Using Oracle HRMS you can define payment methods for your enterprise and define any rules for validating or processing the distribution of pay.
You provide for payment and distribution by defining payment methods for your enterprise and then specifying which of these organizational payment methods are valid for the payrolls that you create. This enables you to set up a flexible pattern of payment in which you can pay individual employees by a single payment method, or by a combination of valid payment methods.
To enable you to set up payment and distributions correctly, you need to understand these key concepts:
See: Reports and Processes in Oracle HRMS, Oracle HRMS Configuring, Reporting, and System Administration Guide
You can use Oracle Payroll to calculate the payments and distributions for all your employees
Yes. Oracle Payroll is fully integrated with Oracle Cash Management. This enables you to use Oracle Cash Management to verify that payments have been cashed. Reconciliation can be applied to payroll checks/cheques and third party checks/cheques. You can identify which checks/cheques have been cleared and the date on which they were cleared. You can also view a reconciliation report which shows if voided checks/cheques appear to have been cashed.
Yes--you can set up different pay frequencies, for example weekly or monthly, so that you can pay different sets of employees at different intervals. Each payroll can only have a single pay frequency and you must set up at least one payroll for each pay frequency that you define.
Multiple payrolls in a Business Group
Note: Semi-monthly is not a valid frequency for UK payroll users.
You can assign people to any work structure such as an employment category or a particular location. You can also define a special grouping for your organization. For example, you can create a group to indicate membership of a union.
Yes. If the Multiple Assignment Prepayments has been enabled for your localization, you will see the Multiple Assignment check box on the Payroll window. The process is activated by selecting the Multiple Assignment check box.
You can define a payroll to include different types of payment method - for example, payment by bank transfer, payment by check/cheque, and so on. When you process the payroll you can then pay the set of employees for that payroll in any of the following ways:
All employees receive payment by a single default payment method for their payroll.
Employees receive payment by a combination of the payment methods that you have defined for their payroll.
Individual employees receive payment that can be distributed between the defined payment methods in proportions different from those applying to other employees belonging to the same payroll.
Yes, you can model your payslip, if the Payslip Modeler functionality is enabled for your localization. Please contact your system administrator to check if it is available for your localization.
You can define as many payment methods as you require for your enterprise. When you create a payroll, you can select which of these methods are valid for employees assigned to that payroll. You select one method as the default method for the payroll. To choose the payment methods for an individual employee, use the Personal Payment Method window. If you do not enter any personal payment methods, the employee is paid by the default method for the payroll.
Any payment method that you define must belong to one of the payment method types that your enterprise supports. The most common payment method types are:
Direct Deposit
Check/Cheque
Cash
Your particular enterprise may support a different range of types. Additionally, there can be local variations within each type. For example, the direct deposit type is NACHA in the U.S., BACS in the U.K. and BECS in Australia.
However, in all enterprises you can define multiple payment methods for the same payment method type.
You can also define payment methods for third party payments, such as court-ordered wage attachments. Third party payments are always made by cheque/check, so methods for these payments must have the type Cheque (Check).
A valid payment method is a payment method that:
Belongs to one of the payment method types approved in your enterprise
For example, payments by cash are not allowed in some enterprises.
Is an accepted local variation for your enterprise
For example, U.S. direct deposit payments can be made only by NACHA transfer and not by BACS
When you define a payment method, always include the required information for the payment method type:
Payment Method Type | Required Information |
---|---|
Check/Cheque | Source bank account name and number. The source account is the account from which your enterprise makes the payment. The payee account details are only known to the payee. You do not record them in Oracle Payroll. |
Direct Deposit | Source and destination account details. The destination account is the payee account. Because payments transfer directly to a named account, Oracle Payroll can make direct deposits only if you supply source and destination account details. |
Cash | Coinage analysis. If your enterprise makes cash payments, you use the coinage analysis to specify the denominations of notes and coins in which employees receive payment. |
Each employee must have at least one valid payment method, but you can also use multiple payment methods for an individual employee.
