archive process. You can also run this task as a standalone process in the Payment Distribution work area. The Payroll Register retrieves archived payroll results, so be sure that run results have been archived before running this report.

When you submit this process, you specify the payroll and the process start and end date. You can also specify additional parameters to limit the scope of the process, such as payment source, and consolidation group. You can view the report on the View Person Process Results page.

Generating and Verifying Payslips

You typically generate payslips after generating payments and archiving. Generate Payslips is an automatic task within the normal payroll cycle flow, but can also be run as a standalone task in the Payment Distribution work area. The payslip process uses both archived payroll data and data produced by the payment process.

When you submit this process, you select the payroll and the process start and end dates. The process generates a payslip for all paid payments matching your criteria, for which the archive process has been run and a payslip has not yet been generated. The process will not generate a payslip for payments that have been voided or payroll calculations that have been reversed.

You can view the results of the process on the View Person Process Results page. Employees can view their payslips from the Portrait page. The Payslip View Date in the payroll definition determines when payslips will be available for viewing.

Running the Payment Register

You typically run the Payment Register after generating and verifying payslips. Run the Payment Register to verify and provide an audit trail of payments generated. This report has a summary and detail version. The summary report shows total amounts paid by payment category, type, and method; the detail report shows payments for each employee. It includes payments generated by all payment processes, including external payments. Run Payment Register is an automatic task in the normal payroll cycle flow, occurring after payment generation, but can also be run as a standalone process in the Payment Distribution work area. You can run this report before or after generating payslips.

When you submit the process, you specify the payroll and the process end date. Optionally, you can specify other parameters to limit the report's scope, such as the payroll statutory unit, payment process, payment category, payment type, payment method and check number range. You can view the report on the View Person Process Results page.

Viewing and Editing Archive Results: Explained

Since archived data is used to generate the payroll register and payslips, it is critical that the archive process completes successfully and that it includes all the information it should. You can view the results of the Archive Periodic Payroll Results process on the View Person Process Results page. Depending on your user privileges and the restrictions in place for your system, you may be able to edit archived data.

Viewing the Archive Results

Use the Archive Results section on the View Person Process Results page to view a summary of archived results and drill down to view individual archived records.

The data archived by this process may vary depending on your legislation and your organization's reporting requirements. Archive payroll data typically comprise four types of information:

  • HR data, such as employee and employer address details, accruals, and assignment details

  • Element information, such as earnings and deductions

  • Balance sets

  • Messages

Archive results include prepayment information used to generate payslips. Prepayment information for external payments is also included in the archive.

Review the archive results to determine if there are any errors or if there are assignments or records that should be included in the archive, but were not processed. If errors exist, review the employee's HR or payroll data to determine what caused the errors or prevented the employee from being included in the archive. After correcting the errors, you will need to roll back the affected processes and then rerun them.

Editing the Archive Results

By default, the extract definition for the payroll archive does not allow editing of the output. However, if editing has been enabled for your system and you have security privileges to perform this task, the Edit button in the Archive Results section of the View Person Process Results page is enabled. Any changes you make to the archived results will be stored in the archive table and used by the payroll register and payment processes.

Note

If you modify the archive results, they will no longer match the payroll results from which they were generated. For this reason, you should avoid making manual updates to the archive unless absolutely necessary.

Viewing Payments: Points to Consider

View payments to verify payee and amount information and to determine the payment status. You have a choice of different ways to locate and view payments, based on the work area and the type of payment information you want to see.

Work Area

This table contrasts the advantages of viewing payment information from the Payroll Checklist or the Payment Distribution work area.


Payroll Phase

Work Area Starting Point

Available Tasks

Working on the current payroll or QuickPay run

Payroll Checklist

On the Payroll Flow checklist page, click the Task Details tab to see a list of payment tasks and their statuses.

Navigate to the Payroll Flow Processes and Reports tab for a particular task and perform standard task actions, such as Mark for Retry, Retry, and Roll Back.

If a process has completed, view the output of the process or navigate to the View Person Process Results page to view individual payment results and take corrective action.

Working on tasks for different payroll periods or payroll runs

Payment Distribution

Use the Payments search in the regional area to query payments by payment method, payee, or legislative data group. You can view payment details, but no actions are supported from the Payments search results.

