Understanding Festive Advance Payroll IntegrationThis chapter provides overviews of festive advance payroll integration and festive advance payments in Global Payroll and discusses how to:
Post and unpost festive advance payments.
Pay festive advance payments in Global Payroll.
Note. The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for Malaysia. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll 9.0 PeopleBook.
See Also
Understanding How to View Delivered Elements
Understanding Festive Advance Payroll IntegrationThe festive advance payment ensures that employees have sufficient money to pay for the larger-than-usual expenses that are often incurred during certain festival periods. This money is not a bonus or additional salary; it is a form of interest-free loan that is advanced by the employer, and it is recouped by deductions that are made in subsequent payrolls.
You set up base information such as calculation rules and a pay program and then calculate and review the appropriate festive advance amounts for individual employees in Human Resources. Then Global Payroll for Malaysia enables you to:
Distribute the amount to the employee.
Recover the advance from the employee in subsequent payrolls.
The following steps provide an overview of the integration between Human Resources and Global Payroll for Malaysia. These steps cover the process for setting up, posting, paying, and recovering festive advance amounts.
Note. You first use Human Resources to set up and manage festive advances (steps 1–8). Then you use Global Payroll to post, pay, and recover the advances (steps 9–12).
A quick review of the following steps provides an overall understanding of the Administer Festive Advance business process in Human Resources:
Set up religions and ethnic groups by using the Religions page and Ethnic Group page in Human Resources.
Set up the default religions and ethnic groups for employees by using the Modify a Person - Regional page.
Set up the rules by which the festive advance amounts are calculated by using the Festive Advance Calc Rule (festive advance calculation rule) page.
Group festive advance payment rules to create the programs that you use to pay festive advances to employees by using the Festive Advance Pay Program page.
You select the festive advance earnings and deductions that are used in Global Payroll to pay and then recover the festive advance after posting. You also use this page to select the calculation rule, which determines whether the system uses a flat amount, a percentage, or both.
Link festive advance pay programs to specific codes by using the Job Code Table - Job Code Profile page.
Override any default festive advance setup for specific employees by using the Job Data - Employment Information page, and specify a date from which the employee is eligible for festive advance.
Identify eligible employees and calculate the festive advance based on setup, rules, and type of festive holiday by using the Festive Advance Calculation page.
Festive advance amounts are stored in the FA Payments table.
Review and confirm festive advance calculations.
View, change, and approve calculated festive amounts online by using the FA Employee Details page and the FA Pay Details page.
Post calculated festive advance amounts to Global Payroll by using the run control page.
The posting process (GPMY_FA_POST_AE) enables you to copy the festive advances from the FA Payments table into the Global Payroll Positive Input tables. You can then nominate the calendar to which the payments are posted.
Festive advance earnings for each festive amount type enable you to pay the festive advance.
When an advance is paid, it is added to the following two accumulators:
FAD AC ADV AMT (advance amount accumulator).
This accumulator holds the amount paid, and it is cleared when each advance is paid so that it contains only the value of the last paid advance.
FAD AC FA BAL (outstanding balance accumulator).
This accumulator is used to hold the outstanding balance, and it is reduced by the payback deductions.
Customary festive advance payback deductions, corresponding to each of the festive advance types (and supporting elements), enable you to deduct festive advance amounts in subsequent pays.
This enables you to recover all of the outstanding festive advance payments when an employee is terminated.
See Also
PeopleSoft Enterprise Human Resources 9.0 PeopleBook: Administer Workforce
PeopleSoft Enterprise Human Resources 9.0 PeopleBook: Administer Festive Advance
PeopleSoft Enterprise Global Payroll 9.0 PeopleBook
Understanding Definition of Deductions
Understanding Festive Advance PaymentsThis section provides an overview of recovery of festive advance payments and discusses how to manage festive advance recoveries.
Recovery of Festive Advance Payments
Global Payroll enables you to make the actual festive advance payments through the Global Payroll system. However, as festive advance payments are advances, they must be recovered through deductions in the payroll system in subsequent pay periods. Separate customary deductions corresponding to each of the festive advance types and supporting elements enable you to deduct festive advance amounts in subsequent pay periods. This enables you to recover the entire outstanding festive advance payments when an employee is terminated.
You specify the deduction elements to use for the recovery of the festive advances on the Festive Advance Pay Program page in Human Resources. To ensure that you select appropriate deductions on this page, the system enables you to select only deductions with a category of FA (festive advance). All elements created use this category. Separate deductions are provided for recovering advances for each of the festive advance types, and they are all set up identically.
The following festive advance deductions enable you to recover festive advance payments (they add to the FAD AC FA BAL accumulator):
CNY DD PB (Chinese New Year payback).
DEEPA DD PB (Deepavali advance payback).
XMAS DD PB (Christmas advance payback).
HARI RAYA DD (Hari Raya advance payback).
Note. Deductions are delivered to recover 100 percent of the advance in the following period. To spread it out, change the percentage on the deduction.
Festive Advance Recovery ProcessThe following supporting elements control the processing of festive advance recoveries (payback):
When an advance is paid, it is added to two accumulators:
FAD AC ADV AMT (advance amount accumulator).
