Defining a Payroll
A payroll is a set of employees whose pay you process with a single frequency, for example, weekly or monthly. You can define as many payrolls as you require to meet the pay policies of your enterprise. You put an employee on a payroll by assigning him or her to the payroll.
Use the Payroll window to define a payroll, including its calendar and valid payment methods.
Period Types and Calendars
Since a payroll has only one pay frequency, you must define at least one payroll for each pay frequency you use. Table 1 - 5 shows the valid period types for pay frequency.
| Year
| 1
|
| Semi-Year
| 2
|
| Quarter
| 4
|
| Bi-Month
| 6
|
| Calendar Month
| 12
|
| Lunar Month
| 13
|
| Semi-Month
| 24
|
| Bi-Week
| 26
|
| Week
| 52
|
Prerequisites
Define the payment methods available for your employees.
1. Set your effective date to a date early enough to handle any historical information you want to enter. Your effective date must be on or before the first period start date of the payroll calendar.
3. 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. You can increase this number later to generate additional years.
When you enter the First Period End Date, make sure that the corresponding start date of the first period is after the start date of the payroll.
4. In the Date Offset region, you can change the zero default to a negative or positive number of days before or after the period end date. For example, for a semi-monthly payroll, the Cut Off date can be 3 days before the period end date (-3), while the Scheduled Run and Check dates can be 5 and 7 days after this date, respectively.
These offsets are the defaults for the calendar. You can manually make date changes in the calendar, for example when an offset date falls on a weekend or holiday, by choosing the Period Dates button.
5. Select a default payment method for employees who have no valid personal payment method. You cannot select a method using magnetic tape because this requires information about employees' bank accounts.
6. Select a default consolidation set for this payroll. One consolidation set is created automatically when you define your Business Group. Oracle Payroll users can create other consolidation sets for payroll processing.
The information you enter here depends on the setup of your Cost Allocation key flexfield.
8. Check the Negative Payment Allowed checkbox if you want the pre-payments process to include negative payments. If you leave the box unchecked, pre-payments ignores negative payments.
Your Oracle localization team may have created fields in this window.
Note: The Statutory Information field is not visible if your HR:User Type profile option is set to HR User.
- You can view the default offset dates for every period, and you can manually override any of these dates in any record.
- You can change the payroll's default Open status in any period to Closed to prevent further element entries. You can also reopen the period if necessary.
Attention: Use this feature with caution. When you perform certain important tasks in Oracle HRMS, the system may automatically create or delete element entries. These tasks include hiring and terminating people, and updating assignments. You cannot change any element entries that span a closed payroll period, and so you may be prevented from performing these tasks.
Note: An employee assigned to this payroll can have any number of personal payment methods chosen from those you enter here for the payroll.
You can delete a payroll if there are no active employee assignments or element links to it. However, if you have run processing for a payroll it is not advisable to delete it. If necessary, define a new payroll and simply discontinue use of the old payroll.
