Payrolls Overview

Using Oracle HRMS, you can set up payrolls to pay all your employees accurately and at the correct time.

Payrolls in Oracle HRMS

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 making an assignment to the payroll.

You can also assign employees to other employee groups: for example, groups to indicate membership of a union or employment based sports club.

Key Concepts

To enable you to set up payrolls correctly, you need to understand these key concepts:

Reporting on Payrolls

See Reports and Processes in Oracle HRMS, Oracle HRMS Configuring, Reporting, and System Administration Guide


You can use Oracle Payroll to define a payroll, or range or payrolls that best suit your organizational needs.

Can you pay an employee with several assignments a single payment?

Yes, Oracle Payroll enables you to pay a single payment to an employee with several assignments within your organization. You enable the payment by selecting the Multiple Assignment check box on the Define Payroll window.

Can you run payroll processes and reports multilingually?

Payroll processes and reports are always submitted and always run in the local language only. This means that US and UK payroll reports can only be run in English. Canadian reports can be run in English or Canadian French.

How do you synchronise a payslip with the official payment date?

Use the payslip offset on the Define Payroll window to specify the number of days between the completion of your payroll processes and the availability of employee payslips.

Payroll Definition

Consolidation Sets

Consolidation sets are the means by which you label payroll runs for processing. This enables you to process the results from more than one payroll in a single action. You need only produce one tape per payment method for several payrolls, one set of reports and one set of costing for the whole set.

You can follow this procedure when scheduling additional runs. These are the runs you make in addition to your regular payroll runs (such as, to pay leavers). You can decide whether to consolidate an additional run with the regular run or switch it to a special set.

Use consolidation sets to label assignment sets when you use these for payroll processing. The same choices apply to assignment sets as to payrolls. You can accept the default consolidation set or select a new one when you set the run parameters in the Submit Requests window. You can also change the consolidation set after the run in the Update Payroll Run window.

Changes to a Consolidation Set

Consolidation sets also facilitate the selective post-run processing of different payrolls.

After processing three payrolls in one consolidation set, you may want to select just one for immediate post-run processing. To do this, transfer the one you want to process to a new consolidation set.

You may also want to retry a payroll while continuing with prepayments for other payrolls whose status is Complete. This too would require a change of consolidation set for the first payroll.

Exchange Rates

You can maintain daily exchange rates for use in foreign currency conversion, and you can also specify a date range for a specific rate. You maintain daily rates in Oracle General Ledger.

See: Entering Daily Rates, Oracle General Ledger User's Guide

You can associate a daily rate with a conversion rate type by using predefined rate types such as Spot and Corporate. This means that the conversion rate associated with the rate type is automatically used whenever you perform foreign currency conversions. Some rate types such as Spot and Corporate are predefined. You can also use Oracle General Ledger to define additional rate types of your own.

See: Defining Conversion Rate Types, Oracle General Ledger User's Guide

When you create a business group, the Corporate currency type is predefined for HRMS Intelligence (BIS) and Core HRMS (HRMS Reporting and Payroll Processes). However, you can modify HRMS User Tables so that the default value of Corporate can be overridden for each of the following:

See Selecting Exchange Rate Types for a Business Group

Assignment Sets

There are three uses of assignment sets in Oracle HRMS:

There are three ways to define the set:

Further Payroll Information Window

When defining a payroll, the Further Payroll Information window contains additional information for your payroll.

See: Defining a Payroll

You can specify the following general payroll criteria:

Configuring the Record of Employment

When setting up your Record of Employment (ROE) report, you must define the ROE contacts for each payroll in the Further Payroll Information window.

The ROE contacts are defined for each payroll in the payroll further information flexfield. The ROE Contact Person and Telephone fields are mandatory for ROE Interface processing.

See: Running the Record of Employment

You can specify the following ROE report parameters:

Selecting Exchange Rate Types for a Business Group

When you create a Business Group for BIS, HRMS Reporting or Payroll Processes the exchange rate type is predefined as Corporate. This is effective from the effective date of the Business Group.

However, you can set a different currency type for each Business Group. For example, you can select:

You can define a different exchange rate type in the Table Values window.

To select an exchange rate type for a Business Group

  1. Query the EXCHANGE_RATE_TYPES table.

  2. In the Exact field, select BIS, HRMS, or PAY from the list of values.

  3. Enter the new value for the exchange rate type. The value will usually be Corporate (the default) or Spot, but you may also need to select other predefined GL Exchange Rate Types.

  4. Change the Effective Date for this rate type, or accept the default.

    For details of available rate types, see Defining Conversion Rate Types, Oracle General Ledger User's Guide.

Maintaining Assignment and Consolidation Sets

Defining Consolidation Sets

You must always select a consolidation set before starting a payroll run. This is because the consolidation set provides essential labelling for each payroll run. This applies even if you are only processing one payroll or one assignment set.

When you have defined a consolidation set, it is then available for selection when you start a payroll run.

You define consolidation sets in the Consolidation Sets window.

To define a consolidation set

  1. Enter the name of a new consolidation set and save.

To delete a consolidation set

  1. Query the consolidation set.

  2. Choose Edit, Delete Record.

    You can only delete a consolidation set if it is not the default set for a payroll and if it is not associated with any payroll processes.