When you pay employees from separate source accounts, each source account must have a separate payment method. You cannot share a payment method across several different source bank accounts. However, you can create multiple payment methods for the same source bank account.
Observe these guidelines when defining your payment methods:
Each payroll must have at least one valid payment method.
Each payroll must have a default payment method.
Each employee must have at least one valid payment method.
Each source account must have at least one valid payment method.
Your sequence for defining payment methods and attaching them to a payroll is:
Define your organizational payment methods.
Link your organizational payment methods to a payroll.
See: Defining a Payroll, Oracle HRMS Payroll Processing Management Guide
Oracle Cash Management manages and controls the enterprise cash cycle. The Cash Management auto reconciliation matches Oracle Payroll against bank statement lines if the transaction meets the following criteria:
The Oracle Payroll payment number matches the statement line payment number.
The Oracle Payroll payment amount matches the statement line payment amount.
Cash Management accesses a view of payments generated by Oracle Payroll and compares it against the information on the bank statement. This process generates error messages on mismatched transactions.
Each time a new payment method is created, the bank details transfer to Oracle Accounts Payable. When defining a payment method, you must enter the GL Cash Account field to work with Cash Management.
Important: Because payment method details are passed to Accounts Payable from Payroll, it is important to ensure that you are entering this information correctly. If you inadvertently enter incorrect details, you could end up with reconciliation issues later.
Cash Management is available only for the Payroll payment methods of checks/cheques and electronic fund transfers (such as NACHA in the U.S, Direct Deposit in India).
Important: If you want to use Cash Management fully, you must install Oracle Accounts Payable and Oracle Accounts Receivable due to the interdependency of the products. All accounting functions take place in Accounts Payable and Accounts Receivable, and Cash Management provides the engine for reconciliation and forecast.
The payslip modeler enables employees and payroll administrators to model a paycheck/payslip by running a mock payroll run.
Employees can use this feature to make decisions regarding various benefit options and savings using the estimates. They can check their estimated take-home pay based on an upcoming bonus or tax refunds.
Payroll administrators can use this feature to answer employee queries or to perform what-if analysis.
The terms Payslip Modeler or Paycheck Modeler refer to the same functionality. The application displays these terms depending on your localization.
The Payslip Modeler is not available by default for your localization. Contact your system administrator to check if it is available for your localization.
Related Topics
For more information about the payslip modeler for the United Kingdom, see the Oracle Self-Service Human Resources Deploy Self-Service Capability Guide, Payslip Modeling (UK).
Use the Organizational Payment Method window to define payment methods for your enterprise.
From this window, you:
Supply the name and starting date of your payment method.
Enter the details of the source bank account from which your enterprise makes the payment.
Specify the General Ledger (GL) accounts that hold reconciliation and error details for the payment method.
Handle costing for the payment method. For example, you can specify whether to transfer the costs to GL and whether costing applies to cleared payments only, uncleared payments only, or a combination of cleared and uncleared payments.
Confirm that your source bank account in Oracle Payroll is the same bank account that Oracle Cash Management uses to clear your payments. This confirmation assures you that you are operating with a single consistent bank account rather than with duplicate accounts that introduce accounting errors.
To define a payment method
Supply a name and start date for your payment method
Set your effective date so that it reflects the date when you want to begin using this payment method.
Enter a name for the payment method, and select the payment method type.
For a third-party payment method, always select the type Check/Cheque. The default currency for your business group appears automatically.
If an alternative currency exists for your payment method, select it.
If your payment method controls payments to a third party such as a benefits carrier or garnishment receiver, check the Third Party Payment box.
Enter the source bank details for your payment method
Navigate to the Source Bank tab. The Country for your source bank account appears automatically.
Enter the Bank Details field to open the Bank Details window. Enter information about the account from which your enterprise intends to make payments.
If you are using Cash Management, include the following information:
Account Name
Account Type
Account Number
Bank Name: If this already exists, enter the name exactly as it appears in Accounts Payable.