Use the Overview page to search for a payment process flow. Navigate to the Payroll Flow Processes and Reports tab and from there to the View Person Process Results page.

You can also use the View Payroll Process Results and View Person Process Results tasks to navigate to the payment results and take corrective action.

Type of Payment Information

Decide which type of payment information you want to view:

  • Results for the entire process

    Query the payroll flow from the Overview page of the Payroll Checklist or Payment Distribution work area. From the Payroll Flow checklist, go to the task you want to view. From the Payroll Flow Processes and Reports tab, click the process for which you want to view results.

    You can also use the Payroll Register to view summary-level payment information for a payroll run.

  • Results for one person

    To quickly locate a person's payment results, use the Payment search in the regional area of the Payment Distribution work area or select the View Person Process Results task in the Tasks pane.

    You can also use the Payroll Register to view detailed, person-level payment information.

Corrective Actions for Payments: Critical Choices

Several types of corrective actions are available for payments, depending on the cause of the error and status of the process.

  • Voiding Payments

  • Reissuing Payments

  • Canceling Payments

  • Preventing Reissue of Payments

  • Making External Payments

  • Reversing Payroll Calculations

  • Using the Standard Payroll Flow Task Actions: Roll Back, Mark for Retry, and Retry

Voiding Payments

Void a check payment that was lost, stolen, or destroyed. You can also void an electronic funds transfer (EFT) payment if, for example, it was sent to a bank account that is now closed. You can only void a payment that has a status of Paid or Reconciled. Voiding a payment does not reverse or delete any payment calculation information; it simply updates the status of the payment record to Void. After voiding, you can reissue the payment in the next payment run, make an external payment, or prevent reissue of the payment.

To void a payment, you can either submit the Void Payment process in the Payment Distribution work area or select the Void Payment action from the View Person Process Results page for the payment.

Note

When you void a check payment, you should also contact the bank that holds the source account to stop payment on the check, unless the check is in your possession.

Reissuing Payments

Once you have voided a payment, it will be reissued automatically the next time you run the payments process for the same payment type, payment method, and payment date as the voided payment, unless you prevent reissue or make an external payment.

You can define a Reissue payroll flow pattern that includes the void payment process and the desired payment process.

Canceling Payments

Use the Cancel Payment flow to cancel a payment that has been generated but not issued (or issued and then returned). For example, you might cancel a check that was generated for the wrong person. You can only cancel a payment that has a status of Paid or Reconciled. The Cancel Payment flow sets the payment status to Void, prevents reissue of the payment by the normal payment process, rolls back the prepayment process, and reverses the payroll calculation. Once you cancel a payment, you can correct the underlying problem and run a QuickPay process.

To cancel a payment, submit the Cancel Payment flow in the Payment Distribution work area.

Preventing Reissue of Payments

If a payment record is marked as Unpaid or Void, a payment will be generated automatically the next time you run the payment process that includes the payment. If you want to prevent the payment from being issued, select the Prevent Reissue of Payment action from the View Person Process Results page, and enter a reason. This action updates the payment status to Paid. The Cancel Payment flow includes the Prevent Reissue of Payment task.

Making External Payments

You can make external payments as necessary to address special situations where you do not want to use the normal payment process. For example, you may want to make an external payment to replace a lost check that you have voided or create a final payroll check for a terminated employee. Or, you may want to pay using a different payment type or payment source than specified in the payment process. The Make External Payment task is part of the QuickPay flow and can be run as a standalone process. You can also select an external payment action from the View Person Process Results page for payments with a status of Void or Unpaid. External payment actions are:

  • Make payment from same bank account

  • Make payment from different bank account

  • Make other form of payment

For each action, you can specify a reason and a check or payment number. For payments to a different bank account, you must specify the payment source. For other forms of payment, you must specify the payment type and payment source.

Reversing Payroll Calculations

You can reverse a payroll calculation after payment has been generated if, for example, a check was issued to the wrong person. This differs from the Roll Back action, which can only be performed if payment has not yet been made. The reversal process generates a negative run result to offset the original run result, and maintains an audit trail. Reversal does not affect the payment itself, only the payroll run results and costing results.