Changing Consolidation Sets

You change consolidation sets for payrolls in the Update Payroll Run window.

Note: Changes you make in this window are for the selected payroll processes only. Default consolidation set and pay advice information continue to apply to subsequent runs.

To change the consolidation set for a payroll

  1. Query the payroll whose consolidation set you want to change.

    Tip: Optionally, select the period for which you wish to change the consolidation set by providing a Period From date and a Period To date. If you do not specify a period then the update action will apply to all payroll periods for this payroll

    Payroll run information for the payroll displays in reverse order from the last completed run. The Set region displays whether the run was for an element set and/or assignment set.

    Note: You can update consolidation set and pay advice information in this window regardless of the status displayed for the payroll run.

  2. Enter a new consolidation set.

  3. Update pay advice date and message information if required.

    The pay advice date and message fields are for information only.

Defining an Assignment Set Using Formula Criteria

Use the Assignment Set window to define your set.

To define an assignment set using criteria for a formula

  1. Enter a unique name for the set.

  2. Do one of the following:

    • If you are defining an assignment set for payroll processing, select a payroll. You cannot process an assignment set drawn from more than one payroll.

    • If you are defining an assignment set for other purposes, selecting a payroll is optional. If you select a payroll, the formula generated from your selection criteria will select assignments from this payroll only. If you do not select a payroll, the formula will select assignments from the whole business group.

  3. Save the new set and click Criteria.

  4. In the Assignment Criteria window, enter one criterion in each row, and join the criteria with AND or OR in the Condition field.

    Field details are:

    Field Description
    No. The sequence number of each condition in your rule. If you use sequence numbers that are multiples of 10, it will be easier to insert new conditions later.
    Condition Leave the first row blank. Enter AND or OR for second and subsequent rows.
    Database Item Select database items as variables for your definition. All database items are prefixed by an ampersand [&].
    Operator Select operators to determine relationships between database items or values. See the following table for details
    Value/Database Item Select database items for the second variable. Alternatively, you can enter a fixed value of the same type as the database item.

    Operator details are:

    Operator Symbols Meaning
    Equals = Condition is true if both expressions have exactly the same value. For text, the case of the expression must be the same.
    For example: "Smith" is not equal to "SMITH".
    Not Equal != Condition is true if the result of the first expression does NOT have the same value as the result of the second expression.
    Greater Than > Condition is true if the first expression is alphabetically after, is numerically greater than, or is a later date than the second expression.
    Less Than < Condition is true if the first expression is alphabetically before, is numerically lesser, or is an earlier date than the second expression.
    Greater Than or Equal To >= Condition is true if either the greater than OR the equal to operator returns a true result.
    Less Than or Equal To <= Condition is true if either the less than OR the equal to operator returns a true result.

    For example: The following is a definition for an assignment set of employees with salaries between 16,000 and 24,000:

    No. Condition Database Item Operator Value/ Database Item
  5. Save your criteria, and click Generate to generate the formula.

    You can view and edit the formula in the Formula window. Its name is the same as the assignment set name.

  6. If you want to include or exclude individual assignments from the set defined by your criteria, choose the Amendment button. Select the assignments you want to include or exclude from the set.

    Note: The list of assignments you see in this window is either all the assignments in the business group or, if you selected a payroll, all the assignments to that payroll. It does not show the assignments matching your criteria since these are identified dynamically each time the formula runs.

  7. Save the set.

Defining an Assignment Set by Including or Excluding Assignments

Use the Assignment Set window to define your set.

To define a set by including or excluding assignments

  1. Enter a unique name for the set.

  2. If you are defining a set for payroll processing, select a Payroll.

  3. Save the new set.

  4. Click Amendment.

  5. Do one of the following:

    • If you want to create a small set of assignments, select Include in the Inc/Exc field and select all the assignments for the set.

    • If you want to start from the full set of assignments for the payroll or Business Group, select Exclude in the Inc/Exc field and select assignments to remove from the set.

    Do not create a mixture of Include and Exclude rows if you have not entered criteria and generated a formula.

  6. Save your set.

Defining a Payroll

Use the Payroll window to define a payroll, including its calendar and valid payment methods.

To define a new payroll

  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.

  2. Enter the payroll's name and select its period type from the list.

  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.

    Note: Be aware that some processes require the calendar to extend into the future. For example, the PTO Carry Over process requires payroll periods extending to the end of the new accrual term.

    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. You can also set the Payslip offset to determine when employees can view payslip information.

    • The Check Date, sometimes called Pay Date, is the date of constructive receipt of pay, on which paychecks become negotiable.

    • The Scheduled Run Date is the date scheduled for the Regular run of this payroll each period.

    • The Cut Off date, included for your reference, is the final date for entering or changing payroll information before a run.

    • A payslip offset, reckoned from the completion date for your payroll processes is always a positive number to enable you to prevent employees from viewing payslips before the official payment date. For example, if the payroll processes complete on 15th May, and employees do not receive payment until 20th May, you can enter an offset of 5 to align the payslip date to the payment date.