Bank Branch: If this already exists, enter the name exactly as it appears in Accounts Payable.
Italy Users: You can enter the Bank Name, Bank Location, Account Number, and Account Name. The IBAN Account displays by default.
Ensure that you enter any additional bank details that are specific to your enterprise. For example, bank details for U.S. payment methods always require a transit code. The transit code, or transit routing number is the nine-digit number that identifies the financial institution. If the transit code is incorrect, the funds will not be posted to the account.
South Africa Users: Enter the account holder's name and indicate whether the account holder relationship is joint, own, or third party.
Belgium, Denmark, Finland, France, Germany, Hungary, Ireland, the Netherlands, Norway, Poland, Russia, Spain, and Sweden users: Enter the Bank Identifier Code (BIC) and International Bank Account Number (IBAN) in the Bank Identifier Code and the IBAN Number fields, respectively. Note that you must enter at least one of the account numbers, that is, either the International Bank Account Number (IBAN) or the Account Number. If you enter the Account Number, then the Bank Code and Branch Code fields are mandatory.
Warning: Always review the account setup for Oracle Accounts Payable before you define the account in Oracle Payroll. The details for your Payroll account must exactly match the account details in Accounts Payable. Otherwise, Accounts Payable creates an extra account with marginally different details. This duplicate account introduces errors when you reconcile payments between Payroll and Accounts Payable.
Specify what type of payments to cost for this payment method
Navigate to the Costing tab. Each check box indicates a particular type of payment. Check the boxes for each type of payment that you want to cost. When you subsequently run the Costing of Payment process, it costs each type of payment as you have indicated. The entries that you make for an individual check box can imply automatic checking of related boxes. Your choices are:
Cost Payment: Check this box to specify that you want to cost only uncleared payments for this payment method.
Cost Cleared Payment: Check this box to specify that you want to cost only cleared payments for this payment method. If you check this box, the Cost Payment box is also checked by default.
Cost Cleared Voided Payment only: Check this box to specify that you want to cost any voided payments that have also been cleared by Oracle Cash Management. If you check this box, the Cost Payment and Cost Cleared Payment boxes are also checked by default.
Exclude External/Manual Payment: Check this box to exclude any external/manual payments from costing. This exclusion is useful if you are using this payment method as a dummy payment method to cancel a previous payment, or if you are making a payment by cash. If you check this box, the Cost Payment box is also checked by default.
Transfer to GL: Check this box to specify that costed payments should transfer to General Ledger. If you check this box, the Cost Payment box is also checked by default.
Specify the GL accounts for this payment method
Navigate to the General Ledger tab.
Select Ledger to indicate the ledger to use if you intend to reconcile payments using Oracle Cash Management.
Select the GL Control Account.
Select GL Cash Account to indicate which cash account to use for the reconciliation of payments.
The entry for Description appears automatically by default, depending on what you enter in the GL Cash Account details.
Select the Cash Clearing Account.
Select the Error Account.
When you first specify the GL accounts for a bank account, these then become the default GL accounts for any other payment methods that use the same bank account. The defaults apply for all new payment methods using the bank account. They also apply retrospectively for any existing payment methods that were already using the same account. However, you can override these defaults by entering your preferred GL accounts on the General Ledger tab.
At this point, check that your Payroll setup and Cash Management setup are fully integrated.
Confirm that you can reconcile payments in Cash Management
Navigate to the Cash Management tab. You cannot change the information on this tab, but you can confirm that your GL accounts are correct.
To confirm that Oracle Cash Management is operating with the same source bank account that you are using in Oracle Payroll, view the check box. If the box is checked, then Oracle Cash Management holds the bank account for this payment method, and you can reconcile payments knowing that you are using an identical account in Payroll, and in Cash Management.
However, if the box is not checked, this indicates that Oracle Cash Management does not hold the details for your Payroll account. This may indicate that duplicate accounts exist and you should exercise caution when you reconcile your payments.