This accumulator holds the amount paid, and it is cleared when each advance is paid so that it contains only the value of the last paid advance.
FAD AC FA BAL (outstanding balance accumulator).
This accumulator holds the outstanding balance, and it is reduced by the payback deductions.
The amount for the payback deductions is based on the first accumulator (the amount of the last paid advance).
Although, in the delivered rules, it is 100 percent of that amount, you can use variable FAD VR RECVRY PCT to change this percentage to spread the repayments as required.
Note. Accumulators are updated at the end of the process, so the payback deduction is calculated based on the accumulators from the previous pay, not including any newly paid advance.
The post-processing formula FAD FM ADV LIMIT is used with all of the deductions to limit the deduction amount to the outstanding balance (the second accumulator, FAD AC FA BAL).
If an employee's termination date falls within the current period, the post-processing formula overrides the deduction amount with the entire outstanding balance so that the advance is always fully repaid on termination.
The formula FAD FM ADV PBCK determines whether an outstanding advance needs to be repaid (in accumulator FAD AC FA BAL).
If so, the formula then determines whether the current deduction is the one specified in the employee's festive advance program for paying it back. The outstanding balance is also verified in the FAD GC ADV PBCK generation control to save calculating when there is no advance to repay. An error message is generated if the gross pay is less than the amount to be deducted.
The array FAD AR PBCK DEDN loans the deduction code that is assigned to the employee's festive advance program and holiday type to the variable FAD VR PBCK DEDN.
See Also
PeopleSoft Enterprise Human Resources 9.0 PeopleBook: Administer Workforce
PeopleSoft Enterprise Human Resources 9.0 PeopleBook: Administer Festive Advance
PeopleSoft Enterprise Global Payroll 9.0 PeopleBook
Understanding Definition of Deductions
Understanding Definition of Earnings
Posting and Unposting Festive Advance PaymentsThis section provides an overview of the process of posting and unposting festive advance payments and lists the page that is used to post and unpost festive advance payments.
Understanding the Process of Posting and Unposting Festive Advance Payments
After you have reviewed the festive advance payment amounts in Human Resources, you can post the festive advances to Global Payroll. The Festive Advance Posting process (GPMY_FA_POST AE) enables you to copy the festive advances from the FA Payments table into the Positive Input tables in Global Payroll. You can then nominate the calendar to which the payments are posted. After you have posted the festive advances to Positive Input tables, the status of the festive advance payments is updated to prevent reposting. An unpost option that is included in the Festive Advance Posting process also enables you to delete the posted advances from the Positive Input tables, provided that the pay has not already been finalized.
Note. Only calendars that have not already been finalized are allowed. If the calendar is already calculated, iterative triggers are created.
Page Used to Post and Unpost Festive Advance Payments
|
Page Name |
Object Name |
Navigation |
Usage |
|
GPMY_RC_FA_POST |
Global Payroll & Absence Mgmt, Absence and Payroll Processing, Prepare Payroll, Post/Unpost Festive Advncs MYS, Post/Unpost FA |
Run the Festive Advance Posting/Unposting process. When the processing type is Post and the status is Approved, the Festive Advance Posting process (GPMY_FA_POST AE) enables you to copy the festive advances from the FA_PAYMENT table into the Positive Input tables in Global Payroll. If the calendar is open and a trigger doesn't already exist, an iterative trigger row (GP_ITER_TRGR) is created and the FA_PAYMENT row status is updated to Posted. When the processing type is Unpost and the status is Posted, the unposting process enables you to change the row status of the FA_PAYMENT table to Approved. |
Paying Festive Advance Payments in Global PayrollFor you to pay the festive advances using Global Payroll, earnings elements are provided for each of the festive advance holiday types (Chinese New Year, Christmas, Deepavali, and Hari Raya). The value of the earnings all come from positive input. You specify the earnings elements to use for payment of the festive advances on the Festive Advance Pay Program page in Human Resources. To ensure that you select appropriate earnings on this page, the system enables you to select only earnings with the category of FA (festive advance). All the elements created use this category. Separate earnings are provided for paying advances for each of the festive advance types, and they are all set up identically.
Each of the festive advances (earnings) use the FAD FM ADVANCE post-processing formula. Whenever an advance is paid, the formula adjusts the advance accumulator so that it contains only the latest advance amount that was paid to the employee. The current value of the accumulator FAD AC ADV AMT is moved to variable FAD VR ADV CLR, which subtracts from the accumulator. This effectively erases its current value.
The following festive advance earnings add to the FAD AC ADV AMT accumulator:
CNY ER ADV (Chinese New Year advances).
DEEPA ER ADV (Deepavali advances).
XMAS ER ADV (Christmas advances).
HARIRAYA ADV (Hari Raya advances).
See Also
PeopleSoft Enterprise Human Resources 9.0 PeopleBook: Administer Workforce
PeopleSoft Enterprise Human Resources 9.0 PeopleBook: Administer Festive Advance
PeopleSoft Enterprise Global Payroll 9.0 PeopleBook
Understanding Definition of Deductions
Understanding Definition of Earnings