    These offsets are the defaults for the calendar. You can manually make date changes in the calendar (such as when an offset date falls on a weekend or holiday, by choosing Period Dates).

  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.

  7. In the Costing region, you can enter information about the ledger and suspense account holding costing information for this payroll.

    The information you enter here depends on the setup of your Cost Allocation key flexfield.

    See: Setup of the Cost Allocation Key Flexfield, Oracle HRMS Enterprise and Workforce Management Guide

  8. Check the Negative Payment Allowed check box if you want the PrePayments process to include negative payments. If you leave the box unchecked, the PrePayments process ignores negative payments.

  9. Check the Multiple Assignment check box if you want an employee to receive a single payment, for multiple assignments carried out within your organization. However, if a PrePayments process, which runs prior to your effective processing date, already exists you cannot go back and change the Multiple Assignment check box. This box is only visible if the functionality is enabled for your localization.

    Note: If you check the Multiple Assignment check box, make sure it remains checked throughout your payroll processing. Oracle Payroll reports in error if some of your payroll processes support multiple assignment processing and others do not.

  10. If you are an Oracle Payroll user, enter the Statutory Information field to open the Statutory Information window.

    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.

  11. Save your work.

  12. Choose the Period Dates button to view the calendar generated for your payroll. In the Period Dates window:

    • 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.

    Important: 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.

  13. Choose the Valid Payment Methods button to add valid payment methods for this payroll.

    In the Valid Payment Methods window, the default payment method for the payroll appears automatically. You can add other methods. First set your effective date to the date you want the method to become valid.

    Note: An employee assigned to this payroll can have any number of personal payment methods chosen from those you enter here for the payroll.

    See: Entering Payment Methods for an Employee Assignment in Oracle HRMS Workforce, Sourcing, Deployment, and Talent Management Guide

Deleting Payrolls

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.

To delete a payroll

  1. Remove any element links or employee assignments to the payroll.

  2. Query the payroll in the Payroll window, choose Delete Record and Save.

Setting Up Payroll Contact Information

  1. Use the Information Types Security form to add the Payroll Contact Extra Information Type (EIT) to your Responsibility.

    See: Responsibilities, Oracle HRMS Configuring, Reporting, and System Administration Guide

  2. Write a formula to specify your criteria for allocating payroll contacts to employees.

    See: Sample Formula for Payroll Contact, Oracle HRMS FastFormula User Guide

  3. Run the Allocate Payroll Contact concurrent program. You supply this program with date on which the contact becomes effective, and a formula containing the allocation rules. The program runs as a batch process on all assignments in the business group.

    See Allocating Payroll Contacts

Allocating Payroll Contacts

Use the Allocate Payroll Contact concurrent program to generate payroll contact information for your employees. Your enterprise can store multiple methods of allocating a payroll contact. For example, payroll contacts can derive from:

You store these separate allocation criteria in separate formulas, and then use the Allocate Payroll Contact concurrent program to select the formula that contains your preferred criteria.

To allocate payroll contacts

  1. Enter the effective date. The date that you supply determines which assignments receive a payroll contact. For example, if you enter 18-MAY-2005 the allocation applies for all assignments with this effective date, provided that they meet the criteria that your formula specifies..

  2. Select the formula that contains your allocation criteria. You can select any formula of the Payroll Contact type, and these are the only formula types that appear in the list of values.

  3. Click OK.

    Alternatively, you can allocate a payroll contact by navigating to the Extra Assignment Information window, selecting the Payroll Contact information type, and modifying the payroll contact details in the Details descriptive flexfield.

Adjusting a Balance

Adjusting a Balance

Balance adjustments can be made to any user balance and to assignment level predefined balances. You can make adjustments to balances of any unit type, and when you adjust a balance there is no requirement for you to carry out further processing actions. However, Oracle Payroll processes the results of money balance adjustments in such a way that you can easily pay the value of an adjustment to an employee if you require.

When you save your adjustment, it processes like a payroll run with just one entry, and the value you enter becomes a processed run result. When you select a consolidation set for the adjustment, the system labels the run result for prepayments processing, in the same way that it labels the results of payroll runs and QuickPay runs.

You adjust balances in the Adjust Balance window.

To adjust a balance

  1. Query the assignment for which you want to adjust the balance.

  2. Set the effective date to when you want to adjust the balance.

    The window displays your current effective date. If the assignment is to a payroll, it also displays the corresponding payroll processing period.

  3. Select the element whose pay or input values you want to change, and update the entry values as you require.

  4. Select a consolidation set to control further post-run processing.

    The default consolidation set displays automatically but you can select another set. This is a required field even for balance adjustments that do not require further post-run processing.

  5. Check the Costed check box and select the Costing field if you want to cost the balance adjustment. This enables you to enter costing details by using the Cost Allocation key flexfield.

  6. Save your changes.

    Oracle Payroll applies the adjustment by creating a processed run item equivalent to the adjustment value you entered. The option buttons display the progress of the adjustment's processing.

    Note: If the transaction finally shows Error, check that the units of measure for the entry values are correct. If they are, consult your system administrator.