Enter further information for the payment method
Enter further information to determine how to process this payment method. Click in the Further Information field to see the range of further information for your enterprise.
You must setup the Demand Draft and Pay Order Payment Types to run the Bank or Post Office Payment process and subsequently pay your employees by Demand Draft and Pay Order.
You must set up the Action Parameter JRE_Library before you begin setting up Demand Draft and Pay Order Payment Types.
See: Maintaining Parameters and Parameter Groups for Payroll Processes
To set up this predefined payment type
In the Name field of the Organization Payment Method window, enter Demand Draft or Pay Order and enter the payment type in the Type field as Demand Draft or Pay Order.
Attach the Demand Draft or Pay Order payment method to your payroll. See:Defining a Payroll
Create a personal payment method and enter the Name as Demand Draft or Pay Order in the Personal Payment Method form.
Run payroll and prepayments.
You must setup the integration of the Cash Management and Oracle Payroll to reconcile payments through direct deposit.
The Cash Management auto reconciliation program matches Oracle Payroll against bank statement lines.
Note: Ensure that you have installed Oracle Cash Management, Oracle Accounts Payable, and Oracle Accounts Receivable due to the interdependency of the products. All accounting functions take place in Accounts Payable and Accounts Receivable, and Cash Management provides the engine for reconciliation and forecast.
To set up Integration of Cash Management and Oracle Payroll
Create Legal Entity and General Ledger. You do this using the Cash Management responsibility.
See: Oracle Cash Management User Guide
Add the Operating Unit to the Organization. Add the General Ledger to the Operating Unit. You do this using the HRMS Manager responsibility.
Use the Cash Management responsibility to create bank, branch, and account. Create a bank transaction code for the bank account.
See: Oracle Cash Management User Guide
Create a payment method of type India Direct Deposit. You do this using the HRMS Manager responsibility.
Add the Bank Account in the Cash Management tab.
Enter the payroll information.
Run Quick Pay/Prepayment/Payslip Archive/Electronic Fund Transfer processes.
See: Running QuickPay
See: Running the PrePayments Process
Use the Cash Management responsibility to upload bank statement.
See: Oracle Cash Management User Guide
Run the AutoReconciliation process.
Note: You can also manually reconcile the payments in cases where auto reconciliation is not possible.
See: Oracle Cash Management User Guide
Run this process to pay employees by Demand Draft or Pay Order. After running this process, employees can view payslips using the Self Service functionality.
You run this process from the Submit Request window.
To run the Bank or Post Office Payment Process
In the name field, select Bank or Post Office Payment.
In the Parameters window, enter appropriate details and enter Payment Type as Demand Draft and Payment Method as Demand Draft. Alternatively, you can enter the Payment Type as Pay Order and enter the Payment Method as Pay Order.
Enter the Report category as Demand Draft or Pay Order and click OK.
Note: You can view the report in PDF format from the Concurrent Manager Output directory.
Oracle Payroll enables you to view an employee's statement of earnings (pay advice) without having to run the Pay Advice report.
You do this using the Statement of Earnings window.
There are various ways to access statement of earnings information. The information displayed may vary depending on whether you have run the PrePayments process or just a payroll run.
The information displayed in the Statement of Earnings window reflects the information in the printed pay advice.
The payroll run generates four types of Statement of Earnings (SOE):
Master Assignment Action SOE for each employee and shows aggregate Year to Date balances
Regular Payroll Run SOE for each employee and shows Period to Date and Year to Date balances
Separate Check SOE only if employee has an element with Separate Check input value set to Yes
Tax Separate Run SOE if employee has an element(s) with any of the following input values:
Separate Check set to Yes
Tax Separately set to Yes
Deduction Processing is set to other then All
Canada only: The Payroll Run SOE displays one "Master Assignment Action" master record and multiple records with second and third layer run types.
If you are processing Multiple Assignment Payments, then the PrePayment Statement of Earnings displays consolidated earnings and deductions information. The header information displayed on the Statement of Earnings is obtained from the primary assignment; however, if this assignment is not processed, then the header information is taken from the first assignment processed in the PrePayment process.