You can reverse payroll calculations using the Cancel Payment flow, described earlier, which also voids the payment and prevents reissue. Alternatively, you can reverse the payroll run results and costing results by doing one of the following:

  • Select the Reversal action from the View Person Process Results page. Use this to reverse an individual calculation.

  • Run the Reverse Payroll Calculation process in the Payroll Calculation work area to reverse a set of payroll calculations based on the parameters you select. For example, you can reverse calculations for a specific process date, payroll process, run type, and payroll relationship group.

Run the reversal process only if payment has already been generated. If you reverse the calculation after running prepayments, but before the payment process, the payment will still be issued.

Using the Standard Payroll Flow Task Actions: Roll Back, Mark for Retry, and Retry

If an error prevents successful completion of the payroll calculation or payment generation process, you can correct the underlying data and then use standard payroll flow task actions, Mark for Retry and Retry, to retry the process with the corrected data. The availability of these actions depends on the status of the process. For some tasks that generate files, such as reports, checks, and EFT payments, you can retry or roll back the entire task but not individual results.

If a process completes successfully, but the results are incorrect, you can use the Roll Back action to negate the results of the process and leave no audit trail. This effectively lets you start over with no trace of the action. Once a payment has been issued, you cannot roll back the payment; you must cancel the payment, which reverses the payroll calculation.

Correcting Payments: Examples

These examples illustrate scenarios in which corrective actions are required for payments and identify the correct action to take in each scenario.

Employee's Check is Lost

Scenario:

An employee's check is lost, stolen, or destroyed.

Corrective Action:

Void the payment and issue a replacement. Submit the Void Payment process in the Payment Distribution work area or select the Void Payment action from the View Person Process Results page. Once voided, you can reissue payment in two ways:

  • Make an external payment. This process prevents the check from being included in the next payments run. You can record the check number for the replacement check and the reason why you are making the payment externally.

  • Allow the payment to be processed and paid by the normal payment process. Because the payment's status is marked as Void, it will be included automatically when you run the payments process that includes the date of the voided payment, unless you prevent its reissue. The replacement check retains the original payment date.

Contact the bank that holds the source account to stop payment on the check, unless the check is in your possession.

Employee Receives a Check for an Incorrect Amount

Scenario:

An employee receives a check for the wrong amount due to an error in the number of hours worked, pay rate, leave taken, deduction processed, or other input to the payroll calculation.

Corrective Action:

If the check has not been cashed or deposited, you can:

  1. Cancel the payment, which voids the original check, prevents its reissue, rolls back the prepayment process, and reverses the payment calculation.

  2. Correct the data error that caused the incorrect pay amount.

  3. Run a QuickPay to recalculate the run results and prepayments, and then make an external payment to the employee for the correct amount.

    Note

    Alternatively, you could select the Skip Flow action after calculating QuickPay prepayments to skip the rest of the tasks in the QuickPay flow, and then run a payment process, such as Generate Check Payments, to make the payment. Because the status of this payment would be Unpaid, it would be picked up automatically, based on the process date and other parameters you provide when you submit the payment process. This approach might be preferable if you need to run several QuickPay runs for the same payroll. Another alternative would be to wait until the next normal payroll run.

If the check has already been cashed or deposited, you can correct the payroll information and then run the Recalculate Payroll for Retroactive Changes process to calculate the overpayment or underpayment.

  • If the employee was underpaid, you can generate an external payment for the arrears amount or include it in the employee's next payroll check.

  • If the employee was overpaid, arrange a repayment schedule with the employee. The retroactive calculation process can calculate and deduct the amount of the overpayment from the next payroll period or deduct a specified amount from subsequent periods until the overpayment balance reaches zero.

Checks Need to be Reprinted Due to a Printer Problem

Scenario:

Your printer jams while printing a batch of checks. One check is destroyed and another comes out blank, causing the check sequencing to be out of sync.

Corrective Action:

Since the checks have not yet been issued, you can roll back the batch check payment process and then rerun. If the printing problem results in missing check numbers, you should void the checks so they can be accounted for. Be sure to adjust your starting and ending check numbers as needed when you resubmit the payment process.

