Using Oracle HRMS, you can set up payrolls to pay all your employees accurately and at the correct time.
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.
To enable you to set up payrolls correctly, you need to understand these key concepts:
Consolidation sets, Oracle HRMS Payroll Processing Management Guide
Assignment sets, Oracle HRMS Payroll Processing Management Guide
Element sets and distribution sets, Oracle HRMS Compensation and Benefits Management Guide
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.
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.
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.
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.
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 Statement of Earnings (SOE) displays details of earnings, deductions and other payroll-related information for an employee assignment. Dutch users must perform additional configuration to enable Netherlands-specific information to appear on the statement.
Note: You must use a responsibility with the Data Group Application set to Oracle Payroll to display the SOE. You check the Data Group Application is set to Oracle Payroll using the system administrator responsibility.
Elements Regions
| Element Set Name | Dutch SOE Earnings |
| Assigned Classifications | Earnings |
| Net Earnings | |
| Retro Earnings |
You must enter the element set Dutch SOE Earnings, in the Elements 1 segment of the SOE Information parameters window, assigned to the Organization Classification - Business Group, for the business group you are using. By entering the Dutch SOE Earnings set in the correct segment, you ensure elements with the above classification appear in the Earnings region of the SOE.
| Element Set Name | Dutch SOE Imputed Earnings |
| Assigned Classifications | Imputed Earnings |
| Retro Imputed Earnings |
You must enter the element set Dutch SOE Imputed Earnings, in the Elements 3 segment of the SOE Information parameters window, assigned to the Organization Classification - Business Group, for the business group you are using. By entering the Dutch SOE Imputed Earnings set in the correct segment, you ensure elements with the above classification appear in the Imputed Earnings region of the SOE.
| Element Set Name | Dutch SOE Deductions |
| Assigned Classifications | Pre-Tax Deductions |
| Pre-SI and Pre-Tax Deductions | |
| Net Employee SI | |
| Employee SI | |
| Employee Taxes | |
| Voluntary Deductions | |
| Involuntary Deductions | |
| Retro Employee Deductions |
You must enter the element set Dutch SOE Deductions, in the Elements 2 segment of the SOE Information parameters window, assigned to the Organization Classification - Business Group, for the business group you are using. By entering the Dutch SOE Deductions set in the correct segment, you ensure elements with the above classification appear in the Deductions region of the SOE.
For further information about entering SOE information. See: Entering Statement of Earnings Information
Balances Region
Period to Date Region
You must enter the balance attribute Dutch SOE PTD Balances, in the Balances 1 segment of the SOE Information parameters window, assigned to the Organization Classification - Business Group, for the business group you are using. By entering the Dutch SOE PTD balance attribute in the correct segment, you ensure the relevant balances appear in the Balances region of the SOE.
Year to Date Region
You must enter the balance attribute Dutch SOE YTD Balances, in the Balances 2 segment of the SOE Information parameters window, assigned to the Organization Classification - Business Group, for the business group you are using. By entering the Dutch SOE YTD balance attribute in the correct segment, you ensure the relevant balances appear in the Balances region of the SOE.
It is your responsibility to enter the display name of each defined balance, if required, and to indicate the order the balances appear in the SOE. The default name, is the actual balance name.
For further information. See: Entering Statement of Earnings Detail Information
For setup steps to integrate Cash Management with Oracle Payroll, see the Oracle Cash Management User Guide.
Additional Steps to reconcile EFT payments for the Netherlands legislation:
Oracle HRMS provides a reconciliation function, pay_nl_payfile.f_get_payfile_recon_data, for NL EFT Payments (NL Direct Deposit EUR). This function is predefined in the RECONCILIATION_FUNCTION column of the PAY_PAYMENT TYPES table. This function retrieves your Unique Identifier for the bank statements.
However, because the format of bank statements varies for different banks, Oracle HRMS allows you to specify your own Unique Identifier.
To use the Unique Identifier provided by Oracle HRMS, use the Application Developer responsibility and navigate to the Common window under Lookups. Add the following data to the lookup PAYMENT_TRX_CONC_IDENTS:
Code: NL DIRECT DEPOSIT EUR
Meaning: Acc Num, Batch Desc
Enabled: Y
To specify your own Unique Identifier:
Add the following data to the lookup PAYMENT_TRX_CONC_IDENTS
Code: NL DIRECT DEPOSIT EUR
Meaning: <Your Unique Identifier>
Enabled: Y
Create your reconciliation function. For details on how to create a reconciliation function, refer to Creating a Reconciliation Function on My Oracle Support, with the note ID 949409.1
use the HRMS Manager responsibility and navigate to the Table Values window under Other Definitions. Add this function in the user table NL_EFT_RECON_FUNC.