To view the last payroll with PrePayments run against it
Perform one of the following:
Select View | Statement of Earnings.
From the Assignment window, choose Others and select Statement of Earnings.
Choose the Statement of Earnings window in Fastpath.
To view the most recently run QuickPay results
From the Assignment window, choose Others and select QuickPay.
Choose View Results, and select Statement of Earnings from the View Results window.
To view the statement of earnings information without running PrePayments
See Viewing Assignment Process Results for an Assignment or Viewing Assignment Process Results for a Payroll Assignment.
You need to identify any additional information you want to appear on your payslips using payslip balances and elements. Once you have identified the information to archive and display, run your regular payment and archive processes and generate your payslip for printing or viewing online.
To set up your payslip
Select the payslip balances and elements to be included in your payslips.
See: Entering Payslip Information, Oracle HRMS Enterprise and Workforce Management Guide
For UK, Netherlands, and South Africa: Enter the information balances and elements through the following:
See: Identifying Balances for the Payslip, Oracle HRMS Enterprise and Workforce Management Guide and Identifying Elements for the Payslip, Oracle HRMS Enterprise and Workforce Management Guide
For Ireland: Enter the balances and elements information in the SOE Balances and SOE Elements windows.
See: Selecting SOE Balances, Oracle HRMS for Ireland Supplement and Selecting SOE Elements, Oracle HRMS for Ireland Supplement
For online payslips, enter self-service preference information to indicate how you want to view them. You can specify these settings at the organization, location, and person levels.
See: Entering Self-Service Preference Information, Oracle HRMS Enterprise and Workforce Management Guide, Location Extra Information Types, Oracle HRMS Enterprise and Workforce Management Guide, and Person Extra Information Types, Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide
Configure your online payslip to view through Oracle Self-Service.
See: Online Payslip, Oracle Self-Service Human Resources Deploy Self-Service Capability Guide
US, Canada, Mexico, and UAE only: Oracle Payroll uses an RTF template to produce the online payslip through XML Publisher. You can use the default template or create your own.
See: Oracle XML Publisher Administration and Developer's Guide and Oracle XML Publisher Report Designer's Guide.
For Ireland: To include the regular payment date of the payroll period in your online payslip, set the Visible property of the Regular Payment Date field to Yes.
US, Canada, Mexico, and UAE only: Oracle Payroll provides the ability to customize the content of your employee payslips to suit your business needs. Prior to making any changes, however, you should review the default content to best determine what changes you require. See: Payslip Region Information, Oracle HRMS Payroll Processing Management Guide (Mexico)
To change balances or include additional balances on the payslip:
From the Total Compensation menu, select Basic and then Balance.
Query for the element whose balance you want to add, and click Attribute.
Click on a new row under Attribute, and choose the attribute you want to display from the list of values. This represents where the current balance will appear on the payslip.
Choose a dimension from the list of values.
To delete an entry, select the row and click Delete.
Save your changes.
Note: These changes do not take effect on the payslip until you rerun the Payroll Archiver Process for the affected payroll period.
Generating the Payslip
You must have completed the payroll runs, prepayments, and payment processes prior to generating the payslip.
Run the archive process to gather the latest payroll information.
You can view the payslip online through Self-Service.
Print your payslips in the usual way. Users in the Netherlands and China, run the payslip report to produce a formatted report ready for printing and sending out to your employees.
See: Printing the Payslip
You run the payslip archive process to extract and gather relevant information to appear on your employees' payslips. The archiver accesses the payslip information for the dates you select and copies the information across to storage archive tables, where it is picked up and converted into a format for printing and distributing to employees or for viewing online through the self service application.
Run this process after each payroll period to enable Self-Service. You must complete the payroll runs, prepayments, and payment processes before you can run the payslip archive process.
Netherlands, US, and Mexico only: If you are producing paper reports, use this process to view your current payslip.