Note

It is usually best to roll back all the check payments. If you mark individual checks for retry, their check numbers are unlikely to be contiguous and it would be difficult to print them on the correct preprinted check stationery.

Employee Wants to be Paid in a Different Currency

Scenario:

An employee works and is taxed in the UK, but wants payments to be made to a bank account in his home country of China. Thus, the net pay amount should be converted from sterling to yuan.

Corrective Action:

  1. Define an organization payment method of EFT for the Chinese currency

  2. Define a personal payment method for the Chinese bank account.

  3. Run QuickPay and select the new payment method. QuickPay calculates the correct pay amount in the currency associated with the selected payment method.

  4. Make an EFT payment to the Chinese bank account.

EFT Payment is Made to a Closed Bank Account

Scenario:

An employee changes banks without notifying the payroll department, and an EFT payment is made to an account that has been closed.

Corrective Action:

Void the EFT payment. Once voided, you can either allow the payment to be processed in the next payroll run or make an external payment.

Payroll Check Expired Before it was Cashed

Scenario:

Your payroll checks expire after 90 days, and an employee notifies you that she never cashed a check that was issued four months ago.

Corrective Action:

Void the original check. Run the Generate Check Payments process and set the new payment date in the Override Payment Date parameter.

View Reports

Payment Distribution Reports: Overview

Oracle Fusion Global Payroll provides a set of reports to help you verify payment calculations and payment distributions.

The payroll manager can run these reports from the Payment Distribution work area.


Report

Purpose

When to Run

Example of Usage

Payroll Register

Verification, validation, and audit of payroll calculations

After calculating payroll and archiving periodic payroll results

Use the summary report to verify total payment amounts per balance category for a payroll period for a payroll statutory unit or a tax reporting unit.

Use the detail report to review the complete payroll run details for each employee for payroll balancing and reconciliation purposes and to compare the payment values to previous periods.

Payment Register

Verification and audit of payment distributions

After calculating prepayments, running the payment process, and generating payslips

Use the summary report to verify the total amounts paid by payment category, type, and method.

Use the detail report to validate payments for each employee, including the payment amount, bank, and check information.

Payslips

Provides a record of individual payroll payments received, including pay amounts, deductions taken, and accruals

After generating payments and archiving periodic payroll results

Generate payslips for all employees as a record of payments made.

Employees can view or print their payslips from the Portrait page.

FAQs for Distribute Payroll Payments

When should I archive payroll data?

Payroll results must be archived before you run the payroll register or generate payslips, as these processes use archived data. The global payroll cycle flow includes the archive process, which occurs after payment generation. Some localizations support a check payment process that uses archived payroll data. For these localizations, the periodic payroll archive process occurs before generating check payments in the payroll cycle flow. In such cases, your localization-specific payroll cycle flow should reflect the proper sequence of tasks. If you submit standalone payroll processes, you can archive the results using the Archive Periodic Payroll Results task in the Payment Distribution work area.

What's the difference between voiding and canceling a payment?

Voiding a payment simply sets the status of the payment to Void and enables you to reissue a replacement. For example, you might void a payment if an employee loses their payroll check.

Canceling a payment initiates a payroll flow that voids the payment, prevents the payment from being reissued by the payment process, rolls back the prepayment calculation, and reverses the calculation for the payroll run results. For example, you might cancel a payment that was generated for the wrong employee. You can only cancel payments that have been generated but not yet issued to the bank or employee (or that have been issued and then returned).

Can I roll back a payment after it has been generated?

No. Once payment has been issued, you cannot roll back the payment process. If the payment is incorrect, you can cancel the payment provided it has not been disbursed or the monies have been returned to your company. If the original check payment was correct, but was lost or destroyed, you can void and reissue it. An exception would be if all of the checks in a payment run were damaged. In this case, you could roll back the entire payment process and rerun it, since the payments were generated but not actually issued.

How do I generate payments to third-party payees?

When you run the check or EFT payment process, either as part of the payroll cycle flow or as a standalone process, it automatically generates third-party payments for all deduction elements being processed, based on the payroll, process dates, organization payment method, and other flow parameters you specify. Payment methods for all external payees must already be defined.