Run the payslip archiver from the Submit Request window.
To run the payslip archiver
Select your country's payslip archive process in the Name field.
Canada, China, and Netherlands: Select the Payslip Archiver.
India: Select the Payroll Reports Archive (India).
Ireland: Select the IE Legislative Reports Generator. See: Running the Legislative Reports Generator, Oracle HRMS for Ireland, Supplement
Mexico: Select the Payroll Archiver. See: Managing the Payroll Archiver, Oracle HRMS Payroll Processing Management Guide (Mexico)
South Africa: See: Pay Advice Generation - Self Service (South Africa), Oracle HRMS Payroll for South Africa, Supplement
UK: See: Payslip Generation Self-Service, Oracle HRMS Payroll Processing Management Guide (UK)
US: See: Managing the Payroll Archive, Oracle HRMS Payroll Processing Management Guide
In the Parameters window, select a payroll name and consolidation set. This selects the employees for whom you want to run the report. When you select a payroll, the default consolidation set is displayed.
Enter the start and end dates for the period of time you want the information extracted. You typically run this process for the same dates you ran your payroll.
India: Select whether you want to mail individual payslip or view consolidated payslips in the Generate Payslip field.
Choose Submit.
After running the Payroll Archiver, you can use the Payroll Actions Not Processed report to see what employees (and corresponding payroll processes) were not archived but did fall within the report's parameters.
Run this report before you run the Pay Advice report. It shows printer alignment details for your sample pay advice.
You run the Pay Advice Alignment report from the Submit Requests window.
To run the Pay Advice Alignment report
In the Name field, select the report name.
Choose the Submit button.
Run this report when you want to see payments totalled by payment method type and organizational payment method for a specified payroll and payroll period. Account details for each organizational payment method are also listed.
You run the report in the Submit Requests window.
To run the Payments Summary Report
In the Name field, select the report name. Then enter the Parameters field to open the Parameters window.
Select the payroll and payroll period for which you want to see the information.
If you want to restrict the information by consolidation set, select the name of the set.
Choose the Submit button.
Run this report to generate pay advice for all employees for a specified payroll and period. This is a sample report which you can customize. You run it after completing the Pre-payments process for a payroll. To check printing alignment before generating pay advice run the Pay Advice Alignment report.
You run the Pay Advice report from the Submit Requests window.
To run the Pay Advice report
In the Name field, select the report name. Then enter the Parameters field to open the Parameters window.
Select the payroll for which you want to generate pay advices.
Enter the period for which you want to generate pay advices and the date on which you want to generate them.
Do one of the following:
If you want to generate pay advices for all employee assignments, leave the Assignment Number field blank.
If you want to generate a single pay advice for an employee assignment, enter the employee assignment number.
Select the sort orders 1 to 6 for employees whose mailing address is set to Office/Blank.
Note: Use the people group flexfields to capture or configure office address details.
Choose the Submit button.
Note: You can also view this report from the Assignment Process Results window, where you select an individual assignment and the process you want to view the report for.
Before you can use the Payslip Modeler, you must ensure to set up the following:
Ensure to set the profile option HR: Enable Payroll Simulation to Yes to use this module. If the profile option is set to No, you cannot use the payslip modeler.
See: User Profiles, Oracle Human Resources Management Systems Configuring, Reporting, and System Administration Guide
You can set the profile option HR: Enable Multiple Assignments for Payroll Simulation to Yes to select the secondary assignment for payslip modeling when there are multiple assignments. If set to No, then you can run the payslip modeler process on the primary assignment only.
See: User Profiles, Oracle Human Resources Management Systems Configuring, Reporting, and System Administration Guide
You can enable or disable the payslip modeler at the Payroll level by specifying Yes in the Enable Simulation field. You cannot run a payroll run and payslip modeling simultaneously. If the Payslip Modeler is enabled, then you can set locking period, number of days prior to and after a specified date for enabling or disabling the payslip modeler. This restricts users from making updates to payroll information while modeling their payslip during a mock payroll run during the specified period.
See: Defining Payroll
If you want to use payslip modeler then you must select the document type as Payslip Modeler, in the Self-Service Preference window at the business group level or the organization level.
See: Entering Self Service Preference Information, Oracle HRMS Enterprise and Workforce Management Guide
If you want to restrict any elements from being processed in the modeler process, create an element set and specify the element set in the modeler Exclusion Element Set in the Self-Service Preference window at the business group level or the organization level.
This skips the elements in the element set from being processed and the elements are not available for users to select while running the payslip modeler process.
See: Entering Self Service Preference Information, Oracle HRMS Enterprise and Workforce Management Guide
Specify the Payroll Simulator Template in the Self Service Preference at the business group level or organization level. If no template is specified, then the application uses the default template to generate the sample payslip simulation template. Users can create their own templates associated with the Data Definition PAY<LEG_CODE>SIMPAYSLIP.
See: Entering Self Service Preference Information, Oracle HRMS Enterprise and Workforce Management Guide
To enable an element to be available for payslip modeling, query the element and select Yes in the Enable Simulation field in the Element Extra Information window. You can enter input values for this element required for simulation in the Element Description window. Only user enterable input values are available for Payslip modeling.
If the Multiple Entries check box is enabled for an element, then you cannot use this element for payslip modeling. Instead, create a copy of the base element, enter input values, attach the appropriate formulas and balances as the base element and then use this element for payslip modeling. Ensure that this new element is not used for payroll run.
It is necessary to create a new element for the corresponding Multiple Entries Allowed element and setup the new element as Yes for Enable Simulation. Ensure to specify the earlier element as Original Element under Simulation Details for the new element. Enter input values, attach the appropriate formulas and balances as the new element. This is to ensure that Simulation ignores the Original element entries in Simulation run and uses only new element entry.
Example to Understand the Restrictions on Multiple Entries Allowed Enabled Elements
The unavailability of Yes for Multiple Entries Allowed enabled elements is an expected behavior of Paycheck Modeling.
For example, consider an employee with an Overtime Element. This element entry is added on the days when employee works overtime. For a month, if employee does overtime for 10 days, then this element entry gets added 10 times. If the employee wants to model a paycheck and view the net take home after working overtime for 10 days or more, then it will not be practical to add 10 entries for 10 days from Paycheck Modeling page. Instead, the employee can add the total overtime hours. Therefore an element which conveys the total overtime hours for the Pay period instead of each day can be used. If there are already some Overtime entries added to the employee in the application for current period, then it is necessary to suppress these entries when the employee tries to model Overtime hours so that Paycheck Modeling/Simulation gives desired results depending on the inputs.
To handle this scenario, the Overtime Element (the elements with Multiple Entries Allowed) is not allowed to be directly enabled for Simulation. Instead it is necessary to create a new element to support Simulation. The element created for simulation can have changes to Input Values validation. If there are any rules or validations on the maximum number of hours that can be entered, say, Overtime entries can accept maximum of 5 hours per day, these can be relaxed in new element to suit the requirement of simulation so that users can add 50 hours for complete month in single entry.
For the new element, it is necessary to specify the existing Overtime element as Original Element under Simulation Details. This will ensure that whenever employee tries to model Overtime hours using new element, any existing Overtime element entries are ignored during Paycheck Modeling/Simulation.
See: Defining Elements, Oracle HRMS Compensation and Benefits Management Guide
Note: There is a restriction for Predefined elements being used for payslip modeling. For predefined elements, if you setup the details for a predefined element in one business group, then these details will be accessible to other business groups. For example, for predefined element Regular Salary element, if you want to enable Input Value A for one Business Group and Input Value B for other Business group, then this is not possible. This limitation occurs for predefined elements applicable to all Localizations. Therefore if there are multiple business groups, then you must define a single structure for the predefined elements.
If there are custom elements, then the custom elements are accessible only for that business group.